Exelon 2014 Annual Report Download - page 183

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
See Note 17—Severance for integration-related severance costs incurred during the year ended December 31, 2014.
6. Accounts Receivable
Accounts receivable at December 31, 2014 and 2013 included estimated unbilled revenues, representing an estimate for the unbilled
amount of energy or services provided to customers, and is net of an allowance for uncollectible accounts as follows:
2014
Unbilled customer revenues ............................................................................... $1,381
Allowance for uncollectible accounts (a) ...................................................................... (311)
2013
Unbilled customer revenues ............................................................................... $1,151
Allowance for uncollectible accounts (a) ...................................................................... (272)
(a) Includes the allowance for uncollectible accounts on customer and other accounts receivable.
PECO Installment Plan Receivables. PECO enters into payment agreements with certain delinquent customers, primarily
residential, seeking to restore their service, as required by the PAPUC. Customers with past due balances that meet certain income
criteria are provided the option to enter into an installment payment plan, some of which have terms greater than one year, to repay
past due balances in addition to paying for their ongoing service on a current basis. The receivable balance for these payment
agreement receivables is recorded in accounts receivable for the current portion and other deferred debits and other assets for the
noncurrent portion. The net receivable balance for installment plans with terms greater than one year was $15 million and $19 million
as of December 31, 2014 and 2013, respectively. The allowance for uncollectible accounts reserve methodology and assessment of
the credit quality of the installment plan receivables are consistent with the customer accounts receivable methodology discussed in
Note 1—Significant Accounting Policies. The allowance for uncollectible accounts balance associated with these receivables at
December 31, 2014 of $15 million consists of $1 million, $3 million and $11 million for low risk, medium risk and high risk segments,
respectively. The allowance for uncollectible accounts balance at December 31, 2013 of $18 million consists of $1 million, $4 million
and $13 million for low risk, medium risk and high risk segments, respectively. The balance of the payment agreement is billed to the
customer in equal monthly installments over the term of the agreement. Installment receivables outstanding as of December 31,
2014 and 2013 include balances not yet presented on the customer bill, accounts currently billed and an immaterial amount of past
due receivables. When a customer defaults on its payment agreement, the terms of which are defined by plan type, the entire
balance of the agreement becomes due and the balance is reclassified to current customer accounts receivable and reserved for in
accordance with the methodology discussed in Note 1—Significant Accounting Policies.
7. Property, Plant and Equipment
The following table presents a summary of property, plant and equipment by asset category as of December 31, 2014 and 2013:
Average Service Life
(years) 2014 2013
Asset Category
Electric—transmission and distribution .......................................... 5-90 $30,157 $28,123
Electric—generation ......................................................... 1-56 22,911 20,420
Gas—transportation and distribution ............................................ 5-90 3,505 3,296
Common—electric and gas ................................................... 5-50 1,169 1,101
Nuclear fuel (a) .............................................................. 1-8 5,947 5,196
Construction work in progress ................................................. N/A 2,167 1,890
Other property, plant and equipment (b) .......................................... 5-50 973 1,017
Total property, plant and equipment ........................................ 66,829 61,043
Less: accumulated depreciation (c) .......................................... 14,742 13,713
Property, plant and equipment, net ............................................. $52,087 $47,330
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