Exelon 2014 Annual Report Download - page 223

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
note is secured by the equity interests and assets of the subsidiary. As of December 31, 2014, $34 million was outstanding. The
subsidiary also executed interest rate swaps for an initial notional amount of $29 million in order to convert the variable interest
payments to fixed payments on 75% of the $38 million facility amount, as required by the debt covenants. See Note 12—Derivative
Financial Instruments for additional information regarding interest rate swaps.
Continental Wind. In September 2013, Continental Wind, LLC (Continental Wind), an indirect subsidiary of Exelon and
Generation, completed the issuance and sale of $613 million aggregate principal amount of Continental Wind’s 6.00% senior
secured notes due February 28, 2033 with interest payable semi-annually. Continental Wind owns and operates a portfolio of wind
farms in Idaho, Kansas, Michigan, Oregon, New Mexico and Texas with a total net capacity of 667MW. The net proceeds were
distributed to Generation for its general business purposes. As of December 31, 2014, $592 million was outstanding. In connection
with this nonrecourse project financing, Exelon terminated existing interest rate swaps with a total notional amount of $350 million
during the third quarter of 2013, and realized a total gain of $26 million upon termination. The gain on the interest rate swaps was
recorded within OCI and will reduce the effective interest rate over the life of the debt for Exelon. See Note 12—Derivative Financial
Instruments for additional information on the interest rate swaps.
In addition, Continental Wind entered into a $131 million letter of credit facility and $10 million working capital revolver facility.
Continental Wind has issued letters of credit to satisfy certain of its credit support and security obligations. As of December 31, 2014,
the Continental Wind letter of credit facility had $47 million in letters of credit outstanding related to the project.
ExGen Renewables I. On February 6, 2014, ExGen Renewables I, LLC (EGR), an indirect subsidiary of Exelon and Generation,
borrowed $300 million aggregate principal amount pursuant to a nonrecourse senior secured loan, due February 6, 2021. The
proceeds were distributed to Generation for its general business purposes. The loan bears interest at a variable rate equal to LIBOR
plus 4.25%, subject to a 1% floor with interest payable quarterly. EGR indirectly owns Continental Wind. As of December 31, 2014,
$282 million was outstanding. In addition to the financing, EGR entered into interest rate swaps with an initial notional amount of
$240 million at an interest rate of 2.03% to manage a portion of the interest rate exposure in connection with the financing. See Note
12—Derivative Financial Instruments for additional information regarding interest rate swaps.
ExGen Texas Power. In September 2014, ExGen Texas Power, LLC (EGTP), an indirect subsidiary of Exelon and Generation,
issued $675 million aggregate principal amount of a nonrecourse senior secured term loan, scheduled to mature on September 18,
2021. The net proceeds were distributed to Generation for general business purposes. The term loan bears interest at a variable rate
equal to LIBOR plus 4.75%, subject to a 1% LIBOR floor with interest payable quarterly. As of December 31, 2014, $673 million was
outstanding. As part of the agreement, a revolving credit facility was established for the amount of $20 million available through, and
scheduled to mature on September 18, 2019. In addition to the financing, EGTP entered into interest rate swaps with an initial
notional amount of approximately $505 million at an interest rate of 2.34% to hedge a portion of the interest rate exposure in
connection with this financing, as required by the debt covenants. See Note 12—Derivative Financial Instruments for additional
information regarding interest rate swaps.
14. Income Taxes
Income tax expense (benefit) from continuing operations is comprised of the following components:
For the Year Ended December 31,
2014 2013 2012
Included in operations:
Federal
Current ........................................................................ $121 $ 744 $ 37
Deferred ....................................................................... 576 140 701
Investment tax credit amortization .................................................. (20) (15) (11)
State
Current ........................................................................ 42 181 (25)
Deferred ....................................................................... (53) (6) (75)
Total .......................................................................... $666 $1,044 $627
219