Exelon 2014 Annual Report Download - page 280

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
24. Segment Information
Operating segments for each of the Registrants are determined based on information used by the chief operating decision maker(s)
(CODM) in deciding how to evaluate performance and allocate resources at each of the Registrants.
Exelon has nine reportable segments, ComEd, PECO, BGE and Generation’s six power marketing reportable segments consisting
of the Mid-Atlantic, Midwest, New England, New York, ERCOT and all other regions not considered individually significant referred to
collectively as “Other Regions”; including the South, West and Canada. ComEd, PECO and BGE each represent a single reportable
segment; as such, no separate segment information is provided for these Registrants. Exelon’s CODM evaluates the performance of
and allocates resources to ComEd, PECO and BGE based on net income and return on equity.
The CODMs for ComEd, PECO, and BGE evaluate performance and allocate resources for their respective companies based on net
income and return on equity for ComEd, PECO, and BGE each as single integrated businesses.
The foundation of Generation’s six reportable segments is based on the geographic location of its assets, and is largely
representative of the footprints of an ISO / RTO and/or NERC region. Descriptions of each of Generation’s six reportable segments
are as follows:
•Mid-Atlantic represents operations in the eastern half of PJM, which includes Pennsylvania, New Jersey, Maryland, Virginia,
West Virginia, Delaware, the District of Columbia and parts of North Carolina.
•Midwest represents operations in the western half of PJM, which includes portions of Illinois, Indiana, Ohio, Michigan, Kentucky
and Tennessee, and the United States footprint of MISO excluding MISO’s Southern Region, which covers all or most of North
Dakota, South Dakota, Nebraska, Minnesota, Iowa, Wisconsin, the remaining parts of Illinois, Indiana, Michigan and Ohio not
covered by PJM, and parts of Montana, Missouri and Kentucky.
•New England represents the operations within ISO-NE covering the states of Connecticut, Maine, Massachusetts, New
Hampshire, Rhode Island and Vermont.
•New York represents operations within ISO-NY, which covers the state of New York in its entirety.
•ERCOT represents operations within Electric Reliability Council of Texas, covering most of the state of Texas.
•Other Regions not considered individually significant:
•South represents operations in the FRCC, MISO’s Southern Region, and the remaining portions of the SERC not included
within MISO or PJM, which includes all or most of Florida, Arkansas, Louisiana, Mississippi, Alabama, Georgia, Tennessee,
North Carolina, South Carolina and parts of Missouri, Kentucky and Texas. Generation’s South region also includes
operations in the SPP, covering Kansas, Oklahoma, most of Nebraska and parts of New Mexico, Texas, Louisiana, Missouri,
Mississippi and Arkansas.
•West represents operations in the WECC, which includes California ISO, and covers the states of California, Oregon,
Washington, Arizona, Nevada, Utah, Idaho, Colorado, and parts of New Mexico, Wyoming and South Dakota.
•Canada represents operations across the entire country of Canada and includes the AESO, OIESO and the Canadian
portion of MISO.
The CODMs for Exelon and Generation evaluate the performance of Generation’s power marketing activities and allocate resources
based on revenue net of purchased power and fuel expense. Generation believes that revenue net of purchased power and fuel
expense is a useful measurement of operational performance. Revenue net of purchased power and fuel expense is not a
presentation defined under GAAP and may not be comparable to other companies’ presentations or deemed more useful than the
GAAP information provided elsewhere in this report. Generation’s operating revenues include all sales to third parties and sales to its
affiliates, ComEd, PECO and BGE. Purchased power costs include all costs associated with the procurement and supply of
electricity including capacity, energy and ancillary services. Fuel expense includes the fuel costs for Generation’s own generation
and fuel costs associated with tolling agreements. Generation’s other business activities, including retail and wholesale gas,
investments in gas and oil exploration and production activities, proprietary trading, distributed generation, heating, cooling, and
cogeneration facilities, and home improvements, sales of electric and gas appliances, servicing of heating, air conditioning,
plumbing, electrical, and indoor quality systems, and investments in energy-related proprietary technology are not allocated to
regions. Further, Generation’s compensation under the reliability-must-run rate schedule, results of operations from the Brandon
276