Exelon 2014 Annual Report Download - page 80

The changes in operating and maintenance expense for 2013 compared to 2012, consisted of the following:
Increase
(Decrease)
Plant retirements and divestitures (a) ...................................................................... $(440)
FERC settlement (b) ................................................................................... (195)
Constellation merger and integration costs ................................................................ (107)
Maryland commitments ................................................................................ (35)
Asbestos bodily injury costs (c) ........................................................................... (16)
Nuclear refueling outage costs, including the co-owned Salem plant (d) ......................................... (14)
Corporate allocations (e) ................................................................................ (5)
Labor, other benefits, contracting and materials (f) ........................................................... 160
Impairment and related charges of certain generating assets ................................................. 160
Midwest Generation bankruptcy charges .................................................................. 11
Pension and non-pension postretirement benefits expense ................................................... 5
Other ............................................................................................... (18)
Decrease in operating and maintenance expense ........................................................... $(494)
(a) Reflects the operating and maintenance expense associated with the generating assets retired or divested during 2012.
(b) Reflects costs incurred as part of a March 2012 settlement with the FERC to resolve a dispute related to Constellation’s prior period hedging and risk management
transactions.
(c) Reflects decreased asbestos-related bodily injury expense for 2013 compared to 2012.
(d) Reflects the impact of decreased planned refueling outages during 2013.
(e) The decrease in cost allocations during 2013 primarily reflects merger and energy savings for Exelon’s corporate operations and shared service entities, partially
offset by the impact of an increased share of corporate allocated costs due to the merger.
(f) Includes cost of sales of our other business activities that are not allocated to a region.
Depreciation and Amortization
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013. The increase in depreciation and amortization
expense was primarily due to the inclusion of CENG’s results on a fully consolidated basis beginning April 1, 2014 and an increase
in ongoing capital expenditures.
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012. The increase in depreciation and amortization
expense was primarily a result of higher plant balances due to the addition of Constellation facilities and ongoing capital additions.
Taxes Other Than Income
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013. The increase was primarily due to the inclusion of
CENG’s results on a fully consolidated basis beginning April 1, 2014.
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012. The increase was primarily due to the addition of
Constellation’s financial results in 2012.
Equity in Earnings (Losses) of Unconsolidated Affiliates
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013. The year-over-year change in Equity in earnings
(losses) of unconsolidated affiliates is primarily the result of the consolidation of CENG’s results of operations beginning April 1,
2014, which were previously accounted for under the equity method of accounting.
Gain (Loss) on Sales of Assets
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013. The year-over-year change in Gain (loss) on sales
of assets reflects $411 million of gains recorded on the sale of Generation’s ownership interests in Safe Harbor Water Power
Corporation, Fore River and West Valley generating stations in 2014. Refer to Note 4—Mergers, Acquisitions and Dispositions in the
Combined Notes to Consolidated Financial Statements for additional information.
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