Exelon 2014 Annual Report Download - page 86

The changes in Operating and maintenance expense for year ended December 31, 2014, compared to the same period in 2013 and
changes for the year ended December 31, 2013, compared to the same period in 2012, consisted of the following:
Increase
2014 vs. 2013
Increase
2013 vs. 2012
Baseline
Labor, other benefits, contracting and materials (a) ........................................... $56 $48
Pension and non-pension postretirement benefits expense (b) .................................. (85) 3
Storm-related costs ..................................................................... (11) (10)
Uncollectible accounts expense—provision (c) ............................................... 12 (10)
Uncollectible accounts expense—recovery, net (c) ............................................ 29 (48)
Other ................................................................................ 8 20
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Regulatory required programs ............................................................
Energy efficiency and demand response programs ........................................... 52 20
Increase in operating and maintenance expense ............................................. $61 $23
(a) Reflects decreased contracting costs resulting from new projects associated with EIMA for the years ended December 31, 2014 and 2013. See Note 3—Regulatory
Matters of the Combined Notes to Consolidated Financial Statements for additional information regarding EIMA.
(b) Primarily reflects decreased non-pension costs associated with OPEB plan design changes during 2014. See Note 16—Retirement Benefits of the Combined Notes
to the Consolidated Financial Statements for additional information regarding plan changes.
(c) ComEd is allowed to recover from or refund to customers the difference between the utility’s annual uncollectible accounts expense and the amounts collected in
rates annually through a rider mechanism. In 2013, ComEd recorded a net reduction in Operating and maintenance expense related to uncollectible accounts due to
the timing of regulatory cost recovery and customers purchasing electricity from competitive electric generation suppliers as a result of municipal aggregation. An
equal and offsetting reduction has been recognized in Operating revenue for the periods presented.
Depreciation and Amortization Expense
The changes in Depreciation and amortization expense for 2014 compared to 2013 and 2013 compared to 2012, consisted of the
following:
Increase
2014 vs. 2013
Increase
2013 vs. 2012
Depreciation associated with higher plant balances .......................................... $ 46 $ 22
Amortization of storm-related regulatory assets (a) ............................................ — 4
Amortization of MGP regulatory assets (b) ................................................... (18) 27
Amortization of other regulatory assets ..................................................... (3) 6
Other ................................................................................ (7) —
Increase in depreciation and amortization expense ........................................... $ 18 $ 59
(a) Under EIMA, ComEd is required to recover costs associated with significant storms over a five-year period through the amortization of a regulatory asset.
(b) An equal and offsetting amount for the amortization expense related to MGP remediation expenditures is reflected in Operating revenue during the periods presented.
Taxes Other Than Income
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013. Taxes other than income, which can vary period to
period, include municipal and state utility taxes, real estate taxes, and payroll taxes. Taxes other than income remained relatively flat
for the twelve months ended December 31, 2014, compared to the same periods in 2013.
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012. Taxes other than income taxes increased primarily
due to increased Illinois electricity distribution taxes.
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