Exelon 2015 Annual Report Download - page 100

Table of Contents
Liquidity
Each of the Registrants annually evaluates its financing plan, dividend practices and credit line sizing, focusing on maintaining its
investment grade ratings while meeting its cash needs to fund capital requirements, retire debt, pay dividends, fund pension and OPEB obligations
and invest in new and existing ventures. A broad spectrum of financing alternatives beyond the core financing options can be used to meet its
needs and fund growth including monetizing assets in the portfolio via project financing, asset sales, and the use of other financing structures
(e.g., joint ventures, minority partners, etc.). The Registrants expect cash flows to be sufficient to meet operating expenses, financing costs and
capital expenditure requirements.
Exelon, Generation, ComEd, PECO and BGE have unsecured syndicated revolving credit facilities with aggregate bank commitments of
$0.5 billion, $5.3 billion, $1.0 billion, $0.6 billion and $0.6 billion, respectively. Generation also has bilateral credit facilities with aggregate
maximum availability of $0.4 billion. See Liquidity and Capital Resources—Credit Matters—Exelon Credit Facilities below.
Exposure to Worldwide Financial Markets. Exelon has exposure to worldwide financial markets including European banks. Disruptions in
the European markets could reduce or restrict the Registrants’ ability to secure sufficient liquidity or secure liquidity at reasonable terms. As of
December 31, 2015, approximately 25%, or $2.1 billion, of the Registrants’ aggregate total commitments were with European banks. The credit
facilities include $8.4 billion in aggregate total commitments of which $6.9 billion was available as of December 31, 2015, due to outstanding
letters of credit. There were no borrowings under the Registrants’ credit facilities as of December 31, 2015. See Note 14—Debt and Credit
Agreements of the Combined Notes to the Consolidated Financial Statements for additional information on the credit facilities.
Tax Matters
See Note 15—Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information.
Environmental Legislative and Regulatory Developments.
Exelon is actively involved in the EPA’s development and implementation of environmental regulations for the electric industry, in pursuit of
its business strategy to provide reliable, clean, affordable and innovative energy products. These efforts have most frequently involved air, water
and waste controls for electric generating units, as set forth in the discussion below. These regulations have a disproportionate adverse impact on
fossil-fuel power plants, requiring significant expenditures of capital and variable operating and maintenance expense, and have resulted in the
retirement of older, marginal facilities. Retirements of coal-fired power plants will continue as additional EPA regulations take effect, and as air
quality standards are updated and further restrict emissions. Due to its low emission generation portfolio, Generation will not be significantly
directly affected by these regulations, representing a competitive advantage relative to electric generators that are more reliant on fossil-fuel
plants. Various bills have been introduced in the U.S. Congress that would prohibit or impede the EPA’s rulemaking efforts, and it is uncertain
whether any of these bills will become law.
Air Quality. In recent years, the EPA has been implementing a series of increasingly stringent regulations under the Clean Air Act applicable
to electric generating units. These regulations have resulted in more stringent emissions limits on fossil-fuel electric generating stations as states
implement their compliance plans.
 The EPA continues to review and update its NAAQS for conventional air pollutants
relating to ground-level ozone and emissions of particulate
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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