Exelon 2015 Annual Report Download - page 139

Table of Contents
Operating and Maintenance Expense
Year Ended
December 31,
Increase
(Decrease)
Year Ended
December 31,
Increase
(Decrease)
2015 2014
2015 vs.
2014 2014 2013
2014 vs.
2013
Operating and maintenance expense—baseline $1,353 $1,214 $ 139 $1,214 $1,205 $ 9
Operating and maintenance expense—regulatory required programs 214 215 (1) 215 163 52
Total operating and maintenance expense $1,567 $1,429 $ 138 $1,429 $1,368 $ 61
(a) Operating and maintenance expense for regulatory required programs are costs for various legislative and/or regulatory programs that are recoverable from customers on a full
and current basis through approved regulated rates. An equal and offsetting amount has been reflected in Operating revenue.
The changes in Operating and maintenance expense for year ended December 31, 2015, compared to the same period in 2014, and for the
year ended December 31, 2014, compared to the same period in 2013, consisted of the following:
Increase
(Decrease)
2015 vs. 2014
Increase
(Decrease)
2014 vs. 2013
Baseline
Labor, other benefits, contracting and materials $ 31 $ 56
Pension and non-pension postretirement benefits expense 19 (85)
Storm-related costs 27 (11)
Uncollectible accounts expense—provision (7) 12
Uncollectible accounts expense—recovery, net 34 29
Other 35 8
139 9
Regulatory required programs
Energy efficiency and demand response programs (1) 52
Increase in operating and maintenance expense $ 138 $ 61
(a) Primarily reflects increased contracting costs related to preventative maintenance and other projects for the year ended December 31, 2015, and increased contracting costs
resulting from new projects associated with EIMA for the year ended December 31, 2014. See Note 3—Regulatory Matters of the Combined Notes to Consolidated Financial
Statements for additional information regarding EIMA.
(b) The increase from 2014 to 2015 primarily reflects the unfavorable impact of lower assumed pension and OPEB discount rates and an increase in the life expectancy assumption
for plan participants, partially offset by cost savings from plan design changes for certain OPEB plans effective April 2014 and forward. The decrease from 2013 to 2014 primarily
reflects the cost savings from plan design changes for certain OPEB plans effective April 2014 and forward. See Note 16—Retirement Benefits of the Exelon 2014 Form 10-K 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 2015 and 2014, ComEd recorded a net increase in Operating and maintenance expense related to uncollectible accounts due to the timing of
regulatory cost recovery. An equal and offsetting amount has been recognized in Operating revenue for the periods presented.
(d) Primarily reflects increased information technology support services from BSC during 2015.
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(a)
(a)
(b)
(c)
(c)
(d)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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