Exelon 2015 Annual Report Download - page 148

Table of Contents
(a) Reflects delivery volumes and revenue from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as
all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.
Results of Operations—BGE
2015 2014
Favorable
(unfavorable)
2015 vs. 2014
variance 2013
Favorable
(unfavorable)
2014 vs. 2013
variance
Operating revenue $3,135 $3,165 $ (30) $3,065 $ 100
Purchased power and fuel expense 1,305 1,417 112 1,421 4
Revenue net of purchased power and fuel expense 1,830 1,748 82 1,644 104
Other operating expenses
Operating and maintenance 683 717 34 634 (83)
Depreciation and amortization 366 371 5 348 (23)
Taxes other than income 224 221 (3) 213 (8)
Total other operating expenses 1,273 1,309 36 1,195 (114)
Gain on sales of assets 1 — 1 — —
Operating income 558 439 119 449 (10)
Other income and (deductions)
Interest expense, net (99) (106) 7 (122) 16
Other, net 18 18 — 17 1
Total other income and (deductions) (81) (88) 7 (105) 17
Income before income taxes 477 351 126 344 7
Income taxes 189 140 (49) 134 (6)
Net income 288 211 77 210 1
Preference stock dividends 13 13 — 13 —
Net income attributable to common shareholder $ 275 $ 198 $ 77 $ 197 $ 1
(a) BGE evaluates its operating performance using the measures of revenue net of purchased power expense for electric sales and revenue net of fuel expense for gas sales. BGE
believes revenue net of purchased power and fuel expense are useful measurements of its performance because they provide information that can be used to evaluate its net
revenue from operations. BGE has included the analysis below as a complement to the financial information provided in accordance with GAAP. However, revenue net of
purchased power and fuel expense figures are not a presentation defined under GAAP and may not be comparable to other companies’ presentations or more useful than the
GAAP information provided elsewhere in this report.
Net Income Attributable to Common Shareholder
 Net income attributable to common shareholder was higher
primarily due to an increase in Revenue net of purchased power and fuel expense as a result of the December 2014 electric and gas distribution
rate order issued by the MDPSC, an increase in transmission formula rate revenues and a reduction in Operating and maintenance expense as a
result of a decrease in bad debt expense and storm costs in the BGE service territory.
 Net income attributable to common shareholder remained
relatively consistent primarily due to an increase in
141
(a)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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