Exelon 2015 Annual Report Download - page 171

Table of Contents
industry. See Note 16—Asset Retirement Obligations of the Combined Notes to Consolidated Financial Statements for further information
regarding the trust funds, the NRC’s minimum funding requirements and related liquidity ramifications.
Shelf Registration Statements. The Registrants have a currently effective combined shelf registration statement unlimited in amount, filed
with the SEC, that will expire in May 2017. The ability of each Registrant to sell securities off the shelf registration statement or to access the
private placement markets will depend on a number of factors at the time of the proposed sale, including other required regulatory approvals, as
applicable, the current financial condition of the Registrant, its securities ratings and market conditions.
Regulatory Authorizations. As of December 31, 2015, ComEd had $442 million available in long-term debt refinancing authority and $353
million available in new money long-term debt financing authority from the ICC. In November 2015, the PAPUC approved PECO’s application for
long-term financing for $2.5 billion, which is effective through December 31, 2018. As of December 31, 2015, PECO had $1.9 billion available in
long-term debt financing authority from the PAPUC. As of December 31, 2015, BGE had $1.4 billion available in long-term financing authority from
MDPSC.
As of December 31, 2015, ComEd, PECO and BGE had short-term financing authority from FERC, which expires on December 31, 2017, of
$2.5 billion, $1.5 billion and $700 million, respectively. Generation currently has blanket financing authority it received from FERC in connection
with its market-based rate authority. See Note 3—Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional
information.
Exelon’s ability to pay dividends on its common stock depends on the receipt of dividends paid by its operating subsidiaries. The payments
of dividends to Exelon by its subsidiaries in turn depend on their results of operations and cash flows and other items affecting retained earnings.
The Federal Power Act declares it to be unlawful for any officer or director of any public utility “to participate in the making or paying of any
dividends of such public utility from any funds properly included in capital account.” In addition, under Illinois law, ComEd may not pay any
dividend on its stock, unless, among other things, its earnings and earned surplus are sufficient to declare and pay a dividend after provision is
made for reasonable and proper reserves, or unless ComEd has specific authorization from the ICC. BGE is subject to certain dividend restrictions
established by the MDPSC. First, BGE was prohibited from paying a dividend on its common shares through the end of 2014. Second, BGE is
prohibited from paying a dividend on its common shares if (a) after the dividend payment, BGE’s equity ratio would be below 48% as calculated
pursuant to the MDPSC’s ratemaking precedents or (b) BGE’s senior unsecured credit rating is rated by two of the three major credit rating
agencies below investment grade. Finally, BGE must notify the MDPSC that it intends to declare a dividend on its common shares at least 30
days before such a dividend is paid. There are no other limitations on BGE paying common stock dividends unless: (1) BGE elects to defer
interest payments on the 6.20% Deferrable Interest Subordinated Debentures due 2043, and any deferred interest remains unpaid; or (2) any
dividends (and any redemption payments) due on BGE’s preference stock have not been paid. At December 31, 2015, Exelon had retained
earnings of $12,068 million, including Generation’s undistributed earnings of $2,701 million, ComEd’s retained earnings of $978 million consisting
of retained earnings appropriated for future dividends of $2,617 million partially offset by $1,639 million of unappropriated retained deficit, PECO’s
retained earnings of $780 million and BGE’s retained earnings $1,320 million. See Note 23—Commitments and Contingencies of the Combined
Notes to Consolidated Financial Statements for additional information regarding fund transfer restrictions.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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