Exelon 2015 Annual Report Download - page 242

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
reported on a gross basis. Accordingly, revenues are recognized for the taxes collected from customers along with an offsetting expense. See
Note 24—Supplemental Financial Information for Generation’s, ComEd’s, PECO’s and BGE’s utility taxes that are presented on a gross basis.
Cash and Cash Equivalents (Exelon, Generation, ComEd, PECO and BGE)
The Registrants consider investments purchased with an original maturity of three months or less to be cash equivalents.
Restricted Cash and Cash Equivalents (Exelon, Generation, ComEd, PECO and BGE)
Restricted cash and cash equivalents represent funds that are restricted to satisfy designated current liabilities. As of December 31, 2015
and 2014, Exelon Corporate’s restricted cash and cash equivalents primarily represented restricted funds for payment of medical, dental, vision
and long-term disability benefits. Additionally, as of December 31, 2015 and 2014, Generation’s restricted cash and cash equivalents primarily
included cash at Antelope Valley required for debt service and construction and cash at Continental Wind and ExGen Texas Power, which is
required for debt service and financing of operation and maintenance of the underlying entities. As of December 31, 2015 and 2014, ComEd’s
restricted cash primarily represented cash collateral held from suppliers associated with ComEd’s energy and REC procurement contracts. As of
December 31, 2015 and 2014, PECO’s restricted cash primarily represented funds from the sales of assets that were subject to PECO’s mortgage
indenture. As of December 31, 2015 and 2014, BGE’s restricted cash primarily represented funds restricted at its consolidated variable interest
entity for repayment of rate stabilization bonds and cash collateral held from suppliers.
Restricted cash and cash equivalents not available to satisfy current liabilities are classified as noncurrent assets. As of December 31, 2015
and 2014, Exelon’s and Generation’s NDT funds, which are designated to satisfy future decommissioning obligations, were classified as
noncurrent assets. As of December 31, 2015, Exelon, Generation, ComEd, PECO and BGE had investments in Rabbi trusts classified as
noncurrent assets.
Allowance for Uncollectible Accounts (Exelon, Generation, ComEd, PECO and BGE)
The allowance for uncollectible accounts reflects the Registrants’ best estimates of losses on the accounts receivable balances. For
Generation, the allowance is based on accounts receivable aging, historical experience and other currently available information. ComEd, PECO
and BGE estimate the allowance for uncollectible accounts on customer receivables by applying loss rates developed specifically for each
company to the outstanding receivable balance by customer risk segment. Risk segments represent a group of customers with similar credit
quality indicators that are computed based on various attributes, including delinquency of their balances and payment history. Loss rates applied
to the accounts receivable balances are based on historical average charge-offs as a percentage of accounts receivable in each risk segment.
ComEd, PECO and BGE customers’ accounts are generally considered delinquent if the amount billed is not received by the time the next bill is
issued, which normally occurs on a monthly basis. ComEd, PECO and BGE customer accounts are written off consistent with approved regulatory
requirements. ComEd’s, PECO’s and BGE’s provisions for uncollectible accounts will continue to be affected by changes in volume, prices and
economic conditions as well as changes in ICC, PAPUC and MDPSC regulations, respectively. See Note 3—Regulatory Matters for additional
information regarding the regulatory recovery of uncollectible accounts receivable at ComEd.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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