Exelon 2015 Annual Report Download - page 290

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Gas distribution tax repairs. PECO’s 2010 natural gas distribution rate case settlement required that the expected cash benefit from the
application of new tax repairs deduction methodologies for 2010 and prior tax years be refunded to customers over a seven-year period. In
September 2012, PECO filed an application with the IRS to change its method of accounting for gas distribution repairs for the 2011 tax year.
Credits began being reflected in customer bills on January 1, 2013. No interest will be paid to customers.
Revenue subject to refund. These amounts represent refunds and associated interest ComEd owes to customers primarily related to the
treatment of the post-test year accumulated depreciation issue in the 2007 Rate Case. As of December 31, 2015, and December 31, 2014, ComEd
owed $0 million and $3 million, respectively.
Purchase of Receivables Programs (Exelon, ComEd, PECO, and BGE)
ComEd, PECO and BGE are required, under separate legislation and regulations in Illinois, Pennsylvania and Maryland, respectively, to
purchase certain receivables from retail electric and natural gas suppliers. For retail suppliers participating in the utilities’ consolidated billing,
ComEd, PECO and BGE must purchase their customer accounts receivables. ComEd and BGE purchase receivables at a discount to primarily
recover uncollectible accounts expense from the suppliers. PECO is required to purchase receivables at face value and is permitted to recover
uncollectible accounts expense from customers through distribution rates. Exelon, ComEd, PECO, and BGE do not record unbilled commodity
receivables under their POR programs. Purchased billed receivables are classified in other accounts receivable, net on Exelon’s, ComEd’s,
PECO’s and BGE’s Consolidated Balance Sheets. The following tables provide information about the purchased receivables of the Registrants as
of December 31, 2015 and 2014.
As of December 31, 2015 Exelon ComEd PECO BGE
Purchased receivables $ 229 $ 103 $ 67 $59
Allowance for uncollectible accounts (31) (16) (7) (8)
Purchased receivables, net $ 198 $ 87 $ 60 $51
As of December 31, 2014 Exelon ComEd PECO BGE
Purchased receivables $ 290 $ 139 $ 76 $ 75
Allowance for uncollectible accounts (42) (21) (8) (13)
Purchased receivables, net $ 248 $ 118 $ 68 $ 62
(a) PECO’s gas POR program became effective on January 1, 2012 and includes a 1% discount on purchased receivables in order to recover the implementation costs of the
program. The implementation costs were fully recovered and the 1% discount was reset to 0%, effective July 2015.
(b) For ComEd and BGE, reflects the incremental allowance for uncollectible accounts recorded, which is in addition to the purchase discount. For ComEd, the incremental
uncollectible accounts expense is recovered through its Purchase of Receivables with Consolidated Billing (PORCB) tariff.
4. Mergers, Acquisitions, and Dispositions (Exelon and Generation)
Proposed Merger with Pepco Holdings, Inc. (Exelon)
Description of Transaction
On April 29, 2014, Exelon and Pepco Holdings, Inc. (PHI) signed an agreement and plan of merger (as subsequently amended and restated
as of July 18, 2014, the Merger Agreement) to
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(a)
(b)
(a)
(b)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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