Exelon 2015 Annual Report Download - page 340

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Generation
Intercompany
Eliminations
Exelon
Corporate Exelon
Year Ended December 31, 2013
Operating
Revenues
Purchased
Power
and Fuel
Interest
Expense Total
Operating
Revenues
Interest
Expense Total
Change in fair value of commodity positions $ 286 $ 180 $ — $466 $ (6) $ — $ 460
Reclassification to realized at settlement of commodity positions (64) 104 — 40 13 — 53
Net commodity mark-to-market gains (losses) 222 284 — 506 7 — 513
Change in fair value of treasury positions (1) — (4) (5) — — (5)
Reclassification to realized at settlement of treasury positions (1) — — (1) — — (1)
Net treasury mark-to market gains (losses) (2) — (4) (6) — — (6)
Net mark-to market gains (losses) $ 220 $ 284 $ (4) $500 $ 7 $ — $ 507
(a) Prior to the Constellation merger, the five-year financial swap contract between Generation and ComEd was de-designated. As a result, all prospective changes in fair value were
recorded to operating revenues and eliminated in consolidation.
 For the years ended December 31, 2015, 2014, and 2013 Exelon and Generation
recognized the following net unrealized mark-to-market gains (losses), net realized mark-to-market gains (losses) and total net mark-to-market
gains (losses) (before income taxes) relating to mark-to-market activity on commodity derivative instruments entered into for proprietary trading
purposes and interest rate derivative contracts to hedge risk associated with the interest rate component of underlying commodity positions. Gains
and losses associated with proprietary trading are reported as operating revenue in Exelon’s and Generation’s Consolidated Statements of
Operations and Comprehensive Income and are included in “Net fair value changes related to derivatives” in Exelon’s and Generation’s
Consolidated Statements of Cash Flows. In the tables below, “Change in fair value” represents the change in fair value of the derivative contracts
held at the reporting date. The “Reclassification to realized at settlement” represents the recognized change in fair value that was reclassified to
realized due to settlement of the derivative during the period.
Location on Income
Statement
For the Years Ended
December 31,
2015 2014 2013
Change in fair value of commodity positions Operating Revenues $ 8 $ (1) $ (22)
Reclassification to realized at settlement of commodity positions Operating Revenues (14) (29) (15)
Net commodity mark-to-market gains (losses) Operating Revenues (6) (30) (37)
Change in fair value of treasury positions Operating Revenues 8 1 1
Reclassification to realized at settlement of treasury positions Operating Revenues (10) 3 (3)
Net treasury mark-to market gains (losses) Operating Revenues (2) 4 (2)
Net mark-to market gains (losses) Operating Revenues $ (8) $(26) $ (39)
Credit Risk (Exelon, Generation, ComEd, PECO and BGE)
The Registrants would be exposed to credit-related losses in the event of non-performance by counterparties that enter into derivative
instruments. The credit exposure of derivative contracts, before collateral, is represented by the fair value of contracts at the reporting date. For
energy-related derivative instruments, Generation enters into enabling agreements that allow for payment netting with its
333
(a)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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