Exelon 2015 Annual Report Download - page 401

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
The following table presents income tax expense (benefit) allocated to each component of other comprehensive income (loss) during the
years ended December 31, 2015 and 2014:
For the Years Ended
December 31,
2015 2014 2013
Exelon
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic benefit cost $ 30 $ 19 $ —
Actuarial loss reclassified to periodic cost (140) (93) (133)
Pension and non-pension postretirement benefit plan valuation adjustment 62 317 (430)
Change in unrealized (gain) loss on cash flow hedges (6) 96 166
Change in unrealized (gain) loss on equity investments 1 73 (71)
Total $ (53) $412 $(468)
Generation
Change in unrealized loss on cash flow hedges $ 2 $ 84 $ 262
Change in unrealized (gain) loss on equity investments 1 73 (72)
Total $ 3 $157 $ 190
23. Commitments and Contingencies (Exelon, Generation, ComEd, PECO and BGE)
Commitments
Constellation Merger Commitments
In February 2012, the MDPSC issued an Order approving the Exelon and Constellation merger. As part of the MDPSC Order, Exelon agreed
to provide a package of benefits to BGE customers, the City of Baltimore and the State of Maryland, resulting in an estimated direct investment in
the State of Maryland of approximately $1 billion. The direct investment estimate includes $95 million to $120 million relating to the construction of
a headquarters building in Baltimore for Generation’s competitive energy businesses.
The direct investment commitment also includes $500 million to $600 million relating to Exelon and Generation’s development or assistance
in the development of 275—300 MWs of new generation in Maryland, which is expected to be completed within a period of 10 years. Exelon and
Generation have incurred $393 million towards satisfying the commitment for new generation development in the state of Maryland, with
approximately 220 MW of the new generation commencing with commercial operations to date. The MDPSC order contemplates various options
for complying with the new generation development commitments, including building or acquiring generating assets, making subsidy or compliance
payments, or in circumstances in which the generation build is delayed or certain specified provisions are elected, making liquidated damages
payments. Exelon and Generation expect that the majority of these commitments will be satisfied by building or acquiring generating assets and,
therefore, will be primarily capital in nature and recognized as incurred. However, during the third quarter of 2014, the conditions associated with
one of the generation development commitments changed such that Exelon and Generation now believe that the most likely outcome will involve
making subsidy payments and/or liquidated damages payments rather than constructing the specified generating plant. As a result, Exelon and
Generation recorded a pre-tax $44 million loss contingency related to this generation development commitment which is included in Operating and
maintenance expense in Exelon’s and Generation’s Consolidated Statements of Operations and
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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