Exelon 2015 Annual Report Download - page 85

Table of Contents
nuclear fuel disposal fee, increased capacity prices, the inclusion of Integrys’ results in 2015, favorability from portfolio management
optimization activities in the Mid-Atlantic and Midwest regions, and increased load served, partially offset by lower margins resulting
from the 2014 sales of generating assets, lower realized energy prices, and the absence of the 2014 fuel optimization opportunities in
the South region due to extreme cold weather;
• Increase of $848 million at Generation due to mark-to-market gains of $257 million in 2015 from economic hedging activities as
compared to losses of $591 million in 2014;
• Increase of $132 million at Generation related to amortization of contracts recorded at fair value associated with prior acquisitions;
• Increase of $228 million at ComEd primarily due to increased electric distribution and transmission formula rate revenues (reflecting the
impacts of increased capital investment, partially offset by lower allowed electric distribution ROE);
• Increase of $9 million at PECO primarily due to favorable weather and volume; and
• Increase of $82 million at BGE primarily due to increased distribution revenue pursuant to increased rates effective December 2014 as a
result of the electric and natural gas distribution rate case order issued by the Maryland PSC and increased transmission revenue.
The year-over-year increase in operating revenue net of purchased power and fuel expense was partially offset by the following
unfavorable factors:
• Decrease of $38 million at ComEd due to unfavorable weather and volume.
Operating and maintenance expense decreased by $246 million as compared to 2014 primarily due to the following favorable factors:
• Long-lived asset impairments at Generation of $12 million in 2015 compared to $663 million in 2014.
• Decrease of $44 million resulting from the absence of 2014 expenses recorded for a Constellation merger commitment at Generation;
• Decreased storm costs at PECO and BGE of $78 million and $21 million, respectively;
• Decreased uncollectible accounts expense at BGE of $49 million.
The year-over-year decrease in operating and maintenance expense was partially offset by the following unfavorable factors:
• Increase in Generation’s labor, contracting and materials costs of $323 million primarily due to the inclusion of CENG’s results on a fully
consolidated basis in 2015 and increased contracting spend related to energy efficiency projects;
• Increase of $64 million as a result of an increase in the number of nuclear refueling outage days at Generation, including Salem,
primarily related to the inclusion of CENG’s plants on a fully consolidated basis in 2015;
• Increase in labor, contracting and materials costs of $31 million related to preventative maintenance and other projects at ComEd;
• Increased storm costs at ComEd of $27 million;
• Increased costs associated with ComEd’s uncollectible accounts expense of $27 million; and
• An increase in pension and non-pension postretirement benefits expense of $47 million primarily at Exelon, Generation, and ComEd,
resulting from the unfavorable impact of lower assumed pension and OPEB discount rates for 2015 and an increase in the life
expectancy assumption for plan participants in 2015, partially offset by cost savings from plan design changes for certain OPEB plans
effective April 2014 and forward.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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