ComEd 2002 Annual Report Download - page 112

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Exelon would be exposed to credit-related losses in the
event of non-performance by the counterparties that issued
the derivative instruments. The credit exposure of deriva-
tives contracts is represented by the fair value of contracts at
the reporting date. Exelon’s interest rate swaps are docu-
mented under master agreements. Among other things,
these agreements provide for a maximum credit exposure
for both parties. Payments are required by the appropriate
party when the maximum limit is reached. Generation
has entered into payment netting agreements or enabling
agreements that allow for payment netting with the major-
ity of its large counterparties, which reduce Generation’s
exposure to counterparty risk by providing for the offset
of amounts payable to the counterparty against amounts
receivable from the counterparty.
Exelon classifies investments in the trust accounts for
decommissioning nuclear plants as available-for-sale. The
following tables show the fair values, gross unrealized gains
and losses and amortized costs bases for the securities held in
these trust accounts.
Notes To Consolidated Financial Statements
exelon corporation and subsidiary companies
110
December 31, 2002
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
Equity securities $ 1,763 $ 72 $ (482) $ 1,353
Debt securities
Government obligations 938 62 – 1,000
Other debt securities 698 32 (30) 700
Total debt securities 1,636 94 (30) 1,700
Total available-for-sale securities $ 3,399 $ 166 $ (512) $ 3,053
December 31, 2001
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
Equity securities $ 1,666 $ 130 $ (236) $ 1,560
Debt securities
Government obligations 882 28 (3) 907
Other debt securities 701 16 (19) 698
Total debt securities 1,583 44 (22) 1,605
Total available-for-sale securities $ 3,249 $ 174 $ (258) $ 3,165
Net unrealized losses of $346 million and $84 million were
recognized in Accumulated Depreciation, Regulatory Assets
and Accumulated Other Comprehensive Income in Exelon’s
Consolidated Balance Sheets at December 31, 2002 and 2001,
respectively.
For the Years Ended December 31
2002 2001
Proceeds from sales $ 1,612 $ 1,624
Gross realized gains 56 76
Gross realized losses (86) (189)
Net realized gains of $2 million and $14 million were recognized
in Accumulated Depreciation and Regulatory Assets in Exelon’s
Consolidated Balance Sheets at December 31, 2002 and 2001,
respectively, and $32 million and $127 million of net realized
losses were recognized in Other Income and Deductions in
Exelon’s Consolidated Income Statements for 2002 and 2001,
respectively. The available-for-sale securities held at December
31, 2002 have an average maturity of six to seven years. The
cost of these securities was determined on the basis of specific
identification. See Note 11—Nuclear Decommissioning and
Spent Fuel Storage for further information regarding the
nuclear decommissioning trusts.
note 19 • commitments and contingencies
Capital Commitments
Exelon and British Energy, Generation’s joint venture partner
in AmerGen, have each agreed to provide up to $100 million
to AmerGen at any time that the Management Committee
of AmerGen determines, that in order to protect the public
health and safety and/or to comply with NRC requirements,
such funds are necessary to meet ongoing operating expenses