ComEd 2006 Annual Report Download - page 124

• At December 31, 2006, 2005 and 2004, Generation had accounts receivable from PECO
under the PPA of $153 million, $151 million and $125 million, respectively.
• During 2006, Generation had net collections of counterparty collateral of $431 million
compared to $187 million of net disbursements of counterparty collateral in 2005. The increase
in cash inflows from 2005 was primarily due to changes in collateral requirements resulting
from the extension of letters of credit and changes in market prices relative to positions with
counterparties.
• During 2006 and 2005, Generation had net payments of approximately $220 million and $165
million, respectively, primarily due to increased use of financial instruments to economically
hedge future sales of power and future purchases of fossil fuel.
• During 2005, Exelon received a $102 million Federal income tax refund for capital losses
generated in 2003 related to Generation’s investment in Sithe, which were carried back to prior
periods. In the first quarter of 2006, Exelon remitted a $98 million payment to the IRS in
connection with the settlement of the IRS’s challenge of the timing of the above-described
deduction. This payment included $6 million of interest which was recognized as interest
expense in the first quarter of 2006. Exelon received approximately $92 million on
December 13, 2006 related to this same deduction in connection with the filing of its 2005 tax
return.
ComEd
• At December 31, 2006, 2005 and 2004, ComEd had accrued payments to Generation under
the PPA of $197 million, $242 million and $189 million, respectively.
• In 2005, ComEd settled $325 million of interest rate swaps that were designated as cash flow
hedges for a loss of $15 million. This was recorded as a pre-tax charge to net income because
the underlying transaction for which these interest rate swaps were entered into was no longer
probable of occurring.
Cash Flows from Investing Activities
Cash flows used in investing activities for 2006 and 2005 by registrant were as follows:
2006 2005
Exelon ............................................................... $(2,762) $(2,487)
Generation ............................................................ (1,406) (1,294)
ComEd ............................................................... (894) (479)
PECO ................................................................ (332) (241)
Capital expenditures by registrant and business segment for 2006 and projected amounts for 2007 are
as follows:
2006 2007
Generation (a) ........................................................... $1,109 $1,353
ComEd ................................................................ 911 1,055
PECO ................................................................. 345 355
Other (b) ............................................................... 53 38
Total Exelon capital expenditures .......................................... $2,418 $2,801
(a) Includes nuclear fuel.
(b) Other primarily consists of corporate operations.
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