ComEd 2006 Annual Report Download - page 130

pool. Participation in the intercompany money pool is subject to authorization by Exelon’s treasurer.
Generation, PECO, and BSC may participate in the intercompany money pool as lenders and
borrowers, and Exelon and UII, LLC, a wholly owned subsidiary of Exelon, may participate as lenders.
Funding of, and borrowings from, the intercompany money pool are predicated on whether the
contributions and borrowings result in economic benefits. Interest on borrowings is based on short-term
market rates of interest or, if from an external source, specific borrowing rates. Maximum amounts
contributed to and borrowed from the intercompany money pool by participant during 2006 are
described in the following table in addition to the net contribution or borrowing as of December 31,
2006:
Maximum
Contributed
Maximum
Borrowed
December 31, 2006
Contributed (Borrowed)
Generation ...................................... $ 83 $234 $ 13
ComEd (a) ....................................... — 140 —
PECO .......................................... 59 183 (45)
BSC ........................................... 234 134 (25)
UII, LLC ........................................ 5 — —
Exelon .......................................... 248 — 56
(a) As of January 10, 2006, ComEd suspended participation in the intercompany money pool. During the first quarter of 2006,
ComEd repaid $140 million that it had borrowed from the intercompany money pool.
Security Ratings
The Registrants’ access to the capital markets, including the commercial paper market, and their
respective financing costs in those markets depend on the securities ratings of the entity that is
accessing the capital markets. The following table shows the Registrants’ securities ratings at
December 31, 2006:
Securities
Moody’s Investors
Service
Standard & Poor’s
Corporation Fitch Ratings.
Exelon Senior unsecured debt Baa2 BBB BBB+
Commercial paper P2 A2 F2
Generation Senior unsecured debt Baa1 BBB+ BBB+
Commercial paper P2 A2 F2
ComEd Senior unsecured debt Baa3 BB+ BBB
Senior secured debt Baa2 BBB BBB+
Commercial paper P3 A3 F2
Transition bonds (a) Aaa AAA AAA
PECO Senior unsecured debt A3 BBB A-
Senior secured debt A2 A- A
Commercial paper P1 A2 F1
Transition bonds (b) Aaa AAA AAA
(a) Issued by ComEd Transitional Funding Trust, an unconsolidated affiliate of ComEd.
(b) Issued by PETT, an unconsolidated affiliate of PECO.
On July 26, 2006, Moody’s Investors Service (Moody’s) downgraded the long-term and short-term
debt ratings of ComEd. The rating action concluded Moody’s review for possible downgrade that
commenced on December 15, 2005. Moody’s attributed the downgrade to a difficult political and
regulatory environment in Illinois, uncertainty about the outcome of the electricity supply auction and
the expectation of a material regulatory deferral. On October 10, 2006, Moody’s placed ComEd’s
security ratings under review for possible downgrade resulting from perceived increasing political and
regulatory risk in Illinois.
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