ComEd 2006 Annual Report Download - page 133

and produced at full capacity through the remainder of 2006. As of December 31, 2006, Exelon has
estimated the 2006 phase-out to be 38%, which has reduced Exelon’s earned after-tax credits of
$164 million to $101 million for the year ended December 31, 2006. At December 31, 2006, Exelon has
estimated the 2007 phase-out of tax credits to be 18%. Exelon anticipates generating approximately
$220 million of cash over the life of these investments, of which $80 million is expected in total for 2007
and 2008, assuming an 18% phase-out of tax credits. Theses estimates may change significantly due
to the volatility of oil prices. See Note 12 of the Combined Notes to Consolidated Financial Statements
for further discussion. The estimated 2006 and 2007 phase-out ranges are based upon the actual 2005
phase-out range. The actual 2005 phase-out range was determined using the inflation adjustment
factor published by the IRS in April 2006. The actual 2005 phase-out range was increased by 2% each
year (Exelon’s estimate of inflation) to arrive at the estimated 2006 and 2007 phase-out ranges.
Contractual Obligations and Off-Balance Sheet Arrangements
Exelon
The following table summarizes Exelon’s future estimated cash payments under existing
contractual obligations, including payments due by period.
Total
Payment due within Due 2012
and beyond2007 2008-2009 2010-2011
Long-term debt ............................ $ 9,126 $ 246 $ 922 $2,427 $ 5,531
Long-term debt to financing trusts ............ 3,596 581 1,664 806 545
Interest payments on long-term debt (a) ........ 4,976 486 888 757 2,845
Interest payments on long-term debt to financing
trusts (a) ................................ 1,318 225 285 98 710
Capital leases ............................. 44 2 4 4 34
Operating leases .......................... 716 58 110 93 455
Purchase power obligations (b) ............... 7,802 1,967 1,492 1,134 3,209
Fuel purchase agreements .................. 5,022 1,047 1,463 1,169 1,343
Other purchase obligations (b)(c) ............... 642 292 140 95 115
Chicago agreement (d) ...................... 36 6 12 12 6
Spent nuclear fuel obligation ................. 950 — — — 950
Pension ERISA minimum funding requirement . . 32 32 — — —
Total contractual obligations ................. $34,260 $4,942 $6,980 $6,595 $15,743
(a) Interest payments are estimated based on final maturity dates of debt securities outstanding at December 31, 2006 and do
not reflect anticipated future refinancing, early redemptions or debt issuances. Variable rate interest obligations are
estimated based on rates as of December 31, 2006.
(b) Net capacity purchases include tolling agreements that are accounted for as operating leases. Amounts presented in the
commitments represent Generation’s expected payments under these arrangements at December 31, 2006. Expected
payments include certain capacity charges which are contingent on plant availability. Does not include ComEd’s supplier
forward contracts as these contracts do not require purchases of fixed or minimum quantities. See Notes 4 and 18 of the
Combined Notes to the Consolidated Financial Statements.
(c) Commitments for services, materials and information technology.
(d) On February 20, 2003, ComEd entered into separate agreements with Chicago and with Midwest Generation (Midwest
Agreement). Under the terms of the agreement with Chicago, ComEd will pay Chicago $60 million over ten years to be
relieved of a requirement, originally transferred to Midwest Generation upon the sale of ComEd’s fossil stations in 1999, to
build a 500-MW generation facility.
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