ComEd 2006 Annual Report Download - page 144

The following tables provide information on Generation’s credit exposure, net of collateral, as of
December 31, 2006 and 2005. The tables further delineate that exposure by credit rating of the
counterparties and provide guidance on the concentration of credit risk to individual counterparties and
an indication of the maturity of a company's credit risk by credit rating of the counterparties. The figures
in the tables below do not include sales to Generation’s affiliates or exposure through RTOs and
Independent System Operators (ISOs) which are discussed below.
Rating as of December 31, 2006 (a)
Total
Exposure
Before Credit
Collateral
Credit
Collateral
Net
Exposure
Number Of
Counterparties
Greater than 10%
of Net Exposure
Net Exposure Of
Counterparties
Greater than 10%
of Net Exposure
Investment grade ............... $1,005 $268 $737 1 $ 95
Non-investment grade ........... 53 9 44 — —
No external ratings
Internally rated—investment
grade ................... 10 1 9 — —
Internally rated—non-
investment grade .......... 4 3 1 — —
Total.......................... $1,072 $281 $791 1 $ 95
(a) This table does not include accounts receivable exposure.
Rating as of December 31, 2005 (a)
Total
Exposure
Before Credit
Collateral
Credit
Collateral
Net
Exposure
Number Of
Counterparties
Greater than 10%
of Net Exposure
Net Exposure Of
Counterparties
Greater than 10%
of Net Exposure
Investment grade ............... $472 $ 53 $419 2 $147
Non-investment grade ........... 60 11 49 — —
No external ratings
Internally rated—investment
grade ................... 41 — 41 — —
Internally rated—non-
investment grade .......... 38 — 38 — —
Total.......................... $611 $ 64 $547 2 $147
(a) This table does not include accounts receivable exposure.
Maturity of Credit Risk Exposure
Rating as of December 31, 2006 (a)
Less than
2 Years 2-5 Years
Exposure
Greater than
5 Years
Total Exposure
Before Credit
Collateral
Investment grade ............................. $944 $ 61 $— $1,005
Non-investment grade ......................... 40 13 — 53
No external ratings
Internally rated—investment grade ........... 10 — — 10
Internally rated—non-investment grade ........ 3 1 — 4
Total ........................................ $997 $ 75 $— $1,072
(a) This table does not include accounts receivable exposure.
Collateral. As part of the normal course of business, Generation routinely enters into physical or
financially settled contracts for the purchase and sale of capacity, energy, fuels and emissions
allowances. These contracts either contain express provisions or otherwise permit Generation and its
counterparties to demand adequate assurance of future performance when there are reasonable
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