ComEd 2006 Annual Report Download - page 147

decommissioning trust funds are reflected at fair value on its Consolidated Balance Sheets. The mix of
securities in the trust funds is designed to provide returns to be used to fund decommissioning and to
compensate Generation for inflationary increases in decommissioning costs; however, the equity
securities in the trust funds are exposed to price fluctuations in equity markets, and the value of fixed-
rate, fixed-income securities are exposed to changes in interest rates. Generation actively monitors the
investment performance of the trust funds and periodically reviews asset allocation in accordance with
Generation’s nuclear decommissioning trust fund investment policy. A hypothetical 10% increase in
interest rates and decrease in equity prices would result in a $460 million reduction in the fair value of
the trust assets.
Exelon and Generation maintain trust assets associated with defined benefit pension and other
postretirement benefits. See Defined Benefit Pension and Other Postretirement Benefits in the Critical
Accounting Estimates section for information regarding the pension and other postretirement benefit
trust assets.
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