ComEd 2006 Annual Report Download - page 215

Exelon Corporation and Subsidiary Companies
Exelon Generation Company, LLC and Subsidiary Companies
Commonwealth Edison Company and Subsidiary Companies
PECO Energy Company and Subsidiary Companies
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Sithe) Consolidated Statements of Operations and Comprehensive Income. Results related to these
entities were as follows:
2006 Sithe (a) Enterprises AllEnergy Total
Total operating revenues ................................ $— $(1) $— $(1)
Operating loss ......................................... — (2) — (2)
Income (loss) before income taxes and minority interest ....... 6 (2) — 4
(a) Net income for 2006 included a pre-tax gain on the sale of Sithe as a result of the expiration of certain tax indemnifications
and the collection of a receivable arising from the sale of Sithe that had been fully reserved.
2005 Sithe (a) Enterprises (b) AllEnergy Total
Total operating revenues ............................... $30 $18 $— $48
Operating income (loss) ................................ 5 (8) 1 (2)
Income (loss) before income taxes and minority interest ...... 23 (7) 1 17
(a) Sithe was sold on January 31, 2005. Accordingly, results only include one month of operations. See Note 2—Acquisitions
and Dispositions for further information regarding the sale of Sithe.
(b) Excludes certain investments.
2004 Sithe (a) Enterprises (b) AllEnergy Total
Total operating revenues ............................... $227 $154 $ 8 $389
Operating loss ....................................... (7) (57) (2) (66)
Loss before income taxes and minority interest ............ (58) (5) (2) (65)
(a) Includes Sithe’s results of operations from April 1, 2004 through December 31, 2004. See Note 2—Acquisitions and
Dispositions for further information regarding the sale of Sithe.
(b) Excludes certain investments.
For the year ended December 31, 2006, Exelon’s and Generation’s Consolidated Statements of
Operations and Comprehensive Income included $4 million of income (after tax) from discontinued
operations related to Sithe, which represented an adjustment to the gain on sale as a result of the
expiration of certain tax indemnifications, accrued interest on an indemnification and the collection of a
receivable arising from the sale of Sithe that had been fully reserved.
4. Regulatory Issues (Exelon, Generation, ComEd and PECO)
The legislatively mandated transition and rate freeze period in Illinois ended in January 2007.
Associated with the end of this rate freeze, ComEd is engaged in various regulatory and legislative
proceedings to establish rates for the post-2006 period, which are more fully described below.
Illinois Procurement Case (Exelon and ComEd). On February 25, 2005, ComEd made a filing
with the ICC to seek regulatory approval of tariffs that would authorize ComEd to bill its customers for
electricity costs incurred under a reverse-auction competitive bidding process (the Procurement Case).
On January 24, 2006, the ICC, by a unanimous vote, approved a reverse-auction competitive bidding
process for procurement of electricity by ComEd after the end of the transition period. This approval,
currently under appeal before the Illinois Appellate Court, should provide ComEd with stability and
greater certainty that it will be able to procure energy through the auction process and pass through the
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