ComEd 2006 Annual Report Download - page 226

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)
established the possibility that the 2000 blanket financing authority could have been revoked
retrospectively. See “Market-Based Rates Matters” above for further information. Consequently,
Generation continued its reliance on its SEC financing authority that was available under the
grandfathering provision of PUHCA 2005. The FERC proceeding was terminated on April 3, 2006,
thereby removing any uncertainty over Generation’s market-based rate and blanket financing authority,
and Generation subsequently informed FERC that Generation is continuing its reliance for financing
authority on the 2000 blanket financing authority. Accordingly, Generation is no longer availing itself of
the SEC financing authority under the grandfathering provision of PUHCA 2005 and is no longer
subject to the conditions thereunder.
To the extent that the SEC’s jurisdiction under PUHCA preempted certain aspects of state
regulation of Exelon, the repeal of PUHCA will permit the states in which Exelon and its subsidiaries
operate to adopt additional regulations if they so choose, absent any preemption by FERC.
License Renewals (Exelon and Generation). In December 2004, the NRC issued an order that
will permit the Oyster Creek Generating Station (Oyster Creek) to operate beyond its license expiration
in April 2009 if the NRC has not completed reviewing the application for renewal. In July 2005,
Generation applied for license renewal for Oyster Creek on a timeline consistent and integrated with
the other planned license renewal filings for the Generation nuclear fleet. The NRC has already
approved 20-year renewals of the operating licenses for Generation’s Peach Bottom, Dresden and
Quad Cities generating stations. The licenses for Peach Bottom Unit 2, Peach Bottom Unit 3, Dresden
Unit 2, Dresden Unit 3, Quad Cities Unit 1 and Quad Cities Unit 2 were renewed to 2033, 2034, 2029,
2031, 2032 and 2032, respectively. Depreciation provisions are based on the estimated useful lives of
the stations, which assumes the renewal of the licenses for all nuclear generating stations. As a result,
these license renewals had no impact on the Consolidated Statements of Operations.
5. Accounts Receivable (Exelon, Generation, ComEd and PECO)
Customer accounts receivable at December 31, 2006 and 2005 included estimated unbilled
revenues, representing an estimate for the unbilled amount of energy or services provided to
customers, and allowance for uncollectible accounts as follows:
2006 Exelon Generation ComEd PECO
Unbilled revenues ........................................ $1,077 $538 $296 $243
Allowance for uncollectible accounts ........................ 91 17 20 51
2005 Exelon Generation ComEd PECO
Unbilled revenues ........................................ $1,020 $524 $321 $175
Allowance for uncollectible accounts ........................ 77 15 20 39
PECO is party to an agreement with a financial institution under which it can sell or finance with
limited recourse an undivided interest, adjusted daily, in up to $225 million of designated accounts
receivable through November 2010. At December 31, 2006, PECO had sold a $225 million interest in
accounts receivable, consisting of a $208 million interest in accounts receivable, which PECO
accounted for as a sale under SFAS No. 140, “Accounting for Transfers and Servicing of Financial
Assets and Extinguishment of Liabilities—a Replacement of FASB Statement No. 125,” (SFAS
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