ComEd 2006 Annual Report Download - page 283

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)
17. Earnings Per Share (Exelon)
Diluted earnings per share are calculated by dividing net income by the weighted average number
of shares of common stock outstanding, including shares to be issued upon exercise of stock options
outstanding under Exelon’s stock option plans considered to be common stock equivalents. The
following table sets forth the computation of basic and diluted earnings per share and shows the effect
of these stock options on the weighted average number of shares outstanding used in calculating
diluted earnings per share:
2006 2005 2004
Income from continuing operations ................................... $1,590 $951 $1,870
Income (loss) from discontinued operations ............................ 2 14 (29)
Income before cumulative effect of changes in accounting principles ........ 1,592 965 1,841
Cumulative effect of changes in accounting principles .................... — (42) 23
Net income ....................................................... $1,592 $923 $1,864
Average common shares outstanding—basic ........................... 670 669 661
Assumed exercise of stock-based awards ............................. 6 7 8
Average common shares outstanding—diluted ......................... 676 676 669
The number of stock-based awards not included in the calculation of diluted common shares
outstanding due to their antidilutive effect was 3 million for 2006. There were no stock options excluded
for 2005 and 2004.
18. Commitments and Contingencies (Exelon, Generation, ComEd and PECO)
Nuclear Insurance
The Price-Anderson Act limits the liability of nuclear reactor owners for claims that could arise from
a single incident. As of December 31, 2006, the current limit was $10.76 billion and is subject to
change to account for the effects of inflation and changes in the number of licensed reactors. As
required by the Price-Anderson Act, Generation carries the maximum available amount of nuclear
liability insurance (currently $300 million for each operating site) and the remaining $10.46 billion is
provided through mandatory participation in a financial protection pool. Under the Price-Anderson Act,
all nuclear reactor licensees can be assessed a maximum charge per reactor per incident. The
maximum assessment for each nuclear operator per reactor per incident (including a 5% surcharge) is
$100.6 million, payable at no more than $15 million per reactor per incident per year. This assessment
is subject to inflation and state premium taxes. In addition, the United States Congress could impose
revenue-raising measures on the nuclear industry to pay claims.
In addition, the U.S. Congress could impose revenue-raising measures on the nuclear industry to
pay claims. The Price-Anderson Act was extended to December 31, 2025 under the Energy Policy Act.
Generation is a member of an industry mutual insurance company, Nuclear Electric Insurance
Limited (NEIL), which provides property damage, decontamination and premature decommissioning
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