ComEd 2006 Annual Report Download - page 286

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)
Fuel Purchase Obligations
In addition to the energy commitments described above, Generation has commitments to
purchase fuel supplies for nuclear and fossil generation and PECO has commitments to purchase
natural gas and related transportation and storage capacity and services. As of December 31, 2006,
these commitments were as follows:
Expiration within
Total 2007 2008-2009 2010-2011
2012
and beyond
Generation .................................. $4,516 $830 $1,317 $1,104 $1,265
PECO ...................................... 506 217 146 65 78
Commercial Commitments
Exelon’s commercial commitments as of December 31, 2006, representing commitments
potentially triggered by future events, were as follows:
Expiration within
Total 2007 2008-2009 2010-2011
2012
and beyond
Letters of credit (non-debt) (a) ................... $ 171 $169 $ 2 $— $ —
Letters of credit (long-term debt)—interest
coverage (b) ................................ 15 15 — — —
Surety bonds (c) .............................. 236 96 57 — 83
Performance guarantees (d) .................... 296 — — — 296
Energy marketing contract guarantees (e) ......... 223 206 3 — 14
Nuclear insurance premiums (f) .................. 1,710 — — — 1,710
Lease guarantees (g) .......................... 9 — — — 9
Midwest Generation Capacity Reservation
Agreement guarantee (h) ..................... 22 4 8 8 2
Exelon New England guarantees (i) .............. 14 1 2 2 9
Total commercial commitments ................. $2,696 $491 $ 72 $ 10 $2,123
(a) Letters of credit (non-debt)—Exelon and certain of its subsidiaries maintain non-debt letters of credit to provide credit
support for certain transactions as requested by third parties. As of December 31, 2006, Exelon had $89 million of
outstanding letters of credit (non-debt) issued under its $6.6 billion credit agreements. Guarantees of $17 million have been
issued to provide support for certain letters of credit as required by third parties.
(b) Letters of credit (long-term debt) interest coverage—Reflects the interest coverage portion of letters of credit supporting
floating-rate pollution control bonds. The principal amount of the floating-rate pollution control bonds of $520 million is
reflected in long-term debt in Exelon’s Consolidated Balance Sheet.
(c) Surety bonds—Guarantees issued related to contract and commercial agreements, excluding bid bonds.
(d) Performance guarantees—Guarantees issued to ensure execution under specific contracts.
(e) Energy marketing contract guarantees—Guarantees issued to ensure performance under energy commodity contracts.
(f) Nuclear insurance premiums—Represent the maximum amount that Generation would be required to pay for retrospective
premiums in the event of nuclear disaster at any domestic site under the Secondary Financial Protection pool as required
under the Price-Anderson Act.
(g) Lease guarantees—Guarantees issued to ensure payments on building leases.
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