ComEd 2006 Annual Report Download - page 315

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)
December 31, 2006 Exelon ComEd PECO
Regulatory liabilities
Nuclear decommissioning ......................................... $1,911 $1,760 $ 151
Removal costs .................................................. 1,059 1,059 —
Other .......................................................... 5 5 —
Noncurrent regulatory liabilities ..................................... 2,975 2,824 151
Over-recovered energy costs current liability .......................... 6 — 6
Total regulatory liabilities .......................................... $2,981 $2,824 $ 157
December 31, 2005 Exelon ComEd PECO
Regulatory assets
Competitive transition charge ...................................... $3,532 $ — $3,532
Deferred income taxes ............................................ 789 8 781
Debt costs ...................................................... 142 107 35
Conditional asset retirement obligations .............................. 104 91 13
Non-pension postretirement benefits ................................ 45 — 45
Recoverable transition costs ....................................... 43 43 —
MGP remediation costs ........................................... 26 — 26
DOE facility decommissioning ...................................... 13 — 13
Other .......................................................... 40 31 9
Noncurrent regulatory assets ...................................... 4,734 280 4,454
Deferred energy costs current asset ................................. 39 — 39
Total regulatory assets ............................................ $4,773 $ 280 $4,493
December 31, 2005 Exelon ComEd PECO
Regulatory liabilities
Nuclear decommissioning ......................................... $1,503 $1,435 $ 68
Removal costs .................................................. 1,015 1,015 —
Total regulatory liabilities .......................................... $2,518 $2,450 $ 68
CTCs.These charges represent PECO’s stranded costs that the PAPUC determined would be
recoverable through regulated rates. These costs are related to the deregulation of the generation
portion of the electric utility business in Pennsylvania. The CTCs include intangible transition property
sold to PETT, an unconsolidated subsidiary of PECO, in connection with the securitization of PECO’s
stranded cost recovery. These charges are being amortized through December 31, 2010 with a return
on the unamortized balance of 10.75%.
Pension and other postretirement benefits. This amount represents regulatory assets related to
the recognition of the underfunded status of Exelon’s defined benefit postretirement plans as a liability
on its balance sheet in accordance with SFAS No. 158. The regulatory asset is amortized in proportion
to the recognition of prior service costs (gains), transition obligations and actuarial losses attributable to
ComEd’s pension plan and ComEd’s and PECO’s other postretirement benefit plans determined by the
cost recognition provisions of SFAS No. 87 and SFAS No. 106. Exelon believes it is probable that
these items will be recovered through rates by ComEd and PECO in future periods. See Note 14—
Retirement Benefits for further detail.
310