ComEd 2013 Annual Report Download - page 159

Thefollowingtable summarizestheacquisition-date fairvalue oftheconsideration transferredandtheassetsandliabilitiesassumed
for each ofthecompaniesacquiredbyGeneration duringtheyear endedDecember 31,2011:
Acquisitions
2011
Wolf
Hollow
Antelope
Valley
Fair value of consideration transferred
Cash ......................................................................................... $305$75
Plus: GainonPPAsettlement ..................................................................... 6 —
Total fair value of consideration transferred ....................................................... $311 $75
Recognized amounts of identifiable assets acquired and liabilities assumed
Property, plant andequipment .................................................................... $347 $ 15
Inventory ...................................................................................... 5 —
Intangible assets(a)............................................................................. — 190
Payable to FirstSolar,Inc. (b) ..................................................................... — (135)
Workingcapital,net ............................................................................. (5) —
Other Assets ................................................................................... — 5
Total net identifiable assets ..................................................................... $347 $ 75
Bargain purchase gain ......................................................................... $ 36$—
(a)See Note 10—Intangible Assetsfor additional information.
(b) Generation concludedthat theremaining, yet-to-bepaid $135million inconsideration wasembeddedintheamountspayable under theEngineering, Procurement,
Construction (EPC) agreement for FirstSolar,Inc. to constructthesolar facility. For accountingpurposes, this aspectofthe transaction is consideredto beakintoa
“seller financing” arrangement.Assuch, Generation recordedaliabilityof$135million associatedwiththe portion ofthefuture paymentsto FirstSolar,Inc. under the
EPC agreement to reflectGeneration’s implicitamountsdue FirstSolar,Inc. for theremainder ofthevalue ofthe net assetsacquired. The$135million payable to
FirstSolar,Inc. will be relievedasGeneration makespaymentsfor costsincurredover the projectconstruction period. At December 31,2012, $87 million remained
payable to FirstSolar,Inc. During2013,asubsidiaryofGeneration paid off theremainingbalanceofthepayable to FirstSolar,Inc.
Wolf Hollow, LLC. OnAugust24, 2011,Generation completedtheacquisition ofall oftheequityinterestsofWolfHollow, LLC (Wolf
Hollow), acombined-cycle natural gas-firedpower plant in northTexas, for a purchasepriceof$311 million which increased
Generation’s ownedcapacitywithintheERCOT power market by 720 MWs. Theacquisition supportstheExelon commitment to low-
carbon generation aspart ofExelon 2020.
Generation recognizedan approximately$36million non-cash bargain purchasegain(i.e., negativegoodwill). Thegainwasincluded
withinOther,net inExelon’s andGeneration’s ConsolidatedStatementsofOperationsandComprehensiveIncome.
The pro formaimpactofthis acquisition wouldnot havebeen material to Exelon’s or Generation’s resultsofoperationsfor theyear
endedDecember 31,2011.
Antelope Valley Solar Ranch One. OnSeptember 30,2011,Generation announcedthecompletion ofitsacquisition ofall ofthe
interestsin Antelope ValleySolar Ranch One (Antelope Valley), a 230-MW solar PV projectunder development in northern Los
AngelesCounty, California,fromFirstSolar,Inc., which is developing, building, operating, andmaintainingthe project.Thefirst
portion ofthe projectbegan operationsinDecember 2012,with six additional blocks comingonline in 2013.Exelon hasbeen
informedbyFirstSolar of issuesrelatingto delays inthecertification ofcertaincomponentsrelatingto thefinal twoblocks ofthe
project, which will delaycommercial operation ofthesetwoblocks untilthefirsthalfof2014. When fullyoperational,Antelope Valley
will be one ofthe largestPV solar projectsintheworld, withapproximately3.8 million solar panelsgeneratingenough clean,
renewable electricityto power theequivalent of 75,000 averagehomesper year.The projecthasa25-year PPA,approvedbythe
CaliforniaPublic UtilitiesCommission,withPacific Gas&Electric Companyfor thefull output ofthe plant.Theacquisition supports
Exelon’s commitment to renewable energy aspart ofExelon 2020.
Exelon expectsto investupto$650million inequityinthe projectthrough 2014. TheDOE’s Loan Programs Officeissueda
guarantee for up to $646 million for a non-recourse loan fromtheFederal FinancingBankto support thefinancingoftheconstruction
ofthe project.See Note 13—DebtandCreditAgreementsfor additional information on theDOE loan guarantee.
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