ComEd 2013 Annual Report Download - page 192

For theyear endedDecember 31,2013,there were no borrowings under theRegistrants’ creditfacilities.
Thefollowingtable presentstheshort-termborrowingactivityfor Exelon during2013,2012 and2011.
2013 2012 2011
Averageborrowings ......................................................................... $254 $ 199 $ 218
Maximumborrowings outstanding .............................................................. 682505600
Averageinterest rates, computedon a dailybasis................................................. 0.37% 0.48% 0.50%
Averageinterest rates, at December 31 ......................................................... 0.35% n.a.0.44%
Credit Agreements
OnJanuary23,2013,Generation enteredinto a twoyear $75 million bilateral letter ofcreditfacilitywithabank. Thecredit
agreement expiresinJanuary2015. This facilitywill solelybeutilizedbyGeneration to issue lettersofcredit.
OnMarch 14, 2013,ComEd extendeditsunsecuredrevolvingcreditfacilitywithaggregate bankcommitmentsof$1.0billion.Under
this facility, ComEd may issue lettersofcreditintheaggregate amount ofup to $500 million.Thecreditagreement expireson
March 28, 2018, andComEd mayrequest another one-year extension ofthat term. Thecreditfacilityalso allows ComEd to request
increasesintheaggregate commitmentsofup to an additional $500 million.Anysuch extension or increasesare subjecttothe
approval ofthe lenderspartyto thecreditagreement intheirsole discretion.Costsincurredto extendthefacilityfor ComEd were not
material.
OnAugust10,2013,Exelon Corporate,Generation, PECO and BGE amendedandextendedtheirrespectiveunsecuredsyndicated
revolvingcreditfacilities, withaggregate bankcommitmentsof$500 million, $5.3billion,$600 million and$600 million,respectively.
Thenewcovenantsare substantiallyconsistent withexistingcovenants. Costsincurredto amendandextendthefacilitiesfor Exelon
Corporate,Generation, PECO and BGE were not material.
EffectiveAugust10,2013,Exelon andComEd enteredinto amendmentsto each oftheirrespectiverevolvingcreditfacilities(the
Amendments). TheAmendmentsrelate to theIRS’s challengetotheposition taken by Exelon on its1999 federal incometaxreturn
withrespecttothesale ofComEd’s fossilgeneratingassetsinalike-kindexchangetaxposition.TheAmendmentsare intendedto
excludethe non-cash impactofthelike-kindexchangetaxposition fromthecalculation oftheinterestcoverage ratiounder each of
Exelon andComEd’s respectivecreditfacilities. See Note 12—IncomeTaxesfor additional information.
OnJanuary27, 2014ComEd began the process ofextendingitsunsecuredsyndicatedrevolvingcreditfacility, withaggregate bank
commitmentsof$1.0billion.The transaction is expectedto closeandbecomeeffectiveinMarch 2014, withamaturityof fiveyears
fromthecloseofthe transaction.Nochangesare expectedto bemadetothefacilityother than extension ofthe termfor an
additional one year period. Generally, itis expectedthat costsincurredto extendthefacilitywill beamortizedover thenewly
extendedlifeofthefacility.
Borrowings under Exelon Corporate’s, Generation’s, ComEd’s, PECO’s and BGE’s creditagreementsbear interest at a rate based
upon either theprime rate or a LIBOR-basedrate,plusan adder basedupon the particular registrant’s credit rating. Exelon
Corporate,Generation,ComEd, PECO and BGE haveaddersof27.5, 27.5, 27.5, 0.0and 7.5 basis pointsfor primebased
borrowings and127.5, 127.5, 127.5, 100.0and107.5 basis pointsfor LIBOR-basedborrowings. Themaximumaddersfor prime rate
borrowings and LIBOR-basedrate borrowings are 65 basis pointsand165 basis points, respectively. Thecreditagreementsalso
require theborrower to payafacilityfee basedupon theaggregate commitmentsunder theagreement.Thefee variesdepending
upon therespectivecredit ratings oftheborrower.
An event ofdefault under anyoftheRegistrants’ creditfacilitieswouldnot constitute an event ofdefault under anyoftheother
Registrants’ creditfacilities, except that a bankruptcy or other event ofdefault inthepayment ofprincipal,premiumor
indebtedness inprincipal amount inexcess of$100 million intheaggregate by Generation under itscreditfacilitywouldconstitute an
event ofdefault under theExelon Corporate creditfacility.
OnOctober 18, 2013,Generation,ComEd, PECO and BGE refinancedtheirrespectiveminorityandcommunitybankcreditfacility
agreementsintheamountsof$50million,$34million,$34million and$5million,respectively. Thesefacilities, which expire in
October 2014, are solelyutilizedto issue lettersofcredit.
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