ComEd 2013 Annual Report Download - page 236

(c) Performanceguarantees—Guarantees issuedto ensure performanceunder specific contracts, including$211 million issuedon behalfof CENG nuclear generating
facilitiesfor creditsupport,$200 million ofTrustPreferredSecuritiesofComEd Financing III, $178 million ofTrustPreferredSecuritiesof PECO TrustIII andIVand
$250million ofTrustPreferredSecuritiesof BGE Capital TrustII.
(d) Energy marketingcontractguarantees—Guarantees issuedto ensure performanceunder energy commoditycontracts. Amount includesapproximately$3billion of
guaranteespreviously issuedbyConstellation on behalfofitsGeneration andNewEnergy business to allowittheflexibilityneededto conductbusiness with
counterpartieswithout havingto postother forms ofcollateral.Themajorityoftheseguaranteescontainevergreen provisionsthat require theguarantee to remainin
effect untilcancelled. Exelon’s estimatednet exposure for obligationsunder commercial transactionscoveredbytheseguaranteesisapproximately $463million at
December 31,2013, which representsthe total amount Exelon couldberequiredto fundbasedon December 31,2013 market prices.
(e)Leaseguarantees—Guarantees issuedto ensure paymentson buildingleases.
(f) Nuclear insurance premiums—Representsthemaximumamount that Generation wouldberequiredto payfor retrospective premiums intheevent ofnuclear disaster
at anydomestic site under theSecondaryFinancial Protection pool asrequiredunder thePrice-Anderson Actaswell asthecurrent aggregate annual retrospective
premiumobligation that couldbeimposed by NEIL. See theNuclear Insurancesection withinthis note for additional detailson Generation’s nuclear insurance
premiums.
Construction Commitments
Generation hascommittedto theconstruction ofthe Antelope Valleysolar PV facilityinLosAngelesCounty, California.Thefirst
portion ofthe projectbegan operationsinDecember 2012,with six additional blocks comingonline in 2013 andan expectation offull
commercial operation inthefirsthalfof2014. Generation’s estimatedremainingcommitment for the projectis $110 million.
OnJuly3,2013,Generation executedaTurbine SupplyAgreement to expanditsBeebewindprojectinMichigan.Theestimated
remainingcommitment under thecontractis $50million andachievement ofcommercial operationsisexpectedin 2014.
OnJuly26, 2013,Generation executedan engineeringprocurement andconstruction contracttoexpanditsPerryman,Maryland
generation site with120 MW ofnewnatural gas-firedgeneration to satisfy certainmerger commitments. Theestimatedremaining
commitment under thecontractis $80million andachievement ofcommercial operation is expectedin 2015. See 4—Merger and
Acquisitionsfor additional information on commitmentsto develop or assistindevelopment ofnewgeneration inMarylandresulting
fromthemerger.
OnDecember 27, 2013,GeneratedexecutedaTurbine SupplyAgreement for construction ofthe32.5MW Fourmile Windprojectin
western Maryland. Theestimatedremainingcommitment under thecontractis $26million andachievement ofcommercial
operationsisexpectedin 2014. See 4—Merger andAcquisitionsfor additional information on commitmentsto develop or assistin
development ofnewgeneration inMarylandresultingfromthemerger.
Refer to Note 3—RegulatoryMattersfor information on investment programs associatedwithregulatorymandates, such as
ComEd’s Infrastructure Investment Plan under EIMA, PECO’s Smart Meter Procurement andInstallation Plan,and BGE’s
comprehensivesmart grid initiative.
Constellation Merger Commitments
Exelon’s commercial andconstruction commitmentsshownabovedo not includethemerger commitmentsmadetotheState of
Marylandinconjunction withtheConstellation merger.See Note 4—Merger andAcquisitionsfor additional information on the
mergerscommitments.
Leases
Minimumfuture operatingleasepayments, includingleasepaymentsfor vehicles, real estate,computers, railcars, operating
equipment andofficeequipment,asofDecember 31,2013 were:
2014 .................................................................................................... $103
2015 .................................................................................................... 91
2016 .................................................................................................... 89
2017 .................................................................................................... 82
2018 .................................................................................................... 63
Remainingyears .......................................................................................... 398
Total minimumfuture leasepayments(a)(b)(c) .................................................................... $826
(a) ExcludesGeneration’s PPAsandother capacitycontractsthat are accountedfor ascontingent operatingleasepayments.
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