ComEd 2015 Annual Report Download - page 126

Table of Contents
revenue, net of purchase power and fuel expense was primarily due to the inclusion of CENG’s results on fully consolidated basis in 2015, the
benefit of lower cost to serve load (including the absence of higher procurement costs for replacement power in 2014), the cancellation of the DOE
spent nuclear fuel disposal fee, increased capacity prices, the inclusion of Integrys’ results in 2015, favorability from portfolio management
optimization activities, increased load served, and mark-to-market gains in 2015 compared to mark-to-market losses in 2014, partially offset by
lower margins resulting from the 2014 sale of generating assets, lower realized energy prices, and the absence of the 2014 fuel optimization
opportunities in the South region due to extreme cold weather. The decrease in operating and maintenance expense was largely due to the
reduction of long-lived asset impairment charges in 2015 versus 2014, partially offset by increased labor, contracting and materials expense due to
the inclusion of CENG’s results on a fully consolidated basis in 2015 and increased energy efficiency projects. The decrease in other income is
primarily the result of the change in realized and unrealized gains and losses on NDT fund investments in 2015 as compared to 2014.
 Generation’s net income attributable to membership interest
decreased compared to the same period in 2013 primarily due to higher operating and maintenance expense and higher depreciation expense;
partially offset by higher revenue, net of purchase power and fuel expense, higher other income, the gains recorded on the sale of Generation’s
ownership interest in generating stations, the bargain-purchase gain recorded related to the Integrys acquisition, and the gain recorded upon
consolidation of CENG. The increase in operating and maintenance expense was largely due to increased labor contracting and materials expense
due to the inclusion of CENG’s results on a fully consolidated basis beginning April 1, 2014 and impairment charges related to 1) generating assets
held-for-sale, 2) certain Upstream assets, and 3) wind generating assets. The increase in revenue, net of purchased power and fuel expense was
primarily due to the inclusion of CENG’s results beginning April 1, 2014, a decrease in fuel costs related to the cancellation of DOE spent nuclear
fuel disposal fees, an increase in capacity prices, and favorable portfolio management activities in the New England and South regions, partially
offset by lower realized energy prices related to executing Exelon’s ratable hedging strategy, higher procurement costs for replacement power due
to extreme cold weather in the first quarter of 2014, and unrealized mark-to-market losses in 2014. The increase in other income is primarily the
result of increased realized and unrealized gains on NDT fund investments.
Revenue Net of Purchased Power and Fuel Expense
The basis for Generation’s reportable segments is the integrated management of its electricity business that is located in different
geographic regions, and largely representative of the footprints of ISO/RTO and/or NERC regions, which utilize multiple supply sources to provide
electricity through various distribution channels (wholesale and retail). Generation’s hedging strategies and risk metrics are also aligned with these
same geographic regions. Descriptions of each of Generation’s six reportable segments are as follows:
• Mid-Atlantic represents operations in the eastern half of PJM, which includes New Jersey, Maryland, Virginia, West Virginia, Delaware,
the District of Columbia and parts of Pennsylvania and North Carolina.
• Midwest represents operations in the western half of PJM, which includes portions of Illinois, Pennsylvania, Indiana, Ohio, Michigan,
Kentucky and Tennessee, and the United States footprint of MISO excluding MISO’s Southern Region, which covers all or most of
North Dakota, South Dakota, Nebraska, Minnesota, Iowa, Wisconsin, the remaining parts of Illinois, Indiana, Michigan and Ohio not
covered by PJM, and parts of Montana, Missouri and Kentucky.
• New England represents the operations within ISO-NE covering the states of Connecticut, Maine, Massachusetts, New Hampshire,
Rhode Island and Vermont.
119
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.