ComEd 2015 Annual Report Download - page 14

Table of Contents
BGE
BGE’s energy delivery business consists of the purchase and regulated retail sale of electricity and the provision of electricity transmission
and distribution services to retail customers in central Maryland, including the City of Baltimore, as well as the purchase and regulated retail sale
of natural gas and the provision of natural gas distribution services to retail customers in central Maryland, including the City of Baltimore.
BGE was incorporated in Maryland in 1906. BGE’s principal executive offices are located at 110 West Fayette Street, Baltimore, Maryland
21201, and its telephone number is 410-234-5000.
Operating Segments
See Note 25—Segment Information of the Combined Notes to Consolidated Financial Statements for additional information on Exelon’s
operating segments.
Pending Merger with Pepco Holdings, Inc.
On April 29, 2014, Exelon and PHI signed an agreement and plan of merger (as subsequently amended and restated as of July 18, 2014) to
combine the two companies in an all cash transaction. The resulting company will retain the Exelon name and be headquartered in Chicago. The
merger is expected to be completed in the first quarter of 2016. See Note 4—Mergers, Acquisitions, and Dispositions of the Combined Notes to
Consolidated Financial Statements for additional information on the pending transaction.
Generation
Generation, one of the largest competitive electric generation companies in the United States as measured by owned and contracted MW,
physically delivers and markets power across multiple geographic regions through its customer-facing business, Constellation. Constellation sells
electricity and natural gas, including renewable energy, to both wholesale and retail customers. The retail sales include commercial, industrial and
residential customers. Generation leverages its energy generation portfolio to ensure delivery of energy to both wholesale and retail customers
under long-term and short-term contracts, and in wholesale power markets. Generation operates in well-developed energy markets and employs an
integrated hedging strategy to manage commodity price volatility. Generation’s fleet, including its nuclear plants which consistently operate at high
capacity factors, also provides geographic and supply source diversity. These factors help Generation mitigate the challenging conditions
emanating from competitive energy markets. Generation’s customers include distribution utilities, municipalities, cooperatives, financial
institutions, and commercial, industrial, governmental, and residential customers in competitive markets. Generation’s customer facing activities
foster development and delivery of other innovative energy-related products and services for its customers. Generation also engages in natural gas
and oil exploration and production activities (Upstream).
Generation is a public utility under the Federal Power Act and is subject to FERC’s exclusive ratemaking jurisdiction over wholesale sales of
electricity and the transmission of electricity in interstate commerce. Under the Federal Power Act, FERC has the authority to grant or deny
market-based rates for sales of energy, capacity and ancillary services to ensure that such sales are just and reasonable. FERC’s jurisdiction over
ratemaking also includes the authority to suspend the market-based rates of utilities and set cost-based rates should FERC find that its previous
grant of market-based rates authority is no longer just and reasonable. Other matters subject to FERC jurisdiction include, but are not limited to,
third-party financings; review of mergers; dispositions of jurisdictional facilities and acquisitions of securities of another public utility or an existing
operational generating facility; affiliate transactions; intercompany financings and cash management arrangements; certain internal corporate
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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