ComEd 2015 Annual Report Download - page 15

Table of Contents
reorganizations; and certain holding company acquisitions of public utility and holding company securities. Additionally, ERCOT is not subject to
regulation by FERC but performs a similar function in Texas to that performed by RTOs in markets regulated by FERC. Specific operations of
Generation are also subject to the jurisdiction of various other Federal, state, regional and local agencies, including the NRC and Federal and state
environmental protection agencies. Additionally, Generation is subject to mandatory reliability standards promulgated by the NERC, with the
approval of FERC.
RTOs and ISOs exist in a number of regions to provide transmission service across multiple transmission systems. PJM, MISO, ISO-NE
and SPP, have been approved by FERC as RTOs, and CAISO and ISO-NY have been approved as ISOs. These entities are responsible for
regional planning, managing transmission congestion, developing wholesale markets for energy and capacity, maintaining reliability, market
monitoring, the scheduling of physical power sales brokered through ICE and NYMEX and the elimination or reduction of redundant transmission
charges imposed by multiple transmission providers when wholesale customers take transmission service across several transmission systems.
Constellation Energy Nuclear Group, Inc.
Generation owns a 50.01% interest in CENG, a joint venture with EDF. CENG is governed by a board of ten directors, five of which are
appointed by Generation and five by EDF. CENG owns a total of five nuclear generating facilities on three sites, Calvert Cliffs, R.E. Ginna and
Nine Mile Point. CENG’s ownership share in the total capacity of these units is 4,007 MW. See ITEM 2. PROPERTIES for additional information
on these sites.
Generation and EDF also entered into a Put Option Agreement on April 1, 2014, pursuant to which EDF has the option, exercisable beginning
on January 1, 2016 and thereafter until June 30, 2022, to sell its 49.99% interest in CENG to Generation for a fair market value price determined
by agreement of the parties, or absent agreement, a third-party arbitration process. In addition, under limited circumstances, the period for exercise
of the put option may be extended for 18 months.
Prior to April 1, 2014, Exelon and Generation accounted for their investment in CENG under the equity method of accounting. The transfer of
the nuclear operating licenses and the execution of the NOSA on April 1, 2014, resulted in the derecognition of the equity method investment in
CENG and the recording of all assets, liabilities and EDF’s noncontrolling interest in CENG at fair value on a fully consolidated basis in Exelon’s
and Generation’s Consolidated Balance Sheets. Refer to Note 5— Investment in Constellation Energy Nuclear Group, LLC of the Combined Notes
to Consolidated Financial Statements for further information regarding the integration transaction.
Significant Acquisitions
Integrys Energy Services, Inc. On November 1, 2014, Generation acquired the competitive retail electric and natural gas business
activities of Integrys Energy Group, Inc. through the purchase of all of the stock of its wholly owned subsidiary, Integrys Energy Services, Inc.
(Integrys) for a purchase price of $332 million, including net working capital. The generation and solar asset businesses of Integrys were excluded
from the transaction. See Note 4—Mergers, Acquisitions, and Dispositions of the Combined Notes to Consolidated Financial Statements for
additional information on the above acquisition.
Merger with Constellation Energy Group, Inc. On March 12, 2012, Constellation merged into Exelon with Exelon continuing as the
surviving corporation pursuant to the transactions contemplated by the Agreement and Plan of Merger. Since the merger transaction, Generation
includes the former Constellation generation and customer supply operations.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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