ComEd 2015 Annual Report Download - page 169

Table of Contents
Retirement of Long-Term Debt to Financing Affiliates. There were no retirements of long-term debt to financing affiliates during 2015,
2014 and 2013 by the Registrants.
Contributions from Parent/Member. Contributions from Parent/Member (Exelon) during 2015, 2014 and 2013 by Registrant were as
follows:
2015 2014 2013
Generation $ 47 $ 53 $ 26
ComEd 209 278 176
PECO 16 24 27
BGE 7 — —
(a) Additional contributions from parent or external debt financing may be required as a result of increased capital investment in infrastructure improvements and modernization
pursuant to EIMA, transmission upgrades and expansions and Exelon’s agreement to indemnify ComEd for any unfavorable after-tax impacts associated with ComEd’s LKE tax
matter.
Other. For the year ended December 31, 2015, other financing activities primarily consists of debt issuance costs. See Note 14—Debt and
Credit Agreements of the Combined Notes to Consolidated Financial Statements’ for additional information.
Credit Matters

The Registrants fund liquidity needs for capital investment, working capital, energy hedging and other financial commitments through cash
flows from continuing operations, public debt offerings, commercial paper markets and large, diversified credit facilities. The credit facilities include
$8.4 billion in aggregate total commitments of which $6.9 billion was available as of December 31, 2015, and of which no financial institution has
more than 7% of the aggregate commitments for Exelon, Generation, ComEd, PECO and BGE. The Registrants had access to the commercial
paper market during 2015 to fund their short-term liquidity needs, when necessary. The Registrants routinely review the sufficiency of their liquidity
position, including appropriate sizing of credit facility commitments, by performing various stress test scenarios, such as commodity price
movements, increases in margin-related transactions, changes in hedging levels and the impacts of hypothetical credit downgrades. The
Registrants have continued to closely monitor events in the financial markets and the financial institutions associated with the credit facilities,
including monitoring credit ratings and outlooks, credit default swap levels, capital raising and merger activity. See PART I. ITEM 1A. RISK
FACTORS for further information regarding the effects of uncertainty in the capital and credit markets.
The Registrants believe their cash flow from operating activities, access to credit markets and their credit facilities provide sufficient
liquidity. If Generation lost its investment grade credit rating as of December 31, 2015, it would have been required to provide incremental collateral
of $2.0 billion to meet collateral obligations for derivatives, non-derivatives, normal purchase normal sales contracts and applicable payables and
receivables, net of the contractual right of offset under master netting agreements, which is well within its current available credit facility capacities
of $4.3 billion. If ComEd lost its investment grade credit ratings as of December 31, 2015, it would have been required to provide collateral of $31
million pursuant to PJM’s credit policy and could have been required to provide incremental collateral of $19 million which is well within its current
available credit facility capacity of $998 million. If PECO lost its investment grade credit rating as of December 31, 2015 it would have been
required to provide collateral of $2 million pursuant to PJM’s credit policy and could have been required to provide collateral of $25 million related
to its natural gas procurement contracts, which, in the aggregate, are well within PECO’s current available credit facility capacity of $599 million. If
BGE lost its investment grade credit rating as of December 31, 2015 it would have been required to
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(a)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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