ComEd 2015 Annual Report Download - page 176

Table of Contents
See Note 23—Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements for discussion of the
Registrants’ other commitments potentially triggered by future events.
For additional information regarding:
• commercial paper, see Note 14—Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements.
• long-term debt, see Note 14—Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements.
• liabilities related to uncertain tax positions, see Note 15—Income Taxes of the Combined Notes to Consolidated Financial Statements.
• capital lease obligations, see Note 14—Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements.
• operating leases and rate relief commitments, see Note 23—Commitments and Contingencies of the Combined Notes to Consolidated
Financial Statements.
• the nuclear decommissioning and SNF obligations, see Notes 16—Asset Retirement Obligations and 23—Commitments and
Contingencies of the Combined Notes to Consolidated Financial Statements.
• regulatory commitments, see Note 3—Regulatory Matters of the Combined Notes to Consolidated Financial Statements.
• variable interest entities, see Note 2—Variable Interest Entities of the Combined Notes to Consolidated Financial Statements.
• nuclear insurance, see Note 23—Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements.
• new accounting pronouncements, see Note 1—Significant Accounting Policies of the Combined Notes to Consolidated Financial
Statements.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Registrants are exposed to market risks associated with adverse changes in commodity prices, counterparty credit, interest rates and
equity prices. Exelon’s RMC approves risk management policies and objectives for risk assessment, control and valuation, counterparty credit
approval, and the monitoring and reporting of risk exposures. The RMC is chaired by the chief executive officer and includes the chief risk officer,
chief strategy officer, chief executive officer of Exelon Utilities, chief commercial officer, chief financial officer and chief executive officer of
Constellation. The RMC reports to the Finance and Risk Committee of the Exelon Board of Directors on the scope of the risk management
activities.
Commodity Price Risk (Exelon, Generation, ComEd, PECO and BGE)
Commodity price risk is associated with price movements resulting from changes in supply and demand, fuel costs, market liquidity, weather
conditions, governmental regulatory and environmental policies, and other factors. To the extent the amount of energy Exelon generates differs
from the amount of energy it has contracted to sell, Exelon has price risk from commodity price movements. Exelon seeks to mitigate its
commodity price risk through the sale and purchase of electricity, fossil fuel, and other commodities.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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