ComEd 2015 Annual Report Download - page 255

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
At December 31, 2015 and 2014, Exelon, Generation, and BGE collectively consolidated seven and six VIEs or VIE groups, respectively, for
which the applicable Registrant was the primary beneficiary (. As of December 31, 2015 and
2014, the Registrants had significant interests in eight and six other VIEs, respectively, for which the Registrants do not have the power to direct
the entities’ activities and, accordingly, were not the primary beneficiary (.
Consolidated Variable Interest Entities
The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Registrants’ consolidated financial
statements at December 31, 2015 and 2014 are as follows:
December 31, 2015 December 31, 2014
Exelon Generation BGE Exelon Generation BGE
Current assets $ 909 $ 881 $ 23 $ 1,275 $ 1,247 $ 21
Noncurrent assets 8,009 8,004 3 7,573 7,560 3
Total assets $ 8,918 $ 8,885 $ 26 $ 8,848 $ 8,807 $ 24
Current liabilities $ 473 $ 387 $ 81 $ 611 $ 526 $ 77
Noncurrent liabilities 2,927 2,884 41 2,728 2,597 120
Total liabilities $ 3,400 $ 3,271 $122 $ 3,339 $ 3,123 $197
(a) Certain December 31, 2014 balances have been adjusted for the adoption of accounting guidance related to classification of deferred taxes and simplifying the presentation of
debt costs. See Note 1—Significant Accounting Policies for additional information.
(b) Includes certain purchase accounting adjustments not pushed down to the BGE standalone entity.
Except as specifically noted below, the assets in the table above are restricted for settlement of the VIE obligations and the liabilities in the
table can only be settled using VIE resources.
Exelon’s, Generation’s and BGE’s consolidated VIEs consist of:
RSB BondCo LLC. In 2007, BGE formed RSB BondCo LLC (BondCo), a special purpose bankruptcy remote limited liability company, to
acquire and hold rate stabilization property and to issue and service bonds secured by the rate stabilization property. In June 2007, BondCo
purchased rate stabilization property from BGE, including the right to assess, collect, and receive non-bypassable rate stabilization charges
payable by all residential electric customers of BGE. These charges are being assessed in order to recover previously incurred power purchase
costs that BGE deferred pursuant to Senate Bill 1. BGE has determined that BondCo is a VIE for which it is the primary beneficiary. As a result,
BGE consolidates BondCo.
BondCo’s assets are restricted and can only be used to settle the obligations of BondCo. Further, BGE is required to remit all payments it
receives from customers for rate stabilization charges to BondCo. During 2015, 2014, and 2013, BGE remitted $86 million, $85 million, and $83
million, respectively, to BondCo.
BGE did not provide any additional financial support to BondCo during 2015. Further, BGE does not have any contractual commitments or
obligations to provide additional financial support to BondCo unless additional rate stabilization bonds are issued. The BondCo creditors do not
have any recourse to the general credit of BGE in the event the rate stabilization charges are not sufficient to cover the bond principal and interest
payments of BondCo.
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(a)
(b) (b)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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