ComEd 2015 Annual Report Download - page 304

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
BGE
The following table presents a summary of property, plant and equipment by asset category as of December 31, 2015 and 2014:
Average Service Life
(years) 2015 2014
Asset Category
Electric—transmission and distribution 5-90 $6,663 $6,339
Gas—distribution 5-90 1,951 1,761
Common—electric and gas 5-40 655 623
Construction work in progress N/A 312 317
Other property, plant and equipment 20 32 32
Total property, plant and equipment 9,613 9,072
Less: accumulated depreciation 3,016 2,868
Property, plant and equipment, net $6,597 $6,204
(a) Represents land held for future use and non-utility property.
Average Service Life Percentage by Asset Category 2015 2014 2013
Electric—transmission and distribution 2.62% 2.96% 2.91%
Gas 2.50% 2.47% 2.36%
Common—electric and gas 10.35% 9.49% 8.45%
See Note 1—Significant Accounting Policies for further information regarding property, plant and equipment policies and accounting for
capitalized software costs for Exelon, Generation, ComEd, PECO and BGE. See Note 14—Debt and Credit Agreements for further information
regarding Exelon’s, ComEd’s, and PECO’s property, plant and equipment subject to mortgage liens.
8. Impairment of Long-Lived Assets (Exelon and Generation)
Long-Lived Assets (Exelon and Generation)
Generation evaluates long-lived assets for recoverability whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. In the second quarter of each year, Generation updates the long-term fundamental energy prices, which includes a
thorough evaluation of key assumptions including gas prices, load growth, environmental policy, plant retirements and renewable growth.
In 2015, the year over year change in fundamentals did not indicate any impairments. In 2014, the year over year change in fundamentals
suggested that the carrying value of certain merchant wind assets may be impaired. Generation concluded that the estimated undiscounted future
cash flows and fair value of twelve wind projects, primarily located in West Texas, were less than their respective carrying values at May 31, 2014.
As a result, long-lived assets held and used with a carrying amount of approximately $151 million were written down to their fair value of $65
million and a pre-tax impairment charge of $86 million was recorded within Operating and maintenance expense in Exelon’s and Generation’s
Consolidated Statements of Operations and Comprehensive Income.
In 2013, lower projected wind production and a decline in power prices suggested that the carrying value of certain wind projects with market
price exposure for either all or a portion of the life of the
297
(a)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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