ComEd 2015 Annual Report Download - page 345

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
BGE’s full requirements wholesale power agreements that govern the terms of its electric supply procurement contracts do not contain
provisions that would require BGE to post collateral.
BGE’s natural gas procurement contracts contain provisions that could require BGE to post collateral. This collateral may be posted in the
form of cash or credit support with thresholds contingent upon BGE’s credit rating from the major credit rating agencies. The collateral and credit
support requirements vary by contract and by counterparty. As of December 31, 2015, BGE was not required to post collateral for any of these
agreements. If BGE lost its investment grade credit rating as of December 31, 2015, BGE could have been required to post approximately $35
million of collateral to its counterparties.
14. Debt and Credit Agreements (Exelon, Generation, ComEd, PECO and BGE)
Short-Term Borrowings
Exelon, ComEd and BGE meet their short-term liquidity requirements primarily through the issuance of commercial paper. Generation and
PECO meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the intercompany
money pool.
Exelon, Generation, ComEd, PECO and BGE had the following amounts of commercial paper borrowings at December 31, 2015 and 2014:
Maximum
Program Size at
December 31,
Outstanding
Commercial
Paper at
December 31,
Average Interest Rate on
Commercial
Paper Borrowings for
the Year Ended December 31,
Commercial Paper Issuer
2015 2014
2015 2014 2015 2014
Exelon Corporate $ 500 $ 500 $— $— n.a. n.a.
Generation 5,450 5,600 — — 0.49% 0.32%
ComEd 1,000 1,000 294 304 0.53% 0.33%
PECO 600 600 — — n.a. n.a.
BGE 600 600 210 120 0.48% 0.29%
Total $8,150 $8,300 $504 $424
(a) Reflects aggregate bank commitments under the revolving and bilateral credit agreements (with the exception of $275 million and $200 million bilateral agreements for Generation
as of December 31, 2015 and 2014, respectively) that backstop the commercial paper program. See discussion and Credit Facilities table below for items affecting effective
program size.
(b) Excludes additional credit facilities for Generation, ComEd, PECO and BGE with aggregate commitments of $50 million, $34 million, $34 million and $5 million, respectively,
arranged with minority and community banks located primarily within ComEd’s, PECO’s and BGE’s service territories. The agreements for these facilities expired on October 16,
2015 and were renewed at the same amount through October 14, 2016. These facilities are solely utilized to issue letters of credit. As of December 31, 2015, letters of credit
issued under these facilities totaled $7 million, $14 million, $21 million and $2 million for Generation, ComEd, PECO and BGE, respectively.
In order to maintain their respective commercial paper programs in the amounts indicated above, each Registrant must have revolving credit
facilities in place, at least equal to the amount of its commercial paper program. While the amount of outstanding commercial paper does not
reduce available capacity under a Registrant’s credit facility, a Registrant does not issue commercial paper in an aggregate amount exceeding the
then available capacity under its credit facility.
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(a)
(b)
(a)
(b)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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