ComEd 2015 Annual Report Download - page 402

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Comprehensive Income for the year ended December 31, 2014. While this $44 million loss contingency represents Generation’s best estimate of
the future obligation, it is reasonably possible that Exelon and Generation could ultimately be required to make cumulative subsidy payments of up
to a maximum of approximately $105 million over a 20-year period dependent on actual generating output from a successfully constructed
generating plant.
Equity Investment Commitments
As part of Generation’s recent investments in technology development, Generation enters into equity purchase agreements that include
commitments to invest additional equity through incremental payments to fund the anticipated needs of the planned operations of the associated
companies. The commitment includes approximately $20 million of in-kind services and 100% of 2015 ESA Investco, LLC’s equity commitment
since 2015 ESA Investco, LLC is consolidated by Generation (see Note 2—Variable Interest Entities for additional details). As of December 31,
2015, Generation’s estimated commitment relating to its equity purchase agreements, including in-kind services contributions, is anticipated to be
as follows:
Total
2016 $299
2017 21
2018 7
2019 —
Total $327
(a) The noncontrolling interest holder of 2015 ESA Investco, LLC will contribute up to $172 million in support of a portion of this equity commitment.
Commercial Commitments
Exelon’s commercial commitments as of December 31, 2015, representing commitments potentially triggered by future events, were as
follows:
Expiration within
Total 2016 2017 2018 2019 2020
2021
and beyond
Letters of credit (non-debt) $1,583 $1,565 $ 5 $— $— $ 13 $ —
Surety bonds 809 733 49 3 2 16 6
Financing trust guarantees 628 — — — — — 628
Energy marketing contract guarantees 3,126 3,126 — — — — —
Nuclear insurance premiums 3,060 — — — — — 3,060
Total commercial commitments $9,206 $5,424 $ 54 $ 3 $ 2 $ 29 $ 3,694
(a) Letters of credit (non-debt)—Exelon and certain of its subsidiaries maintain non-debt letters of credit to provide credit support for certain transactions as requested by third parties.
(b) Surety bonds—Guarantees issued related to contract and commercial agreements, excluding bid bonds.
(c) Includes $200 million of Trust Preferred Securities of ComEd Financing III, $178 million of Trust Preferred Securities of PECO Trust III and IV and $250 million of Trust Preferred
Securities of BGE Capital Trust II.
(d) Energy marketing contract guarantees—Guarantees issued to ensure performance under energy commodity contracts. Amount includes approximately $3.1 billion of guarantees
issued by Exelon and Generation on behalf of its Constellation businesses to allow it the flexibility needed to conduct business with counterparties without having to post other
forms of
395
(a)
(a)
(b)
(c)
(d)
(e)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.