Exelon 2001 Annual Report Download - page 71

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69
Regulatory Assets
December 31,
2001 2000
Competitive transition charge $ 4,947 $ 5,218
Recoverable deferred income taxes (see Note 15) 701 632
Nuclear decommissioning costs for retired plants 310 719
Recoverable transition costs 277 385
Loss on reacquired debt 112 99
Compensated absences 54
Non-pension postretirement benefits 71 78
Long-Term Regulatory Assets 6,423 7,135
Deferred energy costs (current asset) 56 86
Total $6,479 $ 7,221
At December 31, 2001 and 2000, the Competitive Transition Charge (CTC) includes the unamortized balance of $4.5 billion
and $4.8 billion, respectively, of Intangible Transition Property (ITP) sold to PECO Energy Transition Trust (PETT), a wholly
owned subsidiary of PECO, in connection with the securitization of PECO’s stranded cost recovery. PETT financed its purchase
of the ITP through the issuance of transition bonds. See Note 14—Long-Term Debt. ITP represents the irrevocable right of
PECO or its assignee to collect non-bypassable charges from customers to recover stranded costs.The CTC represents PECO’s
stranded costs that are recoverable through regulated rates. The CTC is recoverable over a twelve year period ending
December 31, 2010 with a return on the unamortized balance of 10.75%.
(08) Earnings Per Share
Diluted earnings per share are calculated by dividing net income by the weighted average shares of common stock
outstanding including shares issuable upon exercise of stock options outstanding under Exelon’s stock option plans
considered to be common stock equivalents. The following table shows the effect of these stock options on the weighted
average number of shares outstanding used in calculating diluted earnings per share (in millions):
2001 2000 1999
Average Common Shares Outstanding 320 202 196
Assumed Exercise of Stock Options 2 2 1
Average Dilutive Common Shares Outstanding 322 204 197
(09) Accounts Receivable
Accounts receivable—Customer at December 31, 2001 and 2000 included unbilled operating revenues of $438 million and
$498 million, respectively. The allowance for uncollectible accounts at December 31, 2001 and 2000 was $213 million and
$200 million, respectively.
Accounts receivable—Other at December 31, 2001 and 2000 included demand notes receivable from a communications
joint venture in the amount of $153 million.The receivable has been adjusted for Exelon’s share of this joint venture’s operating
losses incurred in excess of its investment. The notes bear interest at the Applicable Federal Rate, compounded semi-annually.
The average interest rate on the notes receivable was 4.18% and 6.22% at December 31, 2001 and 2000, respectively. Interest
income related to the notes receivable was $6 million and $10 million in 2001 and 2000, respectively.
PECO is party to an agreement with a financial institution under which it can sell or finance with limited recourse an
undivided interest, adjusted daily, in up to $225 million of designated accounts receivable until November 2005. At December
31, 2001, PECO had sold a $225 million interest in accounts receivable, consisting of a $170 million interest in accounts receivable