Exelon 2002 Annual Report Download - page 96

Rate Reductions and Caps. Under the Final Restructuring Order,
retail electric rates were capped atyear-end 1996 levels (system-
wide average of 9.96 cents/kilowatt hour (kWh)) through June
2005.The Final Restructuring Order required PECO to reduce its
retail electric rates by 8% from the 1996 system-wide average
rate on January 1, 1999. This rate reduction decreased to 6% on
January 1, 2000 until January 1, 2001. The transmission and
distribution rate component was capped at a system-wide
average rate of 2.98 cents/kWh through June 30, 2005.
Additionally, generation rate caps, defined as the sum of the
applicable transition charge and energy and capacity charge,
will remain in effect through 2010.
On March 16, 2000, the PUC issued an order authorizing
PECO to securitize up to an additional $1 billion of its authorized
stranded costs recovery. In accordance with the terms of that
order,PECO provided its retail customers with rate reductions of
$60 million for calendar year 2001 only.
Under a comprehensive settlement agreement in connection
with achieving regulatory approval of the Merger, PECO agreed
to $200 million in aggregate rate reductions for all customers in
Pennsylvania over the period January 1, 2002 through 2005 and
extended the rate caps on PECO’s retail electric distribution
charges through December 31,2006.
note 06 • supplemental financial information
Supplemental Income Statement Information
For the Years Ended December 31,
2002 2001 2000
Taxes Other Than Income
Utility(a) $412 $ 342 $ 196
Real estate 149 140 68
Payroll 98 88 41
Other 50 53 17
Total $709 $ 623 $ 322
Other,Net
Investment income $ 130 $47 $64
Gain (loss) on disposition of
assets,net 199 4 (19)
Write-down of impaired
investments (41) (36) –
AFUDC, equity and borrowed 19 18 3
Reserve for potential plant
disallowance (12) ––
Settlement of power purchase
agreement ––6
Other 546 (1)
Total $300 $79 $53
(a) Municipal and state utility taxes are also recorded in Revenues on Exelon’s Consolidated
Statements of Income.
Supplemental Cash Flow Information
For the Years Ended December 31,
2002 2001 2000
Cash paid during the year:
Interest (net of amount capitalized) $ 905 $ 963 $ 519
Income taxes (net of refunds) $614 $749 $272
Non-cash investing and financing activities:
Regulatory Asset Fair
Value Adjustment $– $347 $ –
Resolution of Certain Tax
Matters and Merger
Severance Adjustment 14 ––
Purchase Accounting
Estimate Adjustments –(85) –
Issuance of Exelon Shares
for Unicom –– 5,310
Capital Lease Obligations 52 ––
Issuance of InfraSource Stock –35 14
Contribution of Land from
Minority Interest of
Consolidated Subsidiary 12 ––
Note Issued to Sithe in the Sithe
New England Acquisition 534 ––
Depreciation and amortization:
Property, plant and equipment $ 729 $ 697 $ 325
Regulatory assets 472 445 53
Nuclear fuel 374 393 149
Decommissioning 126 144 46
Goodwill –155 34
Total Depreciation
and Amortization $1,701 $ 1,834 $ 607
Supplemental Balance Sheet Information
December 31,
2002 2001
Investments
Investment in Sithe $478 $700
Direct financing leases 445 427
Energy services and other ventures 167 161
Investment in AmerGen 160 95
Affordable housing projects 88 98
Communication ventures 39 116
Investment in subsidiaries and joint ventures 16 26
Total $ 1,393 $ 1,623
Prior to the Merger, Unicom entered into a like-kind exchange
transaction pursuant to which approximately $1.6 billion was
invested in passive generating station leases with two separate
entities unrelated to Exelon. The generating stations were
leased back to such entities as part of the transaction.For finan-
cial accounting purposes, the investments are accounted for as
direct financing lease investments. Unicom Investments, Inc.
Notes To Consolidated Financial Statements
exelon corporation and subsidiary companies
94