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61Management’s Discussion and Analysis of Financial Condition and Results of Operations
EXELON CORPORATION AND SUBSIDIARY COMPANIES
Contractual Obligations and Off-Balance Sheet Arrangements
The following table summarizes our future estimated cash payments under existing contractual obligations, including pay-
ments due by period.
Payment due within Due 2009
and beyondTotal 2004 2005-2006 2007-2008
Long-term debt $ 9,284 $ 1,385 $ 1,159 $1,207 $ 5,533
Long-term debt to financing trusts 6,070 470 1,629 1,950 2,021
NotespayabletoSithe 9090–––
Commercial paper 326 326 – – –
Operating leases 744 49 97 86 512
Power purchase obligations 10,475 2,635 1,827 1,410 4,603
Fuel purchase agreements 3,034 476 825 582 1,151
Other purchase obligations 145 31 71 38 5
Chicago agreement(a) 54 6 12 12 24
Regulatory commitments 30 10 20 – –
Spent nuclear fuel obligation 867 – – – 867
Obligation to minority shareholders 51 3 6 6 36
Pension IRS minimum funding requirement 17 17 – – –
Decommissioning(b) 2,997 – – – 2,997
Total contractual obligations $34,184 $5,498 $5,646 $ 5,291 $17,749
(a) On February 20, 2003, ComEd entered into separate agreements with Chicago and with Midwest Generation (Midwest Agreement). Under the terms of the agreement with Chi-
cago, ComEd will pay Chicago $60 million over ten years to be relieved of a requirement, originally transferred to Midwest Generation upon the sale of ComEd’s fossil stations in
1999, to build a 500-MW generation facility.
(b) Represents the present value of our obligation to decommission nuclear plants.
For additional information about:
– long-term debt, see Note 11 of the Notes to Consolidated
Financial Statements
– notes payable, see Note 10 of the Notes to Consolidated
Financial Statements
– operating leases, energy commitments, fuel purchase
agreements and other purchase obligations, see Note 19 of
the Notes to Consolidated Financial Statements
– regulatory commitments, see Note 4 of the Notes to Con-
solidated Financial Statements
– the spent nuclear fuel obligation, see Note 13 of the Notes
to Consolidated Financial Statements
– the obligation to minority shareholders, see Note 19 of the
Notes to Consolidated Financial Statements
– the contribution required to our pension plans to satisfy
IRS minimum funding requirements, see Note 14 of the
Notes to Consolidated Financial Statements
Two affiliates of Exelon New England have long-term supply
agreements through December 2022 with Distrigas of
Massachusetts, LLC (Distrigas) for gas supply, primarily for
the Boston Generating units. Under the agreements, prices
are indexed to New England gas markets. Exelon New Eng-
land has guaranteed these entities’ financial obligations to
Distrigas under the Distrigas agreements. It is currently an-
ticipated that Exelon New England’s guaranty to Distrigas
will continue following the eventual transfer of the owner-
ship interests in Boston Generating. This guaranty is non-
recourse to Generation. At December 31, 2003, Exelon New
England had net assets of approximately $70 million, ex-
clusive of the Boston Generating net assets.
Exelon has committed to pay down approximately $30
million of the Exelon New England note during the first six
months of 2004 to fund Sithe’s expected acquisition of the
40% of Sithe/Independence Power Partners, L.P. that it does
not currently own.
Generation has an obligation to decommission its nu-
clear power plants. NRC regulations require that licensees of
nuclear generating facilities demonstrate reasonable assur-
ance that funds will be available in certain minimum
amounts at the end of the life of the facility to decom-
mission the facility. Based on estimates of decommissioning
costs for each of the nuclear facilities in which Generation
has an ownership interest, the ICC permits ComEd, and the
PUC permits PECO, to collect from their customers and
deposit in nuclear decommissioning trust funds maintained
by Generation amounts which, together with earnings
thereon, will be used to decommission such nuclear facili-
ties. Upon adoption of SFAS No. 143, Generation was required
to re-measure its decommissioning liabilities at fair value
and recorded an asset retirement obligation of $2.4 billion on
January 1, 2003. Increases in the asset retirement obligation
are recorded as operating and maintenance expense. At
December 31, 2003, the asset retirement obligation recorded