Exelon 2014 Annual Report Download - page 217

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
PECO’s supplier master agreements that govern the terms of its DSP Program contracts do not contain provisions that would require
PECO to post collateral.
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, 2014, BGE was not required to
post collateral for any of these agreements. If BGE lost its investment grade credit rating as of December 31, 2014, BGE could have
been required to post approximately $79 million of collateral to its counterparties.
13. Debt and Credit Agreements
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, 2014 and
2013:
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 2014 (a)(b) 2013 (a)(b) 2014 2013 2014 2013
Exelon Corporate .................................... $ 500 $ 500 $— $— — % 0.27%
Generation ......................................... 5,600 5,600 — — 0.32% 0.32%
ComEd ............................................ 1,000 1,000 304 184 0.33% 0.40%
PECO ............................................. 600 600 — — n.a. n.a.
BGE .............................................. 600 600 120 135 0.29% 0.31%
Total .............................................. $8,300 $8,300 $424 $319
(a) Reflects aggregate bank commitments under the revolving and bilateral credit agreements (with the exception of $200 million bilateral agreements for Generation)
that backstop the commercial paper program. See discussion below and Credit Agreements table below for items affecting effective program size.
(b) Excludes additional credit facility agreements 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. These facilities expired on
October 17, 2014 and were renewed at the same amount through October 16, 2015. These facilities are solely utilized to issue letters of credit. As of December 31,
2014, letters of credit issued under these agreements totaled $9 million, $16 million, $21 million and $1 million for Generation, ComEd, PECO and BGE, respectively.
Also, excludes the unsecured bridge credit facility of $3.2 billion at December 31, 2014, to support the PHI transaction discussed below.
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 its outstanding
commercial paper does not reduce available capacity under a Registrant’s credit agreement, a Registrant does not issue commercial
paper in an aggregate amount exceeding the then available capacity under its credit agreement.
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