Exelon 2014 Annual Report Download - page 236

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
The following table provides a rollforward of the non-nuclear AROs reflected on the Exelon’s Consolidated Balance Sheets from
January 1, 2013 to December 31, 2014:
Non-nuclear AROs at January 1, 2013 ........................................................................ $343
Net increase (decrease) due to changes in, and timing of, estimated future cash flows (a) ............................... 1
Development projects (b) .................................................................................... 2
Accretion expense (c) ....................................................................................... 18
Payments ................................................................................................ (13)
Non-nuclear AROs at December 31, 2013 (d) ................................................................... 351
Net increase (decrease) due to changes in, and timing of, estimated future cash flows (a) ............................... (1)
Development projects (b) .................................................................................... 11
Accretion expense (c) ....................................................................................... 15
Liabilities held for sale (e) .................................................................................... (4)
Sale of generating assets (f) ................................................................................. (20)
Payments ................................................................................................ (6)
Non-nuclear AROs at December 31, 2014 (d) ................................................................... $346
(a) During the year ended December 31, 2014, Generation recorded a decrease of $(2) million and ComEd recorded an increase of $1 million in Operating and
maintenance expense. PECO, and BGE did not record any adjustments in Operating and maintenance expense for the year ended December 31, 2014. During the
year ended December 31, 2013, Generation recorded an increase in Operating and maintenance expense of $13 million. ComEd, PECO, and BGE did not record
any adjustments in Operating and maintenance expense for the year ended December 31, 2013.
(b) Relates to new AROs recorded due to the construction of solar, wind and other non-nuclear generating sites.
(c) For ComEd, PECO, and BGE, the majority of the accretion is recorded as an increase to a regulatory asset due to the associated regulatory treatment.
(d) During the year ended December 31, 2014, Generation, ComEd, PECO and BGE recorded $1 million, $1 million, $1 million, and $1 million, respectively, as the
current portion of the ARO. During December 31, 2013 Generation, ComEd, PECO and BGE recorded $0 million, $2 million, $1 million, and $0 million, respectively,
as the current portion of the ARO. This is included in Other current liabilities on the Registrants’ respective Consolidated Balance Sheets.
(e) Represents AROs related to generating stations classified as held for sale as of December 31, 2014. See Note 4—Mergers, Acquisitions, and Dispositions for further
information.
(f) Reflects a reduction to the ARO resulting primarily from the sales of the Keystone and Conemaugh generating stations. See Note 4—Mergers, Acquisitions, and
Dispositions for further information.
16. Retirement Benefits
As of December 31, 2014, Exelon sponsored defined benefit pension plans and other postretirement benefit plans for essentially all
Generation, ComEd, PECO, BGE and BSC employees. The table below shows the pension and postretirement benefit plans in
which each operating company participated at December 31, 2014.
On April 1, 2014, as a result of the consolidation of CENG into Generation, the obligations associated with CENG’s pension and
other postretirement plans are reflected in the disclosures below based on an April 1, 2014 valuation adjusted for subsequent
activity. Exelon assumed sponsorship of the CENG pension and other postretirement benefit plans in the third quarter of 2014 when
the employees transferred to Exelon. CENG will fund the underfunded balances of the pension and other postretirement benefit
plans measured at July 14, 2014 on an agreed payment schedule or upon the occurrence of certain specified events, such as EDF’s
disposition of a majority of its interest in CENG. Payments received from CENG related to the funded plans will be contributed to the
appropriate benefit trusts.
Benefit Obligations, Plan Assets and Funded Status
Exelon recognizes the overfunded or underfunded status of defined benefit pension and OPEB plans as an asset or liability on its
balance sheet, with offsetting entries to Accumulated other comprehensive income (AOCI) and regulatory assets (liabilities), in
accordance with the applicable authoritative guidance. The measurement date for the plans is December 31.
During the first quarter of 2014, Exelon received an updated valuation of its legacy pension and other postretirement benefit
obligations to reflect actual census data as of January 1, 2014. This valuation resulted in an increase to the pension obligation of $35
million and an increase to the other postretirement benefit obligation of $12 million. Additionally, Accumulated other comprehensive
loss (AOCL) increased by approximately $12 million (after tax), regulatory assets increased by approximately $34 million, and
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