Exelon 2014 Annual Report Download - page 268

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Equity Investment Commitments
As part of Generation’s recent investments in technology development, Generation has entered into equity purchase agreements
which include commitments to purchase additional equity through incremental payments. The additional equity is provided by the
agreements to fund the anticipated needs of the planned operations of the associated companies. The commitment includes
approximately $20 million of in-kind services. As of December 31, 2014, Generation’s estimated commitment relating to its equity
purchase agreements, including the in-kind services contributions, is anticipated to be as follows:
Total
2015 .................................................................................................... $ 98
2016 .................................................................................................... 38
2017 .................................................................................................... 20
2018 .................................................................................................... 11
Total .................................................................................................... $167
Leases
Minimum future operating lease payments, including lease payments for vehicles, real estate, computers, rail cars, operating
equipment and office equipment, as of December 31, 2014 were:
Exelon
2015 ................................................................................................... $ 99
2016 ................................................................................................... 102
2017 ................................................................................................... 102
2018 ................................................................................................... 86
2019 ................................................................................................... 70
Remaining years ......................................................................................... 699
Total minimum future lease payments ....................................................................... $1,158(a)
(a) Excludes Generation’s PPAs and tolling arrangements that are accounted for as contingent operating lease payments, since these expected cash outflows are
already disclosed in the Net Capacity Purchases table under the Energy Commitment.
The following table presents Exelon’s rental expense under operating leases for the years ended December 31, 2014, 2013 and
2012:
For the Year Ended December 31, (a)
2014 .................................................................................................... $865
2013 .................................................................................................... 806
2012 .................................................................................................... 930
(a) Includes Generation’s PPAs and other capacity contracts that are accounted for as operating leases and are reflected as net capacity purchases in the Energy
Commitments table above. These agreements are considered contingent operating lease payments and are not included in the minimum future operating lease
payments table above. Payments made under Generation’s PPAs and other capacity contracts totaled $755 million, $694 million and $801 million during 2014, 2013
and 2012, respectively.
For information regarding capital lease obligations, see Note 13—Debt and Credit Agreements.
Indemnifications Related to Sale of Sithe
On January 31, 2005, subsidiaries of Generation completed a series of transactions that resulted in Generation’s sale of its
investment in Sithe. Specifically, subsidiaries of Generation consummated the acquisition of Reservoir Capital Group’s 50% interest
in Sithe and subsequently sold 100% of Sithe to Dynegy Inc. (Dynegy).
The estimated maximum possible exposure to Exelon related to the guarantees provided as part of the sales transaction to Dynegy
was approximately $200 million at December 31, 2013. The guarantee expired January 31, 2014. Generation was not required to
make payments under the guarantee, and, therefore, has no further obligation related to this guarantee.
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