Exelon 2014 Annual Report Download - page 43

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Executive Overview
Exelon, a utility services holding company, operates through the following principal subsidiaries:
•Generation, whose integrated business consists of the generation, physical delivery and marketing of power across multiple
geographical regions through its customer-facing business, Constellation, which sells electricity and natural gas to both
wholesale and retail customers. Generation also sells renewable energy and other energy-related products and services, and
engages in natural gas and oil exploration and production activities (Upstream).
• As a result of the Constellation merger, Generation owns a 50.01% interest in CENG. During 2014, Generation assumed
the operating licenses and corresponding operational control of CENG’s nuclear fleet. As a result, Exelon and Generation
fully consolidated CENG’s financial position and results of operations into their businesses beginning on April 1, 2014.
•ComEd, whose business consists of the purchase and regulated retail sale of electricity and the provision of electricity
transmission and distribution services to retail customers in northern Illinois, including the City of Chicago.
•PECO, whose business consists of the purchase and regulated retail sale of electricity and the provision of electricity distribution
and transmission services in southeastern Pennsylvania, including the City of Philadelphia, and the purchase and regulated
retail sale of natural gas and the provision of distribution services in the Pennsylvania counties surrounding the City of
Philadelphia.
•BGE, whose business consists of the purchase and regulated retail sale of electricity and natural gas and the provision of
electricity distribution and transmission and gas distribution services in central Maryland, including the City of Baltimore.
Exelon has nine reportable segments consisting of Generation’s six power marketing reportable segments (Mid-Atlantic, Midwest,
New England, New York, ERCOT and other regions in Generation), ComEd, PECO and BGE. See Note 24—Segment Information of
the Combined Notes to Consolidated Financial Statements for additional information regarding Exelon’s reportable segments.
Through its business services subsidiary BSC, Exelon provides its operating subsidiaries with a variety of support services at cost.
The costs of these services are directly charged or allocated to the applicable operating segments. Additionally, the results of
Exelon’s corporate operations include costs for corporate governance and interest costs and income from various investment and
financing activities.
Exelon’s consolidated financial information includes the results of its four separate operating subsidiary registrants, Generation,
ComEd, PECO and BGE, which, along with Exelon, are collectively referred to as the Registrants. The following combined
Management’s Discussion and Analysis of Financial Condition and Results of Operations is separately filed by Exelon, Generation,
ComEd, PECO and BGE. However, none of the Registrants makes any representation as to information related solely to any of the
other Registrants.
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