Exelon 2015 Annual Report Download - page 124

Table of Contents
sheet dates, ComEd has recorded its best estimates of the distribution revenue impact resulting from changes in rates that ComEd believes are
probable of approval by the ICC in accordance with the formula rate mechanism. Estimates are based upon actual costs incurred and investments
in rate base for the period and the rates of return on common equity and associated regulatory capital structure allowed under the applicable tariff.
The estimated reconciliation can be affected by, among other things, variances in costs incurred, investments made, allowed ROE and actions by
regulators or courts.
ComEd’s and BGE’s FERC transmission formula rate tariffs provide for annual reconciliations to the transmission revenue requirements. As
of the balance sheet dates, ComEd and BGE have recorded the best estimate of their respective transmission revenue impact resulting from
changes in rates that ComEd and BGE believe are probable of approval by FERC in accordance with the formula rate mechanism. Estimates are
based upon actual costs incurred and investments in rate base for the period and the rates of return on common equity and associated regulatory
capital structure allowed under the applicable tariff. The estimated reconciliation can be affected by, among other things, variances in costs
incurred and investments made and actions by regulators or courts.
Allowance for Uncollectible Accounts (Exelon, Generation, ComEd, PECO and BGE)
The allowance for uncollectible accounts reflects the Registrants’ best estimates of losses on the accounts receivable balances. For
Generation, the allowance is based on accounts receivable aging historical experience and other currently available information. ComEd, PECO
and BGE estimate the allowance for uncollectible accounts on customer receivables by applying loss rates developed specifically for each
company to the outstanding receivable balance by customer risk segment. Risk segments represent a group of customers with similar credit
quality indicators that are computed based on various attributes, including delinquency of their balances and payment history. Loss rates applied
to the accounts receivable balances are based on historical average charge-offs as a percentage of accounts receivable in each risk segment.
ComEd, PECO and BGE customers’ accounts are generally considered delinquent if the amount billed is not received by the time the next bill is
issued, which normally occurs on a monthly basis. ComEd, PECO and BGE customer accounts are written off consistent with approved regulatory
requirements. ComEd’s, PECO’s and BGE’s provisions for uncollectible accounts will continue to be affected by changes in volume, prices and
economic conditions as well as changes in ICC, PAPUC and MDPSC regulations, respectively. See Note 6—Accounts Receivable of the
Combined Notes to Consolidated Financial Statements for additional information regarding accounts receivable.
Results of Operations by Business Segment
The comparisons of operating results and other statistical information for the years ended December 31, 2015, 2014 and 2013 set forth below
include intercompany transactions, which are eliminated in Exelon’s consolidated financial statements.
Net Income Attributable to Common Shareholders by Registrant
2015 2014
Favorable
(unfavorable)
2015 vs. 2014
variance 2013
Favorable
(unfavorable)
2014 vs. 2013
variance
Exelon $2,269 $1,623 $ 646 $1,719 $ (96)
Generation 1,372 835 537 1,070 (235)
ComEd 426 408 18 249 159
PECO 378 352 26 388 (36)
BGE 275 198 77 197 1
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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