Exelon 2015 Annual Report Download - page 195

Table of Contents
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
BGE
General
BGE operates in a single business segment and its operations consist of the purchase and regulated retail sale of electricity and the
provision of distribution and transmission services in central Maryland, including the City of Baltimore, and the purchase and regulated retail sale
of natural gas and the provision of distribution service in central Maryland, including the City of Baltimore. This segment is discussed in further
detail in “ITEM 1. BUSINESS—BGE” of this Form 10-K.
Executive Overview
A discussion of items pertinent to BGE’s executive overview is set forth under “EXELON CORPORATION—Executive Overview” of this
Form 10-K.
Results of Operations
Year Ended December 31, 2015 Compared to Year Ended December 31, 2014 and Year Ended December 31, 2014 Compared to Year
Ended December 31, 2013
A discussion of BGE’s results of operations for 2015 compared to 2014 and for 2014 compared to 2013 is set forth under “Results of
Operations—BGE” in “EXELON CORPORATION—Results of Operations” of this Form 10-K.
Liquidity and Capital Resources
BGE’s business is capital intensive and requires considerable capital resources. BGE’s capital resources are primarily provided by internally
generated cash flows from operations and, to the extent necessary, external financing, including the issuance of long-term debt or commercial
paper. BGE’s access to external financing at reasonable terms is dependent on its credit ratings and general business conditions, as well as that
of the utility industry in general. If these conditions deteriorate to where BGE no longer has access to the capital markets at reasonable terms,
BGE has access to a revolving credit facility. At December 31, 2015, BGE had access to a revolving credit facility with aggregate bank
commitments of $600 million. See the “Credit Matters” section of “Liquidity and Capital Resources” for additional discussion.
Capital resources are used primarily to fund BGE’s capital requirements, including construction, retirement of debt, the payment of dividends
and contributions to Exelon’s pension plans. Additionally, BGE operates in a rate-regulated environment in which the amount of new investment
recovery may be limited and where such recovery takes place over an extended period of time.
Cash Flows from Operating Activities
A discussion of items pertinent to BGE’s cash flows from operating activities is set forth under “Cash Flows from Operating Activities” in
“EXELON CORPORATION—Liquidity and Capital Resources” of this Form 10-K.
Cash Flows from Investing Activities
A discussion of items pertinent to BGE’s cash flows from investing activities is set forth under “Cash Flows from Investing Activities” in
“EXELON CORPORATION—Liquidity and Capital Resources” of this Form 10-K.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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