Exelon 2015 Annual Report Download - page 403

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
collateral. The majority of these guarantees contain evergreen provisions that require the guarantee to remain in effect until cancelled. Exelon’s estimated net exposure for
obligations under commercial transactions covered by these guarantees is approximately $0.5 billion at December 31, 2015, which represents the total amount Exelon could be
required to fund based on December 31, 2015 market prices.
(e) Nuclear insurance premiums—Represents the maximum amount that Generation would be required to pay for retrospective premiums in the event of nuclear disaster at any
domestic site under the Secondary Financial Protection pool as required under the Price-Anderson Act as well as the current aggregate annual retrospective premium obligation
that could be imposed by NEIL. See the Nuclear Insurance section within this note for additional details on Generation’s nuclear insurance premiums.
Generation’s commercial commitments as of December 31, 2015, representing commitments potentially triggered by future events, were as
follows:
Expiration within
Total 2016 2017 2018 2019 2020
2021
and beyond
Letters of credit (non-debt) $1,503 $1,485 $ 5 $— $— $ 13 $ —
Surety bonds 737 692 45 — — — —
Energy marketing contract guarantees 1,532 1,532 — — — — —
Nuclear insurance premiums 3,060 — — — — — 3,060
Total commercial commitments $6,832 $3,709 $ 50 $— $— $ 13 $ 3,060
(a) Letters of credit (non-debt)—Non-debt letters of credit maintained to provide credit support for certain transactions as requested by third parties.
(b) Energy marketing contract guarantees—Guarantees issued to ensure performance under energy commodity contracts. Amount includes approximately $1.5 billion of guarantees
issued by Generation on behalf of its Constellation businesses to allow it the flexibility needed to conduct business with counterparties without having to post other forms of
collateral. The majority of these guarantees contain evergreen provisions that require the guarantee to remain in effect until cancelled. Generation’s estimated net exposure for
obligations under commercial transactions covered by these guarantees is approximately $0.3 billion at December 31, 2015, which represents the total amount Generation could
be required to fund based on December 31, 2015 market prices.
(c) Nuclear insurance premiums—Represents the maximum amount that Generation would be required to pay for retrospective premiums in the event of nuclear disaster at any
domestic site, including CENG sites, under the Secondary Financial Protection pool as required under the Price-Anderson Act as well as the current aggregate annual
retrospective premium obligation that could be imposed by NEIL. See the Nuclear Insurance section within this note for additional details on Generation’s nuclear insurance
premiums.
ComEd’s commercial commitments as of December 31, 2015, representing commitments potentially triggered by future events, were as
follows:
Expiration within
Total 2016 2017 2018 2019 2020
2021
and beyond
Letters of credit (non-debt) $ 16 $ 16 $— $— $— $— $ —
Surety bonds 8 6 — 2 — — —
Financing trust guarantees 200 — — — — — 200
Total commercial commitments $224 $ 22 $— $ 2 $— $— $ 200
(a) Letters of credit (non-debt)—ComEd maintains non-debt letters of credit to provide credit support for certain transactions as requested by third parties.
(b) Surety bonds—Guarantees issued related to contract and commercial agreements, excluding bid bonds.
(c) Performance guarantees—Reflects full and unconditional guarantee of Trust Preferred Securities of ComEd Financing III which is a 100% owned finance subsidiary of ComEd.
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(a)
(b)
(c)
(a)
(b)
(c)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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