ComEd 2003 Annual Report Download - page 103

101Notes to Consolidated Financial Statements
EXELON CORPORATION AND SUBSIDIARY COMPANIES
NOTE 10 ‰NOTES PAYABLE AND SHORT-TERM DEBT
Commercial Paper and Credit Facility
2003 2002 2001
Average borrowings $144 $337 $193
Maximum borrowings outstanding 1,288 783 599
Average interest rates, computed on daily
basis 1.25% 1.94% 4.01%
Average interest rates, at December 31 1.08% 1.88% 2.63%
In October 2003, Exelon, ComEd, PECO and Generation re-
placed their $1.5 billion bank unsecured revolving credit fa-
cility with a $750 million 364-day unsecured revolving credit
agreement and a $750 million three-year unsecured revolv-
ing credit agreement with a group of banks. Both revolving
credit agreements are used principally to support the com-
mercial paper programs at Exelon, ComEd, PECO and Gen-
eration and to issue letters of credit. The 364-day agreement
also includes a term-out option provision that allows a bor-
rower to extend the maturity of revolving credit borrowings
outstanding at the end of the 364-day period for one year.
At December 31, 2003, aggregate sublimits under the
credit agreements were $1.0 billion, $100 million, $150 mil-
lion and $250 million for Exelon Corporate, ComEd, PECO,
and Generation, respectively. Sublimits under the credit
agreements can change upon written notification to the
bank group. Exelon Corporate, ComEd, PECO and Generation
had approximately $955 million, $80 million, $148 million
and $170 million of unused bank commitments under the
credit agreements, respectively, at December 31, 2003. At
December 31, 2003, commercial paper outstanding was $280
million and $46 million at Exelon Corporate and PECO, re-
spectively. ComEd and Generation did not have any
commercial paper outstanding at December 31, 2003. Inter-
est rates on the advances under the credit facility are based
on either the London Interbank Offering Rate (LIBOR) or
prime plus an adder based on the credit rating of the bor-
rower as well as the total outstanding amounts under the
agreement at the time of borrowing. The maximum adder
would be 175 basis points.
Boston Generating Facility
Approximately $1.0 billion of debt was outstanding under
the Boston Generating Facility at December 31, 2003, all of
which was reflected in Exelon’s Consolidated Balance Sheets
as a current liability due to certain events of default de-
scribed in Note 2—Acquisitions and Dispositions. The Boston
Generating Facility is non-recourse to Exelon and an event of
default under the Boston Generating Facility does not con-
stitute an event of default under any other debt instruments
of Exelon or its subsidiaries.
Generation Revolving Credit Facility
On September 29, 2003, Generation closed on an $850 mil-
lion revolving credit facility that replaced a $550 million re-
volving credit facility that had originally closed on June 13,
2003. Generation used the facility to make the first payment
to Sithe relating to the $536 million note that was used to
purchase Exelon New England. This note was restructured in
June 2003 to provide for a payment of $210 million of the
principal on June 16, 2003, payment of $236 million of the
principal on the earlier of December 1, 2003 or a change of
control of Generation, and payment of the remaining
principal on the earlier of December 1, 2004 or a change of
control of Generation. Generation terminated the $850 mil-
lion revolving credit facility on December 22, 2003.