ComEd 2003 Annual Report Download - page 134

132 Notes to Consolidated Financial Statements
EXELON CORPORATION AND SUBSIDIARY COMPANIES
December 31,
2003 2002
Net receivable from AmerGen(1,2,6) $– $39
Net payable to Sithe(4, 7, 8) –7
Note receivable from Sithe(9) 3–
Note payable to Sithe(4) 90 534
Note receivable from EXRES SHC, Inc.(10) 92 –
(1) Generation entered into PPAs dated June 26, 2003, December 18, 2001 and November 22, 1999 with AmerGen. Generation agreed to purchase 100% of the energy generated by
Oyster Creek through April 9, 2009. Generation agreed to purchase from AmerGen all the energy from Unit No. 1 at Three Mile Island Nuclear Station from January 1, 2002
through December 31, 2014. Generation agreed to purchase all of the residual energy from Clinton not sold to Illinois Power through December 31, 2004. Currently, the residual
output is approximately 31% of the total output of Clinton. See Note 2—Acquisitions and Dispositions for a description of Generation’s purchase of British Energy’s interest in
AmerGen in December 2003.
(2) In February 2002, Generation entered into an agreement to loan AmerGen up to $75 million at an interest rate equal to the 1-month London Interbank Offering Rate plus 2.25%.
In July 2002, the limit of the loan agreement was increased to $100 million and the maturity date was extended to July 1, 2003. The principal balance of the loan was repaid in
full in 2003.
(3) In August 2001, Exelon loaned Sithe $150 million. The note, which bore interest at the Eurodollar rate, plus 2.25%, was repaid in December 2001 with the proceeds of bank
borrowings. In connection with the bank borrowings, Exelon provided the lenders with a support letter confirming its investment in Sithe and Exelon’s agreement to maintain a
positive net worth of Sithe.
(4) Under the terms of the agreement to acquire Exelon New England dated November 1, 2002, Generation issued a $534 million note to be paid in full on June 18, 2003 to Sithe. In
June 2003, the principal of the note was increased $2 million, and the payment terms of the note were changed. Generation paid $446 million of principal in 2003 with the bal-
ance of the note to be paid by December 1, 2004, certain liquidity requirements or upon a change of control of Generation. Exelon has committed to pay down approximately
$30 million of the note during the first six months of 2004 to fund Sithe’s expected acquisition of the 40% of Sithe/Independence Power Partners, L.P. that it does not currently
own. The note bears interest at the rate equal to LIBOR plus 0.875%.
(5) Effective July 1, 2003, PECO Energy Capital Trust IV was deconsolidated from the financial statements of Exelon in conjunction with FIN No. 46.
(6) Under a service agreement dated March 1, 1999, Generation provides AmerGen with certain operation and support services to the nuclear facilities owned by AmerGen. Gen-
eration is compensated for these services at cost.
(7) Under a service agreement dated December 18, 2000, Generation provides certain engineering and environmental services for fossil facilities owned by Sithe and for certain
developmental projects. Generation is compensated for these services at cost.
(8) Under a service agreement dated December 18, 2000, Sithe provides Generation certain fuel and project development services. Sithe is compensated for these services at cost.
Under a service agreement dated November 1, 2002, Sithe provides Generation certain transition services related to the transition of the Exelon New England asset acquisition,
which occurred in November 2002.
(9) In December 2003, Sithe received letter of credit proceeds of $3 million, which Generation was billed on behalf of Sithe.
(10)In connection with a series of transactions in November 2003 that restructured the ownership of Sithe (see Note 3—Sithe for additional information), Exelon received a $92 mil-
lion note receivable from EXRES SHC, Inc, which holds the common stock of Sithe. Exelon owns 50% of EXRES SHC, Inc and accounts for its investment in EXRESSHC,Inc.asan
equity investment.
NOTE 23 • QUARTERLY DATA (UNAUDITED)
The data shown below include all reclassifications, including those required upon the adoption of EITF 02-3, which Exelon
considers necessary for a fair presentation of such amounts:
Operating Revenues
Operating Income
(Loss)
Income (Loss)
Before the
Cumulative
Effect of
Changes in
Accounting
Principles Net Income (Loss)
2003 2002 2003 2002 2003 2002 2003 2002
Quarter ended:
March 31 $4,074 $ 3,357 $ 757 $ 605 $249 $ 238 $361 $8
June 30 3,721 3,519 800 813 372 485 372 485
September 30 4,441 4,370 (17) 1,000 (102) 551 (102) 551
December 31 3,576 3,709 658 881 274 396 274 396
Average Basic
Shares
Outstanding (in
millions)
Earnings (Loss)
per Basic Share
Before the
Cumulative
Effect of
Changes in
Accounting
Principles
Net Income (Loss)
per Basic Share
2003 2002 2003 2002 2003 2002
Quarter ended:
March 31 324 321 $ 0.77 $0.74 $1.11 $0.02
June 30 325 322 1.14 1.50 1.14 1.50
September 30 326 323 (0.31) 1.71 (0.31) 1.71
December 31 328 323 0.84 1.23 0.84 1.23