ComEd 2006 Annual Report Download - page 317

Exelon Corporation and Subsidiary Companies
Exelon Generation Company, LLC and Subsidiary Companies
Commonwealth Edison Company and Subsidiary Companies
PECO Energy Company and Subsidiary Companies
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Removal costs. These amounts represent funds received from customers to cover the future
removal of property, plant and equipment.
Deferred (over-recovered) energy costs current asset (liability). These costs represent fuel
costs recoverable (refundable) under PECO’s purchase gas adjustment clause.
Recoverable transition costs. These charges, related to amounts that would have been
unrecoverable but for the recovery mechanism, such as the CTC allowed under the Illinois
restructuring act, are amortized based on the expected return on equity of ComEd in any given year.
ComEd fully recovered these charges by the end of 2006. See Note 4—Regulatory Issues for
discussion of recoverable transition cost amortization.
The regulatory assets related to pension and other postretirement benefit plans, deferred income
taxes, non-pension postretirement benefits, MGP remediation, severance, Procurement Case and
Rate Case are not earning a rate of return. Recovery of the regulatory assets for conditional asset
retirement obligations, debt costs, recoverable transition costs, DOE facility decommissioning and
deferred energy costs are earning a rate of return.
20. Segment Information (Exelon, Generation, ComEd and PECO)
Exelon has three operating segments: Generation, ComEd and PECO. Exelon evaluates the
performance of its business segments based on net income. An analysis and reconciliation of Exelon’s
operating segment information to the respective information in the consolidated financial statements
are as follows:
Generation ComEd PECO Other (a)
Intersegment
Eliminations Consolidated
Total revenues (b):
2006 .......................... $9,143 $6,101 $5,168 $ 807 $(5,564) $15,655
2005 .......................... 9,046 6,264 4,910 694 (5,557) 15,357
2004 .......................... 7,703 5,803 4,487 670 (4,530) 14,133
Intersegment revenues:
2006 .......................... $4,742 $ 7 $ 8 $ 807 $(5,564) $ —
2005 .......................... 4,848 8 8 693 (5,557) —
2004 .......................... 3,841 18 9 669 (4,537) —
Depreciation and amortization:
2006 .......................... $ 279 $ 430 $ 710 $ 68 $ — $ 1,487
2005 .......................... 254 413 566 101 — 1,334
2004 .......................... 286 410 518 81 — 1,295
Operating expenses (b):
2006 .......................... $6,747 $5,546 $4,302 $1,103 $(5,564) $12,134
2005 .......................... 7,194 6,276 3,861 859 (5,557) 12,633
2004 .......................... 6,664 4,186 3,473 842 (4,531) 10,634
Interest expense, net:
2006 .......................... $ 159 $ 308 $ 266 $ 152 $ (5) $ 880
2005 .......................... 128 291 279 131 — 829
2004 .......................... 103 349 303 61 12 828
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