Summary
This 10-Q filing for Exelon Corporation as of March 31, 2013, details the company's exposure to market risks, primarily focusing on commodity price fluctuations, counterparty credit risk, interest rates, and equity prices. Exelon employs a robust Risk Management Committee (RMC) to oversee its risk management policies. The report highlights that Exelon Generation actively hedges its anticipated electricity generation to mitigate commodity price risk, with significant percentages hedged for 2013, 2014, and 2015. While proprietary trading activities exist, they represent a small portion of the overall business. The utility subsidiaries (ComEd, PECO, BGE) have mechanisms in place to recover energy procurement costs from customers, largely mitigating direct impacts of commodity price volatility on their financial results, often through regulatory assets or liabilities related to derivative contracts. The filing also addresses credit risk, noting that while Exelon Generation has significant credit exposure to counterparties, this is managed through collateral and netting agreements. The overall credit risk for ComEd, PECO, and BGE related to suppliers is noted as not having significant changes. The company also participates in RTO/ISO markets and exchange-traded transactions, which have established financial assurance policies and margining requirements to limit counterparty credit risk.
Financial Highlights
48 data points| Revenue | $6.08B |
| Operating Expenses | $5.57B |
| Operating Income | $508.00M |
| Interest Expense | $617.00M |
| Net Income | -$4.00M |
| EPS (Basic) | $-0.01 |
| EPS (Diluted) | $-0.01 |
| Shares Outstanding (Basic) | 855.00M |
| Shares Outstanding (Diluted) | 855.00M |
Key Highlights
- 1Exelon Corporation actively manages commodity price risk through hedging strategies, with substantial portions of expected generation hedged for 2013-2015.
- 2The company's utility subsidiaries (ComEd, PECO, BGE) have regulatory mechanisms to recover energy procurement costs, minimizing direct financial impact of commodity price volatility on their operations.
- 3Proprietary trading activities, while present, constitute a small fraction of Exelon Generation's overall revenue, with risk managed through stringent limits and VaR calculations.
- 4Exelon Generation has substantial credit exposure to derivative counterparties, managed via collateral and master netting agreements, with a significant portion of its net exposure rated investment grade.
- 5The filing indicates no material changes in credit risk for ComEd, PECO, and BGE regarding supplier contracts.
- 6Participation in RTO/ISO markets and exchange-traded transactions is subject to financial assurance policies and margining, limiting counterparty credit risk.