ComEd 2013 Annual Report Download - page 18

Nuclear Insurance. Generation is subjecttoliability, propertydamageandother risks associatedwithmajor incidentsat anyofits
nuclear stations, includingtheCENG nuclear stations. Generation hasreduceditsfinancial exposure to theserisks through
insuranceandother industryrisk-sharingprovisions. See “Nuclear Insurance”withinNote 22 oftheCombinedNotesto Consolidated
Financial Statementsfor details.
For information regardingpropertyinsurance,see ITEM 2.Properties—Generation ofExelon’s 2013 Form10-K. Generation is
self-insuredto theextent that anylossesmayexceedtheamount ofinsurancemaintainedor are withinthe policy deductible for its
insuredlosses. Such lossescouldhaveamaterial adverseeffectonExelon’s andGeneration’s financial condition andresultsof
operations.
Decommissioning. NRCregulationsrequire that licenseesofnuclear generatingfacilitiesdemonstrate reasonable assurancethat
funds will beavailable inspecifiedminimumamountsat theendofthelifeofthefacilityto decommission thefacility. See ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS—Exelon
Corporation,ExecutiveOverview; ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, Critical AccountingPoliciesandEstimates, Nuclear Decommissioning, Asset Retirement Obligations
andNuclear DecommissioningTrustFundInvestments; andNotes3,11 and15oftheCombinedNotesto ConsolidatedFinancial
Statementsfor additional information regardingGeneration’s NDT funds anditsdecommissioningobligations.
Dresden Unit1andPeach BottomUnit1haveceasedpower generation. SNF at Dresden Unit1is currentlybeingstoredindrycask
storage until a permanent repositoryunder theNWPAis completed. All SNF for Peach BottomUnit1, which ceasedoperation in
1974, hasbeen removedfromthesite andtheSNF pool is drainedanddecontaminated. Generation’s estimatedAROliabilityto
decommission Dresden Unit1andPeach BottomUnit1asofDecember 31,2013 was$208million and$114million,respectively.
AsofDecember 31,2013, NDT funds set asidetopayfor theseobligationswere $436million.
Zion Station Decommissioning. OnDecember 11,2007, Generation enteredinto an Asset Sale Agreement (ASA)with
EnergySolutions, Inc. anditswhollyownedsubsidiaries, EnergySolutions, LLC (EnergySolutions) andZionSolutions, LLC
(ZionSolutions) under which ZionSolutionsassumedresponsibilityfor decommissioningZion Station, which is locatedinZion,Illinois
andceasedoperation in1998.
OnSeptember 1,2010,Generation andEnergySolutionscompletedthe transactionscontemplatedbytheASA.Specifically,
Generation transferredto ZionSolutionssubstantiallyall oftheassets(other than land) associatedwithZion Station,includingassets
heldin related NDT funds. Inconsideration for Generation’s transfer ofthoseassets, ZionSolutionsassumeddecommissioningand
other liabilities, excludingtheobligation to disposeof SNF, associatedwithZion Station.Pursuant to theASA,ZionSolutionswill
periodicallyrequestreimbursement fromtheZion Station-related NDT funds for costsincurredrelatedto thedecommissioningefforts
at Zion Station.However,ZionSolutionsissubjecttocertainrestrictionson itsabilityto requestreimbursement;specifically, if certain
milestonesasdefinedintheASA are not met,all or a portion ofrequestedreimbursementsshall bedeferreduntilsuch milestones
are met.See Note 15oftheCombinedNotesto ConsolidatedFinancial Statementsfor additional information regardingZion Station
Decommissioningandsee Note 2 oftheCombinedNotesto ConsolidatedFinancial Statementsfor a discussion ofvariable interest
entityconsiderationsrelatedto ZionSolutions.
Fossil and Renewable Facilities (including Hydroelectric)
Generation hasownershipinterestsin15,875 MW ofcapacityinfossilandrenewable generatingfacilitiescurrentlyinservice.
Generation whollyownsall ofitsfossilandrenewable generatingstations, withtheexception of: (1)jointlyownedfacilitiesthat
includeKeystone,Conemaugh, and Wyman;(2)ownershipintereststhrough equitymethodinvestmentsinColver,Malacha,Safe
Harbor,andSunnyside;and(3)certainwindproject entitieswithminorityinterestowners, see Note 2 oftheCombinedNotesto
ConsolidatedFinancial Statementsfor additional information on thesewindproject entities. Generation’s fossilandrenewable
generatingstationsare all operatedbyGeneration,withtheexception ofColver,Conemaugh, Keystone,LaPorte,Malacha,Safe
Harbor,Sunnysideand Wyman, which are operatedbythirdparties. In 2013 and2012,electric supply(inGWh) generatedfrom
ownedfossilandrenewable generatingfacilitieswas15% and12%, respectively, ofGeneration’s total electric supply. Themajority
ofthis output was dispatchedto support Generation’s wholesale andretailpower marketingactivities. For additional information
regardingGeneration’s electric generatingfacilities, see ITEM 2.PROPERTIES—Generation ofExelon’s 2013 Form10-K and
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS—Exelon
Corporation,ExecutiveOverviewfor additional information on Generation Renewable Development.
12