ComEd 2013 Annual Report Download - page 19

Licenses. Fossilandrenewable generation plantsare generallynot licensed, and, therefore,thedecision on when to retire plants is,
fundamentally, acommercial one.FERChastheexclusive authorityto licensemost non-Federal hydropower projectslocatedon
navigable waterways or Federal lands, or connectedto theinterstate electric grid. OnAugust29, 2012 andAugust30,2012,
Generation submitted hydroelectric license applicationsto theFERCfor 46-year licensesfor theMuddy Run PumpedStorage
ProjectandtheConowingoHydroelectric Project,respectively. Basedon the latestFERCprocedural schedule,theFERClicensing
process is not expectedto becompletedprior to theexpiration ofMuddy Run’s current licenseonAugust31,2014, andthe
expiration ofConowingo’s licenseonSeptember 1,2014. However,thestationswill continue to operate under annual licensesuntil
FERCtakesaction on the46-year license applications. Refer to Note 3—RegulatoryMattersfor additional information.
Insurance. Generation maintainsbusiness interruption insurancefor itsrenewable projects, anddelayinstart-up insurancefor its
renewable projectscurrentlyunder construction.Generation doesnot purchasebusiness interruption insurancefor itswhollyowned
fossiland hydroelectric operations. Generation maintainsbothpropertydamageandliabilityinsurance.For propertydamageand
liabilityclaims for these operations, Generation is self-insuredto theextent that lossesare withinthe policy deductible or exceedthe
amount ofinsurancemaintained. Such lossescouldhaveamaterial adverseeffectonExelon’s andGeneration’s financial condition
andtheirresultsofoperationsandcash flows. For information regardingpropertyinsurance,see ITEM 2.PROPERTIES—
Generation.
Long-Term Power Purchase Contracts
Inaddition to energy producedbyownedgeneration assets, Generation sourceselectricityandother relatedoutput fromplantsit
doesnot ownunder long-termcontracts. ThefollowingtablessummarizeGeneration’s long-termcontractsto purchaseunit-specific
physical power withan original terminexcess ofone year induration,byregion,ineffectasofDecember 31,2013:
Region
Number of
Agreements Expiration Dates Capacity (MW)
Mid-Atlantic (a).......................................................... 162016-2032 799
Midwest............................................................... 7 2015-2022 1,734
NewEngland .......................................................... 142014-2020 1,291
ERCOT ............................................................... 5 2014-20261,489
Other Regions.......................................................... 11 2014-2030 4,113
Total .................................................................. 539,426
2014 2015 2016 2017 2018
CapacityExpiring (MW) ......................................................... 1,300 1,7056511,337100
(a) Excludescontractswith CENG.
Fuel
Thefollowingtable shows sourcesofelectric supplyinGWh for 2013 and2012:
Source of Electric Supply (a)
2013 2012
Nuclear ...................................................................... 142,126139,862
Purchases—non-tradingportfolio(b) ............................................... 69,79191,994
Fossil........................................................................ 30,785 27,760
Renewable ................................................................... 6,420 4,079
Total supply................................................................... 249,122 263,695
(a)RepresentsGeneration’s proportionate share ofthe output ofitsgeneratingplants.
(b) Includespurchasespursuant to Generation’s PPAwith CENG. See Note 25oftheCombinedNotesto ConsolidatedFinancial Statementsfor additional information.
Thefuel costsfor nuclear generation are less than thosefor fossil-fuel generation.Consequently, nuclear generation is generallythe
mostcost-effectivewayfor Generation to meet itswholesale andretail loadservicingrequirements.
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