ComEd 2013 Annual Report Download - page 207

minimumfundinglevels. Dependingon thevalue ofthe trustfunds, Generation mayberequiredto takesteps, such asproviding
financial guaranteesthrough lettersofcredit or parent companyguaranteesor makeadditional contributionsto the trusts, which
couldbesignificant,to ensure that the trustsare adequatelyfundedandthat NRCminimumfundingrequirementsare met.Asa
result,Exelon’s andGeneration’s cash flows andfinancial position maybesignificantlyadverselyaffected.
On April1,2013,Generation submitteditsNRC-requiredbiennial decommissioningfundingstatusreport asofDecember 31,
2012.AsofDecember 31,2012,Generation providedadequate fundingassurancefor all ofitsunits, including Limerick Unit1,
where Generation hasin placea$115million parent guarantee to cover theNRCminimumfundingassurancerequirements. On
October 2,2013,theNRC issuedsummaryfindings fromtheNRCStaff’s reviewofthe 2013 decommissioningfundingstatusreports
for all 104operatingreactors, includingtheGeneration operatingunits. Basedon that review, theNRCStaff determinedthat
Generation provideddecommissioningfundingassuranceunder theNRCregulationsfor all ofitsoperatingunits, including Limerick
Unit1.
OnJanuary31,2013,Generation receiveda letter fromtheNRCindicatingthat theNRChasidentifiedpotential “apparent
violations” ofitsregulationsbecauseofallegedinaccuraciesintheDecommissioningFundingStatusreportsfor 2005, 2006, 2007,
and2009. TheNRCassertedthat Generation’s statusreportsdeliberatelyreflectedcostestimatesfor decommissioningitsnuclear
plantsthat were less than what theNRCsays are theminimumamountsrequiredbyNRCregulations. Generation met withtheNRC
on April30,2013 for a pre-decisional enforcement conference to provideadditional information to explainwhy Generation believes
that itcompliedwiththeregulatoryrequirementsand did not deliberatelyor otherwise provideincomplete or inaccurate information in
itsdecommissioningfundingstatusreports. While Generation doesnot believethat anysanction is appropriate,the ultimate
outcomeofthis proceedingincludingtheamount ofa potential fine or sanction,ifany, is uncertain.TheJanuary31,2013 letter from
theNRCdoesnot takeissue withGeneration’s current fundingstatus, andasreflectedinGeneration’s April1,2013
decommissioningfundingstatusreport referencedabove,Generation continuesto provideadequate fundingassurancefor each of
itsunits. Inthe normal courseofNRCreview, Generation hasreceivedaseriesofdata requeststhat are unrelatedto the potential
apparent violationsandthe pre-decisional enforcement conference.Generation continuesto cooperate withtheNRCandprovide
therequestedinformation.Generation doesnot haveadefinite date on which itwill receivearesponsefromtheNRC.
Inaddition,on June 24, 2013,Exelon receivedasubpoena fromtheSEC requestingthat Exelon providetheSEC withcertain
documentsgenerallyrelatingto Exelon andGeneration’s reportingandfundingofthefuture decommissioningofExelon’s nuclear
power plants. Exelon andGeneration are cooperatingwiththeSEC andprovidingtherequesteddocuments.
Asthefuture valuesoftrustfunds changedue to market conditions, theNRCminimumfundingstatusofGeneration’s unitswill
change.Inaddition,ifchangesoccur to theregulatoryagreement withthePAPUC that currentlyallows amountsto becollectedfrom
PECO customersfor decommissioningtheformer PECO nuclear plants, theNRCminimumfundingstatusofthose plantscould
changeatsubsequent NRCfilingdates.
Non-Nuclear Asset Retirement Obligations
Generation hasAROs for plant closure costsassociatedwithitsfossilandrenewable generatingfacilities, includingasbestos
abatement,removal ofcertainstorage tanks, restoringleasedlandto thecondition itwasinprior to construction ofrenewable
generatingstationsandother decommissioning-relatedactivities. ComEd, PECO and BGE haveAROs primarilyassociatedwiththe
abatement and disposal ofequipment andbuildings contaminatedwithasbestosand PCBs. See Note 1—Significant Accounting
Policiesfor additional information on theRegistrants’ accountingpolicy for AROs.
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