ComEd 2013 Annual Report Download - page 237

(b) Amountsrelatedto certain real estate leasesandrailroadlicenseseffectivelyhaveindefinite payment periods. Asaresult,Exelon hasexcludedthesepaymentsfrom
theremainingyears, assuch amountswouldnot bemeaningful.
(c) Includesall future leasepaymentson a 99 year real estate leasethat expiresin 2105.
Thefollowingtable presentsExelon’s rental expenseunder operatingleasesfor theyearsendedDecember 31,2013,2012 and
2011:
For the Year Ended December 31, (a)
2013 .................................................................................................... $806
2012 .................................................................................................... 930
2011 .................................................................................................... 711
(a)IncludesGeneration’s PPAsandother capacitycontractsthat are accountedfor asoperatingleasesandare reflectedasnet capacitypurchasesinthe energy
commitmentstable above.Theseagreementsare consideredcontingent operatingleasepaymentsandare not includedintheminimumfuture operatinglease
paymentstable above.Paymentsmadeunder Generation’s PPAsandother capacitycontractstotaled $694 million,$801 million and$630 million during2013,2012
and2011,respectively.
For information regardingcapital leaseobligations, see Note 13—DebtandCreditAgreements.
Indemnifications Related to Sale of Sithe
OnJanuary31,2005, subsidiariesofGeneration completedaseriesoftransactionsthat resultedinGeneration’s sale ofits
investment inSithe.Specifically, subsidiariesofGeneration consummatedtheacquisition ofReservoirCapital Group’s 50%interest
inSitheandsubsequentlysold100%ofSithetoDynegy Inc. (Dynegy).
Theestimatedmaximumpossible exposure to Exelon relatedto theguaranteesprovidedaspart ofthesalestransaction to Dynegy
wasapproximately$200 million at December 31,2013.Generation believesthat itis remote that itwill berequiredto makeany
additional paymentsunder theguarantee,andcurrentlyhasno recordedliabilitiesassociatedwiththis guarantee.Generation
expectsthat theexposure coveredbythis guarantee will expire in 2014. Theguarantee is includedaboveintheCommercial
Commitmentstable under performanceguarantees.
Indemnifications Related to Sale of TEG and TEP
OnFebruary9,2007, TamuinInternational Inc. (TII), awhollyownedsubsidiaryofGeneration,soldits 49.5% ownershipinterestsin
TEG and TEP to a subsidiaryofAES Corporation for $95 million incash pluscertain purchasepriceadjustments. Inconnection with
the transaction,Generation enteredinto a guarantee agreement under which Generation guaranteesthetimelypayment of TII’s
obligationsto thesubsidiaryofAES Corporation pursuant to the terms ofthe purchaseandsale agreement relatingto thesale of
TII’s ownershipinterests. Generation wasrequiredto performintheevent that TII did not payanyobligation coveredbythe
guarantee that wasnot otherwisesubjecttoadispute resolution process. Portionsoftheexposurescoveredbythis guarantee
expiredin 2008, andtheremainingguarantee expiredinthethirdquarter of2013.Generation wasnot requiredto makepayments
under theguarantee,andtherefore,hasno further obligation relatedto this guarantee asofDecember 31,2013.
Environmental Matters
General. Exelon’s operationshaveinthepast,andmayinthefuture,require substantial expendituresinorder to complywith
environmental laws. Additionally, under Federal andstate environmental laws, Exelon is generallyliable for thecostsofremediating
environmental contamination ofpropertycurrentlyor formerlyownedbythemandofpropertycontaminatedbyhazardous
substancesgeneratedbythem. Exelon ownsor leasesanumber ofreal estate parcels, includingparcelson which their operations
or the operationsofothersmayhaveresultedincontamination by substancesthat are consideredhazardousunder environmental
laws. Inaddition,theRegistrantsare currentlyinvolvedinanumber ofproceedings relatingto siteswhere hazardoussubstances
havebeen depositedandmaybesubjecttoadditional proceedings inthefuture.
ComEd, PECO and BGE haveidentifiedsiteswhere former MGP activitieshaveormayhaveresultedinactual site contamination.
For manyofthesesites, ComEd, PECO or BGE is one ofseveral PRPs that mayberesponsible for ultimate remediation ofeach
location.
•ComEd hasidentified42sites, 16of which havebeen approvedfor cleanup by theIllinois EPAortheU.S. EPAand26that are
currentlyunder somedegree ofactivestudy and/or remediation.ComEd expectsthemajorityoftheremediation at thesesitesto
continue through at least 2016.
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