ComEd 2013 Annual Report Download - page 238

• PECO hasidentified26sites, 16of which havebeen approvedfor cleanup by thePADEP and10 that are currentlyunder some
degree ofactivestudy and/or remediation. PECO expectsthemajorityoftheremediation at thesesitesto continue through at
least 2020.
• BGE hasidentified13 former gasmanufacturingor purification sitesthat itcurrentlyownsor ownedat one timethrough a
predecessor’s acquisition.Twogasmanufacturingsitesrequire somelevel ofremediation andongoingmonitoringunder the
direction oftheMDE. Therequiredcostsat thesetwositesare not consideredmaterial.One gaspurification site is intheinitial
stagesofinvestigation at thedirection oftheMDE.
ComEd, pursuant to an ICC order,and PECO, pursuant to settlementsofnatural gas distribution rate caseswiththePAPUC, are
currentlyrecoveringenvironmental remediation costsofformer MGP facilitysitesthrough customer rates. BGE is authorizedto and
is currentlyrecoveringenvironmental costsfor theremediation offormer MGP facilitysitesfromcustomers; however, while BGE
doesnot havearider for MGP clean-up costs, BGE has historicallyreceivedrecoveryofactual clean-up costsindistribution rates.
ComEd, PECO and BGE haverecordedregulatoryassetsfor therecoveryofthesecosts. Duringthethirdquarter of2013,ComEd
and PECO completedan annual study oftheirfuture estimated MGP remediation requirements. Theresultsofthesestudies
indicatedthat additional remediation wouldberequiredat certainsites; accordingly, ComEd and PECO increasedtheirreservesand
regulatoryassetsbyless than $1million and$6million,respectively. BGE assesseditscurrentlyandformerlyownedgas
manufacturingandpurification sitesquarterlyin 2013 anddeterminedthat a loss wasnot probable at ten ofitssitesasof
December 31,2013.As discussedabove,theremediation costsat twoof BGE’s MGP sitesare not consideredmaterial.
Furthermore,an estimate ofa rangeofpossible loss, if any, relatedto BGE’s gaspurification site under investigation cannot be
determinedasofDecember 31,2013 given that thesite is inthe earlystagesofinvestigation andtheextent ofcontamination is
currentlyunknown.See Note 3—RegulatoryMattersfor additional information regardingtheassociatedregulatoryassets.
Thehistorical nature oftheMGP sitesandthefactthat manyofthesiteshavebeen buriedandbuilt over,impactstheabilityto
determine a preciseestimate ofthe ultimate costsprior to initial samplinganddetermination oftheexactscope andmethodof
remedial action.Management determinesitsbestestimate ofremediation costsbasedon probabilistic modelinganddeterministic
estimatesusingall available information at thetimeofeach study andtheremediation standards currentlyrequiredbytheU.S. EPA.
Prior to completion ofany significant clean up,each site remediation plan is approvedbythe appropriate state environmental
agency.
AsofDecember 31,2013 and2012,Exelon hasaccruedthefollowingundiscountedamountsfor environmental liabilitiesinother
current liabilitiesandother deferredcreditsandother liabilitieswithinitsConsolidatedBalanceSheets:
Total environmental
investigation
and remediation reserve
Portion of total related to MGP
investigation and remediation
December 31,2013 .............................................. $338$273
December 31,2012 .............................................. $351$298
Exelon cannot reasonablyestimate whether theywill incur other significant liabilitiesfor additional investigation andremediation
costsat theseoradditional sitesidentifiedbytheRegistrants, environmental agenciesor others, or whether such costswill be
recoverable fromthirdparties, includingcustomers.
Water Quality
Section 316(b) of the Clean Water Act. Section 316(b) requiresthat thecoolingwater intakestructuresat electric power plants
reflectthebesttechnology available to minimizeadverseenvironmental impacts, andisimplementedthrough state-level NPDES
permit programs. All ofGeneration’s and CENG’s power generation facilitieswithcoolingwater systems are subjecttothe
regulations. Facilitieswithout closed-cycle recirculating systems (e.g., coolingtowers) are potentiallymostaffectedbychangesto the
existingregulations. For Generation,thosefacilitiesare Clinton,Dresden, Eddystone,Fairless Hills, GouldStreet,Handley, Mountain
Creek, Mystic 7, Oyster Creek, Peach Bottom, QuadCities, Riverside,Salemand Schuylkill.For CENG, thosefacilitiesare Calvert
Cliffs, Nine Mile Point Unit1andR.E. Ginna.
OnMarch 28, 2011,theU.S. EPAissuedthe proposedregulation under Section 316(b). The proposal doesnot require closed-cycle
cooling(e.g., coolingtowers) asthebesttechnology available to address impingement andentrainment.The proposal providesthe
state permittingagency with discretion to determine thebesttechnology available to limit entrainment (drawingaquatic lifeinto the
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