Exelon 2014 Annual Report Download - page 165

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
On June 3, 2014, subsequently amended December 9, 2014, the PA DEP issued its water quality certificate for Muddy Run, which is
a necessary step in the FERC licensing process and included certain commitments made by Generation. The financial impact
associated with these commitments is estimated to be in the range of $25 million to $35 million, and will include both capital
expenditures and operating expenses, primarily relating to fish passage and habitat improvement projects.
The FERC licenses for Muddy Run and Conowingo were set to expire on August 31, 2014 and September 1, 2014 respectively.
FERC is required to issue annual licenses for the facilities until the new licenses are issued. On September 10, 2014, FERC issued
annual licenses for Conowingo and Muddy Run, effective as of the expiration of the previous licenses. If FERC does not issue new
licenses prior to the expiration of annual licenses, the annual licenses will renew automatically. The stations are currently being
depreciated over their estimated useful lives, which includes the license renewal period. As of December 31, 2014, $39 million of
direct costs associated with licensing efforts have been capitalized.
Regulatory Assets and Liabilities
Exelon, ComEd, PECO and BGE prepare their consolidated financial statements in accordance with the authoritative guidance for
accounting for certain types of regulation. Under this guidance, regulatory assets represent incurred costs that have been deferred
because of their probable future recovery from customers through regulated rates. Regulatory liabilities represent the excess
recovery of costs or accrued credits that have been deferred because it is probable such amounts will be returned to customers
through future regulated rates or represent billings in advance of expenditures for approved regulatory programs.
The following tables provide information about the regulatory assets and liabilities of Exelon as of December 31, 2014 and 2013.
December 31, 2014
Current Noncurrent
Regulatory assets
Pension and other postretirement benefits .......................................................... $247 $3,009
Deferred income taxes .......................................................................... 6 1,536
AMI programs ................................................................................. 25 271
Under-recovered distribution service costs .......................................................... 251 120
Debt costs .................................................................................... 8 49
Fair value of BGE long-term debt .................................................................. 7 183
Severance .................................................................................... 4 8
Asset retirement obligations ...................................................................... 1 115
MGP remediation costs .......................................................................... 36 221
Under-recovered uncollectible accounts ............................................................ — 67
Renewable energy .............................................................................. 20 187
Energy and transmission programs ................................................................ 37 11
Deferred storm costs ............................................................................ 1 2
Electric generation-related regulatory asset ......................................................... 10 20
Rate stabilization deferral ........................................................................ 75 85
Energy efficiency and demand response programs ................................................... 89 159
Merger integration costs ......................................................................... 2 6
Conservation voltage reduction ................................................................... 1 1
Under-recovered electric revenue decoupling ........................................................ 7 —
Other (a) ....................................................................................... 20 26
Total regulatory assets .......................................................................... $847 $6,076
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