Exelon 2015 Annual Report Download - page 258

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)—(Continued)
Further, since Generation is conducting the operational activities of CENG and the CENG fleet, Generation qualifies as the primary beneficiary of
CENG and, therefore, is required to consolidate the financial position and results of operations of CENG. On April 1, 2014, Exelon and Generation
derecognized Generation’s equity method investment in CENG and reflected all assets, liabilities, and the EDF noncontrolling interest in CENG at
fair value on the consolidated balance sheets of Exelon and Generation, resulting in the recognition of a $261 million gain in their respective
Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2014. For additional information on this
transaction refer to Note 5—Investment in Constellation Energy Nuclear Group, LLC.
Generation and Exelon, where indicated, provide the following support to CENG (See Note 5—Investment in Constellation Energy Nuclear
Group, LLC and Note 26—Related Party Transactions for additional information regarding Generation and Exelon’s transactions with CENG):
• under the NOSA, Generation conducts all activities related to the operation of the CENG nuclear generation fleet owned by CENG
subsidiaries (the CENG fleet) and provides corporate and administrative services for the remaining life and decommissioning of the
CENG nuclear plants as if they were a part of the Generation nuclear fleet, subject to the CENG member rights of EDF,
• under the Power Services Agency Agreement (PSAA), Generation provides scheduling, asset management, and billing services to the
CENG fleet for the remaining operating life of the CENG nuclear plants,
• under power purchase agreements with CENG, Generation purchased or will purchase 50.01% of the available output generated by the
CENG nuclear plants not subject to other contractual agreements from January 2015 through the end of the operating life of each
respective plant. However, pursuant to amendments dated March 31, 2015, the energy obligations under the Ginna Nuclear Power Plant
(Ginna) PPAs have been suspended during the term of the expected Reliability Support Services Agreement (RSSA). (see Note 3—
Regulatory Matters for additional details),
• Generation provided a $400 million loan to CENG. As of December 31, 2015, the remaining obligation is $300 million including accrued
interest, which reflects the principal payment made in January 2015 (see Note 5—Investment in Constellation Energy Nuclear Group,
LLC for more details),
• Generation executed an Indemnity Agreement pursuant to which Generation agreed to indemnify EDF against third-party claims that
may arise from any future nuclear incident (as defined in the Price Anderson Act) in connection with the CENG nuclear plants or their
operations. Exelon guarantees Generation’s obligations under this Indemnity Agreement. (See Note 23—Commitments and
Contingencies for more details),
• in connection with CENG’s severance obligations, Generation has agreed to reimburse CENG for a total of approximately $6 million of
the severance benefits paid or to be paid in 2014 through 2016. As of December 31, 2015, the remaining obligation is approximately $1
million,
• Generation and EDF share in the $637 million of contingent payment obligations for the payment of contingent retrospective premium
adjustments for the nuclear liability insurance (See Note 23—Commitments and Contingencies for more details),
• Generation provides a guarantee of approximately $7 million associated with hazardous waste management facilities and underground
storage tanks. In addition, EDF executed a reimbursement agreement that provides reimbursement to Exelon for 49.99% of any
amounts paid by Generation under this guarantee,
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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