Exelon 2015 Annual Report Download - page 33

Table of Contents
Solid and Hazardous Waste
CERCLA provides for immediate response and removal actions coordinated by the EPA in the event of threatened releases of hazardous
substances into the environment and authorizes the EPA either to clean up sites at which hazardous substances have created actual or potential
environmental hazards or to order persons responsible for the situation to do so. Under CERCLA, generators and transporters of hazardous
substances, as well as past and present owners and operators of hazardous waste sites, are strictly, jointly and severally liable for the cleanup
costs of waste at sites, most of which are listed by the EPA on the National Priorities List (NPL). These PRPs can be ordered to perform a
cleanup, can be sued for costs associated with an EPA-directed cleanup, may voluntarily settle with the EPA concerning their liability for cleanup
costs, or may voluntarily begin a site investigation and site remediation under state oversight prior to listing on the NPL. Various states, including
Illinois, Maryland and Pennsylvania, have also enacted statutes that contain provisions substantially similar to CERCLA. In addition, RCRA
governs treatment, storage and disposal of solid and hazardous wastes and cleanup of sites where such activities were conducted.
Generation, ComEd, PECO and BGE and their subsidiaries are, or are likely to become, parties to proceedings initiated by the EPA, state
agencies and/or other responsible parties under CERCLA and RCRA with respect to a number of sites, including MGP sites, or may undertake to
investigate and remediate sites for which they may be subject to enforcement actions by an agency or third-party.
See Note 23—Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements for additional information
regarding solid and hazardous waste regulation and legislation.
Environmental Remediation
ComEd’s, PECO’s and BGE’s environmental liabilities primarily arise from contamination at former MGP sites. ComEd, pursuant to an ICC
order, and PECO, pursuant to settlements of natural gas distribution rate cases with the PAPUC, have an on-going process to recover
environmental remediation costs of the MGP sites through a provision within customer rates. While BGE does not have a rider for MGP clean-up
costs, BGE has historically received recovery of actual clean-up costs on a site-specific basis in distribution rates. The amount to be expended in
2016 at Exelon for compliance with environmental remediation related to contamination at former MGP sites and other gas purification sites is
expected to total $38 million, consisting of $32 million and $6 million respectively, at ComEd and PECO.
Generation’s environmental liabilities primarily arise from contamination at current and former generation and waste storage facilities. As of
December 31, 2015, Generation has established an appropriate liability to comply with environmental remediation requirements including
contamination attributable to low level radioactive residues at a storage and reprocessing facility named Latty Avenue, and at a disposal facility
named West Lake Landfill, both near St. Louis, Missouri related to operations conducted by Cotter Corporation, a former ComEd subsidiary.
In addition, Generation, ComEd, PECO and BGE may be required to make significant additional expenditures not presently determinable for
other environmental remediation costs.
See Notes 3—Regulatory Matters and 23—Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements
for additional information regarding the Registrants’ environmental remediation efforts and related impacts to the Registrants’ results of operations,
cash flows and financial positions.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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