Exelon 2015 Annual Report Download - page 405

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
lease agreement are $4 million, $10 million, $11 million, $13 million, $14 million, and $271 million related to years 2016, 2017, 2018, 2019, 2020 and thereafter, respectively.
(c) Amounts related to certain real estate leases and railroad licenses effectively have indefinite payment periods. As a result, ComEd, PECO and BGE have excluded these
payments from the remaining years, as such amounts would not be meaningful. ComEd’s, PECO’s, and BGE’s annual obligation for these arrangements, included in each of the
years 2016—2020, was $2 million, $3 million, and $1 million respectively.
(d) Includes all future lease payments on a 99 year real estate lease that expires in 2106.
The following table presents the Registrants’ rental expense under operating leases for the years ended December 31, 2015, 2014 and 2013:
For the Year Ended December 31, Exelon Generation ComEd PECO BGE
2015 $ 922 $ 851 $ 12 $ 9 $32
2014 865 806 15 14 12
2013 806 744 15 21 11
(a) Includes contingent operating lease payments associated with contracted generation agreements that are not included in the minimum future operating lease payments table
above. Payments made under Generation’s contracted generation lease agreements totaled $798 million, $755 million and $694 million during 2015, 2014 and 2013,
respectively. Excludes contract amortization associated with purchase accounting and contract acquisitions.
For information regarding capital lease obligations, see Note 14—Debt and Credit Agreements.
Nuclear Insurance
Generation is subject to liability, property damage and other risks associated with major incidents at any of its nuclear stations, including the
CENG nuclear stations. Generation has mitigated its financial exposure to these risks through insurance and other industry risk-sharing provisions.
The Price-Anderson Act was enacted to ensure the availability of funds for public liability claims arising from an incident at any of the U.S.
licensed nuclear facilities and also to limit the liability of nuclear reactor owners for such claims from any single incident. As of December 31,
2015, the current liability limit per incident is $13.5 billion and is subject to change to account for the effects of inflation and changes in the number
of licensed reactors. An inflation adjustment must be made at least once every 5 years and the last inflation adjustment was made effective
September 10, 2013. In accordance with the Price-Anderson Act, Generation maintains financial protection at levels equal to the amount of liability
insurance available from private sources through the purchase of private nuclear energy liability insurance for public liability claims that could arise
in the event of an incident. As of December 31, 2015, the amount of nuclear energy liability insurance purchased is $375 million for each operating
site. Additionally, the Price-Anderson Act requires a second layer of protection through the mandatory participation in a retrospective rating plan for
power reactors (currently 103 reactors) resulting in an additional $13.1 billion in funds available for public liability claims. Participation in this
secondary financial protection pool requires the operator of each reactor to fund its proportionate share of costs for any single incident that
exceeds the primary layer of financial protection. Under the Price-Anderson Act, the maximum assessment in the event of an incident for each
nuclear operator, per reactor, per incident (including a 5% surcharge), is $127.3 million, payable at no more than $19 million per reactor per incident
per year. Exelon’s maximum liability per incident is approximately $2.7 billion, including CENG’s related liability.
In addition, the U.S. Congress could impose revenue-raising measures on the nuclear industry to pay public liability claims exceeding the
$13.5 billion limit for a single incident.
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(a)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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