Exelon 2015 Annual Report Download - page 414

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
going through the process to remediate the site and receive closure from MDE. Exelon currently estimates the cost to close the site to be
approximately $9 million, which has been fully reserved as of December 31, 2015.
Sauer Dump. On May 30, 2012, BGE was notified by the U.S. EPA that it is considered a PRP at the Sauer Dump Superfund site in
Dundalk, Maryland. The U.S. EPA offered BGE and three other PRPs the opportunity to conduct an environmental investigation and present
cleanup recommendations at the site. In addition, the U.S. EPA is seeking recovery from the PRPs of $1.7 million for past cleanup and
investigation costs at the site. On March 11, 2013, BGE and three other PRPs signed an Administrative Settlement Agreement and Order on
Consent with the U.S. EPA which requires the PRPs to conduct a remedial investigation and feasibility study at the site to determine what, if any,
are the appropriate and recommended cleanup activities for the site. The ultimate outcome of this proceeding is uncertain. Since the U.S. EPA
has not selected a cleanup remedy and the allocation of the cleanup costs among the PRPs has not been determined, an estimate of the range of
BGE’s reasonably possible loss, if any, cannot be determined.
Riverside In 2013, the Maryland Department of the Environment (MDE), at the request of U.S. EPA, conducted a site inspection and limited
environmental sampling of certain portions of the 170 acre Riverside property owned by BGE. The site consists of several different parcels with
different current and historical uses. The sampling included soil and groundwater samples for a number of potential environmental contaminants.
The sampling confirmed the existence of contaminants consistent with the known historical uses of the various portions of the site. In March 2014,
the MDE requested that BGE conduct an investigation of three specific areas of the site, and a site-wide investigation of soils, sediment,
groundwater, and surface water to complement the MDE sampling. The field investigation was completed in January 2015, and a final report was
provided to MDE on June 2, 2015. On November 3, 2015, MDE provided BGE with its comments and recommendations on the report which require
BGE to conduct further investigation and sampling at the site to better delineate the nature and extent of historic contamination, including off-site
sediment and soil sampling. MDE did not request any interim remediation at this time. Upon completion of the investigation the MDE will determine
if the site requires further action and/or remediation. Based upon the investigation to date, BGE has established what it believes is an appropriate
reserve. As the investigation and potential remediation proceed, it is possible that additional reserves could be established, in amounts that could
be material to BGE.
Litigation and Regulatory Matters
Asbestos Personal Injury Claims (Exelon, Generation, PECO and BGE).
Exelon and Generation. Generation maintains a reserve for claims associated with asbestos-related personal injury actions in certain
facilities that are currently owned by Generation or were previously owned by ComEd and PECO. The reserve is recorded on an undiscounted
basis and excludes the estimated legal costs associated with handling these matters, which could be material.
At December 31, 2015 and 2014, Generation had reserved approximately $95 million and $100 million, respectively, in total for asbestos-
related bodily injury claims. As of December 31, 2015, approximately $21 million of this amount related to 228 open claims presented to
Generation, while the remaining $74 million of the reserve is for estimated future asbestos-related bodily injury claims anticipated to arise through
2050, based on actuarial assumptions and analyses, which are updated on an annual basis. On a quarterly basis, Generation monitors actual
experience against the number of forecasted claims to be received and expected claim payments and evaluates whether an adjustment to the
reserve is necessary.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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