ComEd 2001 Annual Report Download - page 88

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The agreements also provide for the option to purchase 2,698 megawatts of oil and gas-fired capacity, and 944 megawatts
of peaking capacity, subject to reduction.
Generation has entered into PPAs with AmerGen, under which it will purchase all the energy from Unit No. 1 at Three
Mile Island Nuclear Station (TMI) after December 31, 2001 through December 31, 2014. Under a 1999 PPA, Generation will
purchase from AmerGen all of the residual energy from the Clinton Nuclear Power Station (Clinton), through December 31,
2002. Currently, the residual output approximates 25% of the total output of the Clinton.
At December 31, 2001, Exelon had long-term commitments, relating to the purchase and sale of energy, capacity and
transmission rights from unaffiliated utilities and others, including the Midwest Generation and AmerGen contracts, as
expressed in the following tables:
Transmission
Capacity Rights Power Only Power Only
Purchases Purchases Purchases Sales
2002 $ 1,005 $ 139 $ 551 $ 1,803
2003 1,214 31 345 666
2004 1,222 15 346 219
2005 406 15 264 139
2006 406 5 250 58
Thereafter 3,657 – 2,321 22
Total $ 7,910 $ 205 $ 4,077 $ 2,907
Environmental Issues
Exelon’s operations have in the past and may in the future require substantial capital expenditures in order to comply with
environmental laws. Additionally, under Federal and state environmental laws, Exelon, through its subsidiaries, is generally
liable for the costs of remediating environmental contamination of property now or formerly owned by Exelon and of
property contaminated by hazardous substances generated by Exelon. Exelon owns or leases a number of real estate
parcels, including parcels on which its operations or the operations of others may have resulted in contamination by
substances which are considered hazardous under environmental laws. Exelon has identified 72 sites where former
manufactured gas plant (MGP) activities have or may have resulted in actual site contamination. Exelon is currently
involved in a number of proceedings relating to sites where hazardous substances have been deposited and may be subject
to additional proceedings in the future.
As of December 31, 2001 and 2000, Exelon had accrued $156 million and $172 million, respectively, for environmental
investigation and remediation costs, including $127 million and $140 million, respectively, for MGP investigation and
remediation, that currently can be reasonably estimated. Included in the environmental investigation and remediation cost
obligation as of December 31, 2001 and 2000 is $100 million and $110 million, respectively, that has been recorded on a
discount basis, (reflecting discount rates of 5.5%). Such estimates, reflecting the effects of a 3% inflation rate before the
effects of discounting were $154 million and $170 million at December 31, 2001 and 2000, respectively. Exelon anticipates
that payments related to the discounted environmental investigation and remediation costs, recorded on an undiscounted
basis, of $68 million will be incurred for the five-year period through 2006. Exelon cannot reasonably estimate whether it
will incur other significant liabilities for additional investigation and remediation costs at these or additional sites
identified by Exelon, environmental agencies or others, or whether such costs will be recoverable from third parties.