ComEd 2001 Annual Report Download - page 89

87
Leases
Minimum future operating lease payments, including lease payments for real estate, computers, rail cars and office
equipment, as of December 31, 2001 were:
2002 $82
2003 84
2004 68
2005 67
2006 61
Remaining years 628
Total minimum future lease payments $990
Rental expense under operating leases totaled $75 million, $41 million, and $54 million in 2001, 2000 and 1999, respectively.
Litigation
Chicago Franchise. In March 1999, ComEd reached a settlement agreement with the City of Chicago (Chicago) to end the
arbitration proceeding between ComEd and Chicago regarding the January 1, 1992 franchise agreement. As part of the
settlement agreement, ComEd and Chicago agreed to a revised combination of ongoing work under the franchise
agreement and new initiatives that will result in defined transmission and distribution expenditures by ComEd to improve
electric services in Chicago. The settlement agreement provides that ComEd would be subject to liquidated damages if the
projects are not completed by various dates, unless it was prevented from doing so by events beyond its reasonable control.
In addition, ComEd and Chicago established an Energy Reliability and Capacity Account, into which ComEd deposited $25
million during each of the years 1999 through 2001 and has conditionally agreed to deposit $25 million at the end of 2002, to
help ensure an adequate and reliable electric supply for Chicago.
Cotter Corporation Litigation. During 1989 and 1991, actions were brought in Federal and state courts in Colorado against
ComEd and its subsidiary, Cotter Corporation (Cotter),seeking unspecified damages and injunctive relief based on allegations
that Cotter permitted radioactive and other hazardous material to be released from its mill into areas owned or occupied by
the plaintiffs, resulting in property damage and potential adverse health effects. In 1994, a Federal jury returned nominal
dollar verdicts against Cotter on eight plaintiffs’ claims in the 1989 cases, which verdicts were upheld on appeal. The
remaining claims in the 1989 actions were settled or dismissed. In 1998, a jury verdict was rendered against Cotter in favor of
14 of the plaintiffs in the 1991 cases, totaling approximately $6 million in compensatory and punitive damages, interest and
medical monitoring. On appeal, the Tenth Circuit Court of Appeals reversed the jury verdict, and remanded the case for new
trial. These plaintiffs’ cases were consolidated with the remaining 26 plaintiffs’ cases, which had not been tried. The
consolidated trial was completed on June 28, 2001. The jury returned a verdict against Cotter and awarded $16.3 million in
various damages. On November 20, 2001, the District Court entered an amended final judgment which included an award of
both pre-judgment and post-judgment interests, costs, and medical monitoring expenses which total $43.3 million. This
matter is being appealed by Cotter in the Tenth Circuit Court of Appeals. Cotter will vigorously contest the award.
In November 2000, another trial involving a separate sub-group of 13 plaintiffs, seeking $19 million in damages plus
interest was completed in federal district court in Denver. The jury awarded nominal damages of $42,500 to 11 of 13
plaintiffs,but awarded no damages for any personal injury or health claims, other than requiring Cotter to perform periodic
medical monitoring at minimal cost. The plaintiffs appealed the verdict to the Tenth Circuit Court of Appeals.