ComEd 2006 Annual Report Download - page 289

Exelon Corporation and Subsidiary Companies
Exelon Generation Company, LLC and Subsidiary Companies
Commonwealth Edison Company and Subsidiary Companies
PECO Energy Company and Subsidiary Companies
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Leases
Minimum future operating lease payments, including lease payments for vehicles, real estate,
computers, rail cars and office equipment, as of December 31, 2006 were:
Exelon Generation ComEd PECO
2007 .................................................. $ 58 $ 33 $ 19 $ 1
2008 .................................................. 57 32 20 1
2009 .................................................. 53 30 18 1
2010 .................................................. 49 28 15 1
2011 .................................................. 44 25 15 —
Remaining years ........................................ 455 355 56 1
Total minimum future lease payments ....................... $716(a) $503(a) $143 $ 5
(a) Excludes Generation’s tolling agreements that are accounted for as contingent operating lease payments.
The Registrants’ rental expense under operating leases were as follows:
Exelon Generation (a) ComEd PECO
2006 ................................................. $752 $727 $18 $3
2005 ................................................. 836 798 16 4
2004 ................................................. 709 678 22 4
(a) Includes Generation’s tolling agreements that are accounted for as operating leases and are reflected as net capacity
purchases in the energy commitments table above. These agreements are considered contingent operating lease payments
and are not included in the minimum future operating lease payments table above. Payments made under Generations
tolling agreements totaled $698 million, $768 million and $645 million during 2006, 2005 and 2004, respectively.
For information regarding capital lease obligations, see Note 11–Debt and Credit Agreements.
Environmental Issues
General. The Registrants’ operations have in the past and may in the future require substantial
expenditures in order to comply with environmental laws. Additionally, under Federal and state
environmental laws, the Registrants are generally liable for the costs of remediating environmental
contamination of property now or formerly owned by them and of property contaminated by hazardous
substances generated by them. The Registrants own or lease a number of real estate parcels,
including parcels on which their operations or the operations of others may have resulted in
contamination by substances that are considered hazardous under environmental laws. ComEd and
PECO have identified 42 and 27 sites, respectively, where former manufactured gas plant (MGP)
activities have or may have resulted in actual site contamination. For almost all of these sites, ComEd
or PECO is one of several Potentially Responsible Parties (PRPs) which may be responsible for
ultimate remediation of each location. Of these 42 sites identified by ComEd, the Illinois Environmental
Protection Agency has approved the clean up of nine sites and of the 27 sites identified by PECO, the
Pennsylvania Department of Environmental Protection has approved the cleanup of 12 sites. Of the
remaining sites identified by ComEd and PECO, 20 and 10 sites, respectively, are currently under
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