ComEd 2013 Annual Report Download - page 146

market-basedrates. These analysesmustexamine historic test perioddata andmustbeupdatedeverythree yearson a prescribed
schedule.Generation,ComEd, PECO and BGE filedan updatedanalysis for theNortheastRegion, which includes PJM, in late
2010,basedon 2009 historic test perioddata.OnJune 22,2011,FERC issuedan order confirmingGeneration’s continuedauthority
to chargemarket basedrates, basedon Generation’s mostrecent updatedanalysis filedin 2010,statingthat anymarket power
concernsare adequatelyaddressed by PJM’s monitoringandmitigation programs. OnDecember 30,2013,Generation,ComEd,
PECO and BGE fileditsupdatesanalysis for theNortheastRegion,basedon 2012 historic test perioddata andFERChasnot yet
actedon thefiling. Similarly, on June 29, 2012,Generation,ComEd, BGE and PECO filedtheirupdatedmarket power analysis for
theCentral Region which theFERCacceptedon November 13,2012,andon December 23,2011,Generation fileditsupdated
market power analysis for theSoutheastRegion which theFERCacceptedon October 10,2012.OnDecember 21,2012,
Generation,ComEd, BGE and PECO filedtheirupdatedmarket power analysis for theSPP region, which theFERCacceptedon
October 8, 2013.
Reliability Pricing Model PJM’s RPM BaseResidual Auctionstake place approximately36months aheadofthescheduleddelivery
year.Themostrecent auction for thedeliveryyear endingMay31,2017occurredinMay2013.
License Renewals OnJune 22,2011,Generation submittedapplicationsto theNRCto extendthe operatinglicensesof Limerick
Units1and2by 20 years. Thecurrent operatinglicensesfor Limerick Units1and2expire in 2024and2029, respectively. InJune
2012,theUnitedStatesCourt ofAppealsfor theDC CircuitvacatedtheNRC’s temporarystorage rule on thegrounds that theNRC
shouldhaveconductedamore comprehensiveenvironmental reviewto support the rule.Thetemporarystorage rule (alsoreferred
to asthe“waste confidencedecision”) recognizesthat licenseescan safelystore spent nuclear fuel at nuclear plantsfor up to 60
yearsbeyondtheoriginal andrenewedlicensedoperatinglifeofthe plantsandthat licensingrenewal decisionsdo not require
discussion oftheenvironmental impactofspent fuel storedon site.InAugust 2012,theNRCplacedaholdon issuingnewor
renewedoperatinglicensesthat dependon thetemporarystorage rule untilthecourt’s decision is addressed. InSeptember 2012,
theNRCdirectedNRCStaff to revisethetemporarystorage rule which is nownot expecteduntilOctober 3,2014. Generation does
not expecttheNRCto issue license renewalsuntiltheendof2014, at the earliest.
OnMay29, 2013,Generation submittedapplicationsto theNRCto extendthe operatinglicensesofByron Units1and2and
BraidwoodUnits1and2by 20 years. Thecurrent operatinglicensesfor Byron Units1and2expire in 2024and2026, respectively.
Thecurrent operatinglicensesfor BraidwoodUnits1and2expire in 2026and2027, respectively. Generation doesnot expectthe
NRCto issue license renewalsfor Byron andBraidwooduntil 2015at the earliest.
OnAugust29, 2012 andAugust30,2012,Generation submitted hydroelectric license applicationsto theFERCfor 46-year licenses
for theConowingoHydroelectric Project(Conowingo)andtheMuddy Run PumpedStorageFacilityProject(Muddy Run),
respectively.
TheFERCextendedthedeadline to January31,2014to file a water qualitycertification application pursuant to Section 401 ofthe
Clean Water Act(CWA)withtheMDE for Conowingo.Generation is workingwithstakeholdersto resolvelicensing issues, including:
(1)water quality, (2) fish passageandhabitat,and(3)sediment.OnJanuary30,2014, Exelon filedawater qualitycertification
application pursuant to Section 401 oftheCWAwith MDE for Conowingo,addressingtheseandother issues, although Generation
cannot currentlypredicttheconditionsthat ultimatelymaybeimposed. Resolution oftheseissuesrelatingto Conowingomayhavea
material effectonGeneration’s resultsofoperationsandfinancial position through an increaseincapital expendituresandoperating
costs.
OnAugust29, 2013,Exelon filedawater qualitycertification application pursuant to Section 401 oftheCWAwithPADEP for Muddy
Run,addressingtheseandother issuesthat includedcertaincommitmentsmadeby Generation.Thefinancial impactassociated
withthesecommitmentsisestimatedto beinthe rangeof$20 million to $30 million,andwill includebothan increaseincapital
expendituresaswell asan increasein operatingexpenses. Exelon anticipatesthat thePADEP will issue thewater quality
certification pursuant to Section 401 oftheCWAfor Muddy Run inthefirstquarter of2014.
Basedon the latestFERCprocedural schedule,theFERClicensingprocess is not expectedto becompletedprior to theexpiration
ofMuddy Run’s current licenseonAugust31,2014, andtheexpiration ofConowingo’s licenseonSeptember 1,2014. However,the
stationswouldcontinue to operate under annual licensesuntilFERCtakesaction on the46-year license applications. Thestations
are currentlybeingdepreciatedover theiruseful lives, which includesthelicense renewal period. AsofDecember 31,2013,
$33 million ofdirectcostsassociatedwithrelicensingeffortshavebeen capitalized.
140