ComEd 2013 Annual Report Download - page 31

Generation is alsosubjecttothejurisdiction ofcertainother state andregional agenciesandcompacts, includingtheDelaware River
BasinCommission andtheSusquehanna River BasinCommission.
Solid and Hazardous Waste
TheCERCLA providesf
or immediate responseandremoval actionscoordinatedbytheU.S. EPAintheevent ofthreatened
releasesofhazardoussubstancesinto theenvironment andauthorizestheU.S. EPAeither to clean up sitesat which hazardous
substanceshavecreatedactual or potential environmental hazards or to order personsresponsible for thesituation to doso.Under
CERCLA,generatorsandtransportersofhazardoussubstances, aswell aspastandpresent ownersandoperatorsofhazardous
waste sites, are strictly, jointlyandseverallyliable for thecleanup costsofwaste at sites, mostof which are listedbytheU.S. EPA
on theNational Priorities List(NPL). ThesePRPs can beorderedto performacleanup,can besuedfor costsassociatedwithaU.S.
EPA-directedcleanup,mayvoluntarilysettle withtheU.S. EPAconcerningtheirliabilityfor cleanup costs, or mayvoluntarilybegina
site investigation andsite remediation under state oversightprior to listingon theNPL. Variousstates, includingIllinois, Maryland
andPennsylvania,havealso enactedstatutesthat contain provisionssubstantially similar to CERCLA.Inaddition,RCRA governs
treatment,storageand disposal ofsolid andhazardouswastesandcleanup ofsiteswhere such activitieswere conducted.
Generation,ComEd, PECO and BGE andtheirsubsidiariesare,or are likelyto become,partiesto proceedings initiatedbytheU.S.
EPA,state agenciesand/or other responsible partiesunder CERCLAandRCRA withrespecttoanumber ofsites, including MGP
sites, or mayundertaketoinvestigate andremediate sitesfor which theymaybesubjecttoenforcement actionsbyan agency or
third-party.
See Note 22 oftheCombinedNotesto ConsolidatedFinancial Statementsfor additional information regardingsolid andhazardous
waste regulation andlegislation.
Environmental Remediation
ComEd’s, PECO’s and BGE’s environmental liabilitiesprimarilyarisefromcontamination at former MGP sites. ComEd, pursuant to
an ICC order,and PECO, pursuant to settlementsofnatural gas distribution rate caseswiththePAPUC, haveanon-goingprocess
to recover environmental remediation costsoftheMGP sitesthrough a provision withincustomer rates. While BGE doesnot havea
rider for MGP clean-up costs, BGE has historicallyreceivedrecoveryofactual clean-up costson a site-specific basis indistribution
rates. Theamount to beexpendedin 2014at Exelon for compliancewithenvironmental remediation relatedto contamination at
former MGP sitesisexpectedto total $40million,consistingof$33 million,$6million and$1million at ComEd, PECO and BGE,
respectively.
Generation’s environmental liabilitiesprimarilyarisefromcontamination at current andformer generation andwaste storage
facilities. AsofDecember 31,2013,Generation hasestablishedan appropriate liabilityto complywithenvironmental remediation
requirementsincludingcontamination attributable to lowlevel radioactiveresiduesat a storageandreprocessingfacilitynamedLatty
Avenue,andat a disposal facilitynamedWestLakeLandfill,bothnear St.Louis, Missourirelatedto operationsconductedbyCotter
Corporation,aformer ComEd subsidiary.
Inaddition,Generation,ComEd, PECO and BGE mayberequiredto makesignificant additional expendituresnot presently
determinable for other environmental remediation costs.
See Notes3and22 oftheCombinedNotesto ConsolidatedFinancial Statementsfor additional information regardingthe
Registrants’ environmental remediation effortsandrelatedimpactsto theRegistrants’ resultsofoperations, cash flows andfinancial
position.
Global Climate Change
Exelon believestheevidenceofglobal climate changeis compellingandthat the energy industry, though not alone,isasignificant
contributor to thehuman-causedemissionsof GHGs that manyinthescientific communitybelievecontribute to global climate
change,andasreportedbytheIntergovernmental Panel on Climate ChangeintheirFifthAssessment Report Summaryfor Policy
Makers issuesSeptember 2013.Exelon,asa producer ofelectricityfrompredominantlylow-carbon generatingfacilities(such as
nuclear, hydroelectric, windandsolar photovoltaic), hasa relativelysmall GHG emission profile,or carbon footprint,comparedto
other domestic generatorsofelectricity. By virtue ofits significant investment inlow-carbon intensityassets, Generation’s emission
intensity, or rate ofcarbon dioxideequivalent (CO2e)emittedper unitofelectricitygenerated, is amongthelowestintheindustry.
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