ComEd 2015 Annual Report Download - page 18

Table of Contents
During 2015, 2014 and 2013, the nuclear generating facilities operated by Generation achieved capacity factors of 93.7%, 94.3% and 94.1%,
respectively. The capacity factors reflect ownership percentage of stations operated by Generation and include CENG as of April 1, 2014.
Generation manages its scheduled refueling outages to minimize their duration and to maintain high nuclear generating capacity factors, resulting
in a stable generation base for Generation’s wholesale and retail marketing and trading activities. During scheduled refueling outages, Generation
performs maintenance and equipment upgrades in order to minimize the occurrence of unplanned outages and to maintain safe, reliable operations.
In addition to the maintenance and equipment upgrades performed by Generation during scheduled refueling outages, Generation has
extensive operating and security procedures in place to ensure the safe operation of the nuclear units. Generation has extensive safety systems in
place to protect the plant, personnel and surrounding area in the unlikely event of an accident or other incident.
Regulation of Nuclear Power Generation. Generation is subject to the jurisdiction of the NRC with respect to the operation of its nuclear
generating stations, including the licensing for operation of each unit. The NRC subjects nuclear generating stations to continuing review and
regulation covering, among other things, operations, maintenance, emergency planning, security and environmental and radiological aspects of
those stations. As part of its reactor oversight process, the NRC continuously assesses unit performance indicators and inspection results, and
communicates its assessment on a semi-annual basis. As of January 6, 2016, the NRC categorized Clinton and Dresden unit 2 in the Regulatory
Response Column, which is the second highest of five performance bands. All other units operated by Generation are categorized in the Licensee
Response Column as of December 31, 2015, which is the highest performance band. The NRC may modify, suspend or revoke operating licenses
and impose civil penalties for failure to comply with the Atomic Energy Act, the regulations under such Act or the terms of the operating licenses.
Changes in regulations by the NRC may require a substantial increase in capital expenditures for nuclear generating facilities and/or increased
operating costs of nuclear generating units.
On March 11, 2011, Japan experienced a 9.0 magnitude earthquake and ensuing tsunami that seriously damaged the nuclear units at the
Fukushima Daiichi Nuclear Power Station, which are operated by Tokyo Electric Power Co. In July 2011, an NRC Task Force formed in the
aftermath of the Fukushima Daiichi events issued a report of its review of the accident, including recommendations for future regulatory action by
the NRC to be taken in the near and longer term. The Task Force’s report concluded that nuclear reactors in the United States are operating safely
and do not present an imminent risk to public health and safety. The NRC and its staff have issued orders and implementation guidance for
commercial reactor licensees operating in the United States. The NRC and its staff are continuing to evaluate additional requirements. For
additional information on the NRC actions related to the Japan Earthquake and Tsunami and the industry’s response, see ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS—Executive Overview.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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