ComEd 2015 Annual Report Download - page 21

Table of Contents
and Class C LLRW to a disposal facility in Texas. The agreement provides for disposal of all current Class B and Class C LLRW currently stored
at each station as well as the Class B and Class C LLRW generated during the term of the agreement. However, because the production of LLRW
from Generation’s nuclear fleet will exceed the capacity at the Texas site (3.9 million curies for 15 years beginning in 2012), Generation will still be
required to utilize on-site storage at its stations for Class B and Class C LLRW. Generation currently has enough storage capacity to store all
Class B and C LLRW for the life of all stations in Generation’s nuclear fleet. Generation continues to pursue alternative disposal strategies for
LLRW, including an LLRW reduction program to minimize cost impacts and on-site storage.
Nuclear Insurance. Generation is subject to liability, property damage and other risks associated with major incidents at any of its nuclear
stations, including the CENG nuclear stations. Generation has reduced its financial exposure to these risks through insurance and other industry
risk-sharing provisions. See “Nuclear Insurance” within Note 23—Commitments and Contingencies of the Combined Notes to Consolidated
Financial Statements for details.
For information regarding property insurance, see ITEM 2. PROPERTIES—Generation. Generation is self-insured to the extent that any
losses may exceed the amount of insurance maintained or are within the policy deductible for its insured losses. Such losses could have a
material adverse effect on Exelon’s and Generation’s financial condition and results of operations.
Decommissioning. NRC regulations require that licensees of nuclear generating facilities demonstrate reasonable assurance that funds will
be available in specified minimum amounts at the end of the life of the facility to decommission the facility. See ITEM 7. MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS—Exelon Corporation, Executive Overview;
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Critical Accounting
Policies and Estimates, Nuclear Decommissioning, Asset Retirement Obligations and Nuclear Decommissioning Trust Fund Investments; and
Note 3—Regulatory Matters, Note 12—Fair Value of Financial Assets and Liabilities and Note 16—Asset Retirement Obligations of the Combined
Notes to Consolidated Financial Statements for additional information regarding Generation’s NDT funds and its decommissioning obligations.
 On December 11, 2007, Generation entered into an Asset Sale Agreement (ASA) with EnergySolutions, Inc.
and its wholly owned subsidiaries, EnergySolutions, LLC (EnergySolutions) and ZionSolutions, LLC (ZionSolutions) under which ZionSolutions
assumed responsibility for decommissioning Zion Station, which is located in Zion, Illinois and ceased operation in 1998.
On September 1, 2010, Generation and EnergySolutions completed the transactions contemplated by the ASA. Specifically, Generation
transferred to ZionSolutions substantially all of the assets (other than land) associated with Zion Station, including assets held in related NDT
funds. In consideration for Generation’s transfer of those assets, ZionSolutions assumed decommissioning and other liabilities, excluding the
obligation to dispose of SNF, associated with Zion Station. Pursuant to the ASA, ZionSolutions will periodically request reimbursement from the
Zion Station-related NDT funds for costs incurred related to the decommissioning efforts at Zion Station. However, ZionSolutions is subject to
certain restrictions on its ability to request reimbursement; specifically, if certain milestones as defined in the ASA are not met, all or a portion of
requested reimbursements shall be deferred until such milestones are met. See Note 16—Asset Retirement Obligations of the Combined Notes to
Consolidated Financial Statements for additional information regarding Zion Station Decommissioning and see Note 2—Variable Interest Entities of
the Combined Notes to Consolidated Financial Statements for a discussion of variable interest entity considerations related to ZionSolutions.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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