ComEd 2015 Annual Report Download - page 22

Table of Contents
Fossil and Renewable Facilities (including Hydroelectric)
Generation has ownership interests in 13,281 MW of capacity in fossil and renewable generating facilities currently in service. Generation
wholly owns all of its fossil and renewable generating stations, with the exception of: (1) jointly owned facilities that include Wyman; (2) an
ownership interest through an equity method investment in Sunnyside; (3) certain wind project entities with minority interest owners; and (4) an
ownership interest in the Albany Green Energy, LLC project entity, see Note 2— Variable Interest Entities of the Combined Notes to Consolidated
Financial Statements for additional information on these wind project entities. Generation’s fossil and renewable generating stations are all
operated by Generation, with the exception of LaPorte, Sunnyside and Wyman, which are operated by third parties. In 2015, 2014 and 2013,
electric supply (in GWh) generated from owned fossil and renewable generating facilities was 8%, 13% and 15%, respectively, of Generation’s
total electric supply. The majority of this output was dispatched to support Generation’s wholesale and retail power marketing activities. For
additional information regarding Generation’s electric generating facilities, see ITEM 2. PROPERTIES—Exelon Generation Company, LLC and
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS— Exelon Corporation,
Executive Overview for additional information on Generation Renewable Development.
Licenses. Fossil and renewable generation plants are generally not licensed, and, therefore, the decision on when to retire plants is,
fundamentally, a commercial one. FERC has the exclusive authority to license most non-Federal hydropower projects located on navigable
waterways or Federal lands, or connected to the interstate electric grid. On August 29, 2012 and August 30, 2012, Generation submitted
hydroelectric license applications to the FERC for 46-year licenses for the Conowingo Hydroelectric Project (Conowingo) and the Muddy Run
Pumped Storage Facility Project (Muddy Run), respectively. On December 22, 2015, FERC issued a new 40-year license for Muddy Run. The
license term expires on December 1, 2055. Based on the FERC procedural schedule, the FERC licensing process was not completed prior to the
expiration of Conowingo’s license on September 1, 2014. FERC is required to issue an annual license for a facility until the new license is issued.
On September 10, 2014, FERC issued an annual license for Conowingo, effective as of the expiration of the previous license. If FERC does not
issue a new license prior to the expiration of annual license, the annual license will renew automatically. The stations are currently being
depreciated over their estimated useful lives, which includes the license renewal period. Refer to Note 3—Regulatory Matters of the Combined
Notes to Consolidated Financial Statements for additional information.
Insurance. Generation maintains business interruption insurance for its renewable and fossil projects, and delay in start-up insurance for its
renewable and fossil projects currently under construction. Generation does not purchase business interruption insurance for its wholly owned
fossil and hydroelectric operations, unless required by financing agreements; see Note 14—Debt and Credit Agreements of the Combined Notes to
Consolidated Financial Statements for additional information on financing agreements. Generation maintains both property damage and liability
insurance. For property damage and liability claims for these operations, Generation is self-insured to the extent that losses are within the policy
deductible or exceed the amount of insurance maintained. Such losses could have a material adverse effect on Exelon’s and Generation’s
financial condition and their results of operations and cash flows. For information regarding property insurance, see ITEM 2. PROPERTIES—
Exelon Generation Company, LLC.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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