ComEd 2015 Annual Report Download - page 367

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
excess of NDT funds necessary for decommissioning the former ComEd units on a unit-by-unit basis, as long as funds held in the NDT funds are
expected to exceed the total estimated decommissioning obligation, decommissioning-related activities, including realized and unrealized gains
and losses on the NDT funds and accretion of the decommissioning obligation, are generally offset within Exelon’s and Generation’s Consolidated
Statements of Operations and Comprehensive Income. The offset of decommissioning-related activities within the Consolidated Statement of
Operations and Comprehensive Income results in an equal adjustment to the noncurrent payables to affiliates at Generation and an adjustment to
the regulatory liabilities at Exelon. Likewise, ComEd has recorded an equal noncurrent affiliate receivable from Generation and corresponding
regulatory liability. Should the expected value of the NDT fund for any former ComEd unit fall below the amount of the expected decommissioning
obligation for that unit, the accounting to offset decommissioning-related activities in the Consolidated Statement of Operations and
Comprehensive Income for that unit would be discontinued, the decommissioning-related activities would be recognized in the Consolidated
Statements of Operations and Comprehensive Income and the adverse impact to Exelon’s and Generation’s results of operations and financial
position could be material. As of December 31, 2015, the NDT funds of each of the former ComEd units, except for Zion (see Zion Station
Decommissioning below), are expected to exceed the related decommissioning obligation for each of the units. For the purposes of making this
determination, the decommissioning obligation referred to is different, as described below, from the calculation used in the NRC minimum funding
obligation filings based on NRC guidelines.
Based on the regulatory agreement supported by the PAPUC that dictates Generation’s rights and obligations related to the shortfall or
excess of trust funds necessary for decommissioning the former PECO units, regardless of whether the funds held in the NDT funds are expected
to exceed or fall short of the total estimated decommissioning obligation, decommissioning-related activities are generally offset within Exelon’s
and Generation’s Consolidated Statements of Operations and Comprehensive Income. The offset of decommissioning-related activities within the
Consolidated Statement of Operations and Comprehensive Income results in an equal adjustment to the noncurrent payables to affiliates at
Generation and an adjustment to the regulatory liabilities at Exelon. Likewise, PECO has recorded an equal noncurrent affiliate receivable from
Generation and a corresponding regulatory liability. Any changes to the PECO regulatory agreements could impact Exelon’s and Generation’s
ability to offset decommissioning-related activities within the Consolidated Statement of Operations and Comprehensive Income, and the impact to
Exelon’s and Generation’s results of operations and financial position could be material.
The decommissioning-related activities related to the Non-Regulatory Agreement Units are reflected in Exelon’s and Generation’s
Consolidated Statements of Operations and Comprehensive Income.
Refer to Note 3—Regulatory Matters and Note 26—Related Party Transactions for information regarding regulatory liabilities at ComEd and
PECO and intercompany balances between Generation, ComEd and PECO reflecting the obligation to refund to customers any decommissioning-
related assets in excess of the related decommissioning obligations.
Zion Station Decommissioning
On September 1, 2010, Generation completed an Asset Sale Agreement (ASA) with EnergySolutions Inc. and its wholly owned subsidiaries,
EnergySolutions, LLC (EnergySolutions) and ZionSolutions under which ZionSolutions has assumed responsibility for decommissioning Zion
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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