ComEd 2015 Annual Report Download - page 58

Table of Contents
environmental review to support the rule. On September 19, 2014, the NRC issued a revised rule codifying the NRC’s generic determinations
regarding the environmental impacts of continued storage of spent nuclear fuel beyond a reactor’s licensed operating life. The Continued Storage
Rule became effective on October 20, 2014.
Any regulatory action relating to the timing and availability of a repository for SNF could adversely affect Generation’s ability to
decommission fully its nuclear units. Through May 15, 2014, in accordance with the NWPA and Generation’s contract with the DOE, Generation
paid the DOE a fee per kWh of net nuclear generation for the cost of SNF disposal. On November 19, 2013, the United States Court of Appeals for
the District of Columbia Circuit ordered the DOE to submit to Congress a proposal to reduce the current SNF disposal fee to zero, unless and until
there is a viable disposal program. On January 3, 2014, the DOE filed a petition for rehearing which was denied by the D.C. Circuit Court on
March 18, 2014. Also, on January 3, 2014, the DOE submitted a proposal to Congress to reduce the current SNF disposal fee to zero. On May 9,
2014, the DOE notified Generation that the SNF disposal fee was set to zero, effective May 16, 2014. Until such time as a new fee structure is in
effect, Exelon and Generation will not accrue any further costs related to SNF disposal fees. Generation currently estimates 2025 to be the earliest
date when the DOE will begin accepting SNF, which could be delayed by further regulatory action. See Note 23—Commitments and Contingencies
of the Combined Notes to Consolidated Financial Statements for additional information on the spent nuclear fuel obligation. Generation cannot
predict what, if any, fee will be established in the future for SNF disposal. However, such a fee could be material to Generation’s results of
operations or cash flows.
License renewals. Generation cannot assure that economics will support the continued operation of the facilities for all or any portion of any
renewed license period. If the NRC does not renew the operating licenses for Generation’s nuclear stations or a station cannot be operated through
the end of its operating license, Generation’s results of operations could be adversely affected by increased depreciation rates, impairment
charges and accelerated future decommissioning costs, since depreciation rates and decommissioning cost estimates currently include
assumptions that license renewal will be received. In addition, Generation could lose revenue and incur increased fuel and purchased power
expense to meet supply commitments.
Operational Factors
The Registrants’ employees, contractors, customers and the general public could be exposed to a risk of injury due to the nature of the
energy industry. (Exelon, Generation, ComEd, PECO and BGE)
Employees and contractors throughout the organization work in, and customers and the general public could be exposed to, potentially
dangerous environments near their operations. As a result, employees, contractors, customers and the general public are at risk for serious injury,
including loss of life. Significant risks include nuclear accidents, dam failure, gas explosions, pole strikes and electric contact cases.
Natural disasters, war, acts and threats of terrorism, pandemic and other significant events could negatively impact the Registrants’
results of operations, its ability to raise capital and its future growth. (Exelon, Generation, ComEd, PECO and BGE)
Generation’s fleet of power plants and ComEd’s, PECO’s and BGE’s distribution and transmission infrastructures could be affected by
natural disasters, such as seismic activity, more frequent and more extreme weather events, changes in temperature and precipitation patterns,
changes to ground and surface water availability, sea level rise and other related phenomena. Severe weather or other natural
51
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.