Exelon 2001 Annual Report Download - page 67

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Sithe, headquartered in New York, is a leading independent power producer, with ownership interests in 27 facilities in
North America. Sithe has net generation capacity of 3,371 MW, primarily in New York and Massachusetts, 2,651 MW under
construction and 2,400 MW in advanced development.
InfraSource, Inc. Acquisitions
In 2001 InfraSource, Inc. (InfraSource), formerly Exelon Infrastructure Services, Inc., acquired the assets of a utility service
contracting company for an aggregate purchase price of approximately $30 million. In 2000, InfraSource acquired the stock
or assets of seven utility services contracting companies for an aggregate purchase price of approximately $245 million.The
acquisitions were accounted for using the purchase method of accounting. The initial estimates of the excess of purchase
price over the fair value of net assets acquired in the 2001 acquisition and in the 2000 acquisitions were approximately $19
million and $216 million, respectively. The allocation of purchase price to the fair value of assets acquired and liabilities
assumed in these acquisitions is as follows:
2001 2000
Current Assets (net of cash acquired) $ 10 $ 63
Property, Plant and Equipment 11 17
Cost in excess of net assets acquired 19 216
Current Liabilities (10) (51)
Total $30 $245
At December 31, 2001 and 2000, Current Assets includes $77 million and $70 million, respectively, of Costs and Earnings in
Excess of Billings on uncompleted contracts and Current Liabilities includes $56 million and $23 million, respectively, of
Billings and Earnings in Excess of Costs on uncompleted contracts.
AmerGen Energy Company, LLC
In August 2000, AmerGen Energy Company, LLC (AmerGen), a joint venture with British Energy, Inc., a wholly owned
subsidiary of British Energy plc, (British Energy), completed the purchase of Oyster Creek Nuclear Generating Facility (Oyster
Creek) from GPU, Inc. (GPU) for $10 million. Under the terms of the purchase agreement, GPU agreed to fund outage costs
of $89 million, including the cost of fuel, for a refueling outage that occurred in 2000. AmerGen is repaying these costs to
GPU in equal annual installments through 2009. In addition, AmerGen assumed full responsibility for the ultimate
decommissioning of Oyster Creek. At the closing of the sale, GPU provided funding for the decommissioning trust of $440
million. In conjunction with this acquisition, AmerGen has received a fully funded decommissioning trust fund which has
been computed assuming the anticipated costs to appropriately decommission Oyster Creek discounted to net present
value using the NRC’s mandated rate of 2%. AmerGen believes that the amount of the trust fund and investment earnings
thereon will be sufficient to meet its decommissioning obligation. GPU is purchasing the electricity generated by Oyster
Creek pursuant to a three-year power purchase agreement.
(04) Corporate Restructuring
During January 2001, Exelon undertook a restructuring to separate its generation and other competitive businesses from
its regulated energy delivery business at ComEd and PECO. As part of the restructuring, the generation-related operations
and assets and liabilities of ComEd were transferred to Generation. Also, as part of the restructuring, the non-regulated
operations and related assets and liabilities of PECO, representing PECO’s generation and enterprises business segments,
were transferred to Generation and Enterprises, respectively. Additionally, certain operations and assets and liabilities of
ComEd and PECO were transferred to Exelon Business Services Company (BSC).