Exelon 2001 Annual Report Download - page 74

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In July 1998, ComEd filed a complaint against the United States Government (Government) in the United States Court of
Federal Claims (Court) seeking to recover damages caused by the DOE’s failure to honor its contractual obligation to begin
disposing of SNF in January 1998. In August 2001, the Court granted ComEd’s motion for partial summary judgment for
liability on ComEd’s breach of contract claim. In November 2001, the Government filed two partial summary judgment
motions relating to certain damage issues in the case as well as two motions to dismiss claims other than ComEd’s breach of
contract claim. The Court has deferred briefing on those motions pending completion of discovery on certain damage issues.
In July 2000, PECO entered into an agreement with the DOE relating to PECO’s Peach Bottom nuclear generating unit to
address the DOE’s failure to begin removal of SNF in January 1998 as required by the Standard Contract. Under that agreement,
the DOE agrees to provide PECO with credits against PECO’s future contributions to the Nuclear Waste Fund over the next ten
years to compensate PECO for SNF storage costs incurred as a result of the DOE’s breach of the contract. The agreement also
provides that, upon PECO’s request, the DOE will take title to the SNF and the interim storage facility at Peach Bottom provided
certain conditions are met. In November 2000, eight utilities with nuclear power plants filed a Joint Petition for Review against
the DOE with the United States Court of Appeals for the Eleventh Circuit seeking to invalidate that portion of the agreement
providing for credits to PECO against nuclear waste fund payments on the ground that such provision is a violation of the
NWPA. PECO intervened as a defendant in that case, which is ongoing. In April 2001, an individual filed suit against the DOE
with the United States District Court for the Middle District of Pennsylvania seeking to invalidate the agreement on the
grounds that the DOE has violated the National Environmental Policy Act and the Administrative Procedure Act. PECO
intervened as a defendant and moved to dismiss the complaint. The Court has not yet ruled on the motion to dismiss.
The Standard Contract with the DOE also requires that PECO and ComEd pay the DOE a one-time fee applicable to
nuclear generation through April 6,1983. PECO’s fee has been paid. Pursuant to the Standard Contract, ComEd elected to pay
the one-time fee of $277 million, with interest to the date of payment, just prior to the first delivery of SNF to the DOE. As of
December 31, 2001, the liability for the one-time fee with interest was $843 million. The liabilities for spent nuclear fuel
disposal costs, including the one-time fee, were transferred to Generation as part of the corporate restructuring.
(13) Notes Payable
2001 2000 1999
Average borrowings $ 193 $ 186 $ 242
Average interest rates, computed on daily basis 4.01% 6.62% 5.62%
Maximum borrowings outstanding $ 599 $ 500 $ 728
Average interest rates, at December 31 2.63% 7.18% 6.80%
Exelon, ComEd, PECO and Generation entered into a $1.5 billion 364 day unsecured revolving credit facility on December 12,
2001 with a group of banks. This credit facility is used principally to support the commercial paper programs of Exelon,
ComEd and PECO. At December 31, 2001 and 2000, the amount of commercial paper outstanding was $360 million and $161
million, respectively. Interest rates on the advances from the credit facility are based on the London Interbank Offering Rate
(LIBOR) as of the date of the advance.
In October 2000, Exelon obtained a $1.25 billion term loan due June 30, 2001 to finance the cash consideration paid to
former holders of Unicom common stock in connection with the Merger and to finance the purchase of its 49.9% interest
in Sithe in December 2000. On December 31, 2000, Exelon had $1,210 million outstanding on the term loan which is also
reflected in Notes Payable on the Consolidated Balance Sheets. This term loan was refinanced with long-term debt in the
second quarter of 2001. The average interest rate on this term loan for the period it was outstanding in 2001 and 2000 was
6.4% and 7.6%, respectively.