Exelon 2014 Annual Report Download - page 14

In addition to the rigorous maintenance and equipment upgrades performed by Generation during scheduled refueling outages,
Generation has extensive operating and security procedures in place to ensure the safe operation of the nuclear units. Generation
has extensive safety systems in place to protect the plant, personnel and surrounding area in the unlikely event of an accident.
Regulation of Nuclear Power Generation. Generation is subject to the jurisdiction of the NRC with respect to the operation of its
nuclear generating stations, including the licensing for operation of each unit. The NRC subjects nuclear generating stations to
continuing review and regulation covering, among other things, operations, maintenance, emergency planning, security and
environmental and radiological aspects of those stations. As part of its reactor oversight process, the NRC continuously assesses
unit performance indicators and inspection results, and communicates its assessment on a semi-annual basis. As of December 31,
2014, the NRC categorized Calvert Cliffs unit 2, Clinton, Limerick units 1 and 2, and Oyster Creek in the Regulatory Response
Column, which is the second highest of five performance bands. All other units operated by Generation are categorized in the
Licensee Response Column as of December 31, 2014, which is the highest performance band. The NRC may modify, suspend or
revoke operating licenses and impose civil penalties for failure to comply with the Atomic Energy Act, the regulations under such Act
or the terms of the operating licenses. Changes in regulations by the NRC may require a substantial increase in capital expenditures
for nuclear generating facilities and/or increased operating costs of nuclear generating units.
On March 11, 2011, Japan experienced a 9.0 magnitude earthquake and ensuing tsunami that seriously damaged the nuclear units
at the Fukushima Daiichi Nuclear Power Station, which are operated by Tokyo Electric Power Co. In July 2011, an NRC Task Force
formed in the aftermath of the Fukushima Daiichi events issued a report of its review of the accident, including recommendations for
future regulatory action by the NRC to be taken in the near and longer term. The Task Force’s report concluded that nuclear reactors
in the United States are operating safely and do not present an imminent risk to public health and safety. The NRC and its staff have
issued orders and implementation guidance for commercial reactor licensees operating in the United States. The NRC and its staff
are continuing to evaluate additional requirements. For additional information on the NRC actions related to the Japan Earthquake
and Tsunami and the industry’s response, see MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS—Executive Overview.
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