Exelon 2015 Annual Report Download - page 245

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
See Note 7—Property, Plant and Equipment, Note 10—Jointly Owned Electric Utility Plant and Note 24—Supplemental Financial Information
for additional information regarding property, plant and equipment.
Nuclear Fuel (Exelon and Generation)
The cost of nuclear fuel is capitalized within property, plant and equipment and charged to fuel expense using the unit-of-production method.
Prior to May 16, 2014, the estimated disposal cost of SNF was established per the Standard Waste Contract with the DOE and was expensed
through fuel expense at one mill ($0.001) per kWh of net nuclear generation. Effective May 16, 2014, the SNF disposal fee was set to zero by the
DOE and Exelon and Generation are not accruing any further costs related to SNF disposal fees until a new fee structure goes into effect. On-site
SNF storage costs are being reimbursed by the DOE since a DOE (or government-owned) long-term storage facility has not been completed. See
Note 23—Commitments and Contingencies for additional information regarding the SNF disposal fee.
Nuclear Outage Costs (Exelon and Generation)
Costs associated with nuclear outages, including planned major maintenance activities, are expensed to operating and maintenance expense
or capitalized to property, plant and equipment (based on the nature of the activities) in the period incurred.
New Site Development Costs (Exelon and Generation)
New site development costs represent the costs incurred in the assessment and design of new power generating facilities. Such costs are
capitalized when management considers project completion to be probable, primarily based on management’s determination that the project is
economically and operationally feasible, management and/or the Exelon board of directors has approved the project and has committed to a plan
to develop it, and Exelon and Generation have received the required regulatory approvals or management believes the receipt of required
regulatory approvals is probable. Capitalized development costs are charged to Operating and maintenance expense when project completion is no
longer probable. New site development costs incurred prior to a project’s completion being deemed probable are expensed as incurred.
Approximately $22 million, $13 million and $10 million of costs were expensed by Exelon and Generation for the years ended December 31, 2015,
2014, and 2013, respectively. These costs are related to the possible development of new power generating facilities.
238
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.