Exelon 2015 Annual Report Download - page 368

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Station, which is located in Zion, Illinois and ceased operation in 1998. Specifically, Generation transferred to ZionSolutions substantially all of the
assets (other than land) associated with Zion Station, including assets held in related NDT funds. In consideration for Generation’s transfer of
those assets, ZionSolutions assumed decommissioning and other liabilities, excluding the obligation to dispose of SNF and decommission the
SNF dry storage facility, associated with Zion Station. Pursuant to the ASA, ZionSolutions will periodically request reimbursement from the Zion
Station-related NDT funds for costs incurred related to its decommissioning efforts at Zion Station. During 2013, EnergySolutions entered a
definitive acquisition agreement and was acquired by another Company. Generation reviewed the acquisition as it relates to the ASA to
decommission Zion Station. Based on that review, Generation determined that the acquisition will not adversely impact decommissioning activities
under the ASA.
ZionSolutions is subject to certain restrictions on its ability to request reimbursements from the Zion Station NDT funds as defined within the
ASA. Therefore, the transfer of the Zion Station assets did not qualify for asset sale accounting treatment and, as a result, the related NDT funds
were reclassified to Pledged assets for Zion Station decommissioning within Generation’s and Exelon’s Consolidated Balance Sheets and will
continue to be measured in the same manner as prior to the completion of the transaction. Additionally, the transferred ARO for decommissioning
was replaced with a Payable for Zion Station decommissioning in Generation’s and Exelon’s Consolidated Balance Sheets. Changes in the value
of the Zion Station NDT assets, net of applicable taxes, will be recorded as a change in the Payable to ZionSolutions. At no point will the payable
to ZionSolutions exceed the project budget of the costs remaining to decommission Zion Station. Generation has retained its obligation for the
SNF. Following ZionSolutions’ completion of its contractual obligations and transfer of the NRC license to Generation, Generation will store the
SNF at Zion Station until it is transferred to the DOE for ultimate disposal, and will complete all remaining decommissioning activities associated
with the SNF dry storage facility. Generation has a liability of approximately $84 million, which is included within the nuclear decommissioning
ARO at December 31, 2015. Generation also has retained NDT assets to fund its obligation to maintain the SNF at Zion Station until transfer to the
DOE and to complete all remaining decommissioning activities for the SNF storage facility. Any shortage of funds necessary to maintain the SNF
and decommission the SNF storage facility is ultimately required to be funded by Generation. Any Zion Station NDT funds remaining after the
completion of all decommissioning activities will be returned to ComEd customers in accordance with the applicable orders. The following table
provides the pledged assets and payables to ZionSolutions, and withdrawals by ZionSolutions at December 31, 2015 and 2014:
Exelon and Generation
2015 2014
Carrying value of Zion Station pledged assets $ 206 $ 319
Payable to Zion Solutions 189 292
Current portion of payable to Zion Solutions 99 137
Cumulative withdrawals by Zion Solutions to pay decommissioning costs 786 666
(a) Excludes a liability recorded within Exelon’s and Generation’s Consolidated Balance Sheets related to the tax obligation on the unrealized activity associated with the Zion Station
NDT Funds. The NDT Funds will be utilized to satisfy the tax obligations as gains and losses are realized.
(b) Included in Other current liabilities within Exelon’s and Generation’s Consolidated Balance Sheets.
(c) Includes project expenses to decommission Zion Station and estimated tax payments on Zion Station NDT fund earnings.
ZionSolutions leased the land associated with Zion Station from Generation pursuant to a Lease Agreement. Under the Lease Agreement,
ZionSolutions has committed to complete the required
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(a)
(b)
(c)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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