Asset Impairment Expense

3 Months Ended

Mar. 31, 2013

IMPAIRMENTS

13. ASSET IMPAIRMENT EXPENSE

	Three Months Ended
	March 31,
	2013		2012
	(in millions)
Beaver Valley	$	46	$	-
Kelanitissa		-		5
Other		2		5
Total asset impairment expense	$	48	$	10

Beaver Valley—In January 2013, Beaver Valley, a wholly-owned 125 Megawatt (“MW”) coal-fired plant in Pennsylvania, entered into an agreement to early terminate its PPA with the offtaker in exchange for a lump sum payment of $60 million which was received on January 9, 2013. The termination was effective January 8, 2013. Beaver Valley also terminated its fuel supply agreement. Under the PPA termination agreement, annual capacity agreements between the offtaker and PJM Interconnection, LLC (“PJM”) (a regional transmission organization) for 2013—2016 have been assigned to Beaver Valley. The termination of the PPA resulted ina significant reduction in the future cash flows of the asset group and was considered an impairment indicator. The carrying amount of the asset group was not recoverable. The carrying amount of the asset group exceeded the fair value of the asset group, resulting in an asset impairment expense of $46 million. Beaver Valley is reported in the US Generation segment.