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Plant Retirements (Exelon and Generation)

9 Months Ended

Sep. 30, 2012

Corporate Restructuring And Plant Retirements [Abstract]

Corporate Restructuring and Plant Retirements (Exelon, Generation, ComEd and PECO)

13. Plant Retirements (Exelon and Generation)

Schuylkill Station and Riverside Station

On October 31, 2012, Generation notified PJM of its intention to permanently retire Schuylkill Generating Station Unit 1 by February 1, 2013, and Riverside Generating Station Unit 6 by June 1, 2014. Schuylkill Unit 1 is a 166 MW peaking oil unit located in Philadelphia, Pennsylvania, which was placed in service in 1958. Riverside Unit 6 is a 115 MW peaking gas/kerosene unit located in Baltimore, Maryland, which was placed in service in 1970. The units are being retired because they are no longer economic to operate due to their age, relatively high capital and operating costs and declining revenue expectations. PJM has 30 days to review whether the proposed retirements of the units create transmission system reliability issues. Once PJM's review is complete, Exelon will determine final retirement dates for the units. The impact of the early retirements will not have a material impact on Generation or Exelon's results of operations, cash flows or financial position.

Eddystone Station and Cromby Station

In 2009, Exelon announced its intention to permanently retire three coal-fired generating units and one oil/gas-fired generating unit, effective May 31, 2011, in response to the economic outlook related to the continued operation of these four units. However, PJM determined that transmission reliability upgrades would be necessary to alleviate reliability impacts and that those upgrades would be completed in a manner that will permit Generation's retirement of two of the units on May 31, 2011 and two of the units subsequent to May 31, 2011. On May 31, 2011, Cromby Generating Station (Cromby) Unit 1 and Eddystone Generating Station (Eddystone) Unit 1 were retired; Cromby Unit 2 retired on December 31, 2011 and Eddystone Unit 2 on May 31, 2012. On May 27, 2011, the FERC approved a settlement providing for a reliability-must-run rate schedule, which defines compensation to be paid to Generation for continuing to operate these units. The monthly fixed-cost recovery during the reliability-must-run period for Eddystone Unit 2 was approximately $6 million. Such revenue was intended to recover total expected operating costs, plus a return on net assets, of the unit during the reliability-must-run period. In addition, Generation was reimbursed for variable costs, including fuel, emissions costs, chemicals, auxiliary power and for project investment costs during the reliability-must-run period. Eddystone Unit 2 operated under the reliability-must-run agreement from June 1, 2011 until the May 31, 2012 retirement date. See Note 14 of the Exelon 2011 Form 10-K for additional information.

The following table presents the activity of severance obligations for the announced Eddystone and Cromby retirements from December 31, 2011 through September 30, 2012:

Severance Benefits Obligation		Exelon and Generation
Balance at December 31, 2011	$	7
Cash payments		(2)

Balance at September 30, 2012	$	5

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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