Early Nuclear Plant Retirements Early Nuclear Plant Retirements (Tables)

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Schedule of Other Operating Cost and Expense, by Component [Table Text Block]

Please refer to Note 12 — Nuclear Decommissioning for additional detail on changes to the nuclear decommissioning ARO balances resulting from the early retirement of TMI.

Income statement expense (pre-tax)	June 30, 2017
Depreciation and amortization
Accelerated depreciation(a)	$	35
Accelerated Nuclear Fuel amortization	2
Total	$	37

________

(a) Reflects incremental accelerated depreciation of plant assets, including any ARC.

Based on insufficient capacity auction results and the lack of progress on Illinois energy legislation, on June 2, 2016, Generation announced a decision to shut down the Clinton and Quad Cities nuclear plants on June 1, 2017 and June 1, 2018, respectively. With the passage of the Illinois ZES on December 7, 2016, and subject to prevailing over any related administrative or legal challenges, Generation reversed this decision and revised the expected economic useful lives for both facilities; 2027 for Clinton and 2032 for Quad Cities. Refer to Note 5 - Regulatory Matters for additional discussion on the Illinois ZES.

Exelon's and Generation's 2016 results included a net incremental $714 million of total pre-tax expense associated with the initial early retirement decision for Clinton and Quad Cities, as summarized in the table below.

Income statement expense (pre-tax)	Q2 2016			Q3 2016			Q4 2016			YTD 2016
Depreciation and amortization
Accelerated depreciation(a)	$	115		$	344		$	253		$	712
Accelerated Nuclear Fuel amortization	9			28			23			60
Operating and maintenance
One time charges(b)	141			5			(120		)	26
ARO accretion, net of contractual offset(c)	—			2			—			2
Contractual offset for ARC depreciation(c)	(14		)	(41		)	(31		)	(86		)
Total	$	251		$	338		$	125		$	714

_____________

(a) Reflects incremental accelerated depreciation of plant assets, including any ARC, for the period June 2, 2016, through December 6, 2016.

(b) Primarily includes materials and supplies inventory reserve adjustments, employee related costs and construction work-in-progress (CWIP) impairments.

(c) For Quad Cities based on the regulatory agreement with the Illinois Commerce Commission, decommissioning-related activities are offset within Exelon's and Generation's Consolidated Statements of Operations and Comprehensive Income. The offset results in an equal adjustment to the noncurrent payables to ComEd at Generation and an adjustment to the regulatory liabilities at ComEd. Likewise, ComEd has recorded an equal noncurrent affiliate receivable from Generation and corresponding regulatory liability.