ComEd 2006 Annual Report Download - page 28

RCRA with respect to a number of sites, including manufactured gas plant (MGP) sites, or may
undertake to investigate and remediate sites for which they may be subject to enforcement actions by
an agency or third party.
MGP Sites
MGPs manufactured gas in Illinois and Pennsylvania from approximately 1850 to the 1950s.
ComEd and PECO generally did not operate MGPs as corporate entities but did, however, acquire
MGP sites as part of the absorption of smaller utilities. ComEd and PECO have identified former MGP
sites for which they may be liable for remediation. See Note 18 of the Combined Notes to Consolidated
Financial Statements for further detail.
Cotter Corporation
The EPA has advised Cotter Corporation, a former ComEd subsidiary, that it is potentially liable in
connection with radiological contamination at a site known as the West Lake Landfill in Missouri. See
Note 18 of the Combined Notes to Consolidated Financial Statements for further detail.
Air
Air quality regulations promulgated by the EPA and the various state environmental agencies in
Pennsylvania, Massachusetts, Illinois and Texas in accordance with the Federal Clean Air Act and the
Clean Air Act (CAA) Amendments of 1990 (Amendments) impose restrictions on emission of
particulates, sulfur dioxide (SO2), nitrogen oxides (NOx), mercury and other pollutants and require
permits for operation of emission sources. Such permits have been obtained by Exelon’s subsidiaries
and must be renewed periodically.
The Amendments establish a comprehensive and complex national program to substantially
reduce air pollution. The Amendments include a two-phase program to reduce acid rain effects by
significantly reducing emissions of SO2and NOxfrom power plants. Flue-gas desulphurization systems
(SO2scrubbers) have been installed at all of Generation’s coal-fired units other than the Keystone
Station. Keystone is subject to, and in compliance with, the Acid Rain Program Phase II SO2and NOx
limits of the Amendments, which became effective January 1, 2000. Generation and the other
Keystone co-owners formally approved on June 30, 2006 a capital plan to install SO2scrubbers at the
station for which Exelon’s share, based on its 20.99% ownership interest, would be approximately
$150 million. In addition, Generation and the other Keystone co-owners purchase SO2emission
allowances as part of their compliance strategy to meet Phase II limits.
Generation has completed implementation of measures, including the installation of NOx
emissions controls and the imposition of certain operational constraints, to comply with the Reasonably
Available Control Technology limitations and state-level ozone season (May to September) NOx
reduction regulations. These state-level regulations were developed by eastern states to reduce
summertime NOxemissions pursuant to several Federal NOxreduction regulations (“NOxSIP Call”
regulations) adopted by the EPA during 1998 and 1999 to address regional “ozone transport.” State
level NOxreduction regulations took effect May 1, 2003 in Pennsylvania and Massachusetts.
Compliance in Illinois started May 31, 2004. Texas is not covered by the EPA’s NOx SIP Call
regulations. The EPA’s NOx SIP Call regulations currently require 19 eastern states to reduce
summertime NOxemissions.
Generation has evaluated options for compliance with the NOxSIP Call regulations and installed
controls on the two coal-fired units at the Eddystone Generating Station and the coal-fired unit at
Cromby (Selective Non-Catalytic Reduction) and installed controls on the two coal-fired units at the
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