RS-10-101, Units 1 & 2 - Parent Guarantees for Decommissioning Financial Assurance

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Units 1 & 2 - Parent Guarantees for Decommissioning Financial Assurance
ML102240255
Person / Time
Site: Byron, Braidwood  Constellation icon.png
Issue date: 08/09/2010
From: Simpson P
Exelon Generation Co, Exelon Nuclear
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
RS-10-101
Download: ML102240255 (23)
v • d • e


Text

Exelon.

Exelon Generation www.exeloncorp.Co0T NucleaT 4300 Winfield Road Warrenville, I L 60555 10 CFR 50.75(f)(1)

RS-10-101 August 9, 2010 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 Braidwood Station, Units 1 and 2 Facility Operating License Nos. NPF-72 and NPF-77 NRC Docket Nos. STN 50-456 and STN 50-457 Byron Station, Units 1 and 2 Facility Operating License Nos. NPF-37 and NPF-66 NRC Docket Nos. STN 50-454 and STN 50-455

Subject:

Parent Guarantees for Decommissioning Financial Assurance

References:

1. Letter from Patrick R. Simpson (Exelon Generation Company, LLC).to U.S. NRC, "Response to Request for Additional Information Regarding the Decommissioning Financial Assurance Plans," dated June 24, 2010
2. Letter from Patrick R. Simpson (Exelon Generation Company, LLC) to U.S. NRC, "Submittal of Decommissioning Funding Assurance Calculations," dated March 10, 2010
3. Letter from Patrick R. Simpson (Exelon Generation Company, LLC) to U.S. NRC, "Response to Request for Additional Information Regarding Decommissioning Financial Assurance Plans," dated October 27, 2009 In Reference 1 Exelon Generation Company, LLC (EGC) stated that it would provide NRC documentation of the parent company guarantees, used for decommissioning financial assurance for Braidwood Station, Units 1 and 2, and Byron Station, Unit 2, as approved by the Exelon Board of Directors. Attachment 1 contains the parent company guarantees provided by Exelon Corporation on behalf of EGC. Attachment 2 contains the financial tests for the parent company guarantees, as required by 10 CFR 30 Appendix A. Attachment 3 contains the CPA report from Exelon Corporation's independent auditors (PricewaterhouseCoopers), comparing the data in the financial tests to the data in the year-end financial statement, as required by 10 CFR 30 Appendix

August 9, 2010 U.S. Nuclear Regulatory Commission Page 2 A. Note that there have been no recent changes to the bond ratings of Exelon Corporation.

In a conference call held on July 29, 2010, NRC requested that EGC also include the dates of the Exelon Corporation Board of Directors Meetings where the parent company guarantees were approved, and the amounts approved at those meetings. This information is provided below:

Despite the action to increase the amount of the parent company guarantees, EGC continues to contend that parent company guarantees in the amount of $45M is sufficient to provide decommissioning financial assurance for Braidwood Station, Units 1 and 2, and Byron Station, Unit 2, in accordance with 10 CFR 50.75, as previously stated in References 1, 2, and 3. EGC views the action to increase the amount of the parent company guarantees to $219M as an interim measure. EGC intends to engage NRC in further dialogue to resolve this issue.

There are no new regulatory commitments made in this letter.

If you have any questions about this letter, please contact me at (630) 657-2823.

Patrick R. Simpson Q

Manager - Licensing Exelon Generation Company, LLC Attachments: 1. Braidwood Station, Units 1 and 2, and Byron Station, Unit 2 Parent Company Guarantees

2. 10 CFR 30, Appendix A Financial Tests for Parent Company Guarantees
3. 10 CFR 30, Appendix A Required Independent Auditors Report for Parent Company Guarantees

ATTACHMENT 1 BRAIDWOOD STATION, UNITS 1 AND 2, AND BYRON STATION, UNIT 2 PARENT COMPANY GUARANTEES

PARENT GUARANTEE NRC DECOMMISSIONING FUNDING ASSURANCE Guarantee made July 28, 2010 by Exelon Corporation, a corporation organized under the laws of the Commonwealth of Pennsylvania, herein referred to as "guarantor," to the U.S. Nuclear Regulatory Commission (NRC), on behalf of our subsidiary Exelon Generation Company, LLC (ExGen) of 300 Exelon Way, Kennett Square, PA 19348, obligor.

Recitals

1. The guarantor has full authority and capacity to enter into this guarantee pursuant to its bylaws, articles of incorporation, and the laws of Pennsylvania, its State of incorporation.

Guarantor has approval from its Board of Directors to enter into this guarantee.

2. This guarantee is being issued so that ExGen will be in compliance with regulations issued by the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended and the Energy Reorganization Act of 1974.

The NRC has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Part 50, which require that a holder of, or an applicant for, a license issued pursuant to 10 CFR Part 50 provide assurance that funds will be available when needed for required decommissioning activities.

3. The guarantor issued a Guarantee dated February 22, 2010, in the amount of $14,200,000 (herein referred to as the Prior Guarantee) to provide financial assurance for a portion of the costs of decommissioning activities for Braidwood Station, Unit 1 as required by 10 CFR Part 50. This guarantee is issued as an amendment and restatement of, and in substitution for, the Prior Guarantee in order to increase the aggregate amount of the financial assurance the guarantor has committed to provide for a portion of the costs of decommissioning activities for Braidwood Station, Unit 1 as required by 10 CFR Part 50. The aggregate decommissioning costs for which this guarantee is issued are: $54,800,000 until the effective

date of cancellation of the Prior Guarantee and $69,000,000 upon and after the effective date of cancellation of the Prior Guarantee.

4. The guarantor meets or exceeds the financial test criteria as stated in NRC 10 CFR 30 Appendix A Section II, and will comply with the notification requirements as specified in 10 CFR Part 50 and Appendix A to Part 30.
5. The guarantor is the sole member of Exelon Ventures Company, LLC, which is the sole member of Exelon Generation Company, LLC, the holder of NRC License No. NPF-72 for Braidwood Station, Unit 2, 35100 South Route 53, Braceville, IL 60407-9619.
6. Decommissioning activities as used below refers to the activities required by 10 CFR Part 50 for decommissioning of the facility(ies) identified above.
7. For value received, and pursuant to the authority delegated to the officers of guarantor by its Board of Directors, the guarantor guarantees to the NRC that if ExGen fails to perform the required decommissioning activities; as required by License No. NPF-72, due to lack of funds, the guarantor shall either, as the guarantor shall determine:
a. carry out the required activities, or
b. provide all funds necessary, up to the amount of this guarantee specified in Section 3, to carry out the required activities, or
c. set up a trust fund in favor of ExGen in the amount of these current cost estimates or guarantee amount for these activities.
8. The guarantor shall assure that its independent accountant submit revised financial statements, financial test data, and will perform the review specified in NRC 10 CFR 30 Appendix A Section II, B and C, and notify the NRC as required by these sections.
9. The guarantor and ExGen agree that if the guarantor fails to meet the financial test criteria as stated in NRC 10 CFR 30 Appendix A Section II at any time after this guarantee is established, the guarantor and licensee shall send, within 90 days after the end of the fiscal year in which the guarantor fails to meet the financial test criteria, by certified mail, notice to the NRC. If ExGen fails to provide alternative financial assurance as specified in 10 CFR Part 50, as applicable, and obtain written approval of such assurance from the NRC within 180 days after the end of such fiscal year, the guarantor shall provide such alternative financial assurance in the name of ExGen or make full payment under this guarantee to a standby trust established by ExGen.
10. Independent of any notification under paragraph 9 above, if the NRC determines for any reason that the guarantor no longer meets the financial test criteria or that it is disallowed from continuing as guarantor for the facility under License No. NPF-72, the guarantor agrees that within 90 days after being notified by the NRC of such determination, an alternative financial assurance mechanism as specified in 10 CFR Part 50 as applicable, shall be established by the guarantor in the name of ExGen unless ExGen has done so.
11. The guarantor as well as its successors and assigns agree to remain bound jointly and severally under this guarantee notwithstanding any or all of the following: amendment or modification of license or NRC-approved decommissioning funding plan for that facility, the extension or reduction of the time of performance of required activities, or any other modification or alteration of an obligation of the licensee pursuant to 10 CFR Part 50.
12. The guarantor agrees that it will be liable for all litigation costs incurred by ExGen or the NRC in any successful effort to enforce this guarantee against the guarantor.
13. The guarantor agrees to remain bound under this guarantee for as long as ExGen must comply with the applicable financial assurance requirements of 10 CFR Part 50, for the previously listed facility(ies) except that the guarantor may cancel this guarantee by sending certified mail to the NRC and to ExGen, such cancellation to become effective no earlier than 120 days after receipt of such notice by both the NRC and ExGen as evidenced by the return

receipts. If the licensee fails to provide alternative financial assurance as specified in 10 CFR Part 50, as applicable, and obtain written approval of such assurance within 120 days after the sending of the above notice by the guarantor, the guarantor shall provide such alternative financial assurance.

14. The guarantor expressly waives notice of acceptance of this guarantee by the NRC or by ExGen. The guarantor also expressly waives notice of amendments or modification of the decommissioning requirements and of amendments or modifications of the license.
15. If the guarantor files annual financial reports with the U.S. Securities and Exchange Commission, then it shall promptly submit them to the NRC during each year in which this guarantee is in effect.

I herby certify that this guarantee is true and correct to the best of my knowledge.

Effective date:

July 28, 2010 Exelon Corporation Signature of witness or notary:

Exelon

ýCharles Pardee Senior Vice President and Chief Operating Officer Signature of witness or notary:

PARENT GUARANTEE NRC DECOMMISSIONING FUNDING ASSURANCE Guarantee made July 28, 2010 by Exelon Corporation, a corporation organized under the laws of the Commonwealth of Pennsylvania, herein referred to as "guarantor," to the U.S. Nuclear Regulatory Commission (NRC), on behalf of our subsidiary Exelon Generation Company, LLC (ExGen) of 300 Exelon Way, Kennett Square, PA 19348, obligor.

Recitals

1. The guarantor has full authority and capacity to enter into this guarantee pursuant to its bylaws, articles of incorporation, and the laws of Pennsylvania, its State of incorporation.

Guarantor has approval from its Board of Directors to enter into this guarantee.

2. This guarantee is being issued so that ExGen will be in compliance with regulations issued by the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended and the Energy Reorganization Act of 1974.

The NRC has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Part 50, which require that a holder of, or an applicant for, a license issued pursuant to 10 CFR Part 50 provide assurance that funds will be available when needed for required decommissioning activities.

3. The guarantor issued a Guarantee dated February 22, 2010, in the amount of $10,500,000 (herein referred to as the Prior Guarantee) to provide financial assurance for a portion of the costs of decommissioning activities for Braidwood Station, Unit 2 as required by 10 CFR Part 50. This guarantee is issued as an amendment and restatement of, and in substitution for, the Prior Guarantee in order to increase the aggregate amount of the financial assurance the guarantor has committed to provide for a portion of the costs of decommissioning activities for Braidwood Station. Unit 2 as required by 10 CFR Part 50. The aggregate decommissioning costs for which this guarantee is issued are: $52,500,000 until the effective

date of cancellation of the Prior Guarantee and $63,000,000 upon and after the effective date of cancellation of the Prior Guarantee.

4. The guarantor meets or exceeds the financial test criteria as stated in NRC 10 CFR 30 Appendix A Section II, and will comply with the notification requirements as specified in 10 CFR Part 50 and Appendix A to Part 30.
5. The guarantor is the sole member of Exelon Ventures Company, LLC, which is the sole member of Exelon Generation Company, LLC, the holder of NRC License No. NPF-77 for Braidwood Station, Unit 2, 35100 South Route 53, Braceville, IL 60407-9619.
6. Decommissioning activities as used below refers to the activities required by 10 CFR Part 50 for decommissioning of the facility(ies) identified above.
7. For value received, and pursuant to the authority delegated to the officers of guarantor by its Board of Directors, the guarantor guarantees to the NRC that if ExGen fails to perform the required decommissioning activities, as required by License No. NPF-77, due to lack of funds, the guarantor shall either, as the guarantor shall determine:
a. carry out the required activities, or
b. provide all funds necessary, up to the amount of this guarantee specified in Section 3, to carry out the required activities, or
c. set up a trust fund in favor of ExGen in the amount of these current cost estimates or guarantee amount for these activities.
8. The guarantor shall assure that its independent accountant submit revised financial statements, financial test data, and will perform the review specified in NRC 10 CFR 30 Appendix A Section II, B and C, and notify the NRC as required by these sections.
9. The guarantor and ExGen agree that if the guarantor fails to meet the financial test criteria as stated in NRC 10 CFR 30 Appendix A Section II at any time after this guarantee is established, the guarantor and licensee shall send, within 90 days after the end of the fiscal year in which the guarantor fails to meet the financial test criteria, by certified mail, notice to the NRC. If ExGen fails to provide alternative financial assurance as specified in 10 CFR Part 50, as applicable, and obtain written approval of such assurance from the NRC within 180 days after the end of such fiscal year, the guarantor shall provide such alternative financial assurance in the name of ExGen or make full payment under this guarantee to a standby trust established by ExGen.
10. Independent of any notification under paragraph 9 above, if the NRC determines for any reason that the guarantor no longer meets the financial test criteria or that it is disallowed from continuing as guarantor for the facility under License No. NPF-77, the guarantor agrees that within 90 days after being notified by the NRC of such determination, an alternative financial assurance mechanism as specified in 10 CFR Part 50 as applicable, shall be established by the guarantor in the name of ExGen unless ExGen has done so.
11. The guarantor as well as its successors and assigns agree to remain bound jointly and severally under this guarantee notwithstanding any or all of the following: amendment or modification of license or NRC-approved decommissioning funding plan for that facility, the extension or reduction of the time of performance of required activities, or any other modification or alteration of an obligation of the licensee pursuant to 10 CFR Part 50.
12. The guarantor agrees that it will be liable for all litigation costs incurred by ExGen or the NRC in any successful effort to enforce this guarantee against the guarantor.
13. The guarantor agrees to remain bound under this guarantee for as long as ExGen must comply with the applicable financial assurance requirements of 10 CFR Part 50, for the previously listed facility(ies) except that the guarantor may cancel this guarantee by sending certified mail to the NRC and to ExGen, such cancellation to become effective no earlier than 120 days after receipt of such notice by both the NRC and ExGen as evidenced by the return

receipts. If the licensee fails to provide alternative financial assurance as specified in 10 CFR Part 50, as applicable, and obtain written approval of such assurance within 120 days after the sending of the above notice by the guarantor, the guarantor shall provide such alternative financial assurance.

14. The guarantor expressly waives notice of acceptance of this guarantee by the NRC or by ExGen. The guarantor also expressly waives notice of amendments or modification of the decommissioning requirements and of amendments or modifications of the license.
15. If the guarantor files annual financial reports with the U.S. Securities and Exchange Commission, then it shall promptly submit them to the NRC during each year in which this guarantee is in effect.

I herby certify that this guarantee is true and correct to the best of my knowledge.

Effective date:

July 28, 2010 Exelon Corporation Signature of witness or notary: *-

Exelon Genl*,tiQn Company, LLC Mat I

A Cp*

2 L

  • 2harles Pardee Senior Vice President and Chief Operatnc Officer Signature of witness or notary:

PARENT GUARANTEE NRC DECOMMISSIONING FUNDING ASSURANCE Guarantee made July 28, 2010 by Exelon Corporation, a corporation organized under the laws of the Commonwealth of Pennsylvania, herein referred to as "guarantor," to the U.S. Nuclear Regulatory Commission (NRC), on behalf of our subsidiary Exelon Generation Company, LLC (ExGen) of 300 Exelon Way, Kennett Square, PA 19348, obligor.

Recitals

1. The guarantor has full authority and capacity to enter into this guarantee pursuant to its bylaws, articles of incorporation, and the laws of Pennsylvania, its State of incorporation.

Guarantor has approval from its Board of Directors to enter into this guarantee.

2. This guarantee is being issued so that ExGen will be in compliance with regulations issued by the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended and the Energy Reorganization Act of 1974.

The NRC has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Part 50, which require that a holder of, or an applicant for, a license issued pursuant to 10 CFR Part 50 provide assurance that funds will be available when needed for required decommissioning activities.

3. The guarantor issued a Guarantee dated February 22, 2010, in the amount of $19,500,000 (herein referred to as the Prior Guarantee) to provide financial assurance for a portion of the costs of decommissioning activities for Byron Station, Unit 2 as required by 10 CFR Part 50.

This guarantee is issued as an amendment and restatement of, and in substitution for, the Prior Guarantee in order to increase the aggregate amount of the financial assurance the guarantor has committed to provide for a portion of the costs of decommissioning activities for Byron Station, Unit 2 as required by 10 CFR Part 50. The aggregate decommissioning costs for which this guarantee is issued are: $67,500,000 until the effective date of

cancellation of the Prior Guarantee and $87,000,000 upon and after the effective date of cancellation of the Prior Guarantee.

4. The guarantor meets or exceeds the financial test criteria as stated in NRC 10 CFR 30 Appendix A Section II, and will comply with the notification requirements as specified in 10 CFR Part 50 and Appendix A to Part 30.
5. The guarantor is the sole member of Exelon Ventures Company, LLC, which is the sole member of Exelon Generation Company, LLC, the holder of NRC License No. NPF-66 for Byron Station, Unit 2, 4450 North German Church Road, Byron, IL 61010-9794.
6. Decommissioning activities as used below refers to the activities required by 10 CFR Part 50 for decommissioning of the facility(ies) identified above.
7. For value received, and pursuant to the authority delegated to the officers of guarantor by its Board of Directors, the guarantor guarantees to the NRC that if ExGen fails to perform the required decommissioning activities, as required by License No. NPF-66, due to lack of funds, the guarantor shall either, as the guarantor shall determine:
a. carry out the required activities, or
b. provide all funds necessary, up to the amount of this guarantee specified in Section 3, to carry out the required activities, or
c. set up a trust fund in favor of ExGen in the amount of these current cost estimates or guarantee amount for these activities.
8. The guarantor shall assure that its independent accountant submit revised financial statements, financial test data, and will perform the review specified in NRC 10 CFR 30 Appendix A Section II, B and C, and notify the NRC as required by these sections.
9. The guarantor and ExGen agree that if the guarantor fails to meet the financial test criteria as stated in NRC 10 CFR 30 Appendix A Section II at any time after this guarantee is established, the guarantor and licensee shall send, within 90 days after the end of the fiscal year in which the guarantor fails to meet the financial test criteria, by certified mail, notice to the NRC. If ExGen fails to provide alternative financial assurance as specified in 10 CFR Part 50, as applicable, and obtain written approval of such assurance from the NRC within 180 days after the end of such fiscal year, the guarantor shall provide such alternative financial assurance in the name of ExGen or make full payment under this guarantee to a standby trust established by ExGen.

10.-Independent of any notification under paragraph 9 above, if the NRC determines for any reason that the guarantor no longer meets the financial test criteria or that it is disallowed from continuing as guarantor for the facility under License No. NPF-66, the guarantor agrees that within 90 days after being notified by the NRC of such determination, an alternative financial assurance mechanism as specified in 10 CFR Part 50 as applicable, shall be established by the guarantor in the name of ExGen unless ExGen has done so.

11. The guarantor as well as its successors and assigns agree to remain bound jointly and severally under this guarantee notwithstanding any or all of the following: amendment or modification of license or NRC-approved decommissioning funding plan for that facility, the extension or reduction of the time of performance of required activities, or any other modification or alteration of an obligation of the licensee pursuant to 10 CFR Part 50.
12. The guarantor agrees that it will be liable for all litigation costs incurred by ExGen or the NRC in any successful effort to enforce this guarantee against the guarantor.
13. The guarantor agrees to remain bound under this guarantee for as long as ExGen must comply with the applicable financial assurance requirements of 10 CFR Part 50, for the previously listed facility(ies) except that the guarantor may cancel this guarantee by sending certified mail to the NRC and to ExGen, such cancellation to become effective no earlier than 120 days after receipt of such notice by both the NRC and ExGen as evidenced by the return

receipts. If the licensee fails to provide alternative financial assurance as specified in 10 CFR Part 50, as applicable, and obtain written approval of such assurance within 120 days after the sending of the above notice by the guarantor, the guarantor shall provide such alternative financial assurance.

14. The guarantor expressly waives notice of acceptance of this guarantee by the NRC or by ExGen. The guarantor also expressly waives notice of amendments or modification of the decommissioning requirements and of amendments or modifications of the license.
15. If the guarantor files annual financial reports with the U.S. Securities and Exchange Commission, then it shall promptly submit them to the NRC during each year in which this guarantee is in effect.

I herby certify that this guarantee is true and correct to the best of my knowledge.

Effective date:

July 28, 2010 Exelon Corporation Signature of witness or notary:

Exelon Ge ratio ompany, LLC

ýe'harles Pardee Senior Vice President and Chief Opera Ofie Signature of witness or notary:

ATTACHMENT 2 10 CFR 30, APPENDIX A FINANCIAL TESTS FOR PARENT COMPANY GUARANTEES

Exelon Corporation Braidwood Unit 1 NRC Regulation Appendix A to Part 30 Financial Test Paragraph A.2 (i) Current rating for parent company's most recent bond issuance of AAA, AA, A, or BBB as issued by Standard and Poor's or AAA, AA, A, or BAA as issued by Moody's Exelon's Current Senior Unsecured Debt Ratings:

Current S&P BBB-Moody's BAA1 Meet criteria (Y/N)?

YES (ii) Tangible net worth each at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof (Tangible net worth shall be calculated to exclude the net book value of the nuclear unit(s))

Total Shareholders' Equity Goodwill Intangible Assets Net Book Value of Braidwood Station, Unit 1 Tangible Net Worth The amount of decommissioning funds being assured by parent guarantee for the total of all reactor units or parts thereof Meet criteria (Y/N)?

(iii) Tangible net worth of at least $10 million Total Shareholders' Equity Goodwill Intangible Assets Net Book Value of Braidwood Station, Unit 1 Tangible Net Worth December 31, 2009 12,640 (2,625)

(76)

(2868) 9,651 69.0 6

414 YES December 31, 2009 12,640 (2,625)

(76)

(288) 9,651 YES Meet criteria (Y/N)?

(iv) Assets located in the United States amounting to at least 90 percent of the total assets or at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof.

Assets located in the Unites States The amount of decommissioning funds being assured by parent guarantee for the total of all reactor units or parts thereof December 31, 2009 49,180 69.0 6

414 YES Meet criteria (Y/N)?

Exelon Corporation Braidwood Unit 2 NRC Regulation Appendix A to Part 30 Financial Test Paragraph A.2 (i) Current rating for parent company's most recent bond issuance of AAA, AA, A, or BBB as issued by Standard and Poor's or AAA, AA, A, or BAA as issued by Moody's Exelon's Current Senior Unsecured Debt Ratings:

Current S&P BBB-Moody's BAA1 Meet criteria (Y/N)?

YES (ii) Tangible net worth each at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof (Tangible net worth shall be calculated to exclude the net book value of the nuclear unit(s))

Total Shareholders' Equity Goodwill Intangible Assets Net Book Value of Braidwood Station, Unit 2 Tangible Net Worth The amount of decommissioning funds being assured by parent guarantee for the total of all reactor units or parts thereof Meet criteria (Y/N)?

(iii) Tangible net worth of at least $10 million Total Shareholders' Equity Goodwill Intangible Assets Net Book Value of Braidwood Station, Unit 2 Tangible Net Worth December 31, 2009 12,640 (2,625)

(76)

(575) 9,364 63.0 6

378 YES December 31, 2009 12,640 (2,625)

(76)

(575) 9,364 YES Meet criteria (Y/N)?

(iv) Assets located in the United States amounting to at least 90 percent of the total assets or at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof.

Assets located in the Unites States The amount of decommissioning funds being assured by parent guarantee for the total of all reactor units or parts thereof December 31, 2009 49,180 63.0 6

378 YES Meet criteria (Y/N)?

Exelon Corporation Byron Unit 2 NRC Regulation Appendix A to Part 30 Financial Test Paragraph A.2 (i) Current rating for parent company's most recent bond issuance of AAA, AA, A, or BBB as issued by Standard and Poor's or AAA, AA, A, or BAA as issued by Moody's Exelon's Current Senior Unsecured Debt Ratings:

Current S&P BBB-Moody's BAA1 Meet criteria (Y/N)?

YES (ii) Tangible net worth each at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification.is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof (Tangible net worth shall be calculated to exclude the net book value of the nuclear unit(s))

Total Shareholders' Equity Goodwill Intangible Assets Net Book Value of Byron Station, Unit 2 Tangible Net Worth The amount of decommissioning funds being assured by parent guarantee for the total of all reactor units or parts thereof Meet criteria (Y/N)?

(iii) Tangible net worth of at least $10 million Total Shareholders' Equity Goodwill Intangible Assets Net Book Value of Byron Station, Unit 2 Tangible Net Worth December 31, 2009 12,640 (2,625)

(76)

(497) 9,442 87.0 6

522 YES December 31, 2009 12,640 (2,625)

(76)

(497) 9,442 YES Meet criteria (Y/N)?

(iv) Assets located in the United States amounting to at least 90 percent of the total assets or at least six times the current decommissioning cost estimates for the total of all facilities or parts thereof (or prescribed amount if a certification is used), or, for a power reactor licensee, at least six times the amount of decommissioning funds being assured by a parent company guarantee for the total of all reactor units or parts thereof.

December 31, 2009 49,180 Assets located in the Unites States The amount of decommissioning funds being assured by parent guarantee for the total of all reactor units or parts thereof 87.0 6

522 Meet criteria (Y/N)?

YES

ATTACHMENT 3 10 CFR 30, APPENDIX A REQUIRED INDEPENDENT AUDITORS REPORT FOR PARENT COMPANY GUARANTEES

P!RcWATERHOUSECFOPER S Prlcewamerhuse*Coopenrs L One Nojii Wacker

.Chicago, 11 160606

.Tlephone (312) 298 2000 Facsirile (31') 298 'M301 Iww,.pwc.com Report of Independent Accountants To the Board of Directors of Exelon Corporation:

We have performed the procedures enumerated below, which-were agreed to by Exelon Corporation (Exelo*), solely to assist you with the Exelon Corporation. Financial Tests (Financial Tests) prepared for the BYron 2, Braidwood 1, and Braidwood 2 nuclear generating units in connection with the U.SS.

Nuclear Regulatory Commission Parent Guarantee under Title 10, CFR, Part.30, Appendix:A (Il) (B).

Exelon is responsible for the Financial Tests. This agreedmupon procedures engagement was conducted in acc0ordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is:solely the responsibility of Exelon.

CoInsequently, we make no representation regarding the sufficiency of the procedures described, below either rfor the purpose for which this report has been requested or for anyother purpose.

Our procedures included agreeing amounts set forth in the. accompanying attachment.to the audited financial statements of Exelon as of December 31, 2009, and reperforming calculations involving these amounts as.presentedin the attached schedule for each Financial Test, as well as inquiry of management:.

The procedures performed for Braidwood Unit 1 and associated findings are: as follows:

a). Weagreed the-bond ratings in itern (1) of the accompanying schedules titled "Exelon Corporation, Braidwood Unit 1, NRC Regulatiori.Appendix A to Part 30, Financial. Te" provided'to us by management. to the. most recent credit rating for senior unsecured debt issued by the respective: bond agencies referred to in item (1) according to their respective website as of July 22, 2010, without exception..

b) We traced and agreed amnounts.identified as.Total Shareholders' Equity, Goodwili Intangible Assets, and Assets.located in the Unites.States (Total Assets):on the schedule to the' December 31, 2009 audited financial statements.of Exelon Corporation, without exception..

c)

We proved themathematical accuracy of the amount identified as Tangible Net Worth as being equal to Total Shareholders'EqUity less Goodwill, less Intangible Assets, less the amount.

identified as Net Book, Value of Braidwood Station, Unit 1, without exception.

d) We.recalculated the ratio'of Tangible Net Worth to the amount of decommissioning funds being assured bythe Exelon parentguarantee for Braidwood Station,.Unit,.1, and verified that Tangible Net.Worth is.at least six timesthe-amount, ofdecommissioning funds being assured by the guarantee.

e) We obtained representation from management that, 100% of Exelon's Total Assets are located in the United States.

LP

PRICEWATERHOUSECO@PERS U f)

We recalculated the ratio of Total Assets to the amount of decommissioning funds being assured by the Exelon parent guarantee for Braidwood Station, Unit i, and verified that Total Assets are at least six times the amount of decommissioning funds being assuredby the' guarantee.

The procedures performedJfor Braidwood Unit.2 and associated findings are as follows:

a) We agreed the bond ratings in item (1) of the~accompanying schedules titled "Exelon-Corporation,.Braidwood Uhit 2, NRC Regulation AppendixA to Part 30, Financial Test" Provided to us by management to the most recent. credit rating for senior unsecured debt issued by the respective bond agencies referred to in item (1) according to their respective Website'as of July 22,: 2010, without exception.:

b) We traced andagreed amounts identified as Total Shareholdelrs' Equity, Goodwill, Intangible Assets, and. Assets located in the Unites' States (Total Assets) on the schedule to~the December 31, 2009 audited.financial statements of Exelon Corporation, without exception.

c). We proved the mathematical accuracy of the amount identified as Tangible Net Worth as being equal to Total Shareholders' Equity less Goodwill, less Intangible Assets, less theamount identified. as Net Book Value of Braidwood Station, Unit 2, without exception, d) We recalculated the ratio of Tangible.Net Worth tothe amount of decommissioning funds being assured by the Exelon parent guarantee forBraidwood Station, Unit 2, and verified-that Tangible Net-Worth is at least six times the amount of decommissioning fUnds being assured by theguarantee.

e) We obtained representation from management that 1 00%,of Exelon's Total Assets are located in the United States.

f) We recalculated the-ratio of Total Assets to the amount of decommissioning funds being assured by the Exelon parent guarantee for-Braidwood Station, Unit 2, and verified that Total Assets are at least six times the amount of decommissioning funds being assured by the guarantee.

The procedures performed for.Byron Unit 2 and associated findings are as follows:

a) We agreedthebond ratings in item (1) of the accompanying:schedules titled. "Exelon Corporation, Byron Unit 1., NRC Regulation Appendix A to Part 30, Financial Test" provided to

.us by management to the most recent, credit rating for senior unsecured debt issued by the respective bond agencies referred to in item (1) according to their respective website as of July 22, 2010, without exception.

b) We traced and agreed amounts identified as Total Shareholders' Equity, Goodwill, Intangible Assets, and. Assets located in the Unites States (Total Assets) on the schedule to the December 31, 2009 audited financial statements of Exelon Corporation, without exception.

c)

We proved.the mathematical accuracy of the amount identified as Tangible Net Worth as being equal to Total Shareholders' Equity less Goodwill, less Intangible Assets, less the amount identified as Net Book Value of Byron Station, Unit 2, without exception.

(2)

PRJCEVATERHOUSECGPERS U ci) We recalculated the ratio of Tangible Net Worth to the amount of:decommissioning funds being assured by the Exelon parent guarantee for Byron Station, Unit 1, and. verified that Tangible Net Worth is at least six times the amount of.decommissioning funds being assured by the guarantee.

e) We obtained representation from management that !00%.of Exelon's Total Assets are located in the United States.

f) We recalculated.the ratio of Total Assets to the:amount of decommissioning funds.being assured by the Exelon parentguarantae for Byron Station, Unit 2,.and verified thatTotal Assets are at least six times the amount of decommissioning funds being assured by the guarantee.

We were not engaged to and did. not conduct an examination or an audit, the objective of which would be the expressionrof: an opinion on the Financial Testst Accordingly, we do not express suchan opinion. Had we performed additional procedures,, other matters might have come to out attention, that would have been reported to you..

This report extends only to the accounts and items enumerated above and do not extend to any financial statements of Exelon taken -as a whole. This report is, intended solely for the information and use of Exelon, and is not intended.to be and should not be used, Iqy anyone other than Exelon to:

support the accompanying. Financial Tests.

July 29, 2010 (3)

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