Development Projects

[Table of Contents](#i0fa971ac9e834218957059819155291f_10)Combined Notes to Consolidated Financial Statements(Dollars in millions, except per share data unless otherwise noted)  
Note 10 — Asset Retirement ObligationsAs of December 31, 2021, decommissioning-related activities for all of the former ComEd units, except for Zion (see Zion Station Decommissioning below), are currently offset in Exelon’s Consolidated Statements of Operations and Comprehensive Income.The decommissioning-related activities related to the Non-Regulatory Agreement Units are reflected in Exelon’s Consolidated Statements of Operations and Comprehensive Income. See Note 3 — Regulatory Matters for additional information regarding regulatory liabilities at ComEd and PECO.Zion Station Decommissioning In 2010, Generation completed an ASA under which ZionSolutions assumed responsibility for decommissioning Zion Station and Generation transferred to ZionSolutions substantially all the Zion Station’s assets, including the related NDT funds. Following ZionSolutions' completion of its contractual obligations and transfer of the NRC license back to Generation, Generation will store the SNF at Zion Station until it is transferred to the DOE for ultimate disposal, and complete all remaining decommissioning activities associated with the SNF dry storage facility. Generation had retained its obligation for the SNF upon transfer of the NRC license to Generation as well as certain NDT assets to fund its obligation to maintain the SNF at Zion Station until transfer to the DOE and to complete all remaining decommissioning activities for the SNF storage facility. Any shortage of funds necessary to maintain the SNF and decommission the SNF storage facility is ultimately required to be funded by Generation. As of December 31, 2021, the ARO associated with Zion's SNF storage facility is $140 million and the NDT funds available to fund this obligation are $65 million. Non-Nuclear Asset Retirement Obligations (All Registrants)The Utility Registrants have AROs primarily associated with the abatement and disposal of equipment and buildings contaminated with asbestos and PCBs. In addition, Exelon has AROs for Generation's plant closure costs associated with its fossil and renewable generating facilities, including asbestos abatement, removal of certain storage tanks, restoring leased land to the condition it was in prior to construction of renewable generating stations, and other decommissioning-related activities. See Note 1 — Significant Accounting Policies for additional information on the Registrants’ accounting policy for AROs. The following table provides a rollforward of the non-nuclear AROs reflected in the Registrants’ Consolidated Balance Sheets from December 31, 2019 to December 31, 2021:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Exelon |  |  |  | ComEd |  | PECO |  | BGE |  | PHI |  | Pepco |  | DPL |  | ACE |
| Non-nuclear AROs as of December 31, 2019 | $ | 460  |  |  |  |  | $ | 129  |  |  | $ | 28  |  |  | $ | 23  |  |  | $ | 57  |  |  | $ | 41  |  |  | $ | 12  |  |  | $ | 4  |  |
| Net increase (decrease) due to changes in, and timing of, estimated future cash flows | 7  |  |  |  |  | —  |  |  | 2  |  |  | 1  |  |  | 1  |  |  | (3) |  |  | 2  |  |  | 2  |  |
| Development projects | 1  |  |  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Accretion expense(a) | 16  |  |  |  |  | 1  |  |  | 1  |  |  | 1  |  |  | 1  |  |  | 1  |  |  | —  |  |  | —  |  |
| Asset divestitures | (4) |  |  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Payments | (9) |  |  |  |  | (1) |  |  | (2) |  |  | (2) |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| AROs reclassified to liabilities held for sale | (10) |  |  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Non-nuclear AROs as of December 31, 2020 | 461  |  |  |  |  | 129  |  |  | 29  |  |  | 23  |  |  | 59  |  |  | 39  |  |  | 14  |  |  | 6  |  |
| Net increase due to changes in, and timing of, estimated future cash flows | 31  |  |  |  |  | 15  |  |  | —  |  |  | 2  |  |  | 10  |  |  | 5  |  |  | 2  |  |  | 3  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Accretion expense(a) | 18  |  |  |  |  | 4  |  |  | 1  |  |  | 1  |  |  | 1  |  |  | 1  |  |  | —  |  |  | —  |  |
| Asset divestitures | (19) |  |  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Payments | (11) |  |  |  |  | (2) |  |  | (1) |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| AROs previously held for sale | 10  |  |  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Non-nuclear AROs as of December 31, 2021 | $ | 490  |  |  |  |  | $ | 146  |  |  | $ | 29  |  |  | $ | 26  |  |  | $ | 70  |  |  | $ | 45  |  |  | $ | 16  |  |  | $ | 9  |  |

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