Summary
Exelon Corporation announced a significant settlement with the U.S. Department of Justice and the U.S. Department of Energy regarding the storage of spent nuclear fuel. This agreement provides for reimbursement of costs incurred by Exelon for storing spent fuel at its nuclear stations, pending the DOE fulfilling its contractual obligation to accept this fuel. Under the settlement, Exelon will receive an immediate gross reimbursement of $80 million, with ongoing annual reimbursements for future storage costs. The total potential gross reimbursement could reach approximately $300 million, contingent on the opening of a national repository by 2010 and the DOE's acceptance of spent fuel. This settlement is expected to positively impact Exelon's 2004 net income by approximately $0.05 per diluted share, with a smaller ongoing annual benefit of $0.01 to $0.02 per diluted share thereafter. Investors should note that reimbursements are subject to actual costs incurred and DOE delays.
Key Highlights
- 1Exelon reached a settlement with the U.S. Department of Justice and the U.S. Department of Energy concerning spent nuclear fuel storage costs.
- 2The settlement provides for immediate gross reimbursement of $80 million for past storage costs incurred.
- 3Future annual reimbursements for ongoing storage costs are also part of the agreement.
- 4Total potential gross reimbursement could reach approximately $300 million if a national repository opens by 2010 and DOE accepts spent fuel.
- 5The settlement is projected to increase Exelon's 2004 net income by approximately $0.05 per diluted share.
- 6Future annual net income is expected to increase by $0.01 to $0.02 per diluted share.
- 7Reimbursements are contingent on DOE delays in accepting spent nuclear fuel and costs being incurred.