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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
May 7, 2003
(Date of earliest
event reported)
Exhibit 99
[LOGO]
Press Release
From: Exelon Nuclear
Mid-Atlantic Regional Operating Group
200 Exelon Way
Kennett Square, PA 19348
Contact: David Simon (610) 765-5530 FOR IMMEDIATE RELEASE
Fran Reining (717) 456-4759 May 7, 2003
NRC Approves 20-Year License Extension for Peach Bottom
KENNETT SQUARE, Pa. - The U.S. Nuclear Regulatory Commission announced today
that it has approved a 20-year extension of the operating licenses for Exelon
Nuclear's Peach Bottom Atomic Power Station in York County, Pa.
Exelon Nuclear is the largest operator of commercial nuclear power stations in
the nation and third largest worldwide. Peach Bottom's two generating units are
the first of Exelon Nuclear's 17 reactors to receive extended licenses. The NRC
has renewed the licenses of 14 other U.S. nuclear reactors and is reviewing
applications for 14 more.
The original 40-year license for Peach Bottom Unit 2 was to expire in 2013. It
has been extended to 2033. The Unit 3 license was to expire in 2014 and is
extended to 2034. Peach Bottom Unit 1, an early gas-cooled prototype reactor, is
no longer in operation.
"This decision means Peach Bottom will continue to deliver safe, carbon-free
electricity to more than two million households on the Atlantic seaboard for
another two decades," said Exelon Nuclear President and Chief Nuclear Officer
Jack Skolds. "And we are doing it without turning a spade of earth. This
contributes mightily to America's energy independence and to the mid-Atlantic
region's inventory of safe, inexpensive electricity."
Peach Bottom's local economic impact is significant and will continue as well.
The station employs about 700 people, with an annual payroll of $57 million. It
pays about $1 million annually in property taxes and spends $10 million a year
in purchases of local goods and services.
"Peach Bottom's history of safe operation is the primary reason we can continue
to produce power over the next 20 years," said station Vice President Rusty
West. "Safe operation is the lynchpin behind license extension, which is a
long-term investment in our employees, in the communities around Peach Bottom
and in our company. We're very happy that we will continue to be an active part
of our communities for many years to come."
The station also generates low-cost electricity. In 2002, Peach Bottom produced
power for about three-fourths of the average cost of coal-generated electricity
and one-fourth the average cost of electricity generated from natural gas.
Peach Bottom's license renewal program began in 1999 and required four years of
extensive engineering, safety and environmental analysis, NRC review, and public
input. Engineers reviewed more than 100 plant systems and about 40,000
components to ensure the two units are capable of running for an additional 20
years. The project cost about $14 million to complete.
"The safety review determined that Peach Bottom has solid programs in place to
provide for the continued safe and reliable operation and maintenance of the
plant," West said. "The environmental review concluded that any environmental
impacts from extending the license would be small."
As part of the review, the NRC held public meetings and verified the analysis
with county, state and federal agencies. Experts from national nuclear
laboratories, environmental agencies, historical preservation societies and
others were consulted.
Peach Bottom Atomic Power Station is in Peach Bottom Township of York County and
has two General Electric boiling water reactors that produce a total of 2,274
net megawatts. Unit 2 (1,148 net megawatts) began commercial operation on July
5, 1974. Unit 3 (1,126 net megawatts) began commercial operation on Dec. 23,
1974. A megawatt is a million watts.
###
Exelon Corporation is one of the nation's largest electric utilities with
approximately five million customers and more than $15 billion in annual
revenues. The company has one of the industry's largest portfolios of
electricity generation capacity, with a nationwide reach and strong positions in
the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately
five million customers in Illinois and Pennsylvania and gas to 425,000 customers
in the Philadelphia area. The company also has holdings in such competitive
businesses as energy, infrastructure services and energy services. Exelon is
headquartered in Chicago and trades on the NYSE under the ticker EXC.