EXHIBIT 99.3
Exelon Way — 2004 September YTD Savings
| 2004 Pre-tax O&M | ||||||||
| September YTD Savings | ||||||||
| 2003 | 2004 | |||||||
| ($ in millions) | ||||||||
GAAP Operating and Maintenance Expense (O&M) | $ | 3,362 | $ | 2,921 | ||||
Operating Adjustments: | ||||||||
| March 3 ComEd Global Settlement Agreement | (41 | ) | — | |||||
| 2004 Financial Impact of Boston Generating (BG) | — | (57 | ) | |||||
| Investments in Synthetic Fuel Producing Facilities | — | (69 | ) | |||||
| Settlement Associated with the Storage of Spent Nuclear Fuel | — | 42 | ||||||
| Exelon Way Severance and Severance-related Charges | (167 | ) | (53 | ) | ||||
| Impairment of Exelon Enterprises’ InfraSource Investment | (4 | ) | — | |||||
Operating O&M | 3,150 | 2,784 | ||||||
Exelon Way O&M Adjustments: | ||||||||
| Remove Net Enterprises and BG (1) | (740 | ) | (183 | ) | ||||
| Remove Nuclear Decommissioning Accretion Expense and Other SFAS 143 Adjustments (2) | (86 | ) | (73 | ) | ||||
| Remove 2004 Incremental Impact of Sithe | — | (41 | ) | |||||
| Add AmerGen, net of Accretion and Severance (3) | 268 | — | ||||||
| Normalize Incremental Impact of Nuclear Outages | — | (48 | ) | |||||
| Add Payroll Taxes (4) | 78 | 77 | ||||||
Exelon Way O&M | $ | 2,670 | $ | 2,516 | ||||
Year over Year Exelon Way O&M Savings | $ | 154 | ||||||
Program-to-Date O&M Savings | Pre-tax | After-tax (5) | ||||||
| 2003 Ramp-up | $ | 163 | $ | 101 | ||||
| 2004 September YTD | 154 | 95 | ||||||
Total Exelon Way O&M Savings | $ | 317 | $ | 196 | ||||
(1) Excludes corporate costs that will remain within Exelon and is net of Intercompany impact. Enterprises excludes Exelon Energy in 2003; in 2004 Exelon Energy is included in Generation.
(2) Accretion expense and other SFAS 143 adjustments are non-cash expenses related to nuclear decommissioning and are not included in Exelon Way expenditures
(3) Normalize to 100% in 2003; in 2003, AmerGen was included in Equity in Earnings of Unconsolidated Affiliates
(4) Includes AmerGen and excludes Enterprises
(5)Tax rate is 38%
| 2004 CapEx | ||||||||
| September YTD Savings | ||||||||
| 2003 | 2004 | |||||||
GAAP Capital Expenditures (CapEx) (A) | $ | 1,409 | $ | 1,295 | ||||
Adjustments: | ||||||||
| Include AmerGen CapEx | 100 | — | ||||||
| Exclude BG CapEx (incl. 2004 credit) | (5 | ) | 7 | |||||
| Settlement Associated with the Storage of Spent Nuclear Fuel | — | 18 | ||||||
Adjusted CapEx | $ | 1,504 | $ | 1,320 | ||||
Year over Year CapEx Savings | $ | 184 | ||||||
Program-to-Date Exelon Way CapEx Savings: | ||||||||
| 2003 Ramp-up | $ | 67 | ||||||
| 2004 September YTD | 184 | |||||||
Total Exelon Way CapEx Savings | $ | 251 | ||||||
Total YTD Cash Savings thru September 2004 | ||||||||
| After-tax O&M | $ | 95 | ||||||
| CapEx | 184 | |||||||
Total Exelon Way Cash Savings | $ | 279 | ||||||
Total Program-to-Date Cash Savings | ||||||||
| After-tax O&M | $ | 196 | ||||||
| CapEx | 251 | |||||||
Total Exelon Way Cash Savings | $ | 447 | ||||||
(A) Net of proceeds from liquidated damages for 2003
2003 Ramp-Up Exelon Way Savings
| 2003 Pre-tax O&M | ||||||||
| Ramp-up Savings | ||||||||
| 2002 | 2003 | |||||||
| ($ in millions) | ||||||||
GAAP Operating and Maintenance (O&M) | $ | 4,345 | $ | 4,508 | ||||
Operating Adjustments: | ||||||||
| March 2003 ComEd Settlement Agreement | — | (41 | ) | |||||
| Severance | (10 | ) | (256 | ) | ||||
| Enterprises goodwill impairment and impairments due to anticipated sales | — | (53 | ) | |||||
Operating O&M | 4,335 | 4,158 | ||||||
Exelon Way O&M Adjustments: | ||||||||
| Remove Enterprises and Boston Generating (BG) (1) | (1,212 | ) | (903 | ) | ||||
| Add incremental impact of Texas Plants | 10 | — | ||||||
| Remove nuclear decommissioning accretion expense and Other SFAS 143 Adjustments (2) | — | (118 | ) | |||||
| Add 2002 incremental impact of Exelon New England | 50 | — | ||||||
| Normalize incremental impact of nuclear outages | (24 | ) | — | |||||
| Add AmerGen, net of decommissioning accretion (3) | 412 | 393 | ||||||
| Add Payroll Taxes (4) | 95 | 91 | ||||||
Exelon Way O&M | $ | 3,666 | $ | 3,621 | ||||
Exelon Way O&M Savings: | ||||||||
| Difference between 2002 and 2003 Exelon Way O&M | $ | 45 | ||||||
| 2003 inflationary impact (5) | 107 | |||||||
| Pension and post-retirement increase (6) | 103 | |||||||
Calculated 2003 Savings | $ | 255 | ||||||
| Exclude savings from prior cost management initiatives (e.g., CMI) | (92 | ) | ||||||
Exelon Way O&M Savings — Pre-tax | $ | 163 | ||||||
After-tax O&M Savings (7) | $ | 101 | ||||||
(1) Excludes corporate costs that will remain within Exelon and is net of intercompany impact. Enterprises excludes Exelon Energy
(2) Accretion expense and other SFAS 143 adjustments are non-cash expenses related to nuclear decommissioning and are not included in Exelon Way expenditures
(3) Normalized to 100% of AmerGen in 2002 and 2003; in 2002 and 2003, AmerGen was included in Equity in Earnings of Unconsolidated Affiliates
(4) Includes AmerGen and excludes Enterprises
(5) 2002 base excluding pension and post-retirement expenses of $103m, inflated at 3%
(6) Pension and post-retirement expense increase
(7) Tax rate is 38%
| 2003 Cap Ex | ||||||||
| Ramp-up Savings | ||||||||
| 2002 | 2003 | |||||||
GAAP Capital Expenditures (CapEx) (A) | $ | 2,150 | $ | 1,862 | ||||
Adjustments: | ||||||||
| Exclude net impact of Boston Generating (A) | — | 20 | ||||||
| Include AmerGen | 155 | 171 | ||||||
Adjusted CapEx | $ | 2,305 | $ | 2,053 | ||||
Year-over-year CapEx Savings | $ | 252 | ||||||
Exelon Way CapEx Savings: | ||||||||
| Difference between 2002 and 2003 Exelon Way CapEx | $ | 252 | ||||||
| 2003 inflationary impact (B) | 69 | |||||||
Calculated 2003 Savings | $ | 321 | ||||||
| Exclude savings from prior cost management initiatives (e.g., CMI) | (254 | ) | ||||||
Exelon Way Savings - 2003 Ramp-up | $ | 67 | ||||||
Total Ramp-up Cash Savings | ||||||||
| After-tax O&M | $ | 101 | ||||||
| CapEx | 67 | |||||||
Total Exelon Way Cash Savings | $ | 168 | ||||||
(A) Net of proceeds from liquidated damages for 2003
(B) Inflation assumed at 3%
