| | | | | |
| Contact: | | Joyce Carson | | FOR IMMEDIATE RELEASE |
| | | Exelon Investor Relations | | |
| | | 312-394-3441 | | |
| | | | | |
| | | Jennifer Medley | | |
| | | Exelon Corporate Communications | | |
| | | 312-394-7189 | | |
Exelon Announces Strong Second Quarter Results;
Nuclear Fleet Achieves Superior Operating Performance;
ComEd Receives Disappointing Order in Rate Case
CHICAGO(July 31, 2006) — Exelon Corporation’s (Exelon) second quarter 2006 consolidated earnings prepared in accordance with GAAP were $644 million, or $0.95 per diluted share, compared with earnings of $514 million, or $0.76 per diluted share, in the second quarter of 2005.
Exelon’s adjusted (non-GAAP) operating earnings for the second quarter of 2006 were $577 million, or $0.85 per diluted share, compared with $506 million, or $0.75 per diluted share, for the same period in 2005. The 13 percent increase in adjusted (non-GAAP) operating earnings per share was primarily the result of higher margins on wholesale market sales, increased output due to strong nuclear performance at Exelon Generation Company, LLC (Generation) and higher electric revenues associated with certain authorized rate increases at PECO Energy Company (PECO). These positive factors were partially offset by the effects of unfavorable weather conditions in the Commonwealth Edison Company (ComEd) and PECO service territories, increased depreciation and amortization, including the higher competitive transition charge (CTC) amortization scheduled at PECO, and increased operating and maintenance expense.
The Exelon Nuclear-operated plants achieved a 95.5 percent capacity factor for the second quarter of 2006, compared with 95.4 percent for the second quarter of 2005. In June alone, the Exelon fleet achieved a capacity factor of 99.1 percent, its highest ever for the June-August summer period. Year to date, Nuclear completed five refueling outages, continuing to lead the industry with a 23-day average duration per outage.
“We had a solid first half. Our strong performance in the second quarter more than offset a lackluster first quarter,” said John W. Rowe, Exelon’s chairman, president and CEO. “Our second quarter operating performance was first rate as shown by both a consistently high nuclear capacity factor and the availability of our fossil fleet. Generation margins continued to improve over last year, as did core growth in our delivery service business.” Rowe continued, “Our agreement with DOJ last month was a major milestone in our efforts to complete our proposed merger with PSEG. We are working hard to obtain our last remaining regulatory approval from the New Jersey Board of Public Utilities. We are
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hopeful that we can reach a resolution in New Jersey soon and must do so if we are to be able to complete this transaction.”
A non-GAAP financial measure, adjusted (non-GAAP) operating earnings for the second quarter of 2006 do not include the following items that are included in reported GAAP earnings (all after tax):
| | • | | Income of $89 million, or $0.13 per diluted share, resulting from decreases in decommissioning obligations primarily related to the AmerGen nuclear plants. |
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| | • | | A net charge of $55 million, or $0.08 per diluted share, for an impairment related to the write-off of the intangible asset associated with investments in synthetic fuel-producing facilities, net of earnings from the investments, including the impact of mark-to-market gains associated with the related derivatives. |
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| | • | | Mark-to-market gains of $38 million, or $0.06 per diluted share, primarily from Generation’s non-trading activities. |
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| | • | | A net charge of $5 million, or $0.01 per diluted share, related to certain integration costs associated with the proposed merger with Public Service Enterprise Group Incorporated (PSEG) and Generation’s prior investment in Sithe Energies, Inc. (Sithe), which is reflected as discontinued operations. |
Adjusted (non-GAAP) operating earnings for the second quarter of 2005 did not include the following items that were included in reported GAAP earnings (all after tax):
| | • | | Earnings of $29 million, or $0.04 per diluted share, from investments in synthetic fuel-producing facilities, including the impact of mark-to-market gains associated with the related derivatives. |
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| | • | | Mark-to-market losses of $14 million, or $0.02 per diluted share, from non-trading activities. |
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| | • | | Charges of $7 million, or $0.01 per diluted share, related to certain integration costs associated with the proposed merger with PSEG, severance and severance-related costs and Generation’s prior investment in Sithe, which is reflected as discontinued operations. |
ComEd Receives Order in First General Rate Case since 1995
On August 31, 2005, ComEd filed a proposal with the Illinois Commerce Commission (ICC) seeking approval of its first general rate case since January 1995. The rate case filing sought to allocate the costs of supplying electricity and to adjust ComEd’s rates for delivering electricity to users in its service area, effective January 2007, in order to reflect ComEd’s rising costs and significant capital investment in its delivery system. ComEd proposed a revenue increase of $317 million. On June 8, 2006, the administrative law judges issued a proposed order, which included a revenue increase of $164 million, plus ComEd’s request for recovery of several items which were previously recorded as expense. On July 26, 2006, the ICC issued its Final Order, which is subject to rehearing and appeal. The Order allows an $8.3 million revenue increase. ComEd believes that the disallowances contained in the Order are inappropriate and intends to vigorously pursue these issues on rehearing and appeal.
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As part of the rate case, ComEd requested recovery of amounts which have previously been recorded as expense. Based on the ICC Order in the rate case, ComEd estimates that during the third quarter it will record regulatory assets and reverse the previously incurred expenses for the following items (all pre-tax): severance ($158 million), losses on the extinguishment of debt as part of ComEd’s 2004 Accelerated Liability Management Plan ($86 million), manufactured gas plant costs ($40 million) and costs associated with ComEd’s procurement case ($7 million). In addition, ComEd may incur an impairment charge associated with its goodwill in the third quarter due to the ICC Order. As of June 30, 2006, Exelon and ComEd have goodwill of approximately $3.5 billion. Under GAAP, goodwill is tested for impairment at least annually or more frequently if events or circumstances indicate that it is “more likely than not” that goodwill might be impaired. ComEd currently performs its annual test in the fourth quarter of each year. However, due to the significant negative impact of the ICC’s Order to the cash flows and value of ComEd, it is required to complete an interim impairment test during the third quarter of this year. The interim test may lead to an impairment of goodwill at both ComEd and Exelon. The size of any potential impairment will not be known until ComEd completes its test in the third quarter, but the impairment could be material and could exceed the regulatory assets expected to be recorded in the third quarter based on the ICC Order.
“ComEd is deeply disappointed with the Illinois Commerce Commission’s delivery rate order. We believe the facts and record supported a much different result and we will certainly appeal the ICC order and seek reconsideration,” said Frank Clark, ComEd’s chairman and CEO. “We must remember that the Illinois Commissioners have shown both foresight and courage in previous decisions relating to ComEd, and ComEd remains committed to working with the Commission to achieve positive solutions to difficult challenges in Illinois in the long run,” Clark added. “The ICC’s order confirms that ComEd will be allowed to recover its energy costs which will be incurred by the company through the upcoming competitive power procurement auction in Illinois,” Clark noted.
2006 Earnings Outlook
“Given first half performance that was roughly in line with our expectations and our increasing confidence that we will hit our targets in the second half, we are reaffirming our 2006 operating earnings guidance range of $3.00 to $3.30 per share,” said Rowe. Earnings guidance is based on the assumption of normal weather for the remainder of the year.
Exelon’s outlook for 2006 adjusted (non-GAAP) operating earnings excludes the earnings impacts of the following:
| • | | mark-to-market adjustments from non-trading activities; |
| • | | investments in synthetic fuel-producing facilities; |
| • | | certain costs associated with the proposed merger with PSEG; |
| • | | significant impairments of intangible assets, including a potential impairment of ComEd’s goodwill in the third quarter; |
| • | | significant changes in decommissioning obligation estimates; |
| • | | certain amounts to be recovered by ComEd as approved in the July 26, 2006 ICC rate order, specifically, previously incurred severance costs and losses on extinguishments of long-term debt; and |
| • | | other unusual items, including any future changes to GAAP. |
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In consideration of these factors, and the need to further analyze the impacts of the ICC’s rate order, Exelon is not updating its 2006 GAAP earnings guidance of $3.00 to $3.30 per share until its analyses are complete, which is expected in the third quarter.
Second Quarter Highlights
| | • | | Proposed Merger with PSEG:On May 30, 2006, the Nuclear Regulatory Commission approved the merger and transfer of the nuclear plant operating licenses from PSEG Nuclear to Generation. On June 22, 2006, Exelon and PSEG reached a comprehensive agreement with the Antitrust Division of the United States Department of Justice (DOJ), which resolves all competition issues reviewed by the DOJ in connection with the proposed merger of Exelon and PSEG. Under the terms of the DOJ agreement, Exelon and PSEG will divest fossil-fuel fired electric generating stations with a total capacity of approximately 5,600 megawatts, assuring that the merger will not adversely affect competition. No divestiture of nuclear capacity or nuclear plants is required by DOJ, as the increased fossil divestiture will resolve all competition issues. The fossil plant divestiture required by the settlement with DOJ will satisfy the requirements imposed by the Federal Energy Regulatory Commission (FERC) to divest fossil generation. The virtual nuclear divestiture approved by FERC in June 2005 continues to be a FERC requirement even though it is not required by DOJ. The divestitures will be required when the merger closes. |
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| | | | The New Jersey Board of Public Utilities (NJBPU) is the only remaining regulatory authority whose approval is required to complete the merger. Settlement discussions are continuing with the NJBPU staff and other parties. Exelon and PSEG recently made an enhanced settlement proposal that includes concessions that are significantly greater than the concessions originally offered. Exelon and PSEG have also indicated that it is essential to reach a settlement promptly. If Exelon and PSEG are able to reach a settlement in New Jersey, the settlement would need to be reviewed by the Administrative Law Judge presiding over the case and would need to be approved by the NJBPU after public comment. Although it is possible that this process could be completed in time to allow the merger to close in the third quarter of 2006, there is currently no established timetable for NJBPU action on the merger. The final decision on whether to proceed with the merger will rest with the boards of both Exelon and PSEG after the terms and conditions of regulatory requirements are known. |
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| | • | | ComEd Procurement Case:On January 24, 2006, the ICC approved ComEd’s procurement case, authorizing ComEd to procure power after 2006 through a “reverse-auction” competitive bidding process and to recover the costs from retail customers with no markup. The first auction is scheduled to take place beginning September 5, 2006, and a Web site (www.illinois-auction.com) provides bidder and general information about the Illinois auction process. For the initial auction, ComEd’s entire load will be up for bid. In order to mitigate the effects of changes in future prices, the load for residential and commercial customers less than 400 kW will be served utilizing staggered three-year contracts. On June 1, 2006, the Attorney General filed a petition for review with the Illinois Supreme Court related to the ICC’s order in the procurement case. The petition for review includes a request that the Supreme Court stay the ICC’s order. The Supreme Court has not yet acted on the petition. |
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| | • | | ComEd Residential Rate Stabilization Program:On May 23, 2006, ComEd filed a residential rate stabilization proposal to ease residential customers’ transition after 2006 to cost-based rates from frozen rates, which requires regulatory approval to implement. The proposal would limit |
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| | | | the energy procurement costs that ComEd could pass through to its customers for a specified period of time and allow ComEd to collect any unrecovered procurement costs, including appropriate returns, in later years. The plan would terminate if a material adverse event occurs or if ComEd’s senior unsecured credit rating for at least one of the three major credit rating agencies falls below investment grade. ComEd has requested an ICC ruling on the proposal by late November 2006. Hearings on the proposal are scheduled for September 7 and 8. ComEd is reviewing this initiative in light of the ICC order on the delivery rate case. |
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| | • | | Nuclear Operations:Generation’s nuclear fleet, including its owned output from the Salem Generating Station operated by PSEG and co-owned by Generation, produced 35,442 GWhs in the second quarter of 2006, compared with 34,685 GWhs in the second quarter of 2005. The Exelon Nuclear-operated plants completed two scheduled refueling outages in both of the second quarters of 2006 and 2005, and refueling outage days totaled 35 and 36, respectively. Total non-refueling outage days for the Exelon Nuclear-operated plants in the second quarter of 2006 were 24 versus 26 in the second quarter of 2005. |
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| | • | | Fossil and Hydro Operations:Generation’s fossil fleet commercial availability was 93.7 percent in the second quarter of 2006, compared with 94.8 percent in the second quarter of 2005, primarily due to unplanned maintenance outages. The equivalent availability factor for the hydro facilities was 95.2 percent, a 2.7 percent improvement over the second quarter 2005 performance, largely due to less planned outage work performed in the second quarter 2006. |
BUSINESS UNIT RESULTS
ComEdconsists of the retail and wholesale electricity transmission and distribution operations in northern Illinois.
ComEd’s net income in the second quarter of 2006 was $127 million compared with net income of $109 million in the second quarter of 2005. The second quarter 2006 net income included (all after tax) mark-to-market gains of $2 million from one wholesale contract and expenses of $1 million related to certain integration costs associated with the proposed merger with PSEG. Second quarter 2005 net income included after-tax income of $2 million related to adjustments to previously recorded severance and severance-related charges. Excluding the impact of these items, ComEd’s net income in the second quarter of 2006 increased $19 million compared with the same quarter last year, primarily due to lower purchased power expense attributable to a contractual decrease in prices associated with ComEd’s power purchase agreement with Generation, core growth in customers and deliveries and favorable changes in customer mix and usage, partially offset by the impact of less favorable weather.
In the ComEd service territory, cooling degree-days were down 32 percent relative to the same period in 2005 and were 2 percent below normal. ComEd’s total retail kWh deliveries decreased 2 percent in 2006 as compared with 2005, with a 2 percent decrease in deliveries to the residential customer class, largely due to less favorable weather. ComEd’s second quarter 2006 revenues were $1,453 million, down 2 percent from $1,488 million in 2005, primarily due to decreased deliveries to residential and Power Purchase Option (PPO) customers. For ComEd, weather had an unfavorable after-tax impact of $20 million on second quarter 2006 earnings relative to 2005 and had an unfavorable after-tax impact of $4 million relative to the normal weather that was incorporated in earnings guidance.
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The number of customers being served in the ComEd region has increased 1.1 percent since the second quarter of 2005, with weather-normalized kWh growth of 1.8 percent compared with the second quarter of 2005.
PECOconsists of the retail electricity transmission and distribution operations and the retail natural gas distribution business in southeastern Pennsylvania.
PECO’s net income in the second quarter of 2006 was $93 million compared with net income of $110 million in the second quarter of 2005. The second quarter 2006 net income included after-tax expenses of $3 million related to certain integration costs associated with the proposed merger with PSEG. Second quarter 2005 net income included after-tax charges of $4 million related to certain integration costs associated with the proposed merger with PSEG. Excluding the impact of these items, PECO’s net income in the second quarter of 2006 decreased $18 million compared with the same quarter last year, primarily due to higher CTC amortization and higher operating and maintenance expense, partially offset by higher revenues, net of purchased power and fuel expense. Higher net revenues reflected certain authorized electric rate increases, including a scheduled CTC rate increase, partially offset by lower net electric and gas revenues as a result of unfavorable weather. The increases in CTC amortization expense and CTC rates are in accordance with PECO’s 1998 restructuring settlement with the PAPUC. As expected, the increase in CTC amortization expense exceeded the increase in CTC revenues.
In the PECO service territory, cooling degree-days were the same as in 2005 and were 3 percent above normal, while heating degree days were 31 percent below 2005 and normal. PECO’s total electric retail kWh deliveries increased less than 1 percent, with residential deliveries down 1 percent. Total gas deliveries were down 7 percent from the 2005 period. PECO’s second quarter 2006 revenues were $1,148 million, up 10 percent from $1,044 million in 2005, primarily due to the above-mentioned electric rate increases and a net increase in gas rates through PAPUC-approved changes to the purchased gas adjustment clause. For PECO, weather had an unfavorable after-tax impact of $6 million on second quarter 2006 earnings relative to 2005 and an unfavorable after-tax impact of $6 million relative to the normal weather that was incorporated in earnings guidance.
The number of electric customers being served in the PECO region has increased 0.7 percent since the second quarter of 2005, with weather-normalized kWh growth of 1.2 percent compared with the second quarter of 2005.
Exelon Generationconsists of Exelon’s electric generation operations, competitive retail sales and power marketing and trading functions.
Second quarter 2006 net income was $500 million compared with $296 million in the second quarter of 2005. Second quarter 2006 net income included (all after tax) income of $89 million resulting from decreases in decommissioning obligations primarily related to the AmerGen nuclear plants, mark-to-market gains of $36 million from non-trading activities, costs of $2 million related to certain integration costs associated with the proposed merger with PSEG and income of $2 million related to Generation’s prior investment in Sithe, which is reflected as discontinued operations. Second quarter 2005 net income included (all after tax) mark-to-market losses of $14 million from non-trading activities, costs of $1 million related to the proposed merger with PSEG, severance and severance-related costs of $1 million and charges of $1 million related to Generation’s prior investment in Sithe, which is reflected as discontinued operations. Excluding the impact of these items, Generation’s net income in the second quarter of 2006 increased $62 million compared with the same quarter last year, primarily due to higher
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revenue, net of purchased power and fuel expense, partially offset by higher other operating and maintenance expense largely due to inflationary increases.
Generation’s revenue, net of purchased power and fuel expense, increased by $131 million in the second quarter of 2006 compared with the second quarter of 2005 excluding the mark-to-market impact in both years. The quarter-over-quarter increase in revenue, net of purchased power and fuel expense, was driven by higher average margins on wholesale market sales due to having previously re-priced forward hedges at higher prices, combined with higher spot market prices and the impact of higher generation output, as well as the contractual increase in the prices associated with Generation’s power sales agreement with PECO, partially offset by the contractual decrease in prices associated with Generation’s power sales agreement with ComEd. Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $26.43 per MWh in the second quarter of 2006 compared with $23.06 per MWh in the second quarter of 2005.
Adjusted (non-GAAP) Operating Earnings
Adjusted (non-GAAP) operating earnings, which generally exclude significant one-time charges or credits that are not normally associated with ongoing operations and mark-to-market adjustments from non-trading activities, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-GAAP) operating earnings measures internally to evaluate the company’s performance and manage its operations. Reconciliations of GAAP to adjusted (non-GAAP) operating earnings for historical periods are attached. Additional earnings release attachments, which include the reconciliations on pages 7 and 8, are posted on Exelon’s Web site:www.exeloncorp.com and have been filed with the Securities and Exchange Commission on Form 8-K on July 31, 2006.
Conference call information:Exelon has scheduled a conference call for 11 AM ET (10 AM CT) on July 31, 2006. The call-in number in the U.S. is 888-603-6873, and the international call-in number is 973-582-2706. No password is required. Media representatives are invited to participate on a listen-only basis. The call will be web-cast and archived on Exelon’s Web site:www.exeloncorp.com. (Please select the Investor Relations page.)
Telephone replays will be available until August 14. The U.S. call-in number for replays is 877-519-4471, and the international call-in number is 973-341-3080. The confirmation code is 7592439.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from these forward-looking statements include those discussed herein as well as those discussed in (1) Exelon Corporation’s 2005 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors and (b) ITEM 8. Financial Statements and Supplementary Data: Exelon-Note 20, ComEd-Note 17, PECO-Note 15 and Generation-Note 17 and (2) other factors discussed in filings with the Securities and Exchange Commission (SEC) by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company and Exelon Generation Company, LLC (Companies). Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. None of the Companies undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this news release.
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Exelon Corporation is one of the nation’s largest electric utilities with approximately 5.2 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 5.2 million customers in Illinois and Pennsylvania and natural gas to more than 470,000 customers in southeastern Pennsylvania. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.
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EXELON CORPORATION
Earnings Release Attachments
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EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, 2006 | |
| | | | | | | | | | | | | | | | | | | Exelon | |
| | | ComEd | | | PECO | | | Generation | | | Other | | | Consolidated | |
Operating revenues | | $ | 1,453 | | | $ | 1,148 | | | $ | 2,214 | | | $ | (1,118 | ) | | $ | 3,697 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 766 | | | | 501 | | | | 418 | | | | (1,114 | ) | | | 571 | |
| Fuel | | | — | | | | 76 | | | | 425 | | | | 1 | | | | 502 | |
| Operating and maintenance | | | 218 | | | | 141 | | | | 440 | | | | 82 | | | | 881 | |
| Depreciation and amortization | | | 106 | | | | 172 | | | | 72 | | | | 21 | | | | 371 | |
| Taxes other than income | | | 71 | | | | 53 | | | | 41 | | | | 5 | | | | 170 | |
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Total operating expenses | | | 1,161 | | | | 943 | | | | 1,396 | | | | (1,005 | ) | | | 2,495 | |
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Operating income (loss) | | | 292 | | | | 205 | | | | 818 | | | | (113 | ) | | | 1,202 | |
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Other income and deductions | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (77 | ) | | | (67 | ) | | | (40 | ) | | | (38 | ) | | | (222 | ) |
| Equity in losses of unconsolidated affiliates | | | (3 | ) | | | (2 | ) | | | (1 | ) | | | (16 | ) | | | (22 | ) |
| Other, net | | | 1 | | | | 2 | | | | 14 | | | | 29 | | | | 46 | |
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Total other income and deductions | | | (79 | ) | | | (67 | ) | | | (27 | ) | | | (25 | ) | | | (198 | ) |
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Income (loss) from continuing operations before income taxes | | | 213 | | | | 138 | | | | 791 | | | | (138 | ) | | | 1,004 | |
Income taxes | | | 86 | | | | 45 | | | | 294 | | | | (62 | ) | | | 363 | |
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Income (loss) from continuing operations | | | 127 | | | | 93 | | | | 497 | | | | (76 | ) | | | 641 | |
Income from discontinued operations | | | — | | | | — | | | | 3 | | | | — | | | | 3 | |
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Net income (loss) | | $ | 127 | | | $ | 93 | | | $ | 500 | | | $ | (76 | ) | | $ | 644 | |
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| | | Three Months Ended June 30, 2005 | |
| | | | | | | | | | | | | | | | | | | Exelon | |
| | | ComEd | | | PECO | | | Generation | | | Other | | | Consolidated | |
Operating revenues | | $ | 1,488 | | | $ | 1,044 | | | $ | 2,105 | | | $ | (1,153 | ) | | $ | 3,484 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 858 | | | | 437 | | | | 517 | | | | (1,149 | ) | | | 663 | |
| Fuel | | | — | | | | 66 | | | | 428 | | | | (1 | ) | | | 493 | |
| Operating and maintenance | | | 202 | | | | 119 | | | | 602 | | | | 6 | | | | 929 | |
| Depreciation and amortization | | | 101 | | | | 137 | | | | 63 | | | | 24 | | | | 325 | |
| Taxes other than income | | | 73 | | | | 60 | | | | 39 | | | | 5 | | | | 177 | |
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Total operating expenses | | | 1,234 | | | | 819 | | | | 1,649 | | | | (1,115 | ) | | | 2,587 | |
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Operating income (loss) | | | 254 | | | | 225 | | | | 456 | | | | (38 | ) | | | 897 | |
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Other income and deductions | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (77 | ) | | | (70 | ) | | | (29 | ) | | | (34 | ) | | | (210 | ) |
| Equity in earnings (losses) of unconsolidated affiliates | | | (4 | ) | | | (4 | ) | | | 4 | | | | (28 | ) | | | (32 | ) |
| Other, net | | | 7 | | | | 6 | | | | 51 | | | | 4 | | | | 68 | |
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Total other income and deductions | | | (74 | ) | | | (68 | ) | | | 26 | | | | (58 | ) | | | (174 | ) |
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Income (loss) from continuing operations before income taxes | | | 180 | | | | 157 | | | | 482 | | | | (96 | ) | | | 723 | |
Income taxes | | | 71 | | | | 47 | | | | 185 | | | | (96 | ) | | | 207 | |
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Income from continuing operations | | | 109 | | | | 110 | | | | 297 | | | | — | | | | 516 | |
Loss from discontinued operations | | | — | | | | — | | | | (1 | ) | | | (1 | ) | | | (2 | ) |
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Net income (loss) | | $ | 109 | | | $ | 110 | | | $ | 296 | | | $ | (1 | ) | | $ | 514 | |
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EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2006 | |
| | | | | | | | | | | | | | | | | | | Exelon | |
| | | ComEd | | | PECO | | | Generation | | | Other | | | Consolidated | |
Operating revenues | | $ | 2,880 | | | $ | 2,554 | | | $ | 4,434 | | | $ | (2,309 | ) | | $ | 7,559 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 1,628 | | | | 987 | | | | 781 | | | | (2,300 | ) | | | 1,096 | |
| Fuel | | | — | | | | 402 | | | | 1,036 | | | | — | | | | 1,438 | |
| Operating and maintenance | | | 434 | | | | 289 | | | | 1,108 | | | | 75 | | | | 1,906 | |
| Depreciation and amortization | | | 205 | | | | 343 | | | | 139 | | | | 48 | | | | 735 | |
| Taxes other than income | | | 152 | | | | 117 | | | | 84 | | | | 11 | | | | 364 | |
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Total operating expenses | | | 2,419 | | | | 2,138 | | | | 3,148 | | | | (2,166 | ) | | | 5,539 | |
| | | | | | | | | | | | | | | | |
Operating income (loss) | | | 461 | | | | 416 | | | | 1,286 | | | | (143 | ) | | | 2,020 | |
| | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (153 | ) | | | (136 | ) | | | (82 | ) | | | (74 | ) | | | (445 | ) |
| Equity in losses of unconsolidated affiliates | | | (5 | ) | | | (6 | ) | | | (5 | ) | | | (45 | ) | | | (61 | ) |
| Other, net | | | 1 | | | | 5 | | | | 20 | | | | 65 | | | | 91 | |
| | | | | | | | | | | | | | | | |
Total other income and deductions | | | (157 | ) | | | (137 | ) | | | (67 | ) | | | (54 | ) | | | (415 | ) |
| | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes | | | 304 | | | | 279 | | | | 1,219 | | | | (197 | ) | | | 1,605 | |
Income taxes | | | 123 | | | | 93 | | | | 454 | | | | (106 | ) | | | 564 | |
| | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | 181 | | | | 186 | | | | 765 | | | | (91 | ) | | | 1,041 | |
Income from discontinued operations | | | — | | | | — | | | | 3 | | | | — | | | | 3 | |
| | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 181 | | | $ | 186 | | | $ | 768 | | | $ | (91 | ) | | $ | 1,044 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2005 | |
| | | | | | | | | | | | | | | | | | | Exelon | |
| | | ComEd | | | PECO | | | Generation | | | Other | | | Consolidated | |
Operating revenues | | $ | 2,875 | | | $ | 2,339 | | | $ | 4,125 | | | $ | (2,294 | ) | | $ | 7,045 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 1,679 | | | | 869 | | | | 967 | | | | (2,283 | ) | | | 1,232 | |
| Fuel | | | — | | | | 331 | | | | 786 | | | | (2 | ) | | | 1,115 | |
| Operating and maintenance | | | 404 | | | | 253 | | | | 1,211 | | | | 9 | | | | 1,877 | |
| Depreciation and amortization | | | 198 | | | | 273 | | | | 125 | | | | 48 | | | | 644 | |
| Taxes other than income | | | 151 | | | | 115 | | | | 74 | | | | 9 | | | | 349 | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 2,432 | | | | 1,841 | | | | 3,163 | | | | (2,219 | ) | | | 5,217 | |
| | | | | | | | | | | | | | | | |
Operating income (loss) | | | 443 | | | | 498 | | | | 962 | | | | (75 | ) | | | 1,828 | |
| | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (151 | ) | | | (142 | ) | | | (58 | ) | | | (48 | ) | | | (399 | ) |
| Equity in earnings (losses) of unconsolidated affiliates | | | (8 | ) | | | (8 | ) | | | 4 | | | | (56 | ) | | | (68 | ) |
| Other, net | | | 13 | | | | 9 | | | | 69 | | | | 6 | | | | 97 | |
| | | | | | | | | | | | | | | | |
Total other income and deductions | | | (146 | ) | | | (141 | ) | | | 15 | | | | (98 | ) | | | (370 | ) |
| | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes | | | 297 | | | | 357 | | | | 977 | | | | (173 | ) | | | 1,458 | |
Income taxes | | | 118 | | | | 118 | | | | 376 | | | | (177 | ) | | | 435 | |
| | | | | | | | | | | | | | | | |
Income from continuing operations | | | 179 | | | | 239 | | | | 601 | | | | 4 | | | | 1,023 | |
Income (loss) from discontinued operations | | | — | | | | — | | | | 15 | | | | (3 | ) | | | 12 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 179 | | | $ | 239 | | | $ | 616 | | | $ | 1 | | | $ | 1,035 | |
| | | | | | | | | | | | | | | | |
2
EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | ComEd | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2006 | | | 2005 | | | Variance | | | 2006 | | | 2005 | | | Variance | |
Operating revenues | | $ | 1,453 | | | $ | 1,488 | | | $ | (35 | ) | | $ | 2,880 | | | $ | 2,875 | | | $ | 5 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 766 | | | | 858 | | | | (92 | ) | | | 1,628 | | | | 1,679 | | | | (51 | ) |
| Operating and maintenance | | | 218 | | | | 202 | | | | 16 | | | | 434 | | | | 404 | | | | 30 | |
| Depreciation and amortization | | | 106 | | | | 101 | | | | 5 | | | | 205 | | | | 198 | | | | 7 | |
| Taxes other than income | | | 71 | | | | 73 | | | | (2 | ) | | | 152 | | | | 151 | | | | 1 | |
| | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 1,161 | | | | 1,234 | | | | (73 | ) | | | 2,419 | | | | 2,432 | | | | (13 | ) |
| | | | | | | | | | | | | | | | | | | |
Operating income | | | 292 | | | | 254 | | | | 38 | | | | 461 | | | | 443 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (77 | ) | | | (77 | ) | | | — | | | | (153 | ) | | | (151 | ) | | | (2 | ) |
| Equity in losses of unconsolidated affiliates | | | (3 | ) | | | (4 | ) | | | 1 | | | | (5 | ) | | | (8 | ) | | | 3 | |
| Other, net | | | 1 | | | | 7 | | | | (6 | ) | | | 1 | | | | 13 | | | | (12 | ) |
| | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (79 | ) | | | (74 | ) | | | (5 | ) | | | (157 | ) | | | (146 | ) | | | (11 | ) |
| | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 213 | | | | 180 | | | | 33 | | | | 304 | | | | 297 | | | | 7 | |
Income taxes | | | 86 | | | | 71 | | | | 15 | | | | 123 | | | | 118 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | |
Net income | | $ | 127 | | | $ | 109 | | | $ | 18 | | | $ | 181 | | | $ | 179 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | PECO | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2006 | | | 2005 | | | Variance | | | 2006 | | | 2005 | | | Variance | |
Operating revenues | | $ | 1,148 | | | $ | 1,044 | | | $ | 104 | | | $ | 2,554 | | | $ | 2,339 | | | $ | 215 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 501 | | | | 437 | | | | 64 | | | | 987 | | | | 869 | | | | 118 | |
| Fuel | | | 76 | | | | 66 | | | | 10 | | | | 402 | | | | 331 | | | | 71 | |
| Operating and maintenance | | | 141 | | | | 119 | | | | 22 | | | | 289 | | | | 253 | | | | 36 | |
| Depreciation and amortization | | | 172 | | | | 137 | | | | 35 | | | | 343 | | | | 273 | | | | 70 | |
| Taxes other than income | | | 53 | | | | 60 | | | | (7 | ) | | | 117 | | | | 115 | | | | 2 | |
| | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 943 | | | | 819 | | | | 124 | | | | 2,138 | | | | 1,841 | | | | 297 | |
| | | | | | | | | | | | | | | | | | | |
Operating income | | | 205 | | | | 225 | | | | (20 | ) | | | 416 | | | | 498 | | | | (82 | ) |
| | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (67 | ) | | | (70 | ) | | | 3 | | | | (136 | ) | | | (142 | ) | | | 6 | |
| Equity in losses of unconsolidated affiliates | | | (2 | ) | | | (4 | ) | | | 2 | | | | (6 | ) | | | (8 | ) | | | 2 | |
| Other, net | | | 2 | | | | 6 | | | | (4 | ) | | | 5 | | | | 9 | | | | (4 | ) |
| | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (67 | ) | | | (68 | ) | | | 1 | | | | (137 | ) | | | (141 | ) | | | 4 | |
| | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 138 | | | | 157 | | | | (19 | ) | | | 279 | | | | 357 | | | | (78 | ) |
Income taxes | | | 45 | | | | 47 | | | | (2 | ) | | | 93 | | | | 118 | | | | (25 | ) |
| | | | | | | | | | | | | | | | | | | |
Net income | | $ | 93 | | | $ | 110 | | | $ | (17 | ) | | $ | 186 | | | $ | 239 | | | $ | (53 | ) |
| | | | | | | | | | | | | | | | | | | |
3
EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Generation | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2006 | | | 2005 | | | Variance | | | 2006 | | | 2005 | | | Variance | |
Operating revenues | | $ | 2,214 | | | $ | 2,105 | | | $ | 109 | | | $ | 4,434 | | | $ | 4,125 | | | $ | 309 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 418 | | | | 517 | | | | (99 | ) | | | 781 | | | | 967 | | | | (186 | ) |
| Fuel | | | 425 | | | | 428 | | | | (3 | ) | | | 1,036 | | | | 786 | | | | 250 | |
| Operating and maintenance | | | 440 | | | | 602 | | | | (162 | ) | | | 1,108 | | | | 1,211 | | | | (103 | ) |
| Depreciation and amortization | | | 72 | | | | 63 | | | | 9 | | | | 139 | | | | 125 | | | | 14 | |
| Taxes other than income | | | 41 | | | | 39 | | | | 2 | | | | 84 | | | | 74 | | | | 10 | |
| | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 1,396 | | | | 1,649 | | | | (253 | ) | | | 3,148 | | | | 3,163 | | | | (15 | ) |
| | | | | | | | | | | | | | | | | | | |
Operating income | | | 818 | | | | 456 | | | | 362 | | | | 1,286 | | | | 962 | | | | 324 | |
| | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (40 | ) | | | (29 | ) | | | (11 | ) | | | (82 | ) | | | (58 | ) | | | (24 | ) |
| Equity in earnings (losses) of unconsolidated affiliates | | | (1 | ) | | | 4 | | | | (5 | ) | | | (5 | ) | | | 4 | | | | (9 | ) |
| Other, net | | | 14 | | | | 51 | | | | (37 | ) | | | 20 | | | | 69 | | | | (49 | ) |
| | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (27 | ) | | | 26 | | | | (53 | ) | | | (67 | ) | | | 15 | | | | (82 | ) |
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 791 | | | | 482 | | | | 309 | | | | 1,219 | | | | 977 | | | | 242 | |
Income taxes | | | 294 | | | | 185 | | | | 109 | | | | 454 | | | | 376 | | | | 78 | |
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 497 | | | | 297 | | | | 200 | | | | 765 | | | | 601 | | | | 164 | |
Income (loss) from discontinued operations | | | 3 | | | | (1 | ) | | | 4 | | | | 3 | | | | 15 | | | | (12 | ) |
| | | | | | | | | | | | | | | | | | | |
Net income | | $ | 500 | | | $ | 296 | | | $ | 204 | | | $ | 768 | | | $ | 616 | | | $ | 152 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Other (a) | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2006 | | | 2005 | | | Variance | | | 2006 | | | 2005 | | | Variance | |
Operating revenues | | $ | (1,118 | ) | | $ | (1,153 | ) | | $ | 35 | | | $ | (2,309 | ) | | $ | (2,294 | ) | | $ | (15 | ) |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | (1,114 | ) | | | (1,149 | ) | | | 35 | | | | (2,300 | ) | | | (2,283 | ) | | | (17 | ) |
| Fuel | | | 1 | | | | (1 | ) | | | 2 | | | | — | | | | (2 | ) | | | 2 | |
| Operating and maintenance | | | 82 | | | | 6 | | | | 76 | | | | 75 | | | | 9 | | | | 66 | |
| Depreciation and amortization | | | 21 | | | | 24 | | | | (3 | ) | | | 48 | | | | 48 | | | | — | |
| Taxes other than income | | | 5 | | | | 5 | | | | — | | | | 11 | | | | 9 | | | | 2 | |
| | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | (1,005 | ) | | | (1,115 | ) | | | 110 | | | | (2,166 | ) | | | (2,219 | ) | | | 53 | |
| | | | | | | | | | | | | | | | | | | |
Operating loss | | | (113 | ) | | | (38 | ) | | | (75 | ) | | | (143 | ) | | | (75 | ) | | | (68 | ) |
| | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (38 | ) | | | (34 | ) | | | (4 | ) | | | (74 | ) | | | (48 | ) | | | (26 | ) |
| Equity in losses of unconsolidated affiliates | | | (16 | ) | | | (28 | ) | | | 12 | | | | (45 | ) | | | (56 | ) | | | 11 | |
| Other, net | | | 29 | | | | 4 | | | | 25 | | | | 65 | | | | 6 | | | | 59 | |
| | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (25 | ) | | | (58 | ) | | | 33 | | | | (54 | ) | | | (98 | ) | | | 44 | |
| | | | | | | | | | | | | | | | | | | |
Loss from continuing operations before income taxes | | | (138 | ) | | | (96 | ) | | | (42 | ) | | | (197 | ) | | | (173 | ) | | | (24 | ) |
Income taxes | | | (62 | ) | | | (96 | ) | | | 34 | | | | (106 | ) | | | (177 | ) | | | 71 | |
| | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | (76 | ) | | | — | | | | (76 | ) | | | (91 | ) | | | 4 | | | | (95 | ) |
Loss from discontinued operations | | | — | | | | (1 | ) | | | 1 | | | | — | | | | (3 | ) | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (76 | ) | | $ | (1 | ) | | $ | (75 | ) | | $ | (91 | ) | | $ | 1 | | | $ | (92 | ) |
| | | | | | | | | | | | | | | | | | | |
| | |
| (a) | | Other includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, Enterprises and other financing and investment activities, including investments in synthetic fuel-producing facilities. |
4
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)
| | | | | | | | | |
| | | June 30, | | | December 31, | |
| | | 2006 | | | 2005 | |
Current assets | | | | | | | | |
| Cash and cash equivalents | | $ | 282 | | | $ | 140 | |
| Restricted cash and investments | | | 48 | | | | 49 | |
Accounts receivable, net
Customer | | | 1,609 | | | | 1,858 | |
| Other | | | 265 | | | | 337 | |
| Mark-to-market derivative assets | | | 737 | | | | 916 | |
| Inventories, at average cost | | | | | | | | |
| Fossil fuel | | | 282 | | | | 311 | |
| Materials and supplies | | | 381 | | | | 351 | |
| Deferred income taxes | | | 114 | | | | 80 | |
| Other | | | 540 | | | | 595 | |
| | | | | | | |
Total current assets | | | 4,258 | | | | 4,637 | |
| | | | | | | |
Property, plant and equipment, net | | | 22,122 | | | | 21,981 | |
| | | | | | | | | |
Deferred debits and other assets | | | | | | | | |
| Regulatory assets | | | 4,093 | | | | 4,386 | |
| Nuclear decommissioning trust funds | | | 5,809 | | | | 5,585 | |
| Investments | | | 819 | | | | 813 | |
| Goodwill | | | 3,476 | | | | 3,475 | |
| Mark-to-market derivative assets | | | 586 | | | | 371 | |
| Prepaid pension asset | | | 374 | | | | 377 | |
| Other | | | 753 | | | | 824 | |
| | | | | | | |
Total deferred debits and other assets | | | 15,910 | | | | 15,831 | |
| | | | | | | |
Total assets | | $ | 42,290 | | | $ | 42,449 | |
| | | | | | | |
| | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | |
Current liabilities | | | | | | | | |
| Commercial paper and notes payable | | $ | 1,184 | | | $ | 1,290 | |
| Long-term debt due within one year | | | 554 | | | | 407 | |
| Long-term debt to ComEd Transitional Funding Trust and PECO Energy Transition Trust due within one year | | | 577 | | | | 507 | |
| Accounts payable | | | 1,195 | | | | 1,467 | |
| Mark-to-market derivative liabilities | | | 885 | | | | 1,282 | |
| Accrued expenses | | | 1,070 | | | | 1,005 | |
| Other | | | 838 | | | | 605 | |
| | | | | | | |
Total current liabilities | | | 6,303 | | | | 6,563 | |
| | | | | | | |
Long-term debt | | | 7,904 | | | | 7,759 | |
Long-term debt to ComEd Transitional Funding Trust and PECO Energy Transition Trust | | | 2,963 | | | | 3,456 | |
Long-term debt to other financing trusts | | | 545 | | | | 545 | |
| | | | | | | | | |
Deferred credits and other liabilities | | | | | | | | |
| Deferred income taxes | | | 4,957 | | | | 4,816 | |
| Unamortized investment tax credits | | | 256 | | | | 262 | |
| Asset retirement obligations | | | 3,676 | | | | 4,157 | |
| Pension obligations | | | 292 | | | | 268 | |
| Non-pension postretirement benefits obligations | | | 1,086 | | | | 1,014 | |
| Spent nuclear fuel obligation | | | 926 | | | | 906 | |
| Regulatory liabilities | | | 2,293 | | | | 2,170 | |
| Mark-to-market derivative liabilities | | | 504 | | | | 522 | |
| Other | | | 763 | | | | 798 | |
| | | | | | | |
Total deferred credits and other liabilities | | | 14,753 | | | | 14,913 | |
| | | | | | | |
Total liabilities | | | 32,468 | | | | 33,236 | |
| | | | | | | |
| | | | | | | | | |
Minority interest of consolidated subsidiaries | | | — | | | | 1 | |
Preferred securities of subsidiaries | | | 87 | | | | 87 | |
| | | | | | | | | |
Shareholders’ equity | | | | | | | | |
| Common stock | | | 8,166 | | | | 7,987 | |
| Treasury stock, at cost | | | (497 | ) | | | (444 | ) |
| Retained earnings | | | 3,443 | | | | 3,206 | |
| Accumulated other comprehensive loss | | | (1,377 | ) | | | (1,624 | ) |
| | | | | | | |
Total shareholders’ equity | | | 9,735 | | | | 9,125 | |
| | | | | | | |
Total liabilities and shareholders’ equity | | $ | 42,290 | | | $ | 42,449 | |
| | | | | | | |
5
EXELON CORPORATION
Consolidated Statements of Cash Flows
(in millions)
| | | | | | | | | |
| | | Six Months Ended | |
| | | June 30, | |
| | | 2006 | | | 2005 | |
Cash flows from operating activities | | | | | | | | |
| Net income | | $ | 1,044 | | | $ | 1,035 | |
| Adjustments to reconcile net income to net cash flows provided by operating activities: | | | | | | | | |
| Depreciation, amortization and accretion, including nuclear fuel | | | 1,060 | | | | 961 | |
| Deferred income taxes and amortization of investment tax credits | | | (81 | ) | | | 528 | |
| Provision for uncollectible accounts | | | 42 | | | | 22 | |
| Equity in losses of unconsolidated affiliates | | | 61 | | | | 68 | |
| Gains on sales of investments and wholly owned subsidiaries | | | (2 | ) | | | (17 | ) |
| Net realized (gains) losses on nuclear decommissioning trust funds | | | 11 | | | | (55 | ) |
| Other decommissioning-related activities | | | (149 | ) | | | 13 | |
| Impairment charges | | | 117 | | | | — | |
| Other non-cash operating activities | | | 32 | | | | 27 | |
| Changes in assets and liabilities: | | | | | | | | |
| Accounts receivable | | | 230 | | | | 53 | |
| Inventories | | | 11 | | | | 26 | |
| Other current assets | | | (136 | ) | | | (136 | ) |
| Accounts payable, accrued expenses and other current liabilities | | | (406 | ) | | | (211 | ) |
| Counterparty collateral asset | | | 178 | | | | (20 | ) |
| Counterparty collateral liability | | | 5 | | | | 7 | |
| Income taxes | | | 300 | | | | 24 | |
| Net realized and unrealized mark-to-market and hedging transactions | | | (69 | ) | | | (74 | ) |
| Pension and non-pension postretirement benefits | | | 99 | | | | (1,927 | ) |
| Other noncurrent assets and liabilities | | | (159 | ) | | | (38 | ) |
| | | | | | | |
Net cash flows provided by operating activities | | | 2,188 | | | | 286 | |
| | | | | | | |
| | | | | | | | | |
Cash flows from investing activities | | | | | | | | |
| Capital expenditures | | | (1,156 | ) | | | (1,007 | ) |
| Proceeds from nuclear decommissioning trust fund assets sales | | | 2,554 | | | | 2,149 | |
| Investment in nuclear decommissioning trust funds | | | (2,706 | ) | | | (2,256 | ) |
| Acquisition of businesses, net of cash acquired | | | — | | | | (97 | ) |
| Proceeds from sales of investments and wholly owned subsidiaries, net of $32 million of cash sold during the six months ended June 30, 2005 | | | 1 | | | | 103 | |
| Investment in synthetic fuel-producing facilities | | | (53 | ) | | | (56 | ) |
| Change in restricted cash | | | 1 | | | | 23 | |
| Other investing activities | | | (1 | ) | | | (2 | ) |
| | | | | | | |
Net cash flows used in investing activities | | | (1,360 | ) | | | (1,143 | ) |
| | | | | | | |
| | | | | | | | | |
Cash flows from financing activities | | | | | | | | |
| Issuance of long-term debt | | | 326 | | | | 1,788 | |
| Retirement of long-term debt | | | (34 | ) | | | (185 | ) |
| Retirement of long-term debt to financing affiliates | | | (422 | ) | | | (397 | ) |
| Issuance of short-term debt | | | — | | | | 2,500 | |
| Retirement of short-term debt | | | — | | | | (2,200 | ) |
| Change in other short-term debt | | | (106 | ) | | | (161 | ) |
| Dividends paid on common stock | | | (535 | ) | | | (535 | ) |
| Proceeds from employee stock plans | | | 107 | | | | 156 | |
| Purchase of treasury stock | | | (53 | ) | | | (8 | ) |
| Other financing activities | | | 31 | | | | (55 | ) |
| | | | | | | |
Net cash flows provided by (used in) financing activities | | | (686 | ) | | | 903 | |
| | | | | | | |
| | | | | | | | | |
Increase in cash and cash equivalents | | | 142 | | | | 46 | |
Cash and cash equivalents at beginning of period | | | 140 | | | | 499 | |
| | | | | | | |
Cash and cash equivalents at end of period | | $ | 282 | | | $ | 545 | |
| | | | | | | |
6
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income
(unaudited)
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, 2006 | | | Three Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | 3,697 | | | $ | (3 | ) | | (b) | | $ | 3,694 | | | $ | 3,484 | | | $ | — | | | | | $ | 3,484 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 571 | | | | 49 | | | (b) | | | 620 | | | | 663 | | | | 15 | | | (b) | | | 678 | |
| Fuel | | | 502 | | | | 9 | | | (b) | | | 511 | | | | 493 | | | | (37 | ) | | (b) | | | 456 | |
| Operating and maintenance | | | 881 | | | | 43 | | | (c),(d),(e) | | | 924 | | | | 929 | | | | (16 | ) | | (c),(d),(g) | | | 913 | |
| Depreciation and amortization | | | 371 | | | | (14 | ) | | (c),(d) | | | 357 | | | | 325 | | | | (19 | ) | | (c),(d) | | | 306 | |
| Taxes other than income | | | 170 | | | | — | | | | | | 170 | | | | 177 | | | | — | | | | | | 177 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 2,495 | | | | 87 | | | | | | 2,582 | | | | 2,587 | | | | (57 | ) | | | | | 2,530 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 1,202 | | | | (90 | ) | | | | | 1,112 | | | | 897 | | | | 57 | | | | | | 954 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (222 | ) | | | 4 | | | (c),(f) | | | (218 | ) | | | (210 | ) | | | 4 | | | (c) | | | (206 | ) |
| Equity in losses of unconsolidated affiliates | | | (22 | ) | | | 16 | | | (c) | | | (6 | ) | | | (32 | ) | | | 28 | | | (c) | | | (4 | ) |
| Other, net | | | 46 | | | | (24 | ) | | (c) | | | 22 | | | | 68 | | | | — | | | | | | 68 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (198 | ) | | | (4 | ) | | | | | (202 | ) | | | (174 | ) | | | 32 | | | | | | (142 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 1,004 | | | | (94 | ) | | | | | 910 | | | | 723 | | | | 89 | | | | | | 812 | |
Income taxes | | | 363 | | | | (30 | ) | | (b),(c),(d),(e),(f) | | | 333 | | | | 207 | | | | 98 | | | (b),(c),(d),(g) | | | 305 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 641 | | | | (64 | ) | | | | | 577 | | | | 516 | | | | (9 | ) | | | | | 507 | |
Income (loss) from discontinued operations | | | 3 | | | | (3 | ) | | (f) | | | — | | | | (2 | ) | �� | | 1 | | | (f) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 644 | | | $ | (67 | ) | | | | $ | 577 | | | $ | 514 | | | $ | (8 | ) | | | | $ | 506 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per average common share | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic: | | $ | 0.96 | | | $ | (0.10 | ) | | | | $ | 0.86 | | | $ | 0.77 | | | $ | (0.01 | ) | | | | $ | 0.76 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Diluted: | | $ | 0.95 | | | $ | (0.10 | ) | | | | $ | 0.85 | | | $ | 0.76 | | | $ | (0.01 | ) | | | | $ | 0.75 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 670 | | | | | | | | | | 670 | | | | 670 | | | | | | | | | | 670 | |
| Diluted | | | 676 | | | | | | | | | | 676 | | | | 677 | | | | | | | | | | 677 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mark-to-market (b) | | | | | | $ | 0.06 | | | | | | | | | | | | | $ | (0.02 | ) | | | | | | |
| Investments in synthetic fuel-producing facilities (c) | | | | | | | (0.08 | ) | | | | | | | | | | | | | 0.04 | | | | | | | |
| PSEG merger costs (d) | | | | | | | (0.01 | ) | | | | | | | | | | | | | (0.01 | ) | | | | | | |
| Nuclear decommissioning obligation reduction (e) | | | | | | | 0.13 | | | | | | | | | | | | | | — | | | | | | | |
| Severance charges and financial impact of Sithe (f),(g) | | | | | | | — | | | | | | | | | | | | | | — | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total adjustments | | | | | | $ | 0.10 | | | | | | | | | | | | | $ | 0.01 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (a) | | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| |
| (b) | | Adjustment to exclude the mark-to-market impact of Exelon’s non-trading activities. |
| |
| (c) | | Adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel-producing facilities, including the impact of mark-to-market gains associated with the related derivatives. |
| |
| (d) | | Adjustment to exclude certain costs associated with Exelon’s anticipated merger with Public Service Enterprise Group, Inc. (PSEG). |
| |
| (e) | | Adjustment to exclude the decrease in Generation’s nuclear decommissioning obligation liability related to the AmerGen nuclear plants. |
| |
| (f) | | Adjustment to exclude the financial impact of Generation’s prior investment in Sithe Energies, Inc. (Sithe) (sold in January 2005). |
| |
| (g) | | Adjustment to exclude severance charges. |
7
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income
(unaudited)
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2006 | | | Six Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | 7,559 | | | $ | 8 | | | (b) | | $ | 7,567 | | | $ | 7,045 | | | $ | — | | | | | $ | 7,045 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 1,096 | | | | 88 | | | (b) | | | 1,184 | | | | 1,232 | | | | (4 | ) | | (b) | | | 1,228 | |
| Fuel | | | 1,438 | | | | (52 | ) | | (b) | | | 1,386 | | | | 1,115 | | | | 45 | �� | | (b) | | | 1,160 | |
| Operating and maintenance | | | 1,906 | | | | 33 | | | (c),(d),(e),(f) | | | 1,939 | | | | 1,877 | | | | (33 | ) | | (c),(d),(f) | | | 1,844 | |
| Depreciation and amortization | | | 735 | | | | (35 | ) | | (c),(d) | | | 700 | | | | 644 | | | | (37 | ) | | (c),(d) | | | 607 | |
| Taxes other than income | | | 364 | | | | — | | | | | | 364 | | | | 349 | | | | — | | | | | | 349 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 5,539 | | | | 34 | | | | | | 5,573 | | | | 5,217 | | | | (29 | ) | | | | | 5,188 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 2,020 | | | | (26 | ) | | | | | 1,994 | | | | 1,828 | | | | 29 | | | | | | 1,857 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (445 | ) | | | 12 | | | (c),(g) | | | (433 | ) | | | (399 | ) | | | 8 | | | (c) | | | (391 | ) |
| Equity in losses of unconsolidated affiliates | | | (61 | ) | | | 46 | | | (c) | | | (15 | ) | | | (68 | ) | | | 56 | | | (c) | | | (12 | ) |
| Other, net | | | 91 | | | | (49 | ) | | (c),(d) | | | 42 | | | | 97 | | | | — | | | | | | 97 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (415 | ) | | | 9 | | | | | | (406 | ) | | | (370 | ) | | | 64 | | | | | | (306 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 1,605 | | | | (17 | ) | | | | | 1,588 | | | | 1,458 | | | | 93 | | | | | | 1,551 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income taxes | | | 564 | | | | 27 | | | (b),(c),(d),(e),(f),(g) | | | 591 | | | | 435 | | | | 156 | | | (b),(c),(d),(f) | | | 591 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 1,041 | | | | (44 | ) | | | | | 997 | | | | 1,023 | | | | (63 | ) | | | | | 960 | |
Income (loss) from discontinued operations | | | 3 | | | | (3 | ) | | (g) | | | — | | | | 12 | | | | (15 | ) | | (g) | | | (3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 1,044 | | | $ | (47 | ) | | | | $ | 997 | | | $ | 1,035 | | | $ | (78 | ) | | | | $ | 957 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per average common share | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.56 | | | $ | (0.07 | ) | | | | $ | 1.49 | | | $ | 1.53 | | | $ | (0.09 | ) | | | | $ | 1.44 | |
| Income (loss) from discontinued operations | | | — | | | | — | | | | | | — | | | | 0.02 | | | | (0.02 | ) | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 1.56 | | | $ | (0.07 | ) | | | | $ | 1.49 | | | $ | 1.55 | | | $ | (0.11 | ) | | | | $ | 1.44 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Diluted: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 1.55 | | | $ | (0.07 | ) | | | | $ | 1.48 | | | $ | 1.51 | | | $ | (0.09 | ) | | | | $ | 1.42 | |
| Income (loss) from discontinued operations | | | — | | | | — | | | | | | — | | | | 0.02 | | | | (0.02 | ) | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 1.55 | | | $ | (0.07 | ) | | | | $ | 1.48 | | | $ | 1.53 | | | $ | (0.11 | ) | | | | $ | 1.42 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 669 | | | | | | | | | | 669 | | | | 669 | | | | | | | | | | 669 | |
| Diluted | | | 675 | | | | | | | | | | 675 | | | | 676 | | | | | | | | | | 676 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mark-to-market (b) | | | | | | $ | 0.03 | | | | | | | | | | | | | $ | 0.03 | | | | | | | |
| Investments in synthetic fuel-producing facilities (c) | | | | | | | (0.06 | ) | | | | | | | | | | | | | 0.07 | | | | | | | |
| PSEG merger costs (d) | | | | | | | (0.02 | ) | | | | | | | | | | | | | (0.01 | ) | | | | | | |
| Nuclear decommissioning obligation reduction (e) | | | | | | | 0.13 | | | | | | | | | | | | | | — | | | | | | | |
| Severance charges and financial impact of Sithe (f),(g) | | | | | | | (0.01 | ) | | | | | | | | | | | | | 0.02 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total adjustments | | | | | | $ | 0.07 | | | | | | | | | | | | | $ | 0.11 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (a) | | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| |
| (b) | | Adjustment to exclude the mark-to-market impact of Exelon’s non-trading activities. |
| |
| (c) | | Adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel-producing facilities, including the impact of mark-to-market gains associated with the related derivatives. |
| |
| (d) | | Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG. |
| |
| (e) | | Adjustment to exclude the decrease in Generation’s nuclear decommissioning obligation liability related to the AmerGen nuclear plants. |
| |
| (f) | | Adjustment to exclude severance charges. |
| |
| (g) | | Adjustment to exclude the financial impact of Generation’s prior investment in Sithe (sold in January 2005). |
8
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings
Per Diluted Share to GAAP Earnings Per Diluted Share
Three Months Ended June 30, 2006 and 2005
| | | | | |
2005 GAAP Earnings per Diluted Share | | $ | 0.76 | |
| | | | | |
2005 Adjusted (non-GAAP) Operating Earnings Adjustments: | | | | |
| Mark-to-Market (1) | | | 0.02 | |
| Investments in Synthetic Fuel-Producing Facilities (2) | | | (0.04 | ) |
| Charges Associated with Exelon’s Anticipated Merger with PSEG (3) | | | 0.01 | |
| | | | |
| | | | | |
2005 Adjusted (non-GAAP) Operating Earnings | | | 0.75 | |
| | | | | |
Year Over Year Effects on Earnings: | | | | |
| ComEd Energy Margins: | | | | |
| Weather (4) | | | (0.03 | ) |
| Other Energy Delivery (5) | | | 0.04 | |
| Net SECA Revenues (6) | | | (0.01 | ) |
| PECO Energy Margins: | | | | |
| Weather (7) | | | (0.01 | ) |
| Other Energy Delivery (8) | | | 0.04 | |
| Generation Energy Margins, Excluding Mark-to-Market (9) | | | 0.16 | |
| Stock-Based Compensation (10) | | | (0.02 | ) |
| Asbestos Reserve (11) | | | 0.04 | |
| Other Operating and Maintenance Expense (12) | | | (0.03 | ) |
| Depreciation and Amortization (13) | | | (0.05 | ) |
| Interest Expense (14) | | | (0.01 | ) |
| Nuclear Decommissioning Trust Fund Rebalancing (15) | | | (0.03 | ) |
| Taxes Other Than Income (16) | | | 0.01 | |
| | | | |
| | | | | |
2006 Adjusted (non-GAAP) Operating Earnings | | | 0.85 | |
| | | | | |
2006 Adjusted (non-GAAP) Operating Earnings Adjustments: | | | | |
| Mark-to-Market (1) | | | 0.06 | |
| Investments in Synthetic Fuel-Producing Facilities (2) | | | (0.08 | ) |
| Charges Associated with Exelon’s Anticipated Merger with PSEG (3) | | | (0.01 | ) |
| Nuclear Decommissioning Obligation Reduction (17) | | | 0.13 | |
| | | | |
| | | | | |
2006 GAAP Earnings per Diluted Share | | $ | 0.95 | |
| | | | |
| | |
| (1) | | Reflects the mark-to-market impact of Exelon’s non-trading activities. |
| |
| (2) | | Reflects the financial impact of Exelon’s investments in synthetic fuel-producing facilities, including the impact of mark-to-market gains associated with the related derivatives and a $69 million impairment charge (after tax) in 2006. |
| |
| (3) | | Reflects certain costs incurred in connection with Exelon’s proposed merger with PSEG. |
| |
| (4) | | Reflects unfavorable weather conditions in the ComEd service territory. |
| |
| (5) | | Reflects increased revenues net of fuel at ComEd primarily due to changes in customer usage and mix, increased residential deliveries (excluding the impact of weather) and increased net transmission revenues. Although customer rates are frozen through 2006, average effective customer rates fluctuate due to the usage patterns of customers. Excludes the effects of the 2006 change in the purchased power agreement with Generation. |
| |
| (6) | | Reflects a decrease in net recognized SECA revenues. |
| |
| (7) | | Reflects unfavorable weather conditions in the PECO service territory. |
| |
| (8) | | Reflects increased revenues at PECO primarily due to authorized electric rate increases, including scheduled CTC rate increases in accordance with PECO’s 1998 restructuring settlement with the PAPUC. |
| |
| (9) | | Reflects higher realized prices on market sales and higher nuclear volumes at Generation. Excludes the impact of the 2006 change in the purchased power agreement with ComEd. |
| |
| (10) | | Reflects increased stock-based compensation costs. |
| |
| (11) | | Reflects the 2005 impact on net income of a reserve recorded by Generation for estimated future asbestos-related bodily injury claims. |
| |
| (12) | | Reflects increased operating and maintenance expense primarily due to inflation and increased bad debt expense at PECO. |
| |
| (13) | | Reflects increased depreciation and amortization primarily due to increased CTC amortization at PECO. |
| |
| (14) | | Reflects increased interest expense, primarily at Generation. |
| |
| (15) | | Reflects the 2005 impact on net income of gains realized on AmerGen’s decommissioning trust fund investments related to changes to the investment strategy. |
| |
| (16) | | Reflects decreased taxes other than income primarily due to favorable tax settlements at PECO in 2006. |
| |
| (17) | | Reflects a decrease in Generation’s nuclear decommissioning obligation liability related to the AmerGen nuclear plants. |
9
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings
to GAAP Earnings By Business Segment (in millions)
Three Months Ended June 30, 2006 and 2005
| | | | | | | | | | | | | | | | | | | | | |
| | | ComEd | | | PECO | | | Generation | | | Other | | | Exelon | |
| | | |
2005 GAAP Earnings | | $ | 109 | | | $ | 110 | | | $ | 296 | | | $ | (1 | ) | | $ | 514 | |
| | | | | | | | | | | | | | | | | | | | | |
2005 Adjusted (non-GAAP) Operating Earnings Adjustments: | | | | | | | | | | | | | | | | | | | | |
| Mark-to-Market (1) | | | — | | | | — | | | | 14 | | | | — | | | | 14 | |
| Investments in Synthetic Fuel-Producing Facilities (2) | | | — | | | | — | | | | — | | | | (29 | ) | | | (29 | ) |
| Charges Associated with Exelon’s Anticipated Merger with PSEG (3) | | | — | | | | 4 | | | | 1 | | | | — | | | | 5 | |
| Severance Charges (4) | | | (2 | ) | | | — | | | | 1 | | | | 2 | | | | 1 | |
| 2005 Financial Impact of Generation’s Prior Investment in Sithe (5) | | | — | | | | — | | | | 1 | | | | — | | | | 1 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
2005 Adjusted (non-GAAP) Operating Earnings | | | 107 | | | | 114 | | | | 313 | | | | (28 | ) | | | 506 | |
| | | | | | | | | | | | | | | | | | | | | |
Year Over Year Effects on Earnings: | | | | | | | | | | | | | | | | | | | | |
| ComEd and PECO Energy Margins: | | | | | | | | | | | | | | | | | | | | |
| Weather (6) | | | (20 | ) | | | (6 | ) | | | — | | | | — | | | | (26 | ) |
| Other Energy Delivery (7) | | | 26 | | | | 24 | | | | — | | | | — | | | | 50 | |
| Net SECA Revenues (8) | | | (4 | ) | | | 1 | | | | — | | | | — | | | | (3 | ) |
| Generation Energy Margins, Excluding Mark-to-Market (9) | | | — | | | | — | | | | 110 | | | | — | | | | 110 | |
| ComEd and Generation PPA Rate Change (10) | | | 30 | | | | — | | | | (30 | ) | | | — | | | | — | |
| Stock-Based Compensation (11) | | | (4 | ) | | | (1 | ) | | | (6 | ) | | | — | | | | (11 | ) |
| Pension and Non-Pension Postretirement Benefits Expense (12) | | | 1 | | | | — | | | | (1 | ) | | | (1 | ) | | | (1 | ) |
| Asbestos Reserve (13) | | | — | | | | — | | | | 27 | | | | — | | | | 27 | |
| Other Operating and Maintenance Expense (14) | | | (4 | ) | | | (14 | ) | | | (11 | ) | | | 6 | | | | (23 | ) |
| Depreciation and Amortization (15) | | | (3 | ) | | | (23 | ) | | | (6 | ) | | | (1 | ) | | | (33 | ) |
| Interest Expense (16) | | | 1 | | | | 3 | | | | (6 | ) | | | (2 | ) | | | (4 | ) |
| Nuclear Decommissioning Trust Fund Rebalancing (17) | | | — | | | | — | | | | (21 | ) | | | — | | | | (21 | ) |
| Taxes Other Than Income (18) | | | 1 | | | | 5 | | | | (1 | ) | | | — | | | | 5 | |
| Other | | | (5 | ) | | | (7 | ) | | | 7 | | | | 6 | | | | 1 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
2006 Adjusted (non-GAAP) Operating Earnings | | | 126 | | | | 96 | | | | 375 | | | | (20 | ) | | | 577 | |
| | | | | | | | | | | | | | | | | | | | | |
2006 Adjusted (non-GAAP) Operating Earnings Adjustments: | | | | | | | | | | | | | | | | | | | | |
| Mark-to-Market (1) | | | 2 | | | | — | | | | 36 | | | | — | | | | 38 | |
| Investments in Synthetic Fuel-Producing Facilities (2) | | | — | | | | — | | | | — | | | | (55 | ) | | | (55 | ) |
| Charges Associated with Exelon’s Anticipated Merger with PSEG (3) | | | (1 | ) | | | (3 | ) | | | (2 | ) | | | (1 | ) | | | (7 | ) |
| Nuclear Decommissioning Obligation Reduction (19) | | | — | | | | — | | | | 89 | | | | — | | | | 89 | |
| 2006 Financial Impact of Generation’s Prior Investment in Sithe (5) | | | — | | | | — | | | | 2 | | | | — | | | | 2 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
2006 GAAP Earnings | | $ | 127 | | | $ | 93 | | | $ | 500 | | | $ | (76 | ) | | $ | 644 | |
| | | |
| | |
| (1) | | Reflects the mark-to-market impact of Exelon’s non-trading activities. |
| |
| (2) | | Reflects the financial impact of Exelon’s investments in synthetic fuel-producing facilities, including the impact of mark-to-market gains associated with the related derivatives and a $69 million impairment charge (after tax) in 2006. |
| |
| (3) | | Reflects certain costs incurred in connection with Exelon’s proposed merger with PSEG. |
| |
| (4) | | Reflects severance charges recorded during the period or adjustments to previously recorded severance reserves. |
| |
| (5) | | Reflects the financial impact of Generation’s prior investment in Sithe (sold in January 2005). |
| |
| (6) | | Reflects unfavorable weather conditions in the ComEd and PECO service territories. |
| |
| (7) | | Reflects increased revenues net of fuel at ComEd primarily due to changes in customer usage and mix, increased residential deliveries (excluding the impact of weather) and increased net transmission revenues. Although customer rates are frozen through 2006, average effective customer rates fluctuate due to the usage patterns of customers. Excludes the effects and the 2006 change in the purchased power agreement with Generation. Also, reflects increased revenues at PECO primarily due to authorized electric rate increases, including scheduled CTC rate increases in accordance with PECO’s 1998 restructuring settlement with the PAPUC. |
| |
| (8) | | Reflects a decrease in net recognized SECA revenues. |
| |
| (9) | | Reflects higher realized prices on market sales and higher nuclear volumes at Generation. Excludes the impact of the 2006 change in the purchased power agreement with ComEd. |
| |
| (10) | | Reflects the impact on net income of decreased prices in accordance with ComEd’s purchased power agreement with Generation. |
| |
| (11) | | Reflects increased stock-based compensation costs. |
| |
| (12) | | Reflects increased pension and non-pension postretirement benefits expense primarily due to changes in actuarial assumptions in 2006. |
| |
| (13) | | Reflects the 2005 impact on net income of a reserve recorded by Generation for estimated future asbestos-related bodily injury claims. |
| |
| (14) | | Reflects increased operating and maintenance expense primarily due to inflation and increased bad debt expense at PECO. |
| |
| (15) | | Reflects increased depreciation and amortization primarily due to increased CTC amortization at PECO. |
| |
| (16) | | Reflects increased interest expense, primarily at Generation. |
| |
| (17) | | Reflects the 2005 impact on net income of gains realized on AmerGen’s decommissioning trust fund investments related to changes to the investment strategy. |
| |
| (18) | | Reflects decreased taxes other than income primarily due to favorable tax settlements at PECO in 2006. |
| |
| (19) | | Reflects a decrease in Generation’s nuclear decommissioning obligation liability related to the AmerGen nuclear plants. |
10
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings
Per Diluted Share to GAAP Earnings Per Diluted Share
Six Months Ended June 30, 2006 and 2005
| | | | | |
2005 GAAP Earnings per Diluted Share | | $ | 1.53 | |
| | | | | |
2005 Adjusted (non-GAAP) Operating Earnings Adjustments: | | | | |
| Mark-to-Market (1) | | | (0.03 | ) |
| Investments in Synthetic Fuel-Producing Facilities (2) | | | (0.07 | ) |
| Charges Associated with Exelon’s Anticipated Merger with PSEG (3) | | | 0.01 | |
| 2005 Financial Impact of Generation’s Prior Investment in Sithe (4) | | | (0.02 | ) |
| | | | |
| | | | | |
2005 Adjusted (non-GAAP) Operating Earnings | | | 1.42 | |
| | | | | |
Year Over Year Effects on Earnings: | | | | |
| ComEd Energy Margins: | | | | |
| Weather (5) | | | (0.04 | ) |
| Other Energy Delivery (6) | | | 0.04 | |
| Net SECA Revenues (7) | | | (0.02 | ) |
| PECO Energy Margins: | | | | |
| Weather (8) | | | (0.04 | ) |
| Other Energy Delivery (9) | | | 0.06 | |
| Generation Energy Margins, Excluding Mark-to-Market (10) | | | 0.30 | |
| Stock-Based Compensation (11) | | | (0.04 | ) |
| Pension and Non-Pension Postretirement Benefits Expense (12) | | | (0.01 | ) |
| Asbestos Reserve (13) | | | 0.04 | |
| Other Operating and Maintenance Expense (14) | | | (0.08 | ) |
| Depreciation and Amortization (15) | | | (0.09 | ) |
| Interest Expense (16) | | | (0.03 | ) |
| Nuclear Decommissioning Trust Fund Rebalancing (17) | | | (0.03 | ) |
| Taxes Other Than Income (18) | | | (0.01 | ) |
| Other | | | 0.01 | |
| | | | |
| | | | | |
2006 Adjusted (non-GAAP) Operating Earnings | | | 1.48 | |
| | | | | |
2006 Adjusted (non-GAAP) Operating Earnings Adjustments: | | | | |
| Mark-to-Market (1) | | | 0.03 | |
| Investments in Synthetic Fuel-Producing Facilities (2) | | | (0.06 | ) |
| Charges Associated with Exelon’s Anticipated Merger with PSEG (3) | | | (0.02 | ) |
| Nuclear Decommissioning Obligation Reduction (19) | | | 0.13 | |
| Severance Charges and 2006 Financial Impact of Generation’s Prior Investment in Sithe (4),(20) | | | (0.01 | ) |
| | | | |
| | | | | |
2006 GAAP Earnings per Diluted Share | | $ | 1.55 | |
| | | | |
| | |
| (1) | | Reflects the mark-to-market impact of Exelon’s non-trading activities. |
| |
| (2) | | Reflects the financial impact of Exelon’s investments in synthetic fuel-producing facilities, including the impact of mark-to-market gains associated with the related derivatives and a $69 million impairment charge (after tax) in 2006. |
| |
| (3) | | Reflects certain costs incurred in connection with Exelon’s proposed merger with PSEG. |
| |
| (4) | | Reflects the financial impact of Generation’s prior investment in Sithe (sold in January 2005). |
| |
| (5) | | Reflects unfavorable weather conditions in the ComEd service territory. |
| |
| (6) | | Reflects increased revenues net of fuel at ComEd primarily due to changes in customer usage and mix, increased residential deliveries (excluding the impact of weather) and increased net transmission revenues. Although customer rates are frozen through 2006, average effective customer rates fluctuate due to the usage patterns of customers. Excludes the effects of the 2006 change in the purchased power agreement with Generation. |
| |
| (7) | | Reflects a decrease in net recognized SECA revenues. |
| |
| (8) | | Reflects unfavorable weather conditions in the PECO service territory. |
| |
| (9) | | Reflects increased revenues at PECO primarily due to authorized electric rate increases, including scheduled CTC rate increases in accordance with PECO’s 1998 restructuring settlement with the PAPUC. |
| |
| (10) | | Reflects higher realized prices on market sales and higher nuclear volumes at Generation. Excludes the impact of the 2006 change in the purchased power agreement with ComEd. |
| |
| (11) | | Reflects increased stock-based compensation costs. |
| |
| (12) | | Reflects increased pension and non-pension postretirement benefits expense primarily due to changes in actuarial assumptions in 2006. |
| |
| (13) | | Reflects the 2005 impact on net income of a reserve recorded by Generation for estimated future asbestos-related bodily injury claims. |
| |
| (14) | | Reflects increased operating and maintenance expense primarily due to inflation, increased bad debt expense at PECO and increased costs at Generation associated with non-outage operating costs and nuclear refueling expenses. |
| |
| (15) | | Reflects increased depreciation and amortization primarily due to increased CTC amortization at PECO. |
| |
| (16) | | Primarily reflects interest expense associated with the debt issued to fund Exelon’s pension contribution that was made at the end of the first quarter of 2005. |
| |
| (17) | | Reflects the 2005 impact on net income of gains realized on AmerGen’s decommissioning trust fund investments related to changes to the investment strategy. |
| |
| (18) | | Reflects increased taxes other than income primarily due to favorable tax settlements at PECO and Generation in the first quarter of 2005, partially offset by favorable tax settlements at PECO in 2006. |
| |
| (19) | | Reflects a decrease in Generation’s nuclear decommissioning obligation liability related to the AmerGen nuclear plants. |
| |
| (20) | | Reflects severance charges recorded during the period or adjustments to previously recorded severance reserves. |
11
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings
to GAAP Earnings By Business Segment (in millions)
Six Months Ended June 30, 2006 and 2005
| | | | | | | | | | | | | | | | | | | | | |
| | | ComEd | | | PECO | | | Generation | | | Other | | | Exelon | |
| | | |
2005 GAAP Earnings | | $ | 179 | | | $ | 239 | | | $ | 616 | | | $ | 1 | | | $ | 1,035 | |
| | | | | | | | | | | | | | | | | | | | | |
2005 Adjusted (non-GAAP) Operating Earnings Adjustments: | | | | | | | | | | | | | | | | | | | | |
| Mark-to-Market (1) | | | — | | | | — | | | | (25 | ) | | | — | | | | (25 | ) |
| Investments in Synthetic Fuel-Producing Facilities (2) | | | — | | | | — | | | | — | | | | (45 | ) | | | (45 | ) |
| Charges Associated with Exelon’s Anticipated Merger with PSEG (3) | | | — | | | | 6 | | | | — | | | | — | | | | 6 | |
| Severance Charges (4) | | | (2 | ) | | | 1 | | | | 1 | | | | 1 | | | | 1 | |
| 2005 Financial Impact of Generation’s Prior Investment in Sithe (5) | | | — | | | | — | | | | (15 | ) | | | — | | | | (15 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
2005 Adjusted (non-GAAP) Operating Earnings | | | 177 | | | | 246 | | | | 577 | | | | (43 | ) | | | 957 | |
| | | | | | | | | | | | | | | | | | | | | |
Year Over Year Effects on Earnings: | | | | | | | | | | | | | | | | | | | | |
| ComEd and PECO Energy Margins: | | | | | | | | | | | | | | | | | | | | |
| Weather (6) | | | (24 | ) | | | (25 | ) | | | — | | | | — | | | | (49 | ) |
| Other Energy Delivery (7) | | | 29 | | | | 42 | | | | — | | | | — | | | | 71 | |
| Net SECA Revenues (8) | | | (14 | ) | | | 1 | | | | — | | | | — | | | | (13 | ) |
| Generation Energy Margins, Excluding Mark-to-Market (9) | | | — | | | | — | | | | 202 | | | | — | | | | 202 | |
| ComEd and Generation PPA Rate Change (10) | | | 48 | | | | — | | | | (48 | ) | | | — | | | | — | |
| Stock-Based Compensation (11) | | | (8 | ) | | | (5 | ) | | | (14 | ) | | | — | | | | (27 | ) |
| Pension and Non-Pension Postretirement Benefits Expense (12) | | | — | | | | (2 | ) | | | (4 | ) | | | — | | | | (6 | ) |
| Asbestos Reserve (13) | | | — | | | | — | | | | 27 | | | | — | | | | 27 | |
| Other Operating and Maintenance Expense (14) | | | (5 | ) | | | (17 | ) | | | (37 | ) | | | 4 | | | | (55 | ) |
| Depreciation and Amortization (15) | | | (4 | ) | | | (46 | ) | | | (10 | ) | | | (2 | ) | | | (62 | ) |
| Interest Expense (16) | | | 1 | | | | 5 | | | | (11 | ) | | | (15 | ) | | | (20 | ) |
| Nuclear Decommissioning Trust Fund Rebalancing (17) | | | — | | | | — | | | | (21 | ) | | | — | | | | (21 | ) |
| Taxes Other Than Income (18) | | | (1 | ) | | | (1 | ) | | | (6 | ) | | | (1 | ) | | | (9 | ) |
| Other | | | (12 | ) | | | (4 | ) | | | 9 | | | | 9 | | | | 2 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
2006 Adjusted (non-GAAP) Operating Earnings | | | 187 | | | | 194 | | | | 664 | | | | (48 | ) | | | 997 | |
| | | | | | | | | | | | | | | | | | | | | |
2006 Adjusted (non-GAAP) Operating Earnings Adjustments: | | | | | | | | | | | | | | | | | | | | |
| Mark-to-Market (1) | | | (5 | ) | | | — | | | | 23 | | | | — | | | | 18 | |
| Investments in Synthetic Fuel-Producing Facilities (2) | | | — | | | | — | | | | — | | | | (42 | ) | | | (42 | ) |
| Charges Associated with Exelon’s Anticipated Merger with PSEG (3) | | | (2 | ) | | | (7 | ) | | | (6 | ) | | | (1 | ) | | | (16 | ) |
| Nuclear Decommissioning Obligation Reduction (19) | | | — | | | | — | | | | 89 | | | | — | | | | 89 | |
| Severance Charges (4) | | | 1 | | | | (1 | ) | | | (1 | ) | | | — | | | | (1 | ) |
| 2006 Financial Impact of Generation’s Prior Investment in Sithe (5) | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
2006 GAAP Earnings | | $ | 181 | | | $ | 186 | | | $ | 768 | | | $ | (91 | ) | | $ | 1,044 | |
| | | |
| | |
| (1) | | Reflects the mark-to-market impact of Exelon’s non-trading activities. |
| |
| (2) | | Reflects the financial impact of Exelon’s investments in synthetic fuel-producing facilities, including the impact of mark-to-market gains associated with the related derivatives and a $69 million impairment charge (after tax) in 2006. |
| |
| (3) | | Reflects certain costs incurred in connection with Exelon’s proposed merger with PSEG. |
| |
| (4) | | Reflects severance charges recorded during the period or adjustments to previously recorded severance reserves. |
| |
| (5) | | Reflects the financial impact of Generation’s prior investment in Sithe (sold in January 2005). |
| |
| (6) | | Reflects unfavorable weather conditions in the ComEd and PECO service territories. |
| |
| (7) | | Reflects increased revenues net of fuel at ComEd primarily due to changes in customer usage and mix, increased residential deliveries (excluding the impact of weather) and increased net transmission revenues. Although customer rates are frozen through 2006, average effective customer rates fluctuate due to the usage patterns of customers. Excludes the effects of the 2006 change in the purchased power agreement with Generation. Also, reflects increased revenues at PECO primarily due to authorized electric rate increases, including scheduled CTC rate increases in accordance with PECO’s 1998 restructuring settlement with the PAPUC. |
| |
| (8) | | Reflects a decrease in net recognized SECA revenues. |
| |
| (9) | | Reflects higher realized prices on market sales and higher nuclear volumes at Generation. Excludes the impact of the 2006 change in the purchased power agreement with ComEd. |
| |
| (10) | | Reflects the impact on net income of decreased prices in accordance with ComEd’s purchased power agreement with Generation. |
| |
| (11) | | Reflects increased stock-based compensation costs. |
| |
| (12) | | Reflects increased pension and non-pension postretirement benefits expense primarily due to changes in actuarial assumptions in 2006. |
| |
| (13) | | Reflects the 2005 impact on net income of a reserve recorded by Generation for estimated future asbestos-related bodily injury claims. |
| |
| (14) | | Reflects increased operating and maintenance expense primarily due to inflation, increased bad debt expense at PECO and increased costs at Generation associated with non-outage operating costs and nuclear refueling expenses. |
| |
| (15) | | Reflects increased depreciation and amortization primarily due to increased CTC amortization at PECO. |
| |
| (16) | | Primarily reflects interest expense associated with the debt issued to fund Exelon’s pension contribution that was made at the end of the first quarter of 2005. |
| |
| (17) | | Reflects the 2005 impact on net income of gains realized on AmerGen’s decommissioning trust fund investments related to changes to the investment strategy. |
| |
| (18) | | Reflects increased taxes other than income primarily due to favorable tax settlements at PECO and Generation in the first quarter of 2005, partially offset by favorable tax settlements at PECO in 2006. |
| |
| (19) | | Reflects a decrease in Generation’s nuclear decommissioning obligation liability related to the AmerGen nuclear plants. |
12
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Income
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | ComEd | |
| | | Three Months Ended June 30, 2006 | | | Three Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | 1,453 | | | $ | (3 | ) | | (b) | | $ | 1,450 | | | $ | 1,488 | | | $ | — | | | | | $ | 1,488 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 766 | | | | — | | | | | | 766 | | | | 858 | | | | — | | | | | | 858 | |
| Operating and maintenance | | | 218 | | | | (2 | ) | | (c) | | | 216 | | | | 202 | | | | 3 | | | (d) | | | 205 | |
| Depreciation and amortization | | | 106 | | | | — | | | | | | 106 | | | | 101 | | | | — | | | | | | 101 | |
| Taxes other than income | | | 71 | | | | — | | | | | | 71 | | | | 73 | | | | — | | | | | | 73 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 1,161 | | | | (2 | ) | | | | | 1,159 | | | | 1,234 | | | | 3 | | | | | | 1,237 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 292 | | | | (1 | ) | | | | | 291 | | | | 254 | | | | (3 | ) | | | | | 251 | |
| | | | | | | | | | | | | | �� | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (77 | ) | | | — | | | | | | (77 | ) | | | (77 | ) | | | — | | | | | | (77 | ) |
| Equity in losses of unconsolidated affiliates | | | (3 | ) | | | — | | | | | | (3 | ) | | | (4 | ) | | | — | | | | | | (4 | ) |
| Other, net | | | 1 | | | | — | | | | | | 1 | | | | 7 | | | | — | | | | | | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (79 | ) | | | — | | | | | | (79 | ) | | | (74 | ) | | | — | | | | | | (74 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 213 | | | | (1 | ) | | | | | 212 | | | | 180 | | | | (3 | ) | | | | | 177 | |
Income taxes | | | 86 | | | | — | | | (b),(c) | | | 86 | | | | 71 | | | | (1 | ) | | (d) | | | 70 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 127 | | | $ | (1 | ) | | | | $ | 126 | | | $ | 109 | | | $ | (2 | ) | | | | $ | 107 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2006 | | | Six Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | 2,880 | | | $ | 8 | | | (b) | | $ | 2,888 | | | $ | 2,875 | | | $ | — | | | | | $ | 2,875 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 1,628 | | | | — | | | | | | 1,628 | | | | 1,679 | | | | — | | | | | | 1,679 | |
| Operating and maintenance | | | 434 | | | | (3 | ) | | (c),(d) | | | 431 | | | | 404 | | | | 4 | | | (d) | | | 408 | |
| Depreciation and amortization | | | 205 | | | | — | | | | | | 205 | | | | 198 | | | | — | | | | | | 198 | |
| Taxes other than income | | | 152 | | | | — | | | | | | 152 | | | | 151 | | | | — | | | | | | 151 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 2,419 | | | | (3 | ) | | | | | 2,416 | | | | 2,432 | | | | 4 | | | | | | 2,436 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 461 | | | | 11 | | | | | | 472 | | | | 443 | | | | (4 | ) | | | | | 439 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (153 | ) | | | — | | | | | | (153 | ) | | | (151 | ) | | | — | | | | | | (151 | ) |
| Equity in losses of unconsolidated affiliates | | | (5 | ) | | | — | | | | | | (5 | ) | | | (8 | ) | | | — | | | | | | (8 | ) |
| Other, net | | | 1 | | | | — | | | | | | 1 | | | | 13 | | | | — | | | | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (157 | ) | | | — | | | | | | (157 | ) | | | (146 | ) | | | — | | | | | | (146 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | | 304 | | | | 11 | | | | | | 315 | | | | 297 | | | | (4 | ) | | | | | 293 | |
Income taxes | | | 123 | | | | 5 | | | (b),(c),(d) | | | 128 | | | | 118 | | | | (2 | ) | | (d) | | | 116 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 181 | | | $ | 6 | | | | | $ | 187 | | | $ | 179 | | | $ | (2 | ) | | | | $ | 177 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (a) | | Results reported in accordance with GAAP. |
| |
| (b) | | Adjustment to exclude the mark-to-market impact of one wholesale contract at ComEd. |
| |
| (c) | | Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG. |
| |
| (d) | | Adjustment to exclude severance charges and adjustments to previously recorded severance reserves. |
13
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Income
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | PECO | |
| | | Three Months Ended June 30, 2006 | | | Three Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | 1,148 | | | $ | — | | | | | $ | 1,148 | | | $ | 1,044 | | | $ | — | | | | | $ | 1,044 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 501 | | | | — | | | | | | 501 | | | | 437 | | | | — | | | | | | 437 | |
| Fuel | | | 76 | | | | — | | | | | | 76 | | | | 66 | | | | — | | | | | | 66 | |
| Operating and maintenance | | | 141 | | | | (2 | ) | | (b) | | | 139 | | | | 119 | | | | (3 | ) | | (b) | | | 116 | |
| Depreciation and amortization | | | 172 | | | | (3 | ) | | (b) | | | 169 | | | | 137 | | | | (3 | ) | | (b) | | | 134 | |
| Taxes other than income | | | 53 | | | | — | | | | | | 53 | | | | 60 | | | | — | | | | | | 60 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 943 | | | | (5 | ) | | | | | 938 | | | | 819 | | | | (6 | ) | | | | | 813 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 205 | | | | 5 | | | | | | 210 | | | | 225 | | | | 6 | | | | | | 231 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (67 | ) | | | — | | | | | | (67 | ) | | | (70 | ) | | | — | | | | | | (70 | ) |
| Equity in losses of unconsolidated affiliates | | | (2 | ) | | | — | | | | | | (2 | ) | | | (4 | ) | | | — | | | | | | (4 | ) |
| Other, net | | | 2 | | | | — | | | | | | 2 | | | | 6 | | | | — | | | | | | 6 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (67 | ) | | | — | | | | | | (67 | ) | | | (68 | ) | | | — | | | | | | (68 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 138 | | | | 5 | | | | | | 143 | | | | 157 | | | | 6 | | | | | | 163 | |
Income taxes | | | 45 | | | | 2 | | | (b) | | | 47 | | | | 47 | | | | 2 | | | (b) | | | 49 | |
| | | | | | | | | �� | | | | | | | | | | | | | | |
Net income | | $ | 93 | | | $ | 3 | | | | | $ | 96 | | | $ | 110 | | | $ | 4 | | | | | $ | 114 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2006 | | | Six Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | 2,554 | | | $ | — | | | | | $ | 2,554 | | | $ | 2,339 | | | $ | — | | | | | $ | 2,339 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 987 | | | | — | | | | | | 987 | | | | 869 | | | | — | | | | | | 869 | |
| Fuel | | | 402 | | | | — | | | | | | 402 | | | | 331 | | | | — | | | | | | 331 | |
| Operating and maintenance | | | 289 | | | | (5 | ) | | (b),(c) | | | 284 | | | | 253 | | | | (4 | ) | | (b),(c) | | | 249 | |
| Depreciation and amortization | | | 343 | | | | (7 | ) | | (b) | | | 336 | | | | 273 | | | | (6 | ) | | (b) | | | 267 | |
| Taxes other than income | | | 117 | | | | — | | | | | | 117 | | | | 115 | | | | — | | | | | | 115 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 2,138 | | | | (12 | ) | | | | | 2,126 | | | | 1,841 | | | | (10 | ) | | | | | 1,831 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 416 | | | | 12 | | | | | | 428 | | | | 498 | | | | 10 | | | | | | 508 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (136 | ) | | | — | | | | | | (136 | ) | | | (142 | ) | | | — | | | | | | (142 | ) |
| Equity in losses of unconsolidated affiliates | | | (6 | ) | | | — | | | | | | (6 | ) | | | (8 | ) | | | — | | | | | | (8 | ) |
| Other, net | | | 5 | | | | — | | | | | | 5 | | | | 9 | | | | — | | | | | | 9 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (137 | ) | | | — | | | | | | (137 | ) | | | (141 | ) | | | — | | | | | | (141 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 279 | | | | 12 | | | | | | 291 | | | | 357 | | | | 10 | | | | | | 367 | |
Income taxes | | | 93 | | | | 4 | | | (b),(c) | | | 97 | | | | 118 | | | | 3 | | | (b),(c) | | | 121 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 186 | | | $ | 8 | | | | | $ | 194 | | | $ | 239 | | | $ | 7 | | | | | $ | 246 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (a) | | Results reported in accordance with GAAP. |
| |
| (b) | | Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG. |
| |
| (c) | | Adjustment to exclude severance charges. |
14
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Income
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Generation | |
| | | Three Months Ended June 30, 2006 | | | Three Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | 2,214 | | | $ | — | | | | | $ | 2,214 | | | $ | 2,105 | | | $ | — | | | | | $ | 2,105 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 418 | | | | 49 | | | (b) | | | 467 | | | | 517 | | | | 15 | | | (b) | | | 532 | |
| Fuel | | | 425 | | | | 9 | | | (b) | | | 434 | | | | 428 | | | | (37 | ) | | (b) | | | 391 | |
| Operating and maintenance | | | 440 | | | | 144 | | | (c),(d) | | | 584 | | | | 602 | | | | (3 | ) | | (c),(f) | | | 599 | |
| Depreciation and amortization | | | 72 | | | | — | | | | | | 72 | | | | 63 | | | | — | | | | | | 63 | |
| Taxes other than income | | | 41 | | | | — | | | | | | 41 | | | | 39 | | | | — | | | | | | 39 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 1,396 | | | | 202 | | | | | | 1,598 | | | | 1,649 | | | | (25 | ) | | | | | 1,624 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 818 | | | | (202 | ) | | | | | 616 | | | | 456 | | | | 25 | | | | | | 481 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (40 | ) | | | 1 | | | (e) | | | (39 | ) | | | (29 | ) | | | — | | | | | | (29 | ) |
| Equity in gains (losses) of unconsolidated affiliates | | | (1 | ) | | | — | | | | | | (1 | ) | | | 4 | | | | — | | | | | | 4 | |
| Other, net | | | 14 | | | | — | | | | | | 14 | | | | 51 | | | | — | | | | | | 51 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (27 | ) | | | 1 | | | | | | (26 | ) | | | 26 | | | | — | | | | | | 26 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 791 | | | | (201 | ) | | | | | 590 | | | | 482 | | | | 25 | | | | | | 507 | |
Income taxes | | | 294 | | | | (79 | ) | | (b),(c),(d),(e) | | | 215 | | | | 185 | | | | 9 | | | (b),(c),(f) | | | 194 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 497 | | | | (122 | ) | | | | | 375 | | | | 297 | | | | 16 | | | | | | 313 | |
Income (loss) from discontinued operations | | | 3 | | | | (3 | ) | | (e) | | | — | | | | (1 | ) | | | 1 | | | (e) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 500 | | | $ | (125 | ) | | | | $ | 375 | | | $ | 296 | | | $ | 17 | | | | | $ | 313 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2006 | | | Six Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | 4,434 | | | $ | — | | | | | $ | 4,434 | | | $ | 4,125 | | | $ | — | | | | | $ | 4,125 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | 781 | | | | 88 | | | (b) | | | 869 | | | | 967 | | | | (4 | ) | | (b) | | | 963 | |
| Fuel | | | 1,036 | | | | (52 | ) | | (b) | | | 984 | | | | 786 | | | | 45 | | | (b) | | | 831 | |
| Operating and maintenance | | | 1,108 | | | | 142 | | | (c),(d),(f) | | | 1,250 | | | | 1,211 | | | | (3 | ) | | (c),(f) | | | 1,208 | |
| Depreciation and amortization | | | 139 | | | | — | | | | | | 139 | | | | 125 | | | | — | | | | | | 125 | |
| Taxes other than income | | | 84 | | | | — | | | | | | 84 | | | | 74 | | | | — | | | | | | 74 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 3,148 | | | | 178 | | | | | | 3,326 | | | | 3,163 | | | | 38 | | | | | | 3,201 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 1,286 | | | | (178 | ) | | | | | 1,108 | | | | 962 | | | | (38 | ) | | | | | 924 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (82 | ) | | | 7 | | | (e) | | | (75 | ) | | | (58 | ) | | | — | | | | | | (58 | ) |
| Equity in gains (losses) of unconsolidated affiliates | | | (5 | ) | | | — | | | | | | (5 | ) | | | 4 | | | | — | | | | | | 4 | |
| Other, net | | | 20 | | | | 4 | | | (c) | | | 24 | | | | 69 | | | | — | | | | | | 69 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (67 | ) | | | 11 | | | | | | (56 | ) | | | 15 | | | | — | | | | | | 15 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 1,219 | | | | (167 | ) | | | | | 1,052 | | | | 977 | | | | (38 | ) | | | | | 939 | |
Income taxes | | | 454 | | | | (66 | ) | | (b),(c),(d),(e),(f) | | | 388 | | | | 376 | | | | (14 | ) | | (b),(c),(f) | | | 362 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | | 765 | | | | (101 | ) | | | | | 664 | | | | 601 | | | | (24 | ) | | | | | 577 | |
Income from discontinued operations | | | 3 | | | | (3 | ) | | (e) | | | — | | | | 15 | | | | (15 | ) | | (e) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 768 | | | $ | (104 | ) | | | | $ | 664 | | | $ | 616 | | | $ | (39 | ) | | | | $ | 577 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (a) | | Results reported in accordance with GAAP. |
| |
| (b) | | Adjustment to exclude the mark-to-market impact of Generation’s non-trading activities. |
| |
| (c) | | Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG. |
| |
| (d) | | Adjustment to exclude the decrease in Generation’s nuclear decommissioning obligation liability related to the AmerGen nuclear plants. |
| |
| (e) | | Adjustment to exclude the financial impact of Generation’s prior investment in Sithe (sold in January 2005). |
| |
| (f) | | Adjustment to exclude severance charges. |
15
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Income
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Other | |
| | | Three Months Ended June 30, 2006 | | | Three Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | (1,118 | ) | | $ | — | | | | | $ | (1,118 | ) | | $ | (1,153 | ) | | $ | — | | | | | $ | (1,153 | ) |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | (1,114 | ) | | | — | | | | | | (1,114 | ) | | | (1,149 | ) | | | — | | | | | | (1,149 | ) |
| Fuel | | | 1 | | | | — | | | | | | 1 | | | | (1 | ) | | | — | | | | | | (1 | ) |
| Operating and maintenance | | | 82 | | | | (97 | ) | | (b),(c) | | | (15 | ) | | | 6 | | | | (13 | ) | | (b),(d) | | | (7 | ) |
| Depreciation and amortization | | | 21 | | | | (11 | ) | | (b) | | | 10 | | | | 24 | | | | (16 | ) | | (b) | | | 8 | |
| Taxes other than income | | | 5 | | | | — | | | | | | 5 | | | | 5 | | | | — | | | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | (1,005 | ) | | | (108 | ) | | | | | (1,113 | ) | | | (1,115 | ) | | | (29 | ) | | | | | (1,144 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating loss | | | (113 | ) | | | 108 | | | | | | (5 | ) | | | (38 | ) | | | 29 | | | | | | (9 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (38 | ) | | | 3 | | | (b) | | | (35 | ) | | | (34 | ) | | | 4 | | | (b) | | | (30 | ) |
| Equity in losses of unconsolidated affiliates | | | (16 | ) | | | 16 | | | (b) | | | — | | | | (28 | ) | | | 28 | | | (b) | | | — | |
| Other, net | | | 29 | | | | (24 | ) | | (b) | | | 5 | | | | 4 | | | | — | | | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (25 | ) | | | (5 | ) | | | | | (30 | ) | | | (58 | ) | | | 32 | | | | | | (26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Loss from continuing operations before income taxes | | | (138 | ) | | | 103 | | | | | | (35 | ) | | | (96 | ) | | | 61 | | | | | | (35 | ) |
Income taxes | | | (62 | ) | | | 47 | | | (b),(c) | | | (15 | ) | | | (96 | ) | | | 88 | | | (b),(d) | | | (8 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Loss from continuing operations | | | (76 | ) | | | 56 | | | | | | (20 | ) | | | — | | | | (27 | ) | | | | | (27 | ) |
Loss from discontinued operations | | | — | | | | — | | | | | | — | | | | (1 | ) | | | — | | | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (76 | ) | | $ | 56 | | | | | $ | (20 | ) | | $ | (1 | ) | | $ | (27 | ) | | | | $ | (28 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2006 | | | Six Months Ended June 30, 2005 | |
| | | | | | | | | | | | | Adjusted | | | | | | | | | | | | | Adjusted | |
| | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Non-GAAP | |
Operating revenues | | $ | (2,309 | ) | | $ | — | | | | | $ | (2,309 | ) | | $ | (2,294 | ) | | $ | — | | | | | $ | (2,294 | ) |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased power | | | (2,300 | ) | | | — | | | | | | (2,300 | ) | | | (2,283 | ) | | | — | | | | | | (2,283 | ) |
| Fuel | | | — | | | | — | | | | | | — | | | | (2 | ) | | | — | | | | | | (2 | ) |
| Operating and maintenance | | | 75 | | | | (101 | ) | | (b),(c) | | | (26 | ) | | | 9 | | | | (30 | ) | | (b),(d) | | | (21 | ) |
| Depreciation and amortization | | | 48 | | | | (28 | ) | | (b) | | | 20 | | | | 48 | | | | (31 | ) | | (b) | | | 17 | |
| Taxes other than income | | | 11 | | | | — | | | | | | 11 | | | | 9 | | | | — | | | | | | 9 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | (2,166 | ) | | | (129 | ) | | | | | (2,295 | ) | | | (2,219 | ) | | | (61 | ) | | | | | (2,280 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating loss | | | (143 | ) | | | 129 | | | | | | (14 | ) | | | (75 | ) | | | 61 | | | | | | (14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | (74 | ) | | | 5 | | | (b) | | | (69 | ) | | | (48 | ) | | | 8 | | | (b) | | | (40 | ) |
| Equity in gains (losses) of unconsolidated affiliates | | | (45 | ) | | | 46 | | | (b) | | | 1 | | | | (56 | ) | | | 56 | | | (b) | | | — | |
| Other, net | | | 65 | | | | (53 | ) | | (b) | | | 12 | | | | 6 | | | | — | | | | | | 6 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (54 | ) | | | (2 | ) | | | | | (56 | ) | | | (98 | ) | | | 64 | | | | | | (34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Loss from continuing operations before income taxes | | | (197 | ) | | | 127 | | | | | | (70 | ) | | | (173 | ) | | | 125 | | | | | | (48 | ) |
Income taxes | | | (106 | ) | | | 84 | | | (b),(c) | | | (22 | ) | | | (177 | ) | | | 169 | | | (b),(d) | | | (8 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | (91 | ) | | | 43 | | | | | | (48 | ) | | | 4 | | | | (44 | ) | | | | | (40 | ) |
Loss from discontinued operations | | | — | | | | — | | | | | | — | | | | (3 | ) | | | — | | | | | | (3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (91 | ) | | $ | 43 | | | | | $ | (48 | ) | | $ | 1 | | | $ | (44 | ) | | | | $ | (43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (a) | | Results reported in accordance with GAAP. |
| |
| (b) | | Adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel-producing facilities, including the impact of mark-to-market gains associated with the related derivatives. |
| |
| (c) | | Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG. |
| |
| (d) | | Adjustment to exclude severance charges. |
16
| |
EXELON CORPORATION
Electric Sales Statistics |
| | | | | | | | | | | | | |
| | | Three Months Ended June 30, | | | | |
| (in GWhs) | | 2006 | | | 2005 | | | % Change | |
Supply | | | | | | | | | | | | |
| Nuclear | | | 35,442 | | | | 34,685 | | | | 2.2 | % |
| Purchased Power — Generation (a) | | | 8,101 | | | | 9,061 | | | | (10.6 | %) |
| Fossil and Hydro | | | 3,148 | | | | 3,246 | | | | (3.0 | %) |
| | | | | | | | | | | |
| Power Team Supply | | | 46,691 | | | | 46,992 | | | | (0.6 | %) |
| Purchased Power — Other | | | 370 | | | | 225 | | | | 64.4 | % |
| | | | | | | | | | | |
| Total Electric Supply Available for Sale | | | 47,061 | | | | 47,217 | | | | (0.3 | %) |
| Less: Line Loss and Company Use | | | (2,550 | ) | | | (2,721 | ) | | | (6.3 | %) |
| | | | | | | | | | | |
| Total Supply | | | 44,511 | | | | 44,496 | | | | 0.0 | % |
| | | | | | | | | | | |
| | | | | | | | | | | | | |
Energy Sales | | | | | | | | | | | | |
| Retail Sales | | | 31,888 | | | | 32,255 | | | | (1.1 | %) |
| Power Team Market Sales (a) | | | 17,065 | | | | 16,912 | | | | 0.9 | % |
| Interchange Sales and Sales to Other Utilities | | | 809 | | | | 689 | | | | 17.4 | % |
| | | | | | | | | | | |
| | | | 49,762 | | | | 49,856 | | | | (0.2 | %) |
| Less: Distribution Only Sales | | | (5,251 | ) | | | (5,360 | ) | | | (2.0 | %) |
| | | | | | | | | | | |
| Total Energy Sales | | | 44,511 | | | | 44,496 | | | | 0.0 | % |
| | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Six Months Ended June 30, | | | | |
| (in GWhs) | | 2006 | | | 2005 | | | % Change | |
Supply | | | | | | | | | | | | |
| Nuclear | | | 68,933 | | | | 67,465 | | | | 2.2 | % |
| Purchased Power — Generation (a) | | | 15,870 | | | | 18,607 | | | | (14.7 | %) |
| Fossil and Hydro | | | 6,119 | | | | 6,383 | | | | (4.1 | %) |
| | | | | | | | | | | |
| Power Team Supply | | | 90,922 | | | | 92,455 | | | | (1.7 | %) |
| Purchased Power — Other | | | 689 | | | | 411 | | | | 67.6 | % |
| | | | | | | | | | | |
| Total Electric Supply Available for Sale | | | 91,611 | | | | 92,866 | | | | (1.4 | %) |
| Less: Line Loss and Company Use | | | (5,086 | ) | | | (4,466 | ) | | | 13.9 | % |
| | | | | | | | | | | |
| Total Supply | | | 86,525 | | | | 88,400 | | | | (2.1 | %) |
| | | | | | | | | | | |
| | | | | | | | | | | | | |
Energy Sales | | | | | | | | | | | | |
| Retail Sales | | | 64,232 | | | | 65,448 | | | | (1.9 | %) |
| Power Team Market Sales (a) | | | 30,045 | | | | 32,557 | | | | (7.7 | %) |
| Interchange Sales and Sales to Other Utilities | | | 1,562 | | | | 1,268 | | | | 23.2 | % |
| | | | | | | | | | | |
| | | | 95,839 | | | | 99,273 | | | | (3.5 | %) |
| Less: Distribution Only Sales | | | (9,314 | ) | | | (10,873 | ) | | | (14.3 | %) |
| | | | | | | | | | | |
| Total Energy Sales | | | 86,525 | | | | 88,400 | | | | (2.1 | %) |
| | | | | | | | | | | |
| | |
| (a) | | Purchased power and market sales do not include trading volume of 7,769 GWhs and 5,660 GWhs for the three months ended June 30, 2006 and 2005, respectively, and 14,754 GWhs and 11,411 GWhs for the six months ended June 30, 2006 and 2005, respectively. |
17
EXELON CORPORATION
ComEd and PECO Sales Statistics
Three Months Ended June 30, 2006 and 2005
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | ComEd | | | PECO | |
| Electric Deliveries (in GWhs) | | 2006 | | | 2005 | | | % Change | | | 2006 | | | 2005 | | | % Change | |
Full Service(a) | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | 6,124 | | | | 6,235 | | | | (1.8 | %) | | | 2,719 | | | | 2,686 | | | | 1.2 | % |
| Small Commercial & Industrial | | | 5,709 | | | | 5,103 | | | | 11.9 | % | | | 1,869 | | | | 1,730 | | | | 8.0 | % |
| Large Commercial & Industrial | | | 2,430 | | | | 2,103 | | | | 15.5 | % | | | 3,875 | | | | 3,705 | | | | 4.6 | % |
| Public Authorities & Electric Railroads | | | 514 | | | | 521 | | | | (1.3 | %) | | | 229 | | | | 205 | | | | 11.7 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total Full Service | | | 14,777 | | | | 13,962 | | | | 5.8 | % | | | 8,692 | | | | 8,326 | | | | 4.4 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
PPO (ComEd Only) | | | | | | | | | | | | | | | | | | | | | | | | |
| Small Commercial & Industrial | | | 814 | | | | 1,433 | | | | (43.2 | %) | | | | | | | | | | | | |
| Large Commercial & Industrial | | | 675 | | | | 1,635 | | | | (58.7 | %) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1,489 | | | | 3,068 | | | | (51.5 | %) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Delivery Only(b) | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | (d | ) | | | (d | ) | | | | | | | 14 | | | | 74 | | | | (81.1 | %) |
| Small Commercial & Industrial | | | 1,291 | | | | 1,495 | | | | (13.6 | %) | | | 163 | | | | 315 | | | | (48.3 | %) |
| Large Commercial & Industrial | | | 3,772 | | | | 3,330 | | | | 13.3 | % | | | 11 | | | | 146 | | | | (92.5 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 5,063 | | | | 4,825 | | | | 4.9 | % | | | 188 | | | | 535 | | | | (64.9 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total PPO and Delivery Only | | | 6,552 | | | | 7,893 | | | | (17.0 | %) | | | 188 | | | | 535 | | | | (64.9 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total Retail Deliveries | | | 21,329 | | | | 21,855 | | | | (2.4 | %) | | | 8,880 | | | | 8,861 | | | | 0.2 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Gas Deliveries (mmcf) (PECO only) | | | | | | | | | | | | | | | 12,431 | | | | 13,417 | | | | (7.3 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue (in millions) | | | | | | | | | | | | | | | | | | | | | | | | |
Full Service(a) | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | $ | 547 | | | $ | 559 | | | | (2.1 | %) | | $ | 392 | | | $ | 359 | | | | 9.2 | % |
| Small Commercial & Industrial | | | 452 | | | | 413 | | | | 9.4 | % | | | 236 | | | | 203 | | | | 16.3 | % |
| Large Commercial & Industrial | | | 130 | | | | 105 | | | | 23.8 | % | | | 319 | | | | 283 | | | | 12.7 | % |
| Public Authorities & Electric Railroads | | | 32 | | | | 32 | | | | 0.0 | % | | | 22 | | | | 19 | | | | 15.8 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total Full Service | | | 1,161 | | | | 1,109 | | | | 4.7 | % | | | 969 | | | | 864 | | | | 12.2 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
PPO (ComEd Only)(c) | | | | | | | | | | | | | | | | | | | | | | | | |
| Small Commercial & Industrial | | | 61 | | | | 99 | | | | (38.4 | %) | | | | | | | | | | | | |
| Large Commercial & Industrial | | | 42 | | | | 93 | | | | (54.8 | %) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | 103 | | | | 192 | | | | (46.4 | %) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Delivery Only(b) | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | (d | ) | | | (d | ) | | | | | | | 1 | | | | 6 | | | | (83.3 | %) |
| Small Commercial & Industrial | | | 21 | | | | 27 | | | | (22.2 | %) | | | 9 | | | | 17 | | | | (47.1 | %) |
| Large Commercial & Industrial | | | 40 | | | | 41 | | | | (2.4 | %) | | | 1 | | | | 4 | | | | (75.0 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 61 | | | | 68 | | | | (10.3 | %) | | | 11 | | | | 27 | | | | (59.3 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total PPO and Delivery Only | | | 164 | | | | 260 | | | | (36.9 | %) | | | 11 | | | | 27 | | | | (59.3 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total Retail Electric Revenue | | | 1,325 | | | | 1,369 | | | | (3.2 | %) | | | 980 | | | | 891 | | | | 10.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Wholesale and Miscellaneous Revenue(e) | | | 125 | | | | 119 | | | | 5.0 | % | | | 60 | | | | 53 | | | | 13.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Mark-to-market wholesale contract | | | 3 | | | | — | | | | n.m. | | | | — | | | | — | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Gas Revenue (PECO only) | | | n/a | | | | n/a | | | | | | | | 108 | | | | 100 | | | | 8.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total Revenues | | $ | 1,453 | | | $ | 1,488 | | | | (2.4 | %) | | $ | 1,148 | | | $ | 1,044 | | | | 10.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Heating and Cooling Degree-Days | | 2006 | | | 2005 | | | Normal | | | 2006 | | | 2005 | | | Normal | |
| Heating Degree-Days | | | 617 | | | | 664 | | | | 794 | | | | 335 | | | | 484 | | | | 488 | |
| Cooling Degree-Days | | | 212 | | | | 314 | | | | 216 | | | | 327 | | | | 327 | | | | 316 | |
| | |
| (a) | | Full service reflects deliveries to customers taking electric service under tariffed rates which include the cost of energy and the cost of the transmission and distribution of the energy. PECO’s tariffed rates also include a competitive transition charge (CTC). |
| |
| (b) | | Delivery only service reflects customers electing to receive electric generation service from an alternative energy supplier. Revenue from customers choosing an alternative energy supplier includes a distribution charge and a CTC. |
| |
| (c) | | Revenue from customers choosing ComEd’s purchase power option (PPO) includes an energy charge at market rates, transmission and distribution charges and a CTC. |
| |
| (d) | | All ComEd residential customers are eligible to choose their supplier of electricity. As of June 30, 2006, one alternative supplier was approved to serve residential customers in the ComEd service territory. However, no residential customers have selected this alternative supplier. |
| |
| (e) | | Wholesale and miscellaneous revenue includes transmission revenue from PJM Interconnection, LLC (PJM), sales to municipalities and other wholesale energy sales. |
| |
| | | n.m. — Not meaningful |
| |
| | | n/a — Not applicable |
18
EXELON CORPORATION
ComEd and PECO Sales Statistics
Six Months Ended June 30, 2006 and 2005
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | ComEd | | | PECO | |
| Electric Deliveries (in GWhs) | | 2006 | | | 2005 | | | % Change | | | 2006 | | | 2005 | | | % Change | |
Full Service(a) | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | 12,921 | | | | 13,346 | | | | (3.2 | %) | | | 5,917 | | | | 5,955 | | | | (0.6 | %) |
| Small Commercial & Industrial | | | 11,028 | | | | 10,211 | | | | 8.0 | % | | | 3,753 | | | | 3,462 | | | | 8.4 | % |
| Large Commercial & Industrial | | | 4,609 | | | | 3,883 | | | | 18.7 | % | | | 7,576 | | | | 7,214 | | | | 5.0 | % |
| Public Authorities & Electric Railroads | | | 1,115 | | | | 1,052 | | | | 6.0 | % | | | 472 | | | | 431 | | | | 9.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total Full Service | | | 29,673 | | | | 28,492 | | | | 4.1 | % | | | 17,718 | | | | 17,062 | | | | 3.8 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
PPO (ComEd Only) | | | | | | | | | | | | | | | | | | | | | | | | |
| Small Commercial & Industrial | | | 2,322 | | | | 2,458 | | | | (5.5 | %) | | | | | | | | | | | | |
| Large Commercial & Industrial | | | 2,198 | | | | 3,119 | | | | (29.5 | %) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4,520 | | | | 5,577 | | | | (19.0 | %) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Delivery Only(b) | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | (d | ) | | | (d | ) | | | | | | | 32 | | | | 178 | | | | (82.0 | %) |
| Small Commercial & Industrial | | | 2,185 | | | | 3,163 | | | | (30.9 | %) | | | 345 | | | | 712 | | | | (51.5 | %) |
| Large Commercial & Industrial | | | 6,723 | | | | 6,488 | | | | 3.6 | % | | | 29 | | | | 332 | | | | (91.3 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 8,908 | | | | 9,651 | | | | (7.7 | %) | | | 406 | | | | 1,222 | | | | (66.8 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total PPO and Delivery Only | | | 13,428 | | | | 15,228 | | | | (11.8 | %) | | | 406 | | | | 1,222 | | | | (66.8 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total Retail Deliveries | | | 43,101 | | | | 43,720 | | | | (1.4 | %) | | | 18,124 | | | | 18,284 | | | | (0.9 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Gas Deliveries (mmcf) (PECO only) | | | | | | | | | | | | | | | 44,232 | | | | 51,096 | | | | (13.4 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue (in millions) | | | | | | | | | | | | | | | | | | | | | | | | |
Full Service(a) | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | $ | 1,096 | | | $ | 1,124 | | | | (2.5 | %) | | $ | 795 | | | $ | 744 | | | | 6.9 | % |
| Small Commercial & Industrial | | | 839 | | | | 784 | | | | 7.0 | % | | | 446 | | | | 386 | | | | 15.5 | % |
| Large Commercial & Industrial | | | 240 | | | | 193 | | | | 24.4 | % | | | 614 | | | | 546 | | | | 12.5 | % |
| Public Authorities & Electric Railroads | | | 68 | | | | 65 | | | | 4.6 | % | | | 43 | | | | 40 | | | | 7.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total Full Service | | | 2,243 | | | | 2,166 | | | | 3.6 | % | | | 1,898 | | | | 1,716 | | | | 10.6 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
PPO (ComEd Only)(c) | | | | | | | | | | | | | | | | | | | | | | | | |
| Small Commercial & Industrial | | | 163 | | | | 165 | | | | (1.2 | %) | | | | | | | | | | | | |
| Large Commercial & Industrial | | | 132 | | | | 171 | | | | (22.8 | %) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | 295 | | | | 336 | | | | (12.2 | %) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Delivery Only(b) | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | (d | ) | | | (d | ) | | | | | | | 2 | | | | 13 | | | | (84.6 | %) |
| Small Commercial & Industrial | | | 33 | | | | 58 | | | | (43.1 | %) | | | 18 | | | | 35 | | | | (48.6 | %) |
| Large Commercial & Industrial | | | 67 | | | | 80 | | | | (16.3 | %) | | | 1 | | | | 9 | | | | (88.9 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 100 | | | | 138 | | | | (27.5 | %) | | | 21 | | | | 57 | | | | (63.2 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total PPO and Delivery Only | | | 395 | | | | 474 | | | | (16.7 | %) | | | 21 | | | | 57 | | | | (63.2 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total Retail Electric Revenue | | | 2,638 | | | | 2,640 | | | | (0.1 | %) | | | 1,919 | | | | 1,773 | | | | 8.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Wholesale and Miscellaneous Revenue(e) | | | 250 | | | | 235 | | | | 6.4 | % | | | 118 | | | | 105 | | | | 12.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Mark-to-market wholesale contract | | | (8 | ) | | | — | | | | n.m. | | | | — | | | | — | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Gas Revenue (PECO only) | | | n/a | | | | n/a | | | | | | | | 517 | | | | 461 | | | | 12.1 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total Revenues | | $ | 2,880 | | | $ | 2,875 | | | | 0.2 | % | | $ | 2,554 | | | $ | 2,339 | | | | 9.2 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Heating and Cooling Degree-Days | | 2006 | | | 2005 | | | Normal | | | 2006 | | | 2005 | | | Normal | |
| Heating Degree-Days | | | 3,358 | | | | 3,744 | | | | 4,060 | | | | 2,522 | | | | 3,108 | | | | 3,047 | |
| Cooling Degree-Days | | | 212 | | | | 315 | | | | 217 | | | | 328 | | | | 327 | | | | 316 | |
| | |
| (a) | | Full service reflects deliveries to customers taking electric service under tariffed rates which include the cost of energy and the cost of the transmission and distribution of the energy. PECO’s tariffed rates also include a CTC. |
| |
| (b) | | Delivery only service reflects customers electing to receive electric generation service from an alternative energy supplier. Revenue from customers choosing an alternative energy supplier includes a distribution charge and a CTC. |
| |
| (c) | | Revenue from customers choosing ComEd’s PPO includes an energy charge at market rates, transmission and distribution charges and a CTC. |
| |
| (d) | | All ComEd residential customers are eligible to choose their supplier of electricity. As of June 30, 2006, one alternative supplier was approved to serve residential customers in the ComEd service territory. However, no residential customers have selected this alternative supplier. |
| |
| (e) | | Wholesale and miscellaneous revenue includes transmission revenue from PJM, sales to municipalities and other wholesale energy sales. |
| |
| | | n.m. — Not meaningful |
| |
| | | n/a — Not applicable |
19
EXELON CORPORATION
Exelon Generation Power Marketing Statistics
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | June 30, 2006 | | | March 31, 2006 | | | December 31, 2005 | | | September 30, 2005 | | | June 30, 2005 | |
GWh Sales | | | | | | | | | | | | | | | | | | | | |
| ComEd | | | 18,685 | | | | 20,309 | | | | 19,749 | | | | 24,331 | | | | 19,625 | |
| PECO | | | 9,262 | | | | 9,615 | | | | 9,404 | | | | 11,442 | | | | 8,957 | |
| Market and Retail Sales | | | 18,744 | | | | 14,308 | | | | 17,431 | | | | 19,525 | | | | 18,410 | |
| | | | | | | | | | | | | | | | |
| Total Sales (a) | | | 46,691 | | | | 44,232 | | | | 46,584 | | | | 55,298 | | | | 46,992 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Average Margin ($/MWh) | | | | | | | | | | | | | | | | | | | | |
| Average Realized Revenue | | | | | | | | | | | | | | | | | | | | |
| ComEd | | $ | 35.80 | | | $ | 37.22 | | | $ | 32.56 | | | $ | 39.87 | | | $ | 38.47 | |
| PECO | | | 46.32 | | | | 43.27 | | | | 42.32 | | | | 44.84 | | | | 42.20 | |
| Market and Retail Sales (b) | | | 50.31 | | | | 52.14 | | | | 49.34 | | | | 53.16 | | | | 42.53 | |
| Total Sales — without trading | | | 43.71 | | | | 43.36 | | | | 40.81 | | | | 45.61 | | | | 40.77 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average Purchased Power and Fuel Cost — without trading (c) | | $ | 17.28 | | | $ | 15.94 | | | $ | 18.78 | | | $ | 27.09 | | | $ | 17.71 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average Margin — without trading (c) | | $ | 26.43 | | | $ | 27.42 | | | $ | 22.03 | | | $ | 18.52 | | | $ | 23.06 | |
| | | | | | | | | | | | | | | | | | | | | |
Around-the-clock Market Prices ($/MWh) | | | | | | | | | | | | | | | | | | | | |
| PECO — PJM West Hub | | $ | 48.07 | | | $ | 56.42 | | | $ | 73.87 | | | $ | 75.33 | | | $ | 47.30 | |
| ComEd — NIHUB | | | 39.28 | | | | 42.48 | | | | 52.81 | | | | 54.75 | | | | 38.35 | |
| | |
| (a) | | Total sales do not include trading volume of 7,769 GHws, 6,985 GWhs, 8,756 GWhs, 6,757 GWhs and 5,660 GWhs for the three months ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively. |
| |
| (b) | | Market and retail sales exclude revenues related to tolling agreements of $34 million, $52 million and $34 million for the three months ended June 30, 2006, September 30, 2005 and June 30, 2005, respectively. |
| |
| (c) | | Excludes the mark-to-market impact of Generation’s non-trading activities. |
20
EXELON CORPORATION
Exelon Generation Power Marketing Statistics
| | | | | | | | | |
| | | Six Months Ended June 30, | |
| | | 2006 | | | 2005 | |
GWh Sales | | | | | | | | |
| ComEd | | | 38,994 | | | | 38,718 | |
| PECO | | | 18,876 | | | | 18,317 | |
| Market and Retail Sales | | | 33,052 | | | | 35,420 | |
| | | | | | | |
| Total Sales (a) | | | 90,922 | | | | 92,455 | |
| | | | | | | |
| | | | | | | | | |
Average Margin ($/MWh) | | | | | | | | |
| Average Realized Revenue | | | | | | | | |
| ComEd | | $ | 36.54 | | | $ | 38.54 | |
| PECO | | | 44.77 | | | | 41.44 | |
| Market and Retail Sales (b) | | | 51.10 | | | | 40.74 | |
| Total Sales — without trading | | | 43.54 | | | | 39.95 | |
| | | | | | | | | |
| Average Purchased Power and Fuel Cost — without trading (c) | | $ | 16.63 | | | $ | 16.48 | |
| | | | | | | | | |
| Average Margin — without trading (c) | | $ | 26.91 | | | $ | 23.47 | |
| | | | | | | | | |
Around-the-clock Market Prices ($/MWh) | | | | | | | | |
| PECO — PJM West Hub | | $ | 52.24 | | | $ | 47.24 | |
| ComEd — NIHUB | | | 40.88 | | | | 39.01 | |
| | | | | | | | | |
2006 Forward market prices — July through December | | | | | | | | |
Around-the-clock Market Prices ($/MWh) | | | | | | | | |
| PECO — PJM West Hub | | $ | 56.80 | | | | | |
| ComEd — NIHUB | | | 41.90 | | | | | |
Gas Prices ($/Mmbtu) | | | | | | | | |
| Henry Hub | | $ | 7.20 | | | | | |
| | |
| (a) | | Total sales do not include trading volume of 14,754 GWhs and 11,411 GWhs for the six months ended June 30, 2006 and 2005, respectively. |
| |
| (b) | | Market and retail sales exclude revenues related to tolling agreements of $34 million for the six months ended June 30, 2006 and 2005. |
| |
| (c) | | Excludes the mark-to-market impact of Generation’s non-trading activities. |
21
