EXHIBIT 99.1
| | | | |
| Contact: | | Stacie Frank | | FOR IMMEDIATE RELEASE |
| | Investor Relations | | |
| | 312-394-3094 | | |
| | |
| | Judy Rader | | |
| | Corporate Communications | | |
| | 312-394-7417 | | |
Exelon Announces Second Quarter Results;
Raises Guidance Range for Full Year 2010 Earnings
CHICAGO(July 22, 2010) – Exelon Corporation (NYSE: EXC) announced second quarter 2010 consolidated earnings as follows:
| | | | | | |
| | | Second Quarter |
| | | 2010 | | 2009 |
Adjusted (non-GAAP) Operating Results: | | | | | | |
Net Income ($ millions) | | $ | 656 | | $ | 683 |
Diluted Earnings per Share | | $ | 0.99 | | $ | 1.03 |
GAAP Results: | | | | | | |
Net Income ($ millions) | | $ | 445 | | $ | 657 |
Diluted Earnings per Share | | $ | 0.67 | | $ | 0.99 |
Chairman and CEO John W. Rowe said, “All three of our companies delivered sound financial and operating performance. As a result, our second quarter earnings results again exceeded our guidance range of $0.80 to $0.90 per share. Exelon Generation achieved a nuclear capacity factor of nearly 95 percent in the second quarter, and ComEd and PECO delivered strong performance amidst severe storms and record hot weather.” Because of favorable first half results, Rowe announced that Exelon has raised its 2010 earnings guidance range from $3.70 to $4.00 per share to $3.80 to $4.10 per share.
Rowe added, “Going forward, we are optimistic about Exelon’s prospects as we evaluate the coming effects of EPA regulation, act on our views of the power market recovery and pursue disciplined organic growth across our regulated and unregulated businesses.”
Second Quarter Operating Results
As shown in the table above, Exelon’s adjusted (non-GAAP) operating earnings decreased to $0.99 per share in the second quarter of 2010 from $1.03 per share in the second quarter of 2009, primarily due to:
| | • | | Lower energy gross margins at Exelon Generation Company, LLC (Generation) largely reflecting unfavorable market and portfolio conditions and increased nuclear fuel costs; |
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| | • | | Increased depreciation and amortization expense primarily related to the higher scheduled competitive transition charge (CTC) amortization expense at PECO Energy Company (PECO) and increased depreciation expense across the operating companies due to ongoing capital expenditures; and |
| | • | | Higher storm costs at Commonwealth Edison Company (ComEd) and PECO. |
Lower second quarter 2010 earnings were partially offset by:
| | • | | The effects of favorable weather conditions in the ComEd and PECO service territories; and |
| | • | | Decreased interest expense at PECO and Exelon Corporate related to lower outstanding debt. |
Adjusted (non-GAAP) operating earnings for the second quarter of 2010 do not include the following items (after tax) that were included in reported GAAP earnings:
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| | | (in millions) | | | (per diluted share) | |
Mark-to-market losses primarily from Generation’s economic hedging activities | | $ | (75 | ) | | $ | (0.11 | ) |
Non-cash remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and related to CTCs received by PECO | | $ | (65 | ) | | $ | (0.10 | ) |
Unrealized losses related to nuclear decommissioning trust (NDT) fund investments to the extent not offset by contractual accounting | | $ | (53 | ) | | $ | (0.08 | ) |
Costs associated with the retirement of certain Generation fossil generating units | | $ | (12 | ) | | $ | (0.02 | ) |
Costs associated with the 2007 Illinois electric rate settlement agreement | | $ | (4 | ) | | $ | (0.01 | ) |
Costs associated with ComEd’s 2007 settlement agreement with the City of Chicago | | $ | (2 | ) | | | — | |
Adjusted (non-GAAP) operating earnings for the second quarter of 2009 did not include the following items (after tax) that were included in reported GAAP earnings:
| | | | | | | | |
| | | (in millions) | | | (per diluted share) | |
Mark-to-market losses primarily from Generation’s economic hedging activities | | $ | (106 | ) | | $ | (0.16 | ) |
Non-cash remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and a reassessment of state deferred tax rates | | $ | 66 | | | $ | 0.10 | |
Unrealized gains related to NDT fund investments to the extent not offset by contractual accounting | | $ | 64 | | | $ | 0.10 | |
Charge for severance costs as a result of headcount reductions as part of Exelon’s cost savings program announced in June 2009 | | $ | (24 | ) | | $ | (0.04 | ) |
Costs associated with the 2007 Illinois electric rate settlement agreement | | $ | (20 | ) | | $ | (0.03 | ) |
External costs related to Exelon’s previously proposed acquisition of NRG Energy, Inc. | | $ | (6 | ) | | $ | (0.01 | ) |
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2010 Earnings Outlook
Exelon raised its guidance range for 2010 adjusted (non-GAAP) operating earnings from $3.70 to $4.00 per share to $3.80 to $4.10 per share. Operating earnings guidance is based on the assumption of normal weather for the balance of the year.
The outlook for 2010 adjusted (non-GAAP) operating earnings for Exelon and its subsidiaries excludes the following items:
| | • | | Mark-to-market adjustments from economic hedging activities |
| | • | | Unrealized gains and losses from NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements |
| | • | | Significant impairments of assets, including goodwill |
| | • | | Changes in decommissioning obligation estimates |
| | • | | Costs associated with the 2007 Illinois electric rate settlement agreement |
| | • | | Costs associated with ComEd’s 2007 settlement with the City of Chicago |
| | • | | Costs associated with the retirement of fossil generating units |
| | • | | Non-cash charge resulting from the passage of Federal health care legislation |
| | • | | Non-cash remeasurement of income tax uncertainties |
| | • | | Significant future changes to GAAP |
Proposed Clean Air Transport Rule
On July 6, 2010, the U.S. Environmental Protection Agency (EPA) published the proposed Clean Air Transport Rule (CATR) as the replacement to the Clean Air Interstate Rule (CAIR) that had been remanded by the U.S. Court of Appeals for the District of Columbia Circuit in 2008. The proposed CATR is one of a number of significant regulations that the EPA expects to issue that will impose more stringent requirements relating to air, water and waste controls on electric generating units. Due to its low carbon generation portfolio, Exelon will not be as significantly affected by these regulations, which would therefore result in a comparative advantage for Exelon relative to electric generators that are more reliant on fossil-fuel plants. After a period of public comments and hearings, a final CATR is expected by mid-2011. Under the proposal, the first phase of nitrogen oxide and sulfur dioxide (SO2) emissions reductions under the CATR will commence in 2012, with further reductions of SO2 emissions proposed to become effective in 2014.
Second Quarter and Recent Highlights
| | • | | Nuclear Operations:Generation’s nuclear fleet, including its owned output from the Salem Generating Station, produced 35,035 gigawatt-hours (GWh) in the second quarter of 2010, compared with 34,995 GWh in the second quarter of 2009. The Exelon-operated nuclear plants achieved a 94.8 percent capacity factor for the second quarter of 2010 compared with 93.9 percent for the second quarter of 2009. The Exelon-operated nuclear plants completed three scheduled refueling outages in the second quarter of 2010, the same number of scheduled refueling outages completed in the second quarter of 2009. During the second quarter of 2010, Byron Unit 2 achieved a 541-day continuous run prior to its refueling outage – a station record. The number of refueling outage days totaled 44 in the second quarter of 2010 versus 57 days in |
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| | the second quarter of 2009. The number of non-refueling outage days at the Exelon-operated plants totaled 15 days in the second quarter of 2010 compared with 21 days in the second quarter of 2009. |
| | • | | Fossil and Hydro Operations: The equivalent demand forced outage rate for Generation’s fossil fleet was 3.8 percent in the second quarter of 2010, compared with 3.0 percent in the second quarter of 2009. The change was largely due to higher forced outages at the Eddystone Generating Station. The equivalent availability factor for the hydroelectric facilities was 98.1 percent in the second quarter of 2010, compared with 98.8 percent in the second quarter of 2009, largely due to a major overhaul at Conowingo Generating Station in 2010. |
| | • | | Hedging Update: Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. Expected generation represents the amount of energy estimated to be generated or purchased through owned or contracted-for capacity. The proportion of expected generation hedged as of June 30, 2010 is 96 to 99 percent for 2010, 86 to 89 percent for 2011 and 57 to 60 percent for 2012. The primary objectives of Exelon’s hedging program are to manage market risks and protect the value of its generation and its investment grade balance sheet while preserving its ability to participate in improving long-term market fundamentals. |
| | • | | Fossil Plant Retirements Update: On May 10, 2010, PJM Interconnection, LLC (PJM) informed Exelon Power that transmission system upgrades, necessary to allow two aging fossil-fuel generating units to retire, can be completed sooner than its original analysis indicated. PJM has determined that Cromby Generating Station Unit 2 and Eddystone Generating Station Unit 2 are needed to remain in operation until December 31, 2011 and December 31, 2012, respectively, to support transmission system reliability. Previously, PJM indicated that it needed Cromby Unit 2 to remain in operation through May 31, 2012, and Eddystone Unit 2 through December 31, 2013. While it originally announced on December 2, 2009 that the units would retire for economic reasons, Exelon Power agreed to extend their operation through the timeframe defined by PJM for system reliability reasons. On June 10, 2010, Exelon filed a reliability-must-run rate schedule with the Federal Energy Regulatory Commission (FERC) to compensate for the costs of maintaining and operating the units beyond May 31, 2011, plus a reasonable return on investment. A FERC decision is expected in the fourth quarter of 2010. Also as originally announced in December 2009, two additional fossil-fuel generating units, Cromby Unit 1 and Eddystone Unit 1, will retire effective May 31, 2011. |
| | • | | ComEd Electric Delivery Rate Case: On June 30, 2010, ComEd filed a rate increase request with the Illinois Commerce Commission (ICC) to allow the utility to continue modernizing its electric delivery system and recover the cost of substantial investments made since the last rate filing in 2007. The requested revenue increase of $396 million would raise the average $86 residential monthly bill by approximately 7 percent or less than $6 per month. The ICC will determine any increase in rates after an 11-month proceeding with input from all stakeholders. If approved, the new rates would not take effect until June 2011. |
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| | • | | PECO Energy Procurement:On June 23, 2010, PECO announced the results of the third of four planned electricity purchases under its Default Service Provider program to serve residential customers that have not chosen a competitive electric generation supplier beginning January 1, 2011. At that time, the prices PECO and its customers pay for electricity will be based on competitive electric market pricing, after having been capped for more than 10 years. |
The latest purchases in May 2010 resulted in an energy price of 7.95 cents per kilowatt hour (kWh) for PECO’s residential customers. PECO’s third procurement also included electricity purchases for the small and medium customer class. When combined with 2009 purchases, the May purchases result in a price of 8.91 cents per kWh for residential customers, 8.66 cents per kWh for small commercial customers, and 8.63 cents per kWh for medium commercial customers. PECO will complete the remaining purchases in September 2010. The results of all four purchases will determine the exact price PECO’s customers will pay for electricity beginning January 1, 2011.
For the large commercial and industrial class, PECO conducted one procurement in May 2010 for full requirements fixed price products at an average winning wholesale bid price of $77.55 per kWh and will conduct one procurement in September 2010 for full requirements spot price products.
OPERATING COMPANY RESULTS
Generationconsists of owned and contracted electric generating facilities, wholesale energy marketing operations and competitive retail sales operations.
Second quarter 2010 net income was $382 million compared with $512 million in the second quarter of 2009. Second quarter 2010 net income included (all after tax) mark-to-market losses of $75 million from economic hedging activities before the elimination of intercompany transactions, a gain of $70 million related to the non-cash remeasurement of income tax uncertainties, unrealized losses of $53 million related to NDT fund investments, costs of $12 million associated with the retirement of certain fossil generating units and a charge of $4 million for costs associated with the 2007 Illinois electric rate settlement. Second quarter 2009 net income included (all after tax) mark-to-market losses of $106 million from economic hedging activities before the elimination of intercompany transactions, unrealized gains of $64 million related to NDT fund investments, the benefit from a reassessment of state deferred income taxes of $38 million, a charge of $18 million for the costs associated with the 2007 Illinois electric rate settlement and a charge of $9 million for the costs incurred for severance. Excluding the effects of these items, Generation’s net income in the second quarter of 2010 decreased $87 million compared with the same quarter last year primarily due to:
| | • | | Lower energy gross margins, largely due to unfavorable market and portfolio conditions, lower pricing from PECO under the power purchase agreement, and higher nuclear fuel costs; and |
| | • | | Higher operating and maintenance expense, primarily reflecting the effect of inflation. |
Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $36.87 per MWh in the second quarter of 2010 compared with $38.96 per MWh in the second quarter of 2009.
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ComEdconsists of the electricity transmission and distribution operations in northern Illinois.
ComEd recorded net income of $9 million in the second quarter of 2010, compared with net income of $116 million in the second quarter of 2009. Second quarter net income in 2010 included an after-tax charge of $106 million related to the non-cash remeasurement of income tax uncertainties and after-tax costs of $2 million for the City of Chicago settlement agreement. Second quarter 2009 net income included (all after tax) the benefit from the non-cash remeasurement of income tax uncertainties of $40 million, a charge of $11 million for the costs incurred for severance, and $2 million for the costs associated with the Illinois electric rate settlement. Excluding the effects of these items, ComEd’s net income in the second quarter of 2010 was up $28 million from the same quarter last year reflecting:
| | • | | The effects of favorable weather conditions; |
| | • | | Projected refunds related to Illinois electric distribution taxes. |
The increase in net income was partially offset by:
In the second quarter of 2010, cooling degree-days in the ComEd service territory were up 76.3 percent relative to the same period in 2009 and were 39.3 percent above normal. ComEd’s total retail electric deliveries increased by 4.9 percent quarter over quarter, with gains in deliveries across all customer classes, primarily driven by the effects of favorable weather conditions.
Weather-normalized retail electric deliveries increased by 1.8 percent from the second quarter of 2009, primarily reflecting customer growth and increased average use per customer. For ComEd, weather had a favorable after-tax effect of $10 million on second quarter 2010 earnings relative to 2009 and a favorable after-tax effect of $5 million relative to normal weather that is incorporated in Exelon’s earnings guidance.
PECO consists of the electricity transmission and distribution operations and the retail natural gas distribution business in southeastern Pennsylvania.
PECO’s net income in the second quarter of 2010 was $75 million, up from $71 million in the second quarter of 2009. Second quarter 2010 net income included an after-tax interest expense charge of $22 million related to the non-cash remeasurement of income tax uncertainties. Second quarter 2009 net income included an after-tax charge of $3 million for the costs incurred for severance. Excluding the effects of these items, PECO’s net income in the second quarter of 2010 was up $23 million from the same quarter last year reflecting:
| | • | | Increased CTC revenue to ensure full recovery of stranded costs during 2010, the final year of the transition period, due to lower than expected sales volume in 2009, which resulted in lower energy prices under the power purchase agreement with Generation; |
| | • | | The effects of favorable weather conditions; and |
| | • | | Lower interest expense on long-term debt. |
The increase in net income was partially offset by:
| | • | | Higher CTC amortization, which was in accordance with PECO’s 1998 Restructuring Settlement with the PAPUC; and |
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In the second quarter of 2010, cooling degree-days in the PECO service territory were up 66.5 percent from 2009 and were 76.5 percent above normal. Total retail electric deliveries were up 7.3 percent from last year, reflecting an increase in deliveries across all customer classes, primarily driven by the effects of favorable weather conditions. On the retail gas side, deliveries in the second quarter of 2010 were down 16.3 percent from the second quarter of 2009, largely reflecting heating degree-days that were 27.8 percent below last year and 34.7 percent below normal.
Weather-normalized retail electric deliveries decreased by 0.7 percent from the second quarter of 2009, primarily reflecting decreased residential and small commercial and industrial deliveries. For PECO, reflecting electric and gas deliveries, weather had a favorable after-tax effect of $22 million on second quarter 2010 earnings relative to 2009 and a favorable after-tax effect of $17 million relative to normal weather that is incorporated in Exelon’s earnings guidance.
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, mark-to-market adjustments from economic hedging activities and unrealized gains and losses from NDT fund investments, 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. Reconciliation of GAAP to adjusted (non-GAAP) operating earnings for historical periods is 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 furnished to the Securities and Exchange Commission on Form 8-K on July 22, 2010.
Conference call information: Exelon has scheduled a conference call for 11:00 AM ET (10:00 AM CT) on July 22, 2010. The call-in number in the U.S. and Canada is 800-690-3108, and the international call-in number is 973-935-8753. If requested, the conference ID number is 85980766. 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 Investors page.)
Telephone replays will be available until August 5. The U.S. and Canada call-in number for replays is 800-642-1687, and the international call-in number is 706-645-9291. The conference ID number is 85980766.
Forward Looking Statements
This press 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’s 2009 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 18; (2) Exelon’s
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Second Quarter 2010 Quarterly Report on Form 10-Q (to be filed on July 22, 2010) in (a) Part II, Other Information, ITEM 1A. Risk Factors, (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 12 and (3) 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 press 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 press release.
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Exelon Corporation is one of the nation’s largest electric utilities with more than $17 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 5.4 million customers in northern Illinois and southeastern Pennsylvania and natural gas to approximately 486,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.
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Earnings Release Attachments
Table of Contents
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Consolidating Statements of Operations - Three Months Ended June 30, 2010 and 2009 | | 1 |
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Consolidating Statements of Operations - Six Months Ended June 30, 2010 and 2009 | | 2 |
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Business Segment Comparative Statements of Operations - Generation and ComEd - Three and Six Months Ended June 30, 2010 and 2009 | | 3 |
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Business Segment Comparative Statements of Operations - PECO and Other - Three and Six Months Ended June 30, 2010 and 2009 | | 4 |
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Consolidated Balance Sheets - June 30, 2010 and December 31, 2009 | | 5 |
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Consolidated Statements of Cash Flows - Six Months Ended June 30, 2010 and 2009 | | 6 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Three Months Ended June 30, 2010 and 2009 | | 7 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Six Months Ended June 30, 2010 and 2009 | | 8 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended June 30, 2010 and 2009 | | 9 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Six Months Ended June 30, 2010 and 2009 | | 10 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Generation - Three and Six Months Ended June 30, 2010 and 2009 | | 11 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - ComEd - Three and Six Months Ended June 30, 2010 and 2009 | | 12 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - PECO - Three and Six Months Ended June 30, 2010 and 2009 | | 13 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Other - Three and Six Months Ended June 30, 2010 and 2009 | | 14 |
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Exelon Generation Statistics - Three Months Ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009 | | 15 |
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Exelon Generation Statistics - Six Months Ended June 30, 2010 and 2009 | | 16 |
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ComEd Statistics - Three and Six Months Ended June 30, 2010 and 2009 | | 17 |
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PECO Statistics - Three and Six Months Ended June 30, 2010 and 2009 | | 18 |
EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
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| | | Three Months Ended June 30, 2010 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon
Consolidated | |
Operating revenues | | $ | 2,353 | | | $ | 1,499 | | | $ | 1,269 | | | $ | (723 | ) | | $ | 4,398 | |
| | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 549 | | | | 771 | | | | 535 | | | | (721 | ) | | | 1,134 | |
Fuel | | | 350 | | | | — | | | | 44 | | | | (1 | ) | | | 393 | |
Operating and maintenance | | | 691 | | | | 276 | | | | 150 | | | | (3 | ) | | | 1,114 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 21 | | | | 13 | | | | — | | | | 34 | |
Depreciation and amortization | | | 115 | | | | 131 | | | | 268 | | | | 5 | | | | 519 | |
Taxes other than income | | | 61 | | | | 44 | | | | 77 | | | | 4 | | | | 186 | |
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Total operating expenses | | | 1,766 | | | | 1,243 | | | | 1,087 | | | | (716 | ) | | | 3,380 | |
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Operating income (loss) | | | 587 | | | | 256 | | | | 182 | | | | (7 | ) | | | 1,018 | |
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Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (37 | ) | | | (134 | ) | | | (77 | ) | | | (27 | ) | | | (275 | ) |
Other, net | | | (133 | ) | | | 8 | | | | (1 | ) | | | 4 | | | | (122 | ) |
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Total other income and deductions | | | (170 | ) | | | (126 | ) | | | (78 | ) | | | (23 | ) | | | (397 | ) |
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Income (loss) before income taxes | | | 417 | | | | 130 | | | | 104 | | | | (30 | ) | | | 621 | |
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Income taxes | | | 35 | | | | 121 | | | | 29 | | | | (9 | ) | | | 176 | |
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Net income (loss) | | $ | 382 | | | $ | 9 | | | $ | 75 | | | $ | (21 | ) | | $ | 445 | |
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| | | Three Months Ended June 30, 2009 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon
Consolidated | |
Operating revenues | | $ | 2,378 | | | $ | 1,389 | | | $ | 1,204 | | | $ | (830 | ) | | $ | 4,141 | |
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Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 485 | | | | 715 | | | | 547 | | | | (826 | ) | | | 921 | |
Fuel | | | 406 | | | | — | | | | 55 | | | | (1 | ) | | | 460 | |
Operating and maintenance | | | 689 | | | | 270 | | | | 149 | | | | 3 | | | | 1,111 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 14 | | | | — | | | | — | | | | 14 | |
Depreciation and amortization | | | 72 | | | | 124 | | | | 230 | | | | 13 | | | | 439 | |
Taxes other than income | | | 50 | | | | 57 | | | | 69 | | | | 4 | | | | 180 | |
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Total operating expenses | | | 1,702 | | | | 1,180 | | | | 1,050 | | | | (807 | ) | | | 3,125 | |
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Operating income (loss) | | | 676 | | | | 209 | | | | 154 | | | | (23 | ) | | | 1,016 | |
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Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (24 | ) | | | (75 | ) | | | (49 | ) | | | (32 | ) | | | (180 | ) |
Loss in equity method investments | | | — | | | | — | | | | (6 | ) | | | — | | | | (6 | ) |
Other, net | | | 215 | | | | 55 | | | | 3 | | | | (16 | ) | | | 257 | |
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Total other income and deductions | | | 191 | | | | (20 | ) | | | (52 | ) | | | (48 | ) | | | 71 | |
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Income (loss) before income taxes | | | 867 | | | | 189 | | | | 102 | | | | (71 | ) | | | 1,087 | |
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Income taxes | | | 355 | | | | 73 | | | | 31 | | | | (29 | ) | | | 430 | |
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Net income (loss) | | $ | 512 | | | $ | 116 | | | $ | 71 | | | $ | (42 | ) | | $ | 657 | |
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| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
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EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2010 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon
Consolidated | |
Operating revenues | | $ | 4,773 | | | $ | 2,914 | | | $ | 2,724 | | | $ | (1,552 | ) | | $ | 8,859 | |
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Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 757 | | | | 1,524 | | | | 1,059 | | | | (1,548 | ) | | | 1,792 | |
Fuel | | | 740 | | | | — | | | | 255 | | | | (1 | ) | | | 994 | |
Operating and maintenance | | | 1,432 | | | | 435 | | | | 331 | | | | (23 | ) | | | 2,175 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 40 | | | | 21 | | | | — | | | | 61 | |
Depreciation and amortization | | | 223 | | | | 261 | | | | 533 | | | | 16 | | | | 1,033 | |
Taxes other than income | | | 118 | | | | 107 | | | | 150 | | | | 8 | | | | 383 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total operating expenses | | | 3,270 | | | | 2,367 | | | | 2,349 | | | | (1,548 | ) | | | 6,438 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Operating income (loss) | | | 1,503 | | | | 547 | | | | 375 | | | | (4 | ) | | | 2,421 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (72 | ) | | | (218 | ) | | | (122 | ) | | | (47 | ) | | | (459 | ) |
Other, net | | | (54 | ) | | | 11 | | | | 4 | | | | 10 | | | | (29 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total other income and deductions | | | (126 | ) | | | (207 | ) | | | (118 | ) | | | (37 | ) | | | (488 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) before income taxes | | | 1,377 | | | | 340 | | | | 257 | | | | (41 | ) | | | 1,933 | |
| | | | | |
Income taxes | | | 434 | | | | 215 | | | | 81 | | | | 9 | | | | 739 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income (loss) | | $ | 943 | | | $ | 125 | | | $ | 176 | | | $ | (50 | ) | | $ | 1,194 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended June 30, 2009 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon
Consolidated | |
Operating revenues | | $ | 4,979 | | | $ | 2,942 | | | $ | 2,718 | | | $ | (1,776 | ) | | $ | 8,863 | |
| | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 660 | | | | 1,598 | | | | 1,116 | | | | (1,770 | ) | | | 1,604 | |
Fuel | | | 915 | | | | — | | | | 321 | | | | — | | | | 1,236 | |
Operating and maintenance | | | 1,617 | | | | 522 | | | | 327 | | | | 6 | | | | 2,472 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 25 | | | | — | | | | — | | | | 25 | |
Depreciation and amortization | | | 149 | | | | 246 | | | | 455 | | | | 25 | | | | 875 | |
Taxes other than income | | | 100 | | | | 136 | | | | 135 | | | | 9 | | | | 380 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total operating expenses | | | 3,441 | | | | 2,527 | | | | 2,354 | | | | (1,730 | ) | | | 6,592 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Operating income (loss) | | | 1,538 | | | | 415 | | | | 364 | | | | (46 | ) | | | 2,271 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (52 | ) | | | (159 | ) | | | (99 | ) | | | (57 | ) | | | (367 | ) |
Loss in equity method investments | | | (1 | ) | | | — | | | | (12 | ) | | | (1 | ) | | | (14 | ) |
Other, net | | | 133 | | | | 87 | | | | 6 | | | | (7 | ) | | | 219 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total other income and deductions | | | 80 | | | | (72 | ) | | | (105 | ) | | | (65 | ) | | | (162 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) before income taxes | | | 1,618 | | | | 343 | | | | 259 | | | | (111 | ) | | | 2,109 | |
| | | | | |
Income taxes | | | 577 | | | | 113 | | | | 76 | | | | (26 | ) | | | 740 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income (loss) | | $ | 1,041 | | | $ | 230 | | | $ | 183 | | | $ | (85 | ) | | $ | 1,369 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
2
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Generation | |
| | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2010 | | | 2009 | | | Variance | | | 2010 | | | 2009 | | | Variance | |
Operating revenues | | $ | 2,353 | | | $ | 2,378 | | | $ | (25 | ) | | $ | 4,773 | | | $ | 4,979 | | | $ | (206 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 549 | | | | 485 | | | | 64 | | | | 757 | | | | 660 | | | | 97 | |
Fuel | | | 350 | | | | 406 | | | | (56 | ) | | | 740 | | | | 915 | | | | (175 | ) |
Operating and maintenance | | | 691 | | | | 689 | | | | 2 | | | | 1,432 | | | | 1,617 | | | | (185 | ) |
Depreciation and amortization | | | 115 | | | | 72 | | | | 43 | | | | 223 | | | | 149 | | | | 74 | |
Taxes other than income | | | 61 | | | | 50 | | | | 11 | | | | 118 | | | | 100 | | | | 18 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,766 | | | | 1,702 | | | | 64 | | | | 3,270 | | | | 3,441 | | | | (171 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 587 | | | | 676 | | | | (89 | ) | | | 1,503 | | | | 1,538 | | | | (35 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (37 | ) | | | (24 | ) | | | (13 | ) | | | (72 | ) | | | (52 | ) | | | (20 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | — | | | | (1 | ) | | | 1 | |
Other, net | | | (133 | ) | | | 215 | | | | (348 | ) | | | (54 | ) | | | 133 | | | | (187 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (170 | ) | | | 191 | | | | (361 | ) | | | (126 | ) | | | 80 | | | | (206 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 417 | | | | 867 | | | | (450 | ) | | | 1,377 | | | | 1,618 | | | | (241 | ) |
| | | | | | |
Income taxes | | | 35 | | | | 355 | | | | (320 | ) | | | 434 | | | | 577 | | | | (143 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 382 | | | $ | 512 | | | $ | (130 | ) | | $ | 943 | | | $ | 1,041 | | | $ | (98 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | ComEd | |
| | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2010 | | | 2009 | | | Variance | | | 2010 | | | 2009 | | | Variance | |
Operating revenues | | $ | 1,499 | | | $ | 1,389 | | | $ | 110 | | | $ | 2,914 | | | $ | 2,942 | | | $ | (28 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 771 | | | | 715 | | | | 56 | | | | 1,524 | | | | 1,598 | | | | (74 | ) |
Operating and maintenance | | | 276 | | | | 270 | | | | 6 | | | | 435 | | | | 522 | | | | (87 | ) |
Operating and maintenance for regulatory required programs (a) | | | 21 | | | | 14 | | | | 7 | | | | 40 | | | | 25 | | | | 15 | |
Depreciation and amortization | | | 131 | | | | 124 | | | | 7 | | | | 261 | | | | 246 | | | | 15 | |
Taxes other than income | | | 44 | | | | 57 | | | | (13 | ) | | | 107 | | | | 136 | | | | (29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,243 | | | | 1,180 | | | | 63 | | | | 2,367 | | | | 2,527 | | | | (160 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 256 | | | | 209 | | | | 47 | | | | 547 | | | | 415 | | | | 132 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (134 | ) | | | (75 | ) | | | (59 | ) | | | (218 | ) | | | (159 | ) | | | (59 | ) |
Other, net | | | 8 | | | | 55 | | | | (47 | ) | | | 11 | | | | 87 | | | | (76 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (126 | ) | | | (20 | ) | | | (106 | ) | | | (207 | ) | | | (72 | ) | | | (135 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 130 | | | | 189 | | | | (59 | ) | | | 340 | | | | 343 | | | | (3 | ) |
| | | | | | |
Income taxes | | | 121 | | | | 73 | | | | 48 | | | | 215 | | | | 113 | | | | 102 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 9 | | | $ | 116 | | | $ | (107 | ) | | $ | 125 | | | $ | 230 | | | $ | (105 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
3
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | PECO | |
| | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2010 | | | 2009 | | | Variance | | | 2010 | | | 2009 | | | Variance | |
Operating revenues | | $ | 1,269 | | | $ | 1,204 | | | $ | 65 | | | $ | 2,724 | | | $ | 2,718 | | | $ | 6 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 535 | | | | 547 | | | | (12 | ) | | | 1,059 | | | | 1,116 | | | | (57 | ) |
Fuel | | | 44 | | | | 55 | | | | (11 | ) | | | 255 | | | | 321 | | | | (66 | ) |
Operating and maintenance | | | 150 | | | | 149 | | | | 1 | | | | 331 | | | | 327 | | | | 4 | |
Operating and maintenance for regulatory required programs (a) | | | 13 | | | | — | | | | 13 | | | | 21 | | | | — | | | | 21 | |
Depreciation and amortization | | | 268 | | | | 230 | | | | 38 | | | | 533 | | | | 455 | | | | 78 | |
Taxes other than income | | | 77 | | | | 69 | | | | 8 | | | | 150 | | | | 135 | | | | 15 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,087 | | | | 1,050 | | | | 37 | | | | 2,349 | | | | 2,354 | | | | (5 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 182 | | | | 154 | | | | 28 | | | | 375 | | | | 364 | | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (77 | ) | | | (49 | ) | | | (28 | ) | | | (122 | ) | | | (99 | ) | | | (23 | ) |
Loss in equity method investments | | | — | | | | (6 | ) | | | 6 | | | | — | | | | (12 | ) | | | 12 | |
Other, net | | | (1 | ) | | | 3 | | | | (4 | ) | | | 4 | | | | 6 | | | | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (78 | ) | | | (52 | ) | | | (26 | ) | | | (118 | ) | | | (105 | ) | | | (13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 104 | | | | 102 | | | | 2 | | | | 257 | | | | 259 | | | | (2 | ) |
| | | | | | |
Income taxes | | | 29 | | | | 31 | | | | (2 | ) | | | 81 | | | | 76 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 75 | | | $ | 71 | | | $ | 4 | | | $ | 176 | | | $ | 183 | | | $ | (7 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Other (b) | |
| | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2010 | | | 2009 | | | Variance | | | 2010 | | | 2009 | | | Variance | |
Operating revenues | | $ | (723 | ) | | $ | (830 | ) | | $ | 107 | | | $ | (1,552 | ) | | $ | (1,776 | ) | | $ | 224 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | (721 | ) | | | (826 | ) | | | 105 | | | | (1,548 | ) | | | (1,770 | ) | | | 222 | |
Fuel | | | (1 | ) | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
Operating and maintenance | | | (3 | ) | | | 3 | | | | (6 | ) | | | (23 | ) | | | 6 | | | | (29 | ) |
Depreciation and amortization | | | 5 | | | | 13 | | | | (8 | ) | | | 16 | | | | 25 | | | | (9 | ) |
Taxes other than income | | | 4 | | | | 4 | | | | — | | | | 8 | | | | 9 | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | (716 | ) | | | (807 | ) | | | 91 | | | | (1,548 | ) | | | (1,730 | ) | | | 182 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating loss | | | (7 | ) | | | (23 | ) | | | 16 | | | | (4 | ) | | | (46 | ) | | | 42 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (27 | ) | | | (32 | ) | | | 5 | | | | (47 | ) | | | (57 | ) | | | 10 | |
Loss in equity method investments | | | — | | | | — | | | | — | | | | — | | | | (1 | ) | | | 1 | |
Other, net | | | 4 | | | | (16 | ) | | | 20 | | | | 10 | | | | (7 | ) | | | 17 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (23 | ) | | | (48 | ) | | | 25 | | | | (37 | ) | | | (65 | ) | | | 28 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loss before income taxes | | | (30 | ) | | | (71 | ) | | | 41 | | | | (41 | ) | | | (111 | ) | | | 70 | |
| | | | | | |
Income taxes | | | (9 | ) | | | (29 | ) | | | 20 | | | | 9 | | | | (26 | ) | | | 35 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net loss | | $ | (21 | ) | | $ | (42 | ) | | $ | 21 | | | $ | (50 | ) | | $ | (85 | ) | | $ | 35 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (b) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
4
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)
| | | | | | | | |
| | | June 30,
2010 | | | December 31,
2009 | |
Assets | | | | | | | | |
| | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 1,168 | | | $ | 2,010 | |
Restricted cash and investments | | | 33 | | | | 40 | |
Restricted cash and cash equivalents of variable interest entity | | | 426 | | | | — | |
Accounts receivable, net | | | | | | | | |
Customer | | | 1,886 | | | | 1,563 | |
Other | | | 451 | | | | 486 | |
Mark-to-market derivative assets | | | 418 | | | | 376 | |
Inventories, net | | | | | | | | |
Fossil fuel | | | 174 | | | | 198 | |
Materials and supplies | | | 585 | | | | 559 | |
Other | | | 459 | | | | 209 | |
| | | | | | | | |
| | |
Total current assets | | | 5,600 | | | | 5,441 | |
| | | | | | | | |
| | |
Property, plant and equipment, net | | | 28,030 | | | | 27,341 | |
| | |
Deferred debits and other assets | | | | | | | | |
Regulatory assets | | | 4,380 | | | | 4,872 | |
Nuclear decommissioning trust (NDT) funds | | | 6,498 | | | | 6,669 | |
Investments | | | 723 | | | | 724 | |
Goodwill | | | 2,625 | | | | 2,625 | |
Mark-to-market derivative assets | | | 627 | | | | 649 | |
Other | | | 690 | | | | 859 | |
| | | | | | | | |
| | |
Total deferred debits and other assets | | | 15,543 | | | | 16,398 | |
| | | | | | | | |
Total assets | | $ | 49,173 | | | $ | 49,180 | |
| | | | | | | | |
| | |
Liabilities and shareholders’ equity | | | | | | | | |
Current liabilities | | | | | | | | |
Short-term borrowings | | $ | 289 | | | $ | 155 | |
Short-term notes payable-accounts receivable agreement | | | 225 | | | | — | |
Long-term debt due within one year | | | 215 | | | | 639 | |
Long-term debt of variable interest entity due within one year | | | 404 | | | | — | |
Long-term debt to PECO Energy Transition Trust due within one year | | | — | | | | 415 | |
Accounts payable | | | 1,181 | | | | 1,345 | |
Accrued expenses | | | 1,098 | | | | 923 | |
Deferred income taxes | | | 114 | | | | 152 | |
Mark-to-market derivative liabilities | | | 54 | | | | 198 | |
Other | | | 450 | | | | 411 | |
| | | | | | | | |
| | |
Total current liabilities | | | 4,030 | | | | 4,238 | |
| | | | | | | | |
Long-term debt | | | 10,811 | | | | 10,995 | |
Long-term debt to financing trusts | | | 390 | | | | 390 | |
| | |
Deferred credits and other liabilities | | | | | | | | |
Deferred income taxes and unamortized investment tax credits | | | 5,474 | | | | 5,750 | |
Asset retirement obligations | | | 3,527 | | | | 3,434 | |
Pension obligations | | | 3,527 | | | | 3,625 | |
Non-pension postretirement benefits obligations | | | 2,278 | | | | 2,180 | |
Spent nuclear fuel obligation | | | 1,018 | | | | 1,017 | |
Regulatory liabilities | | | 3,344 | | | | 3,492 | |
Mark-to-market derivative liabilities | | | 8 | | | | 23 | |
Other | | | 1,493 | | | | 1,309 | |
| | | | | | | | |
| | |
Total deferred credits and other liabilities | | | 20,669 | | | | 20,830 | |
| | | | | | | | |
Total liabilities | | | 35,900 | | | | 36,453 | |
| | | | | | | | |
| | |
Preferred securities of subsidiary | | | 87 | | | | 87 | |
| | |
Shareholders’ equity | | | | | | | | |
Common stock | | | 8,960 | | | | 8,923 | |
Treasury stock, at cost | | | (2,327 | ) | | | (2,328 | ) |
Retained earnings | | | 8,631 | | | | 8,134 | |
Accumulated other comprehensive loss, net | | | (2,078 | ) | | | (2,089 | ) |
| | | | | | | | |
| | |
Total shareholders’ equity | | | 13,186 | | | | 12,640 | |
| | | | | | | | |
| | |
Total liabilities and shareholders’ equity | | $ | 49,173 | | | $ | 49,180 | |
| | | | | | | | |
5
EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
| | | | | | | | |
| | | Six Months Ended
June 30, | |
| | | 2010 | | | 2009 | |
Cash flows from operating activities | | | | | | | | |
Net income | | $ | 1,194 | | | $ | 1,369 | |
Adjustments to reconcile net income to net cash flows provided by operating activities: | | | | | | | | |
Depreciation, amortization and accretion, including nuclear fuel amortization | | | 1,455 | | | | 1,253 | |
Impairment of long-lived assets | | | — | | | | 223 | |
Deferred income taxes and amortization of investment tax credits | | | (373 | ) | | | 149 | |
Net fair value changes related to derivatives | | | (123 | ) | | | 28 | |
Net realized and unrealized (gains) losses on NDT fund investments | | | 59 | | | | (43 | ) |
Other non-cash operating activities | | | 278 | | | | 411 | |
Changes in assets and liabilities: | | | | | | | | |
Accounts receivable | | | (229 | ) | | | 286 | |
Inventories | | | 1 | | | | 75 | |
Accounts payable, accrued expenses and other current liabilities | | | (239 | ) | | | (469 | ) |
Option premiums paid, net | | | (15 | ) | | | (39 | ) |
Counterparty collateral (posted) received, net | | | (172 | ) | | | 246 | |
Income taxes | | | 661 | | | | (177 | ) |
Pension and non-pension postretirement benefit contributions | | | (119 | ) | | | (68 | ) |
Other assets and liabilities | | | (9 | ) | | | (197 | ) |
| | | | | | | | |
Net cash flows provided by operating activities | | | 2,369 | | | | 3,047 | |
| | | | | | | | |
| | |
Cash flows from investing activities | | | | | | | | |
Capital expenditures | | | (1,584 | ) | | | (1,444 | ) |
Proceeds from NDT fund sales | | | 12,528 | | | | 10,150 | |
Investment in NDT funds | | | (12,626 | ) | | | (10,279 | ) |
Change in restricted cash | | | (6 | ) | | | 31 | |
Other investing activities | | | 30 | | | | (4 | ) |
| | | | | | | | |
Net cash flows used in investing activities | | | (1,658 | ) | | | (1,546 | ) |
| | | | | | | | |
| | |
Cash flows from financing activities | | | | | | | | |
Changes in short-term debt | | | 134 | | | | (166 | ) |
Issuance of long-term debt | | | — | | | | 485 | |
Retirement of long-term debt | | | (615 | ) | | | (255 | ) |
Retirement of long-term debt of variable interest entity | | | (402 | ) | | | — | |
Retirement of long-term debt to financing affiliates | | | — | | | | (330 | ) |
Dividends paid on common stock | | | (694 | ) | | | (692 | ) |
Proceeds from employee stock plans | | | 22 | | | | 19 | |
Other financing activities | | | 2 | | | | 5 | |
| | | | | | | | |
Net cash flows used in financing activities | | | (1,553 | ) | | | (934 | ) |
| | | | | | | | |
| | |
Increase (decrease) in cash and cash equivalents | | | (842 | ) | | | 567 | |
Cash and cash equivalents at beginning of period | | | 2,010 | | | | 1,271 | |
| | | | | | | | |
Cash and cash equivalents at end of period | | $ | 1,168 | | | $ | 1,838 | |
| | | | | | | | |
6
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations
(unaudited)
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, 2010 | | | Three Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 4,398 | | | $ | 10 | (c),(d) | | $ | 4,408 | | | $ | 4,141 | | | $ | 32 | (c) | | $ | 4,173 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,134 | | | | (150 | )(e) | | | 984 | | | | 921 | | | | (161 | )(e) | | | 760 | |
Fuel | | | 393 | | | | 26 | (e) | | | 419 | | | | 460 | | | | (13 | )(e) | | | 447 | |
Operating and maintenance | | | 1,114 | | | | — | | | | 1,114 | | | | 1,111 | | | | (54 | )(c),(i),(j) | | | 1,057 | |
Operating and maintenance for regulatory required programs (b) | | | 34 | | | | — | | | | 34 | | | | 14 | | | | — | | | | 14 | |
Depreciation and amortization | | | 519 | | | | (19 | )(f) | | | 500 | | | | 439 | | | | — | | | | 439 | |
Taxes other than income | | | 186 | | | | — | | | | 186 | | | | 180 | | | | — | | | | 180 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 3,380 | | | | (143 | ) | | | 3,237 | | | | 3,125 | | | | (228 | ) | | | 2,897 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 1,018 | | | | 153 | | | | 1,171 | | | | 1,016 | | | | 260 | | | | 1,276 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (275 | ) | | | 103 | (g) | | | (172 | ) | | | (180 | ) | | | 9 | (g) | | | (171 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (6 | ) | | | — | | | | (6 | ) |
Other, net | | | (122 | ) | | | 159 | (g),(h) | | | 37 | | | | 257 | | | | (252 | )(g),(h) | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (397 | ) | | | 262 | | | | (135 | ) | | | 71 | | | | (243 | ) | | | (172 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 621 | | | | 415 | | | | 1,036 | | | | 1,087 | | | | 17 | | | | 1,104 | |
| | | | | | |
Income taxes | | | 176 | | | | 204 | (c),(d),(e),(f),(g),(h) | | | 380 | | | | 430 | | | | (9 | )(c),(e),(g),(h),(i),(j) | | | 421 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 445 | | | $ | 211 | | | $ | 656 | | | $ | 657 | | | $ | 26 | | | $ | 683 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Effective tax rate | | | 28.3 | % | | | | | | | 36.7 | % | | | 39.6 | % | | | | | | | 38.1 | % |
| | | | | | |
Earnings per average common share | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.67 | | | $ | 0.32 | | | $ | 0.99 | | | $ | 1.00 | | | $ | 0.04 | | | $ | 1.04 | |
Diluted | | $ | 0.67 | | | $ | 0.32 | | | $ | 0.99 | | | $ | 0.99 | | | $ | 0.04 | | | $ | 1.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 661 | | | | | | | | 661 | | | | 659 | | | | | | | | 659 | |
Diluted | | | 662 | | | | | | | | 662 | | | | 661 | | | | | | | | 661 | |
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois electric rate settlement (c) | | | | | | $ | 0.01 | | | | | | | | | | | $ | 0.03 | | | | | |
City of Chicago settlement (d) | | | | | | | — | | | | | | | | | | | | — | | | | | |
Mark-to-market impact of economic hedging activities (e) | | | | | | | 0.11 | | | | | | | | | | | | 0.16 | | | | | |
Retirement of fossil generating units (f) | | | | | | | 0.02 | | | | | | | | | | | | — | | | | | |
Non-cash income tax matters and state taxes (g) | | | | | | | 0.10 | | | | | | | | | | | | (0.10 | ) | | | | |
Unrealized gains and losses related to NDT fund investments (h) | | | | | | | 0.08 | | | | | | | | | | | | (0.10 | ) | | | | |
NRG acquisition costs (i) | | | | | | | — | | | | | | | | | | | | 0.01 | | | | | |
2009 restructuring charges (j) | | | | | | | — | | | | | | | | | | | | 0.04 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total adjustments | | | | | | $ | 0.32 | | | | | | | | | | | $ | 0.04 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| (c) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (d) | Adjustment to exclude the costs associated with ComEd’s 2007 settlement agreement with the City of Chicago. |
| (e) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities. |
| (f) | Adjustment to exclude costs associated with the planned retirement of fossil generating units. |
| (g) | Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties and a 2009 change in state deferred income taxes. |
| (h) | Adjustment to exclude the unrealized losses in 2010 and unrealized gains in 2009 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes. |
| (i) | Adjustment to exclude external costs associated with Exelon’s proposed acquisition of NRG Energy, Inc. (NRG), which was terminated in July 2009. |
| (j) | Adjustment to exclude 2009 restructuring charges. |
7
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations
(unaudited)
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2010 | | | Six Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 8,859 | | | $ | 13 | (c),(d) | | $ | 8,872 | | | $ | 8,863 | | | $ | 65 | (c) | | $ | 8,928 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,792 | | | | 35 | (e) | | | 1,827 | | | | 1,604 | | | | 40 | (e) | | | 1,644 | |
Fuel | | | 994 | | | | 75 | (e) | | | 1,069 | | | | 1,236 | | | | (28 | )(e) | | | 1,208 | |
Operating and maintenance | | | 2,175 | | | | 2 | (f) | | | 2,177 | | | | 2,472 | | | | (291 | )(c),(j),(k),(l) | | | 2,181 | |
Operating and maintenance for regulatory required programs (b) | | | 61 | | | | — | | | | 61 | | | | 25 | | | | — | | | | 25 | |
Depreciation and amortization | | | 1,033 | | | | (35 | )(f) | | | 998 | | | | 875 | | | | — | | | | 875 | |
Taxes other than income | | | 383 | | | | — | | | | 383 | | | | 380 | | | | — | | | | 380 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 6,438 | | | | 77 | | | | 6,515 | | | | 6,592 | | | | (279 | ) | | | 6,313 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 2,421 | | | | (64 | ) | | | 2,357 | | | | 2,271 | | | | 344 | | | | 2,615 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (459 | ) | | | 103 | (g) | | | (356 | ) | | | (367 | ) | | | 9 | (g) | | | (358 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (14 | ) | | | — | | | | (14 | ) |
Other, net | | | (29 | ) | | | 101 | (g),(h) | | | 72 | | | | 219 | | | | (156 | )(g),(h) | | | 63 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (488 | ) | | | 204 | | | | (284 | ) | | | (162 | ) | | | (147 | ) | | | (309 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 1,933 | | | | 140 | | | | 2,073 | | | | 2,109 | | | | 197 | | | | 2,306 | |
| | | | | | |
Income taxes | | | 739 | | | | 15 | (c),(d),(e),(f),(g),(h),(i) | | | 754 | | | | 740 | | | | 87 | (c),(e),(g),(h),(j),(k),(l) | | | 827 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 1,194 | | | $ | 125 | | | $ | 1,319 | | | $ | 1,369 | | | $ | 110 | | | $ | 1,479 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Effective tax rate | | | 38.2 | % | | | | | | | 36.4 | % | | | 35.1 | % | | | | | | | 35.9 | % |
| | | | | | |
Earnings per average common share | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 1.81 | | | $ | 0.19 | | | $ | 2.00 | | | $ | 2.08 | | | $ | 0.17 | | | $ | 2.25 | |
Diluted | | $ | 1.80 | | | $ | 0.19 | | | $ | 1.99 | | | $ | 2.07 | | | $ | 0.17 | | | $ | 2.24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 661 | | | | | | | | 661 | | | | 659 | | | | | | | | 659 | |
Diluted | | | 662 | | | | | | | | 662 | | | | 661 | | | | | | | | 661 | |
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois electric rate settlement (c) | | | | | | $ | 0.01 | | | | | | | | | | | $ | 0.06 | | | | | |
City of Chicago settlement (d) | | | | | | | — | | | | | | | | | | | | — | | | | | |
Mark-to-market impact of economic hedging activities (e) | | | | | | | (0.10 | ) | | | | | | | | | | | (0.01 | ) | | | | |
Retirement of fossil generating units (f) | | | | | | | 0.03 | | | | | | | | | | | | — | | | | | |
Non-cash income tax matters and state taxes (g) | | | | | | | 0.10 | | | | | | | | | | | | (0.10 | ) | | | | |
Unrealized gains and losses related to NDT fund investments (h) | | | | | | | 0.05 | | | | | | | | | | | | (0.05 | ) | | | | |
Non-cash charge resulting from health care legislation (i) | | | | | | | 0.10 | | | | | | | | | | | | — | | | | | |
NRG acquisition costs (j) | | | | | | | — | | | | | | | | | | | | 0.03 | | | | | |
Impairment of certain generating assets (k) | | | | | | | — | | | | | | | | | | | | 0.20 | | | | | |
2009 restructuring charges (l) | | | | | | | — | | | | | | | | | | | | 0.04 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total adjustments | | | | | | $ | 0.19 | | | | | | | | | | | $ | 0.17 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| (c) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (d) | Adjustment to exclude the costs associated with ComEd’s 2007 settlement agreement with the City of Chicago. |
| (e) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities. |
| (f) | Adjustment to exclude costs associated with the planned retirement of fossil generating units. |
| (g) | Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties and a 2009 change in state deferred income taxes. |
| (h) | Adjustment to exclude the unrealized losses in 2010 and unrealized gains in 2009 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes. |
| (i) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
| (j) | Adjustment to exclude external costs associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (k) | Adjustment to exclude the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009. |
| (l) | Adjustment to exclude 2009 restructuring charges. |
8
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating
Earnings to GAAP Earnings (in millions)
Three Months Ended June 30, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exelon
Earnings per
Diluted
Share | | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon | |
2009 GAAP Earnings (Loss) | | $ | 0.99 | | | $ | 512 | | | $ | 116 | | | $ | 71 | | | $ | (42 | ) | | $ | 657 | |
| | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss)Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | 0.03 | | | | 18 | | | | 2 | | | | — | | | | — | | | | 20 | |
Mark-to-Market Impact of Economic Hedging Activities | | | 0.16 | | | | 106 | | | | — | | | | — | | | | — | | | | 106 | |
Unrealized Gains Related to NDT Fund Investments (1) | | | (0.10 | ) | | | (64 | ) | | | — | | | | — | | | | — | | | | (64 | ) |
NRG Acquisition Costs (2) | | | 0.01 | | | | — | | | | — | | | | — | | | | 6 | | | | 6 | |
2009 Restructuring Charges (3) | | | 0.04 | | | | 9 | | | | 11 | | | | 3 | | | | 1 | | | | 24 | |
Non-Cash Remeasurement of Income Tax Uncertainties and Reassessment of State Deferred Income Taxes (4) | | | (0.10 | ) | | | (38 | ) | | | (40 | ) | | | — | | | | 12 | | | | (66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 1.03 | | | | 543 | | | | 89 | | | | 74 | | | | (23 | ) | | | 683 | |
| | | | | | |
Year Over Year Effects on Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Generation Energy Margins, Excluding Mark-to-Market: | | | | | | | | | | | | | | | | | | | | | | | | |
Nuclear Output (5) | | | (0.01 | ) | | | (5 | ) | | | — | | | | — | | | | — | | | | (5 | ) |
Nuclear Fuel Costs (6) | | | (0.03 | ) | | | (18 | ) | | | — | | | | — | | | | — | | | | (18 | ) |
Market and Portfolio Conditions (7) | | | (0.01 | ) | | | (9 | ) | | | — | | | | — | | | | — | | | | (9 | ) |
ComEd and PECO Margins: | | | | | | | | | | | | | | | | | | | | | | | | |
Weather | | | 0.05 | | | | — | | | | 10 | | | | 22 | | | | — | | | | 32 | |
Load (8) | | | — | | | | — | | | | 3 | | | | (1 | ) | | | — | | | | 2 | |
Other Energy Delivery | | | — | | | | — | | | | 4 | | | | (7 | ) | | | — | | | | (3 | ) |
Competitive Transition Charge (CTC) Recoveries (9) | | | — | | | | (35 | ) | | | — | | | | 37 | | | | (2 | ) | | | — | |
Operating and Maintenance Expense: | | | | | | | | | | | | | | | | | | | | | | | | |
Bad Debt (10) | | | 0.01 | | | | 1 | | | | 1 | | | | 5 | | | | — | | | | 7 | |
Labor, Contracting and Materials (11) | | | (0.02 | ) | | | (12 | ) | | | 2 | | | | (2 | ) | | | — | | | | (12 | ) |
Planned Nuclear Refueling Outages (12) | | | 0.01 | | | | 4 | | | | — | | | | — | | | | — | | | | 4 | |
Other Operating and Maintenance (13) | | | (0.03 | ) | | | — | | | | (8 | ) | | | (7 | ) | | | (6 | ) | | | (21 | ) |
Pension and Non-Pension Postretirement Benefits (14) | | | — | | | | (3 | ) | | | — | | | | — | | | | — | | | | (3 | ) |
Depreciation and Amortization Expense (15) | | | (0.02 | ) | | | (15 | ) | | | (3 | ) | | | (1 | ) | | | 7 | | | | (12 | ) |
Scheduled CTC Amortization Expense (16) | | | (0.04 | ) | | | — | | | | — | | | | (25 | ) | | | — | | | | (25 | ) |
Income Taxes (17) | | | 0.02 | | | | 14 | | | | (1 | ) | | | (1 | ) | | | 2 | | | | 14 | |
Interest Expense (18) | | | 0.02 | | | | (9 | ) | | | 5 | | | | 10 | | | | 6 | | | | 12 | |
Other (19) | | | 0.01 | | | | — | | | | 15 | | | | (7 | ) | | | 2 | | | | 10 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2010 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 0.99 | | | | 456 | | | | 117 | | | | 97 | | | | (14 | ) | | | 656 | |
| | | | | | |
2010 Adjusted (non-GAAP) Operating Earnings (Loss)Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | (0.01 | ) | | | (4 | ) | | | — | | | | — | | | | — | | | | (4 | ) |
Mark-to-Market Impact of Economic Hedging Activities | | | (0.11 | ) | | | (75 | ) | | | — | | | | — | | | | — | | | | (75 | ) |
Unrealized Losses Related to NDT Fund Investments (1) | | | (0.08 | ) | | | (53 | ) | | | — | | | | — | | | | — | | | | (53 | ) |
City of Chicago Settlement with ComEd | | | — | | | | — | | | | (2 | ) | | | — | | | | — | | | | (2 | ) |
Retirement of Fossil Generating Units (20) | | | (0.02 | ) | | | (12 | ) | | | — | | | | — | | | | — | | | | (12 | ) |
Non-Cash Remeasurement of Income Tax Uncertainties (4) | | | (0.10 | ) | | | 70 | | | | (106 | ) | | | (22 | ) | | | (7 | ) | | | (65 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
2010 GAAP Earnings (Loss) | | $ | 0.67 | | | $ | 382 | | | $ | 9 | | | $ | 75 | | | $ | (21 | ) | | $ | 445 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Reflects the impact of unrealized gains in 2009 and unrealized losses in 2010 on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements. |
| (2) | Reflects external costs incurred associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (3) | Reflects severance expense associated with the elimination of management and staff positions pursuant to Exelon’s ongoing cost savings program. |
| (4) | For 2009, reflects the impacts of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and a change in state deferred tax rates resulting from a reassessment of anticipated apportionment of Exelon’s income. For 2010, reflects the impact of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and related to CTCs received by PECO. |
| (5) | Primarily reflects the impact of increased planned nuclear outage days in the Mid-Atlantic region in 2010, including Salem. |
| (6) | Reflects the impact of higher nuclear fuel prices. |
| (7) | Reflects the impact of a decrease in realized market prices for the sale of energy, partially offset by favorable Reliability Pricing Model (RPM) capacity pricing. |
| (8) | Reflects the weather-normalized impact of increased electric deliveries of 1.8% at ComEd and decreased electric deliveries of 0.7% at PECO. |
| (9) | Reflects increased CTC revenues at PECO resulting in lower energy prices paid to Generation under the PPA, which expires December 31, 2010. Generation and PECO’s marginal tax rate differences are reflected at Exelon Corporate. |
| (10) | Primarily reflects decreased customer account charge-offs at PECO as a result of improved accounts receivable aging. |
| (11) | Primarily reflects the impact of inflation related to labor, contracting and materials expense (exclusive of planned nuclear refueling outages and incremental storm costs as disclosed in numbers 12 and 13 below), partially offset by Exelon’s ongoing cost savings program. |
| (12) | Primarily reflects the impact of decreased planned nuclear outage days in 2010, excluding Salem. |
| (13) | Primarily reflects increased storm costs in the ComEd and PECO service territories and increased nuclear refueling outage costs related to Generation’s ownership in Salem, partially offset by reduced stock-based compensation costs across the operating companies. |
| (14) | Primarily reflects the impact of a decrease in the assumed discount rate used in 2010 to calculate the pension and other postretirement benefit obligations. |
| (15) | Primarily reflects increased depreciation expense across the operating companies due to ongoing capital expenditures and the impact of a first quarter 2010 depreciation study at Generation. |
| (16) | Reflects increased scheduled amortization expense of CTCs at PECO, which will be fully amortized at the end of the transition period on December 31, 2010. |
| (17) | Primarily reflects an increase in Generation’s tax benefits associated with manufacturing deduction rate increases. |
| (18) | Primarily reflects lower interest expense at PECO and Exelon Corporate due to lower outstanding debt, partially offset by increased interest expense at Generation due to higher outstanding debt. |
| (19) | Primarily reflects projected refunds related to Illinois electric distribution taxes at ComEd. |
| (20) | Primarily reflects accelerated depreciation expense associated with the planned retirement of four fossil generating units. |
9
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating
Earnings to GAAP Earnings (in millions)
Six Months Ended June 30, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exelon
Earnings per
Diluted
Share | | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon | |
2009 GAAP Earnings (Loss) | | $ | 2.07 | | | $ | 1,041 | | | $ | 230 | | | $ | 183 | | | $ | (85 | ) | | $ | 1,369 | |
| | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss)Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | 0.06 | | | | 39 | | | | 2 | | | | — | | | | — | | | | 41 | |
Mark-to-Market Impact of Economic Hedging Activities | | | (0.01 | ) | | | (7 | ) | | | — | | | | — | | | | — | | | | (7 | ) |
Unrealized Gains Related to NDT Fund Investments (1) | | | (0.05 | ) | | | (32 | ) | | | — | | | | — | | | | — | | | | (32 | ) |
NRG Acquisition Costs (2) | | | 0.03 | | | | — | | | | — | | | | — | | | | 15 | | | | 15 | |
Impairment of Certain Generating Assets (3) | | | 0.20 | | | | 135 | | | | — | | | | — | | | | — | | | | 135 | |
2009 Restructuring Charges (4) | | | 0.04 | | | | 9 | | | | 11 | | | | 3 | | | | 1 | | | | 24 | |
Non-Cash Remeasurement of Income Tax Uncertainties and Reassessment of State Deferred Income Taxes (5) | | | (0.10 | ) | | | (38 | ) | | | (40 | ) | | | — | | | | 12 | | | | (66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 2.24 | | | | 1,147 | | | | 203 | | | | 186 | | | | (57 | ) | | | 1,479 | |
| | | | | | |
Year Over Year Effects on Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Generation Energy Margins, Excluding Mark-to-Market: | | | | | | | | | | | | | | | | | | | | | | | | |
Nuclear Output (6) | | | (0.05 | ) | | | (33 | ) | | | — | | | | — | | | | — | | | | (33 | ) |
Nuclear Fuel Costs (7) | | | (0.05 | ) | | | (35 | ) | | | — | | | | — | | | | — | | | | (35 | ) |
Market and Portfolio Conditions (8) | | | (0.07 | ) | | | (44 | ) | | | — | | | | — | | | | — | | | | (44 | ) |
ComEd and PECO Margins: | | | | | | | | | | | | | | | | | | | | | | | | |
Weather | | | 0.03 | | | | — | | | | 7 | | | | 16 | | | | — | | | | 23 | |
Load (9) | | | 0.01 | | | | — | | | | 3 | | | | 1 | | | | — | | | | 4 | |
Other Energy Delivery | | | (0.02 | ) | | | — | | | | (2 | ) | | | (13 | ) | | | — | | | | (15 | ) |
Competitive Transition Charge (CTC) Recoveries (10) | | | — | | | | (64 | ) | | | — | | | | 70 | | | | (6 | ) | | | — | |
Operating and Maintenance Expense: | | | | | | | | | | | | | | | | | | | | | | | | |
Bad Debt (11) | | | 0.02 | | | | (1 | ) | | | 3 | | | | 12 | | | | — | | | | 14 | |
Recovery of Prior Year Bad Debt Expense at ComEd (12) | | | 0.06 | | | | — | | | | 36 | | | | — | | | | — | | | | 36 | |
Labor, Contracting and Materials (13) | | | 0.01 | | | | (4 | ) | | | 15 | | | | (1 | ) | | | — | | | | 10 | |
Planned Nuclear Refueling Outages (14) | | | (0.04 | ) | | | (28 | ) | | | — | | | | — | | | | — | | | | (28 | ) |
Other Operating and Maintenance (15) | | | (0.02 | ) | | | 7 | | | | (1 | ) | | | (15 | ) | | | (5 | ) | | | (14 | ) |
Pension and Non-Pension Postretirement Benefits (16) | | | (0.01 | ) | | | (9 | ) | | | — | | | | — | | | | — | | | | (9 | ) |
Depreciation and Amortization Expense (17) | | | (0.05 | ) | | | (25 | ) | | | (8 | ) | | | (4 | ) | | | 7 | | | | (30 | ) |
Scheduled CTC Amortization Expense (18) | | | (0.08 | ) | | | — | | | | — | | | | (50 | ) | | | — | | | | (50 | ) |
Benefit From Illinois Tax Ruling (19) | | | (0.06 | ) | | | (9 | ) | | | (36 | ) | | | — | | | | 2 | | | | (43 | ) |
Income Taxes (20) | | | 0.02 | | | | — | | | | (4 | ) | | | (1 | ) | | | 21 | | | | 16 | |
Interest Expense (21) | | | 0.02 | | | | (16 | ) | | | 6 | | | | 17 | | | | 9 | | | | 16 | |
Other (22) | | | 0.03 | | | | 5 | | | | 24 | | | | (10 | ) | | | 3 | | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2010 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 1.99 | | | | 891 | | | | 246 | | | | 208 | | | | (26 | ) | | | 1,319 | |
| | | | | | |
2010 Adjusted (non-GAAP) Operating Earnings (Loss)Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | (0.01 | ) | | | (6 | ) | | | (1 | ) | | | — | | | | — | | | | (7 | ) |
Mark-to-Market Impact of Economic Hedging Activities | | | 0.10 | | | | 67 | | | | — | | | | — | | | | — | | | | 67 | |
Unrealized Losses Related to NDT Fund Investments (1) | | | (0.05 | ) | | | (33 | ) | | | — | | | | — | | | | — | | | | (33 | ) |
City of Chicago Settlement with ComEd | | | — | | | | — | | | | (2 | ) | | | — | | | | — | | | | (2 | ) |
Retirement of Fossil Generating Units (23) | | | (0.03 | ) | | | (20 | ) | | | — | | | | — | | | | — | | | | (20 | ) |
Non-Cash Charge Resulting From Health Care Legislation (24) | | | (0.10 | ) | | | (26 | ) | | | (12 | ) | | | (10 | ) | | | (17 | ) | | | (65 | ) |
Non-Cash Remeasurement of Income Tax Uncertainties (5) | | | (0.10 | ) | | | 70 | | | | (106 | ) | | | (22 | ) | | | (7 | ) | | | (65 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
2010 GAAP Earnings (Loss) | | $ | 1.80 | | | $ | 943 | | | $ | 125 | | | $ | 176 | | | $ | (50 | ) | | $ | 1,194 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Reflects the impact of unrealized gains in 2009 and unrealized losses in 2010 on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements. |
| (2) | Reflects external costs incurred associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (3) | Reflects the impact of the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009. |
| (4) | Reflects severance expense associated with the elimination of management and staff positions pursuant to Exelon’s ongoing cost savings program. |
| (5) | For 2009, reflects the impacts of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating units and a reassessment of anticipated apportionment of Exelon’s income. For 2010, reflects the impact of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and related to CTCs received by PECO. |
| (6) | Primarily reflects the impact of increased planned nuclear outage days in 2010, including Salem, partially due to steam generator replacement at Three Mile Island. |
| (7) | Reflects the impact of higher nuclear fuel prices. |
| (8) | Reflects the impact of a decrease in realized market prices for the sale of energy, partially offset by favorable RPM capacity pricing. |
| (9) | Reflects the weather-normalized impact of increased electric deliveries of 0.5% at ComEd and increased gas deliveries of 2.2% at PECO. |
| (10) | Reflects increased CTC revenues at PECO resulting in lower energy prices paid to Generation under the PPA, which expires on December 31, 2010. Generation and PECO’s marginal tax rate differences are reflected at Exelon Corporate. |
| (11) | Primarily reflects decreased customer account charge-offs at PECO as a result of improved accounts receivable aging. |
| (12) | Reflects a credit for the recovery of 2008 and 2009 bad debt expense pursuant to the Illinois Commerce Commission’s February 2010 approval of a bad debt rider, partially offset by a contribution mandated by Illinois legislation. |
| (13) | Primarily reflects the impact of Exelon’s ongoing cost savings program, partially offset by inflation related to labor, contracting and materials expense (exclusive of planned nuclear refueling outages and incremental storm costs as disclosed in numbers 14 and 15 below). |
| (14) | Primarily reflects the impact of increased planned nuclear outage days in 2010, excluding Salem, partially due to steam generator replacement at Three Mile Island. |
| (15) | Primarily reflects increased storm costs in the ComEd and PECO service territories and increased nuclear refueling outage costs related to Generation’s ownership interest in Salem, partially offset by reduced stock-based compensation costs across the operating companies and the impact of Exelon’s ongoing cost savings program. |
| (16) | Primarily reflects the impact of a decrease in the assumed discount rate used in 2010 to calculate the pension and other postretirement benefit obligations. |
| (17) | Primarily reflects increased depreciation expense across the operating companies due to ongoing capital expenditures and the impact of a first quarter 2010 depreciation study at Generation. |
| (18) | Reflects increased scheduled amortization expense of CTCs at PECO, which will be fully amortized at the end of the transition period on December 31, 2010. |
| (19) | Reflects the impact of benefits associated with a February 2009 Illinois Supreme Court decision granting Illinois investment tax credits to Exelon recognized in the first quarter of 2009, which were subsequently reversed in the third quarter of 2009. |
| (20) | Primarily reflects an increase in Generation’s tax benefits associated with manufacturing deduction rate increases, partially offset by the 2009 impact of tax planning opportunities. |
| (21) | Primarily reflects lower interest expense at PECO and Exelon Corporate due to lower outstanding debt, partially offset by higher interest expense at Generation due to higher outstanding debt. |
| (22) | Primarily reflects projected refunds related to Illinois electric distribution taxes at ComEd and realized gains associated with NDT funds at Generation as a result of favorable market conditions in 2010, partially offset by increased taxes other than income at Generation and PECO. |
| (23) | Primarily reflects accelerated depreciation expense associated with the planned retirement of four fossil generating units. |
| (24) | Reflects a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
10
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Generation | |
| | | Three Months Ended June 30, 2010 | | | Three Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 2,353 | | | $ | 7 | (b) | | $ | 2,360 | | | $ | 2,378 | | | $ | 30 | (b) | | $ | 2,408 | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 549 | | | | (150 | )(c) | | | 399 | | | | 485 | | | | (161 | )(c) | | | 324 | |
Fuel | | | 350 | | | | 26 | (c) | | | 376 | | | | 406 | | | | (13 | )(c) | | | 393 | |
Operating and maintenance | | | 691 | | | | — | | | | 691 | | | | 689 | | | | (15 | )(g) | | | 674 | |
Depreciation and amortization | | | 115 | | | | (19 | )(d) | | | 96 | | | | 72 | | | | — | | | | 72 | |
Taxes other than income | | | 61 | | | | — | | | | 61 | | | | 50 | | | | — | | | | 50 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,766 | | | | (143 | ) | | | 1,623 | | | | 1,702 | | | | (189 | ) | | | 1,513 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 587 | | | | 150 | | | | 737 | | | | 676 | | | | 219 | | | | 895 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (37 | ) | | | — | | | | (37 | ) | | | (24 | ) | | | — | | | | (24 | ) |
Other, net | | | (133 | ) | | | 157 | (e) | | | 24 | | | | 215 | | | | (202 | )(e),(h) | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (170 | ) | | | 157 | | | | (13 | ) | | | 191 | | | | (202 | ) | | | (11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 417 | | | | 307 | | | | 724 | | | | 867 | | | | 17 | | | | 884 | |
| | | | | | |
Income taxes | | | 35 | | | | 233 | (b),(c),(d),(e),(f) | | | 268 | | | | 355 | | | | (14 | )(b),(c),(e),(g),(h) | | | 341 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 382 | | | $ | 74 | | | $ | 456 | | | $ | 512 | | | $ | 31 | | | $ | 543 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Six Months Ended June 30, 2010 | | | Six Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 4,773 | | | $ | 9 | (b) | | $ | 4,782 | | | $ | 4,979 | | | $ | 63 | (b) | | $ | 5,042 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 757 | | | | 35 | (c) | | | 792 | | | | 660 | | | | 40 | (c) | | | 700 | |
Fuel | | | 740 | | | | 74 | (c) | | | 814 | | | | 915 | | | | (28 | )(c) | | | 887 | |
Operating and maintenance | | | 1,432 | | | | (2 | )(d),(i) | | | 1,430 | | | | 1,617 | | | | (238 | )(g),(j) | | | 1,379 | |
Depreciation and amortization | | | 223 | | | | (35 | )(d) | | | 188 | | | | 149 | | | | — | | | | 149 | |
Taxes other than income | | | 118 | | | | — | | | | 118 | | | | 100 | | | | — | | | | 100 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 3,270 | | | | 72 | | | | 3,342 | | | | 3,441 | | | | (226 | ) | | | 3,215 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 1,503 | | | | (63 | ) | | | 1,440 | | | | 1,538 | | | | 289 | | | | 1,827 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (72 | ) | | | — | | | | (72 | ) | | | (52 | ) | | | — | | | | (52 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
Other, net | | | (54 | ) | | | 99 | (e) | | | 45 | | | | 133 | | | | (106 | )(e),(h) | | | 27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (126 | ) | | | 99 | | | | (27 | ) | | | 80 | | | | (106 | ) | | | (26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 1,377 | | | | 36 | | | | 1,413 | | | | 1,618 | | | | 183 | | | | 1,801 | |
| | | | | | |
Income taxes | | | 434 | | | | 88 | (b),(c),(d),(e),(f),(i) | | | 522 | | | | 577 | | | | 77 | (b),(c),(e),(g),(h),(j) | | | 654 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 943 | | | $ | (52 | ) | | $ | 891 | | | $ | 1,041 | | | $ | 106 | | | $ | 1,147 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (c) | Adjustment to exclude the mark-to-market impact of Generation’s economic hedging activities. |
| (d) | Adjustment to exclude costs associated with the planned retirement of fossil generating units. |
| (e) | Adjustment to exclude the unrealized losses in 2010 and unrealized gains in 2009 associated with Generation’s NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements. |
| (f) | Adjustment to exclude a 2010 remeasurement of income tax uncertainties. |
| (g) | Adjustment to exclude 2009 restructuring charges. |
| (h) | Adjustment to exclude a change in state deferred income taxes. |
| (i) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
| (j) | Adjustment to exclude the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009. |
11
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | ComEd | |
| | | Three Months Ended June 30, 2010 | | | Three Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 1,499 | | | $ | 3 | (c) | | $ | 1,502 | | | $ | 1,389 | | | $ | 2 | (e) | | $ | 1,391 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 771 | | | | — | | | | 771 | | | | 715 | | | | — | | | | 715 | |
Operating and maintenance | | | 276 | | | | — | | | | 276 | | | | 270 | | | | (20 | )(e),(f) | | | 250 | |
Operating and maintenance for regulatory required programs (b) | | | 21 | | | | — | | | | 21 | | | | 14 | | | | — | | | | 14 | |
Depreciation and amortization | | | 131 | | | | — | | | | 131 | | | | 124 | | | | — | | | | 124 | |
Taxes other than income | | | 44 | | | | — | | | | 44 | | | | 57 | | | | — | | | | 57 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,243 | | | | — | | | | 1,243 | | | | 1,180 | | | | (20 | ) | | | 1,160 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 256 | | | | 3 | | | | 259 | | | | 209 | | | | 22 | | | | 231 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (134 | ) | | | 59 | (d) | | | (75 | ) | | | (75 | ) | | | (6 | )(d) | | | (81 | ) |
Other, net | | | 8 | | | | — | | | | 8 | | | | 55 | | | | (60 | )(d) | | | (5 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (126 | ) | | | 59 | | | | (67 | ) | | | (20 | ) | | | (66 | ) | | | (86 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 130 | | | | 62 | | | | 192 | | | | 189 | | | | (44 | ) | | | 145 | |
| | | | | | |
Income taxes | | | 121 | | | | (46 | )(c),(d) | | | 75 | | | | 73 | | | | (17 | )(d),(e),(f) | | | 56 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 9 | | | $ | 108 | | | $ | 117 | | | $ | 116 | | | $ | (27 | ) | | $ | 89 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Six Months Ended June 30, 2010 | | | Six Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 2,914 | | | $ | 4 | (c),(e) | | $ | 2,918 | | | $ | 2,942 | | | $ | 2 | (e) | | $ | 2,944 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,524 | | | | — | | | | 1,524 | | | | 1,598 | | | | — | | | | 1,598 | |
Operating and maintenance | | | 435 | | | | (3 | )(g) | | | 432 | | | | 522 | | | | (20 | )(e),(f) | | | 502 | |
Operating and maintenance for regulatory required programs (b) | | | 40 | | | | — | | | | 40 | | | | 25 | | | | — | | | | 25 | |
Depreciation and amortization | | | 261 | | | | — | | | | 261 | | | | 246 | | | | — | | | | 246 | |
Taxes other than income | | | 107 | | | | — | | | | 107 | | | | 136 | | | | — | | | | 136 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 2,367 | | | | (3 | ) | | | 2,364 | | | | 2,527 | | | | (20 | ) | | | 2,507 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 547 | | | | 7 | | | | 554 | | | | 415 | | | | 22 | | | | 437 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (218 | ) | | | 59 | (d) | | | (159 | ) | | | (159 | ) | | | (6 | )(d) | | | (165 | ) |
Other, net | | | 11 | | | | — | | | | 11 | | | | 87 | | | | (60 | )(d) | | | 27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (207 | ) | | | 59 | | | | (148 | ) | | | (72 | ) | | | (66 | ) | | | (138 | ) |
| �� | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 340 | | | | 66 | | | | 406 | | | | 343 | | | | (44 | ) | | | 299 | |
| | | | | | |
Income taxes | | | 215 | | | | (55 | )(c),(d),(e),(g) | | | 160 | | | | 113 | | | | (17 | )(d),(e),(f) | | | 96 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 125 | | | $ | 121 | | | $ | 246 | | | $ | 230 | | | $ | (27 | ) | | $ | 203 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| (c) | Adjustment to exclude the costs associated with ComEd’s 2007 settlement agreement with the City of Chicago. |
| (d) | Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties. |
| (e) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (f) | Adjustment to exclude 2009 structuring charges. |
| (g) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
12
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | PECO | |
| | | Three Months Ended June 30, 2010 | | | Three Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 1,269 | | | $ | — | | | $ | 1,269 | | | $ | 1,204 | | | $ | — | | | $ | 1,204 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 535 | | | | — | | | | 535 | | | | 547 | | | | — | | | | 547 | |
Fuel | | | 44 | | | | — | | | | 44 | | | | 55 | | | | — | | | | 55 | |
Operating and maintenance | | | 150 | | | | — | | | | 150 | | | | 149 | | | | (5 | )(d) | | | 144 | |
Operating and maintenance for regulatory required programs (b) | | | 13 | | | | — | | | | 13 | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 268 | | | | — | | | | 268 | | | | 230 | | | | — | | | | 230 | |
Taxes other than income | | | 77 | | | | — | | | | 77 | | | | 69 | | | | — | | | | 69 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,087 | | | | — | | | | 1,087 | | | | 1,050 | | | | (5 | ) | | | 1,045 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 182 | | | | — | | | | 182 | | | | 154 | | | | 5 | | | | 159 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (77 | ) | | | 36 | (c) | | | (41 | ) | | | (49 | ) | | | — | | | | (49 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (6 | ) | | | — | | | | (6 | ) |
Other, net | | | (1 | ) | | | 2 | (c) | | | 1 | | | | 3 | | | | — | | | | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (78 | ) | | | 38 | | | | (40 | ) | | | (52 | ) | | | — | | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 104 | | | | 38 | | | | 142 | | | | 102 | | | | 5 | | | | 107 | |
| | | | | | |
Income taxes | | | 29 | | | | 16 | (c) | | | 45 | | | | 31 | | | | 2 | (d) | | | 33 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 75 | | | $ | 22 | | | $ | 97 | | | $ | 71 | | | $ | 3 | | | $ | 74 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Six Months Ended June 30, 2010 | | | Six Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 2,724 | | | $ | — | | | $ | 2,724 | | | $ | 2,718 | | | $ | — | | | $ | 2,718 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,059 | | | | — | | | | 1,059 | | | | 1,116 | | | | — | | | | 1,116 | |
Fuel | | | 255 | | | | — | | | | 255 | | | | 321 | | | | — | | | | 321 | |
Operating and maintenance | | | 331 | | | | (2 | )(e) | | | 329 | | | | 327 | | | | (5 | )(d) | | | 322 | |
Operating and maintenance for regulatory required programs (b) | | | 21 | | | | — | | | | 21 | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 533 | | | | — | | | | 533 | | | | 455 | | | | — | | | | 455 | |
Taxes other than income | | | 150 | | | | — | | | | 150 | | | | 135 | | | | — | | | | 135 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 2,349 | | | | (2 | ) | | | 2,347 | | | | 2,354 | | | | (5 | ) | | | 2,349 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 375 | | | | 2 | | | | 377 | | | | 364 | | | | 5 | | | | 369 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (122 | ) | | | 36 | (c) | | | (86 | ) | | | (99 | ) | | | — | | | | (99 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (12 | ) | | | — | | | | (12 | ) |
Other, net | | | 4 | | | | 2 | (c) | | | 6 | | | | 6 | | | | — | | | | 6 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (118 | ) | | | 38 | | | | (80 | ) | | | (105 | ) | | | — | | | | (105 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 257 | | | | 40 | | | | 297 | | | | 259 | | | | 5 | | | | 264 | |
| | | | | | |
Income taxes | | | 81 | | | | 8 | (c),(e) | | | 89 | | | | 76 | | | | 2 | (d) | | | 78 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 176 | | | $ | 32 | | | $ | 208 | | | $ | 183 | | | $ | 3 | | | $ | 186 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| (c) | Adjustment to exclude a 2010 remeasurement of income tax uncertainties. |
| (d) | Adjustment to exclude 2009 restructuring charges. |
| (e) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
13
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Other | |
| | | Three Months Ended June 30, 2010 | | | Three Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | (723 | ) | | $ | — | | | $ | (723 | ) | | $ | (830 | ) | | $ | — | | | $ | (830 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | (721 | ) | | | — | | | | (721 | ) | | | (826 | ) | | | — | | | | (826 | ) |
Fuel | | | (1 | ) | | | — | | | | (1 | ) | | | (1 | ) | | | — | | | | (1 | ) |
Operating and maintenance | | | (3 | ) | | | — | | | | (3 | ) | | | 3 | | | | (14 | )(c),(d) | | | (11 | ) |
Depreciation and amortization | | | 5 | | | | — | | | | 5 | | | | 13 | | | | — | | | | 13 | |
Taxes other than income | | | 4 | | | | — | | | | 4 | | | | 4 | | | | — | | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | (716 | ) | | | — | | | | (716 | ) | | | (807 | ) | | | (14 | ) | | | (821 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating loss | | | (7 | ) | | | — | | | | (7 | ) | | | (23 | ) | | | 14 | | | | (9 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (27 | ) | | | 8 | (b) | | | (19 | ) | | | (32 | ) | | | 15 | (b) | | | (17 | ) |
Other, net | | | 4 | | | | — | | | | 4 | | | | (16 | ) | | | 10 | (b) | | | (6 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (23 | ) | | | 8 | | | | (15 | ) | | | (48 | ) | | | 25 | | | | (23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loss before income taxes | | | (30 | ) | | | 8 | | | | (22 | ) | | | (71 | ) | | | 39 | | | | (32 | ) |
| | | | | | |
Income taxes | | | (9 | ) | | | 1 | (b) | | | (8 | ) | | | (29 | ) | | | 20 | (b),(c),(d) | | | (9 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net loss | | $ | (21 | ) | | $ | 7 | | | $ | (14 | ) | | $ | (42 | ) | | $ | 19 | | | $ | (23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Six Months Ended June 30, 2010 | | | Six Months Ended June 30, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | (1,552 | ) | | $ | — | | | $ | (1,552 | ) | | $ | (1,776 | ) | | $ | — | | | $ | (1,776 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | (1,548 | ) | | | — | | | | (1,548 | ) | | | (1,770 | ) | | | — | | | | (1,770 | ) |
Fuel | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | — | | | | — | |
Operating and maintenance | | | (23 | ) | | | 8 | (e) | | | (15 | ) | | | 6 | | | | (28 | )(c),(d) | | | (22 | ) |
Depreciation and amortization | | | 16 | | | | — | | | | 16 | | | | 25 | | | | — | | | | 25 | |
Taxes other than income | | | 8 | | | | — | | | | 8 | | | | 9 | | | | — | | | | 9 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | (1,548 | ) | | | 8 | | | | (1,540 | ) | | | (1,730 | ) | | | (28 | ) | | | (1,758 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating loss | | | (4 | ) | | | (8 | ) | | | (12 | ) | | | (46 | ) | | | 28 | | | | (18 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (47 | ) | | | 8 | (b) | | | (39 | ) | | | (57 | ) | | | 15 | (b) | | | (42 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
Other, net | | | 10 | | | | — | | | | 10 | | | | (7 | ) | | | 10 | (b) | | | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (37 | ) | | | 8 | | | | (29 | ) | | | (65 | ) | | | 25 | | | | (40 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loss before income taxes | | | (41 | ) | | | — | | | | (41 | ) | | | (111 | ) | | | 53 | | | | (58 | ) |
| | | | | | |
Income taxes | | | 9 | | | | (24 | )(b),(e) | | | (15 | ) | | | (26 | ) | | | 25 | (b),(c),(d) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net loss | | $ | (50 | ) | | $ | 24 | | | $ | (26 | ) | | $ | (85 | ) | | $ | 28 | | | $ | (57 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties and a 2009 change in state deferred income taxes. |
| (c) | Adjustment to exclude external costs associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (d) | Adjustment to exclude 2009 restructuring charges. |
| (e) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
14
EXELON CORPORATION
Exelon Generation Statistics
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | Jun. 30, 2010 | | | Mar. 31, 2010 | | | Dec. 31, 2009 | | | Sept. 30, 2009 | | | Jun. 30, 2009 | |
Supply (in GWhs) | | | | | | | | | | | | | | | | | | | | |
Nuclear Generation | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic (a) | | | 11,691 | | | | 11,776 | | | | 11,137 | | | | 12,349 | | | | 12,276 | |
Midwest | | | 23,344 | | | | 22,333 | | | | 22,472 | | | | 23,335 | | | | 22,719 | |
| | | | | | | | | | | | | | | | | | | | |
Total Nuclear Generation | | | 35,035 | | | | 34,109 | | | | 33,609 | | | | 35,684 | | | | 34,995 | |
Fossil and Hydro Generation | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic (b) | | | 2,175 | | | | 2,564 | | | | 1,986 | | | | 2,044 | | | | 2,279 | |
Midwest | | | 7 | | | | — | | | | — | | | | — | | | | 3 | |
South | | | 310 | | | | 119 | | | | 48 | | | | 645 | | | | 419 | |
| | | | | | | | | | | | | | | | | | | | |
Total Fossil and Hydro Generation | | | 2,492 | | | | 2,683 | | | | 2,034 | | | | 2,689 | | | | 2,701 | |
Purchased Power | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic | | | 414 | | | | 463 | | | | 342 | | | | 531 | | | | 372 | |
Midwest | | | 1,568 | | | | 1,914 | | | | 1,991 | | | | 1,923 | | | | 1,673 | |
South | | | 2,695 | | | | 2,701 | | | | 2,851 | | | | 4,215 | | | | 3,231 | |
| | | | | | | | | | | | | | | | | | | | |
Total Purchased Power | | | 4,677 | | | | 5,078 | | | | 5,184 | | | | 6,669 | | | | 5,276 | |
Total Supply by Region | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic | | | 14,280 | | | | 14,803 | | | | 13,465 | | | | 14,924 | | | | 14,927 | |
Midwest | | | 24,919 | | | | 24,247 | | | | 24,463 | | | | 25,258 | | | | 24,395 | |
South | | | 3,005 | | | | 2,820 | | | | 2,899 | | | | 4,860 | | | | 3,650 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 42,204 | | | | 41,870 | | | | 40,827 | | | | 45,042 | | | | 42,972 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Three Months Ended | |
| | | Jun. 30, 2010 | | | Mar. 31, 2010 | | | Dec. 31, 2009 | | | Sept. 30, 2009 | | | Jun. 30, 2009 | |
Electric Sales (in GWhs) | | | | | | | | | | | | | | | | | | | | |
ComEd (e) | | | 1,895 | | | | 3,428 | | | | 3,439 | | | | 3,639 | | | | 4,215 | |
PECO | | | 10,044 | | | | 10,228 | | | | 9,588 | | | | 10,809 | | | | 9,277 | |
Market and Retail (e) | | | 30,265 | | | | 28,214 | | | | 27,800 | | | | 30,594 | | | | 29,480 | |
| | | | | | | | | | | | | | | | | | | | |
Total Electric Sales (c)(d) | | | 42,204 | | | | 41,870 | | | | 40,827 | | | | 45,042 | | | | 42,972 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Average Margin ($/MWh) (f) | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic | | $ | 40.83 | | | $ | 41.41 | | | $ | 43.15 | | | $ | 41.47 | | | $ | 45.76 | |
Midwest | | | 40.78 | | | | 41.00 | | | | 41.98 | | | | 40.94 | | | | 41.73 | |
South | | | (14.31 | ) | | | (16.67 | ) | | | (14.49 | ) | | | (3.50 | ) | | | (6.85 | ) |
Average Margin - Overall Portfolio | | $ | 36.87 | | | $ | 37.26 | | | $ | 38.36 | | | $ | 36.32 | | | $ | 38.96 | |
| | | | | |
Around-the-clock Market Prices ($/MWh) (g) | | | | | | | | | | | | | | | | | | | | |
PJM West Hub | | $ | 43.21 | | | $ | 44.54 | | | $ | 37.31 | | | $ | 33.20 | | | $ | 33.70 | |
NiHub | | | 32.35 | | | | 34.47 | | | | 29.61 | | | | 25.69 | | | | 26.11 | |
Henry Hub | | | 4.30 | | | | 5.15 | | | | 4.25 | | | | 3.15 | | | | 3.69 | |
| (a) | Includes Generation’s proportionate share of the output of its nuclear generating plants, including Salem. |
| (b) | Includes New England generation. |
| (c) | Excludes retail gas activity, trading portfolio and other operating revenue. |
| (d) | Total sales do not include trading volume of 889 GWhs, 920 GWhs, 1,599 GWhs, 1,645 GWhs and 2,003 GWhs for the three months ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively. |
| (e) | ComEd line item represents sales under the 2006 ComEd Auction. Settlements of the ComEd swap and sales under the Request for Proposal (RFP) have been excluded from ComEd and included in Market and Retail sales. In addition, renewable energy credit sales to affiliates have been included within Market and Retail sales. |
| (f) | Excludes the mark-to-market impact of Generation’s economic hedging activities. |
| (g) | Represents the average for the quarter. Henry Hub prices denominated in $/mmbtu. |
15
EXELON CORPORATION
Exelon Generation Statistics
Six Months Ended June 30, 2010 and 2009
| | | | | | | | |
| | | June 30, 2010 | | | June 30, 2009 | |
Supply (in GWhs) | | | | | | | | |
Nuclear Generation | | | | | | | | |
Mid-Atlantic (a) | | | 23,467 | | | | 24,380 | |
Midwest | | | 45,677 | | | | 45,997 | |
| | | | | | | | |
Total Nuclear Generation | | | 69,144 | | | | 70,377 | |
Fossil and Hydro Generation | | | | | | | | |
Mid-Atlantic (b) | | | 4,739 | | | | 4,908 | |
Midwest | | | 7 | | | | 4 | |
South | | | 429 | | | | 554 | |
| | | | | | | | |
Total Fossil and Hydro Generation | | | 5,175 | | | | 5,466 | |
Purchased Power | | | | | | | | |
Mid-Atlantic | | | 877 | | | | 873 | |
Midwest | | | 3,482 | | | | 3,825 | |
South | | | 5,396 | | | | 6,655 | |
| | | | | | | | |
Total Purchased Power | | | 9,755 | | | | 11,353 | |
Total Supply by Region | | | | | | | | |
Mid-Atlantic | | | 29,083 | | | | 30,161 | |
Midwest | | | 49,166 | | | | 49,826 | |
South | | | 5,825 | | | | 7,209 | |
| | | | | | | | |
| | | 84,074 | | | | 87,196 | |
| | | | | | | | |
| | |
| | | June 30, 2010 | | | June 30, 2009 | |
Electric Sales (in GWhs) | | | | | | | | |
ComEd (e) | | | 5,323 | | | | 9,752 | |
PECO | | | 20,272 | | | | 19,500 | |
Market and Retail (e) | | | 58,479 | | | | 57,944 | |
| | | | | | | | |
Total Electric Sales (c)(d) | | | 84,074 | | | | 87,196 | |
| | | | | | | | |
| | |
Average Margin ($/MWh) (f) | | | | | | | | |
Mid-Atlantic | | $ | 41.14 | | | $ | 45.65 | |
Midwest | | | 40.88 | | | | 41.95 | |
South | | | (15.62 | ) | | | (8.04 | ) |
Average Margin - Overall Portfolio | | $ | 37.06 | | | $ | 39.09 | |
| | |
Around-the-clock Market Prices ($/MWh) (g) | | | | | | | | |
PJM West Hub | | $ | 43.87 | | | $ | 41.40 | |
NiHub | | | 33.40 | | | | 30.07 | |
Henry Hub | | | 4.73 | | | | 4.13 | |
| (a) | Includes Generation’s proportionate share of the output of its nuclear generating plants, including Salem. |
| (b) | Includes New England generation. |
| (c) | Excludes retail gas activity, trading portfolio and other operating revenue. |
| (d) | Total sales do not include trading volume of 1,808 GWhs and 4,334 GWhs for the six months ended June 30, 2010 and 2009, respectively. |
| (e) | ComEd line item represents sales under the 2006 ComEd Auction. Settlements of the ComEd swap and sales under the RFP have been excluded from ComEd and included in Market and Retail sales. In addition, renewable energy credit sales to affiliates have been included within Market and Retail sales. |
| (f) | Excludes the mark-to-market impact of Generation’s economic hedging activities. |
| (g) | Represents the average for the six months ended June 30, 2010 and 2009, respectively. Henry Hub prices denominated in $/mmbtu. |
16
EXELON CORPORATION
ComEd Statistics
Three Months Ended June 30, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | |
| | | Electric Deliveries (in GWhs) | | | Revenue (in millions) | |
| | | 2010 | | 2009 | | % Change | | | Weather-Normal
% Change | | | 2010 | | | 2009 | | % Change | |
Retail Deliveries and Sales (a) | | | | | | | | | | | | | | | | | | | | |
Residential | | 6,474 | | 6,032 | | 7.3 | % | | 1.6 | % | | $ | 829 | | | $ | 731 | | 13.4 | % |
Small Commercial & Industrial | | 7,935 | | 7,739 | | 2.5 | % | | (0.1 | )% | | | 415 | | | | 411 | | 1.0 | % |
Large Commercial & Industrial | | 6,825 | | 6,468 | | 5.5 | % | | 4.3 | % | | | 100 | | | | 93 | | 7.5 | % |
Public Authorities & Electric Railroads | | 277 | | 275 | | 0.7 | % | | 1.0 | % | | | 16 | | | | 14 | | 14.3 | % |
| | | | | | | | | | | | | | | | | | | | |
Total Retail | | 21,511 | | 20,514 | | 4.9 | % | | 1.8 | % | | | 1,360 | | | | 1,249 | | 8.9 | % |
| | | | | | | | | | | | | | | | | | | | |
Other Revenue (b) | | | | | | | | | | | | | 139 | | | | 140 | | (0.7 | )% |
| | | | | | | | | | | | | | | | | | | | |
Total Electric Revenue | | | | | | | | | | | | $ | 1,499 | | | $ | 1,389 | | 7.9 | % |
| | | | | | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | | | | $ | 771 | | | $ | 715 | | 7.8 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Heating and Cooling Degree-Days | | | | | | | | | % Change | | | | | | |
| | | 2010 | | 2009 | | Normal | | | From 2009 | | | From Normal | | | | | | |
Heating Degree-Days | | 519 | | 768 | | 766 | | | (32.4 | )% | | | (32.2 | )% | | | | | | |
Cooling Degree-Days | | 312 | | 177 | | 224 | | | 76.3 | % | | | 39.3 | % | | | | | | |
Six Months Ended June 30, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | |
| | | Electric Deliveries (in GWhs) | | | Revenue (in millions) | |
| | | 2010 | | 2009 | | % Change | | | Weather-Normal
% Change | | | 2010 | | | 2009 | | % Change | |
Retail Deliveries and Sales (a) | | | | | | | | | | | | | | | | | | | | |
Residential | | 13,417 | | 13,095 | | 2.5 | % | | 0.8 | % | | $ | 1,606 | | | $ | 1,577 | | 1.8 | % |
Small Commercial & Industrial | | 15,864 | | 15,889 | | (0.2 | )% | | (0.9 | )% | | | 804 | | | | 860 | | (6.5 | )% |
Large Commercial & Industrial | | 13,488 | | 13,242 | | 1.9 | % | | 1.6 | % | | | 197 | | | | 192 | | 2.6 | % |
Public Authorities & Electric Railroads | | 645 | | 621 | | 3.9 | % | | 5.5 | % | | | 33 | | | | 29 | | 13.8 | % |
| | | | | | | | | | | | | | | | | | | | |
Total Retail | | 43,414 | | 42,847 | | 1.3 | % | | 0.5 | % | | | 2,640 | | | | 2,658 | | (0.7 | )% |
| | | | | | | | | | | | | | | | | | | | |
Other Revenue (b) | | | | | | | | | | | | | 274 | | | | 284 | | (3.5 | )% |
| | | | | | | | | | | | | | | | | | | | |
Total Electric Revenue | | | | | | | | | | | | $ | 2,914 | | | $ | 2,942 | | (1.0 | )% |
| | | | | | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | | | | $ | 1,524 | | | $ | 1,598 | | (4.6 | )% |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Heating and Cooling Degree-Days | | | | | | | | | % Change | | | | | | |
| | | 2010 | | 2009 | | Normal | | | From 2009 | | | From Normal | | | | | | |
Heating Degree-Days | | 3,629 | | 4,088 | | 3,974 | | | (11.2 | )% | | | (8.7 | )% | | | | | | |
Cooling Degree-Days | | 312 | | 177 | | 224 | | | 76.3 | % | | | 39.3 | % | | | | | | |
| | | | | | | |
| Number of Electric Customers | | 2010 | | 2009 | | | | | | | | | | | | | | |
Residential | | 3,432,466 | | 3,423,387 | | | | | | | | | | | | | | | | |
Small Commercial & Industrial | | 361,326 | | 358,897 | | | | | | | | | | | | | | | | |
Large Commercial & Industrial | | 1,982 | | 2,033 | | | | | | | | | | | | | | | | |
Public Authorities & Electric Railroads | | 5,072 | | 5,034 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total | | 3,800,846 | | 3,789,351 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Reflects delivery volumes and revenues from customers purchasing electricity directly from ComEd and customers electing to receive electric generation services from a competitive electric generation supplier. All customers are assessed charges for delivery. For customers purchasing electricity from ComEd, revenue also reflects the cost of energy. |
| (b) | Other revenue primarily includes transmission revenue from PJM Interconnection, LLC (PJM). Other items include late payment charges and mutual assistance program revenues. |
17
EXELON CORPORATION
PECO Statistics
Three Months Ended June 30, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | |
| | | Electric and Gas Deliveries | | | Revenue (in millions) | |
| | | 2010 | | 2009 | | % Change | | | Weather-
Normal %
Change | | | 2010 | | | 2009 | | % Change | |
Electric (in GWhs) | | | | | | | | | | | | | | | | | | | | |
Retail Deliveries and Sales (a) | | | | | | | | | | | | | | | | | | | | |
Residential | | 3,118 | | 2,764 | | 12.8 | % | | (2.3 | )% | | $ | 489 | | | $ | 416 | | 17.5 | % |
Small Commercial & Industrial | | 2,027 | | 2,013 | | 0.7 | % | | (5.1 | )% | | | 271 | | | | 260 | | 4.2 | % |
Large Commercial & Industrial | | 4,156 | | 3,878 | | 7.2 | % | | 2.6 | % | | | 337 | | | | 338 | | (0.3 | )% |
Public Authorities & Electric Railroads | | 225 | | 222 | | 1.4 | % | | 1.2 | % | | | 24 | | | | 22 | | 9.1 | % |
| | | | | | | | | | | | | | | | | | | | |
Total Retail | | 9,526 | | 8,877 | | 7.3 | % | | (0.7 | )% | | | 1,121 | | | | 1,036 | | 8.2 | % |
| | | | | | | | | | | | | | | | | | | | |
Other Revenue (b) | | | | | | | | | | | | | 59 | | | | 67 | | (11.9 | )% |
| | | | | | | | | | | | | | | | | | | | |
Total Electric Revenue | | | | | | | | | | | | | 1,180 | | | | 1,103 | | 7.0 | % |
Gas (in mmcfs) | | | | | | | | | | | | | | | | | | | | |
Retail Sales | | 5,973 | | 7,136 | | (16.3 | )% | | 1.6 | % | | | 81 | | | | 95 | | (14.7 | )% |
Transportation and Other | | 6,540 | | 6,105 | | 7.1 | % | | (3.0 | )% | | | 8 | | | | 6 | | 33.3 | % |
| | | | | | | | | | | | | | | | | | | | |
Total Gas | | 12,513 | | 13,241 | | (5.5 | )% | | (0.5 | )% | | | 89 | | | | 101 | | (11.9 | )% |
| | | | | | | | | | | | | | | | | | | | |
Total Electric and Gas Revenues | | | | | | | | | | | | $ | 1,269 | | | $ | 1,204 | | 5.4 | % |
| | | | | | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | | | | $ | 535 | | | $ | 547 | | (2.2 | )% |
Fuel | | | | | | | | | | | | | 44 | | | | 55 | | (20.0 | )% |
| | | | | | | | | | | | | | | | | | | | |
Total Purchased Power and Fuel | | | | | | | | | | | | $ | 579 | | | $ | 602 | | (3.8 | )% |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Heating and Cooling Degree-Days | | | | | | | | | % Change | | | | | | |
| | | 2010 | | 2009 | | Normal | | | From 2009 | | | From Normal | | | | | | |
Heating Degree-Days | | 299 | | 414 | | 458 | | | (27.8 | %) | | | (34.7 | %) | | | | | | |
Cooling Degree-Days | | 586 | | 352 | | 332 | | | 66.5 | % | | | 76.5 | % | | | | | | |
Six Months Ended June 30, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | |
| | | Electric and Gas Deliveries | | | Revenue (in millions) | |
| | | 2010 | | 2009 | | % Change | | | Weather-
Normal %
Change | | | 2010 | | | 2009 | | % Change | |
Electric (in GWhs) | | | | | | | | | | | | | | | | | | | | |
Retail Deliveries and Sales (a) | | | | | | | | | | | | | | | | | | | | |
Residential | | 6,645 | | 6,299 | | 5.5 | % | | (0.0 | )% | | $ | 962 | | | $ | 882 | | 9.1 | % |
Small Commercial & Industrial | | 4,177 | | 4,209 | | (0.8 | )% | | (2.9 | )% | | | 519 | | | | 510 | | 1.8 | % |
Large Commercial & Industrial | | 7,950 | | 7,669 | | 3.7 | % | | 1.4 | % | | | 661 | | | | 657 | | 0.6 | % |
Public Authorities & Electric Railroads | | 471 | | 469 | | 0.4 | % | | 0.4 | % | | | 47 | | | | 45 | | 4.4 | % |
| | | | | | | | | | | | | | | | | | | | |
Total Retail | | 19,243 | | 18,646 | | 3.2 | % | | (0.1 | )% | | | 2,189 | | | | 2,094 | | 4.5 | % |
| | | | | | | | | | | | | | | | | | | | |
Other Revenue (b) | | | | | | | | | | | | | 120 | | | | 135 | | (11.1 | )% |
| | | | | | | | | | | | | | | | | | | | |
Total Electric Revenue | | | | | | | | | | | | | 2,309 | | | | 2,229 | | 3.6 | % |
| | | | | | | | | | | | | | | | | | | | |
Gas (in mmcfs) | | | | | | | | | | | | | | | | | | | | |
Retail Sales | | 33,557 | | 35,750 | | (6.1 | )% | | 1.4 | % | | | 399 | | | | 475 | | (16.0 | )% |
Transportation and Other | | 15,157 | | 13,983 | | 8.4 | % | | 4.1 | % | | | 16 | | | | 14 | | 14.3 | % |
| | | | | | | | | | | | | | | | | | | | |
Total Gas | | 48,714 | | 49,733 | | (2.0 | )% | | 2.2 | % | | | 415 | | | | 489 | | (15.1 | )% |
| | | | | | | | | | | | | | | | | | | | |
Total Electric and Gas Revenues | | | | | | | | | | | | $ | 2,724 | | | $ | 2,718 | | 0.2 | % |
| | | | | | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | | | | $ | 1,059 | | | $ | 1,116 | | (5.1 | )% |
Fuel | | | | | | | | | | | | | 255 | | | | 321 | | (20.6 | )% |
| | | | | | | | | | | | | | | | | | | | |
Total Purchased Power and Fuel | | | | | | | | | | | | $ | 1,314 | | | $ | 1,437 | | (8.6 | )% |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Heating and Cooling Degree-Days | | | | | | | | | % Change | | | | | | |
| | | 2010 | | 2009 | | Normal | | | From 2009 | | | From Normal | | | | | | |
Heating Degree-Days | | 2,710 | | 2,948 | | 2,968 | | | (8.1 | %) | | | (8.7 | %) | | | | | | |
Cooling Degree-Days | | 586 | | 352 | | 332 | | | 66.5 | % | | | 76.5 | % | | | | | | |
| Number of Electric Customers | | 2010 | | 2009 | | Number of Gas Customers | | | 2010 | | | 2009 | | | |
Residential | | 1,406,014 | | 1,402,515 | | Residential | | | | 446,236 | | | | 443,872 | | | |
Small Commercial & Industrial | | 156,423 | | 155,970 | | Commercial & Industrial | | | | 40,944 | | | | 41,008 | | | |
| | | | | | | | | | | | | | | | | | | | |
Large Commercial & Industrial | | 3,093 | | 3,089 | | Total Retail | | | | 487,180 | | | | 484,880 | | | |
Public Authorities & Electric Railroads | | 1,081 | | 1,085 | | Transportation | | | | 805 | | | | 755 | | | |
| | | | | | | | | | | | | | | | | | | | |
Total | | 1,566,611 | | 1,562,659 | | Total | | | | 487,985 | | | | 485,635 | | | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers electing to receive electric generation service from a competitive electric generation supplier. All customers are assessed charges for transmission, distribution and a CTC. For customers purchasing electricity from PECO, revenue also reflects the cost of energy. |
| (b) | Other revenue includes transmission revenue from PJM, wholesale revenue and other wholesale energy sales. |
18
