 Edison Electric Institute Financial Conference November 12 – 13, 2014 Exhibit 99.1 * * * * * * * * * * |
 1 2014 EEI Financial Conference Cautionary Statements Regarding Forward-Looking Information This presentation contains certain 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 the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company and Exelon Generation Company, LLC (Registrants) include those factors discussed herein, as well as the items discussed in (1) Exelon’s 2013 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 22; (2) Exelon’s Third Quarter 2014 Quarterly Report on Form 10-Q 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 18; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward- looking statements, which apply only as of the date of this presentation. None of the Registrants undertakes any obligation to publicly release any revision to its forward- looking statements to reflect events or circumstances after the date of this presentation. |
 2 2014 EEI Financial Conference Our Strategy Exelon Corporation Exelon Utilities Exelon Generation Attributes Value Drivers Guiding Principle Corresponding Actions • Regulated growth • Dividend stability • Operational excellence • Earnings growth • Dividend yield • Public policy advocacy General Characteristics Role & Focus • Provide dividend coverage and stable earnings growth platform • Invest in regulated growth opportunities • Competitive growth • Commodity exposure • Operational excellence • Free cash flow growth • Power prices/volatility • Public policy advocacy • Diversify business to provide growth and reduce earnings volatility • Invest in existing and adjacent markets and introduce new products and services Exelon’s Strategy Leverage the integrated business model to create value and diversify our business |
 3 2014 EEI Financial Conference Driving Value at Exelon Utilities Providing Material EPS Accretion (1) Significant Rate Base Growth (2) Operational Excellence Creating the Leading Mid-Atlantic Utility • Continue first quartile operating performance in areas such as reliability and customer satisfaction • Achieve financial performance targets • Leverage standardization, common platforms and best practices across operating companies • Improved operational performance at ComEd, PECO and BGE since the merger IL Chicago $0.00 $0.90 $1.70 $1.60 $1.40 $1.30 $1.20 $1.50 $1.10 $1.00 2017 $1.55 2016 2015 $1.40 2014 $1.25 $1.50 $1.20 $1.25 $0.95 $1.10 $21.8 $23.2 $24.7 $8.1 $8.8 $9.6 $20.1 $34.3 +15% 2017 2016 $32.0 2015 $29.9 2014 +49% Exelon PHI (1) Earnings guidance is for Exelon Utilities only and does not include PHI utilities (2) Denotes year end rate base $20.1 |
 4 2014 EEI Financial Conference Driving Value at Exelon Generation Capacity Prices Capacity Performance Role of Demand Response Shift in Demand Curve Power Prices Carbon Heat Rates Liquidity Taking action to create value today while preparing for a different future Guiding Principles: Preserve the value of our core business . . . • Operate the nuclear fleet safely and reliably • Provide clean, reliable and affordable energy • Manage portfolio through hedging and generation to load matching . . . while strategically growing and diversifying the business • Leverage competencies for growth • Identify and capitalize on emerging trends and technologies by being a first mover • Invest in business diversification to position the company for the future • Use full arsenal of financing tools |
 5 2014 EEI Financial Conference IL - Market Based Solution Possible Market Based Solutions Benefits of Exelon’s Fleet to Illinois Note: 2015 Legislative timeline is illustrative • • • • • • Illinois could enact legislation to create a Clean Energy Standard (CES) A CES is a requirement that all customers purchase a minimum percentage of “clean” generation. The concept is similar to a Renewable Portfolio Standard with the distinction that the set of resources which qualify under the CES include all zero or low CO 2 emission generators Clean energy credits would be traded in a similar fashion to how renewable energy credits (RECs) are traded today Illinois could enact legislation to create a carbon trading program or join an existing program like the Regional Greenhouse Gas Initiative (RGGI) Carbon trading programs put a cap on carbon emissions and each fossil fuel generator must submit a carbon allowance for each tonne of carbon the plant emits These allowances are traditionally auctioned with the proceeds going to the state treasury. Some of the funds may be provided to customers to offset any rate impacts or dedicated to other energy-related programs |
 6 2014 EEI Financial Conference Exelon is positioned for a strong future Operational Excellence Financial Strength Portfolio Optimization Strategic Diversification Strong Integrated Business Model We operate our nuclear fleet at world class levels, and deliver first quartile performance at the utilities We maintain a strong balance sheet and the ability to raise and deploy capital for growth We manage commodity market volatility and optimize earnings through our hedging strategy We diversify our business to capitalize on evolving industry trends over the long term We leverage our core competencies to grow our regulated and competitive business while expanding to adjacent markets Core Strength Strategic Actions Public Policy Advocacy We advocate for policies that strengthen competitive markets, value the grid and enhance the value of clean, reliable generation |
 Key Developments * * * * * |
 8 2014 EEI Financial Conference Capacity Performance (CP) Impact on PJM Fleet Source: NorthBridge Analysis; includes FRR resources/Loads; PJM proposal is to fully procure CP for 2016/17 and 2017/18 but to incrementally procure up to 10 GW of base capacity for 2015/16. Potential 2015/16 all-in CP procurement quantity shown for comparison purposes. Exelon’s fleet is well positioned to benefit from Capacity Performance due to significant investments in reliability |
 9 2014 EEI Financial Conference Asset Divestitures -- $ 1.4 Billion in Proceeds to Date Retail EXC Service Territory PHI Service Territory (1) Represents EXC’s portion of the asset Note: CF: Capacity Factor through September 2014; Safe Harbor capacity factor through July 2014 Gas CT / 200 MW 2014 CF – 8% Signed with Wayzata on 9/20 West Valley Gas CT / 477 MW 2014 CF – 17% Signed with Starwood 9/26 Quail Run Gas / Oil CCGT / 688 MW 2014 CF – 61% Signed with Calpine on 8/22 Fore River Hydro / 277 MWZ (1) 2014 CF – 38% Transaction closed on 8/8 with Brookfield Safe Harbor Coal / 1245 MW (1) 2014 CF – 74% / 82% Signed with ArcLight on 10/24 Keystone / Conemaugh Gas CCGT / 684 MW 2014 CF – 74% Currently in sale process Hillabee To date, Exelon has signed definitive agreements on five non-core assets representing a total of nearly $1.4 billion of after-tax sales proceeds upon closings; This excludes proceeds from Hillabee, which is currently on the market |
 10 2014 EEI Financial Conference ExGen Disclosures - Asset Sale Impacts Gross Margin Category ($M) 2015 2016 2017 Open Gross Margin (including South, West & Canada hedged GM) 6,750 6,500 6,650 Mark to Market of Hedges - 150 150 Power New Business / To Go 400 550 750 Non-Power Margins Executed 100 50 50 Non-Power New Business / To Go 300 350 350 Total Gross Margin (2,5) 7,550 7,600 7,950 Impact of Removing Keystone / Conemaugh (150) (100) (100) Pro-forma Total Gross Margin excluding Keystone / Conemaugh 7,400 7,500 7,850 Impact of Announced Assets Sales During 2014 (1) 2015 2016 2017 OGM Impact Q2 (Safe Harbor) (50) (50) (50) OGM Impact Q3 (Fore River, Quail Run, West Valley) (100) (100) (100) OGM Impact Q4 (Keystone / Conemaugh) (150) (100) (100) Total Impact to OGM from Announced Asset Sales (300) (250) (250) O&M 100 100 100 D&A 100 100 100 EBIT (100) (50) (50) CapEx (50) (50) (100) EPS Reduction (6) ($0.06-$0.08) ($0.02-$0.04) ($0.02-$0.04) (1) Rounded to nearest $50M (2) Total Gross Margin (Non-GAAP) is defined as operating revenues less purchased power and fuel expense, excluding revenue related to decommissioning, gross receipts tax, Exelon Nuclear Partners and variable interest entities. Total Gross Margin is also net of direct cost of sales for certain Constellation businesses (3) Excludes EDF’s equity ownership share of the CENG Joint Venture (4) Mark to Market of Hedges assumes mid-point of hedge percentages (5) Reflects the divestiture impact of Fore River, Quail Run and West Valley. Does not include divestiture of Keystone/Conemaugh or the Integrys Acquisition (6) EPS impact does not include impact of investing the proceeds from the sale. As a reminder these sales were included in the accretion calculation for the PHI transaction (3,4) (3) (1) |
 11 2014 EEI Financial Conference 2014 EEI Financial Conference State of the Art Combined Cycles in ERCOT • Efficient: Two of the cleanest, most efficient Combined Cycle Gas Turbines (CCGT) in the nation • Cost Effective: Simplified design provides for easier construction and maintenance, making these units among the most predictable and least costly to operate and maintain in the industry • Environmental: Plants use air cooling which mitigates water constraint issues • Fast Ramp: 100 MW/Minute ramp rate (market ramp rate ~50 MW/minute) WEST SOUTH NORTH HOUSTON Wolf Hollow Colorado Bend Key Facts Sites Wharton County, TX Granbury, TX Total Capacity ~2,200MW (Wolf Hollow: 1,085MW / Colorado Bend: 1,104MW) Construction Cost ~$700/kW Heat Rate ~6,500 mmBtu/MWh OEMs GE and Alstom EPC Zachry Cooling System Air Cooled Construction Start 2015 Commercial Operation By Summer 2017 ERCOT Dispatch |
 12 2014 EEI Financial Conference 2014 EEI Financial Conference Distributed Energy Platform Distributed Energy is a Fast Growing Business • On-site generation, including solar, quadrupled since 2006 (Wall Street Journal 2013) • US C&I customers are spending ~$5-6 billion per year on self- generation and energy efficiency programs (Bloomberg 2013) • Revenues from Distributed Generation are expected to reach $12.7 billion by 2018 (Pike Research, Navigant, 2012) Distributed Energy Supports Exelon’s Strategy: Grow Organically & Through M&A Participate in Emerging Trends & Technologies Commercializing emerging and potentially disruptive energy technologies to diversify existing technology base Acquiring long term retail customers through a PPA or other long-term agreement Attract and acquire new customers with unique offering Provides adaptive growth in an emerging market sector Bolstering existing relationships with customers to help achieve reliability or sustainability objectives Integrating supply & demand side solutions Key Attributes of Financial Value Backup Generation Battery Storage Co-Generation Fuel Cell CNG Solar Energy Efficiency • Provide equity financing for 21 MW of Bloom Energy fuel cell projects at 75 commercial facilities including AT&T • Provides renewable energy value or credits, if applicable • Provides tax incentives, if applicable • Own and operate CNG facilities • Leverage retail gas supply and risk management expertise • Long-term customer off-take agreement(s) • ~ 200 MW of Retail Solar Projects in operation or under construction • Long-term customer PPA (usually @ fixed price) • Provides renewable energy value or credits, if applicable • Provides tax incentives, if applicable • Over 1,000 energy saving projects implemented • ~ 50 MW conserved by customers • More than $1 billion in projects 3rd party customer financed • Own and operate energy assets as a service to retail customers • Bundled service offering with long-term customer agreements through grid power supply & LR programs • Load Response market -based value creation (e.g., LR Programs) • Own and operate energy assets as a service to retail customers • Bundled service offering with long-term customer agreements through grid power supply & LR programs • Load Response market based value creation (e.g., ancillary services) • Design, build and operate energy assets • Provides renewable energy value or credits, if applicable • Long-term O&M agreements Owned Assets – additional attributes: • Long-term customer PPA (usually @ fixed price) • Provides tax incentives, if applicable Invested more than $1 billion of capital with projects averaging returns of 8% - 12%, and well positioned for growth Preserve Value |
 Financial Update |
 14 2014 EEI Financial Conference 2014 EEI Financial Conference Financing Strategy • Our financing strategy incorporates a broad range of financial products, from the standard corporate-style products (such as corporate debt and equity), to alternative structures such as project financing, partnership structures and other arrangements • We employ a wide variety of financing tools that will enable us to access capital to grow on both the regulated and unregulated sides of the business Financing Growth Balance Sheet Debt Equity or Equity- Like Products Structured Finance On Balance Sheet Debt supports core business and/or strategic assets • Senior Unsecured Notes • Utility First Mortgage Bonds Equity or Equity-Like Products support growth projects (both on-going and strategic M&A) • Mandatory Convertible Units • Marketed Follow-On Offerings Structured Financing supports non-core assets that generate consistent cash flows • Project Financing • Asset Based Lending • Joint Venture/Equity Partner Asset Sales Proceeds from asset sales support • Reinvestment of Free Cash Flow • Strategic Diversification |
 15 2014 EEI Financial Conference 2014 EEI Financial Conference Exelon’s Strategic and Financial Decisions Enable Growth Across the Enterprise Exelon has a proven ability to finance growth A broad spectrum of financing alternatives beyond the core financing options can be used to fund growth o Monetize assets in the portfolio via project finance (Nearly $3B over past 3 years) o Sell assets which are worth more to others ($1.0-$1.5B after-tax in 2014-15) o Other financing structures (joint ventures, minority partners, etc.) could be used based on opportunity Incremental Sources of Cash 750 750 750 775 775 550 425 675 300 625 275 2016 775 25 2015 2,650 1,900 2014 2018 1,200 2017 1,050 4,275 1,400 1,150 2013 1,175 Strategic and Diversified Deployment Exelon 1. Constellation 2. BGE 3. Utility Rate Base 4. Retail Acquisitions 5. Wind 6. Annova LNG 7. ERCOT New Build 8. Pepco Holdings 9. Distributed Energy 3 4 2/8 7 6 1 5 Contracted Retail Regulated Earnings Volatility Higher Lower Merchant Strategic Decisions Dividend Reduction Alternative Financings Forward Equity Sale Mandatory Converts ExGen Texas Power, LLC Asset Sales (1) EPU Cancellations ExGen Renewables I Continental Wind (1) Includes Safe Harbor, Fore River, Quail Run, West Valley and Keystone Conemaugh. Does not include future Hillabee proceeds 9 Note: |
 16 2014 EEI Financial Conference 2014 EEI Financial Conference Over the Last Three Years, Exelon Has Raised Nearly $3 Billion through Project Financing • Exelon uses project financing to: • Maintain upside reward of the project while mitigating the downside risk • Enhance corporate credit metrics and strengthen the balance sheet via non-recourse financing vehicles • Provide different and new sources of liquidity that Exelon would not typically be able to access corporately • Maximize Exelon’s returns on its strategic investments Antelope Valley Solar Ranch •230 MW photovoltaic solar generating plant in Lancaster, CA •$646 MM Senior Secured Bond – due January 2037 with a DOE Loan Guaranty Continental Wind •667 MW of wind spread across 13 projects and five wind regimes •$613MM Senior Secured 144a Project Bond – due February 2033 and $141MM Senior Secured LC and Working Capital Facilities – due February 2021 •Deal of the Year •Project Finance’s 2013 North American Portfolio Power Deal of the Year •Project Finance & Risk’s 2013 Project Finance Renewable Deal of the Year ExGen Renewables I •HoldCo financing of Continental’s distributions to further maximize our returns on our wind investments •$300MM Senior Secured Team Loan B – due February 2021 ExGen Texas Power •3,476 MW ERCOT conventional power portfolio consisting of CCGTs and Simple Cycles •$675MM Senior Secured Term Loan B – due September 2021 •One of the largest non- corporate, single-tranche term loan B issuances in the power sector in 2014 |
 17 2014 EEI Financial Conference 2014 Operating Earnings Guidance 2014 Original Guidance $2.25 - $2.55 (1) $0.50 - $0.60 $0.40 - $0.50 $0.20 - $0.30 ExGen ComEd PECO BGE 2014 Revised Guidance (Disclosed on 3Q2014 Earnings Call) $2.30 - $2.50 (1) $1.25 - $1.35 $0.45 - $0.55 $0.35 - $0.45 $0.15 - $0.25 ExGen ComEd PECO BGE $1.10 - $1.30 (1) Earnings guidance for OpCos may not add up to consolidated EPS guidance. Refer to slide 24 for a list of adjustments from GAAP EPS to adjusted (non-GAAP) operating EPS |
   18 2014 EEI Financial Conference 2014 EEI Financial Conference EPS Sensitivities 2015 2016 2017 Fully Open Henry Hub Natural Gas +$1/MMBtu $0.10 $0.37 $0.66 $0.88 -$1/MMBtu ($0.05) ($0.34) ($0.59) ($0.87) NiHub ATC Energy Price +$5/MWh $0.07 $0.22 $0.31 $0.36 -$5/MWh ($0.07) ($0.22) ($0.31) ($0.36) PJM-W ATC Energy Price +$5/MWh $0.03 $0.14 $0.21 $0.27 -$5/MWh ($0.02) ($0.13) ($0.20) ($0.27) PJM Capacity Market +$10/MW-day $0.05 -$10/MW-day ($0.05) 30 Year Treasury Rate +25 basis points $0.01 $0.01 $0.01 $0.01 -25 basis points ($0.01) ($0.01) ($0.01) ($0.01) Share Count (millions) 870 872 892 910 (1) Based on September 30, 2014 market conditions and hedged position. Gas price sensitivities are based on an assumed gas-power relationship derived from an internal model that is updated periodically. Power prices sensitivities are derived by adjusting the power price assumption while keeping all other price inputs constant. Due to correlation of the various assumptions, the EPS impact calculated by aggregating individual sensitivities may not be equal to the EPS impact calculated when correlations between the various assumptions are also considered. (2) Assumes 2017/2018 auction cleared volumes (3) Does not include shares assumed to be issued via forward equity sale in connection with PHI acquisition (3) (2) |
 19 2014 EEI Financial Conference 2014 EEI Financial Conference Capital Expenditure Expectations ($M) Exelon Utilities Exelon Generation (1) (1) At Ownership Note: Numbers rounded to nearest $25m 275 275 300 325 525 425 300 250 650 800 725 650 1,600 1,925 1,900 2,000 2016 3,225 2015 3,425 2014 3,050 2017 3,225 Gas Delivery Smart Grid/Smart Meter Electric Transmission Electric Distribution 1,175 950 900 1,125 1,050 550 675 175 125 150 125 200 150 3,250 100 50 100 2014 2,775 75 1,025 1,000 950 100 75 2016 2,875 100 75 25 2015 2,200 2017 75 Wind Base Capex Nuclear Fuel MD Commitments TX New Build Solar Upstream Nuclear Uprates |
 20 2014 EEI Financial Conference 2014 Projected Sources and Uses of Cash Key Messages (1) • Cash from Operations is projected to be $7,475M vs. 2Q14E of $6,975M for a $500M variance. This variance is driven by: $625M Net proceeds from divestitures $175M Income taxes and settlements $125M Reclassification of PHI preferred stock purchase ($325M) Integrys acquisition, including working capital ($100M) Working capital at Utilities • Cash from Financing activities is projected to be $375M vs. 2Q14E of $250M for a $125M variance. This variance is driven by: $175M Incremental project financing at ExGen ($50M) Decreased ComEd long term debt requirements ($25M) Decrease in projected commercial paper financings • Cash from Investing activities is projected to be ($5,725M) vs. 2Q14E of ($5,450M) for a ($275M) variance. This variance is driven by: ($125M) ExGen development ($125M) Reclassification of PHI preferred stock purchase ($25M) Upstream Projected Sources & Uses (1) (1) All amounts rounded to the nearest $25M. (2) Excludes counterparty collateral of $134 million at 12/31/2013. In addition, the 12/31/2014 ending cash balance does not include collateral. (3) Includes cash flow activity from Holding Company, eliminations, and other corporate entities. CapEx for Exelon is shown net of $325M CPS early lease termination fee, and ($125M) purchase of PHI preferred stock. (4) Adjusted Cash Flow from Operations (non-GAAP) primarily includes net cash flows from operating activities and net cash flows from investing activities excluding capital expenditures of $5.7B for 2014. (5) Dividends are subject to declaration by the Board of Directors. (6) “Other Financing” primarily includes CENG distribution to EDF, expected changes in short-term debt, and proceeds from issuance of mandatory convertible units. ($ in millions) BGE ComEd PECO ExGen Exelon (3) As of 2Q14 Variance Beginning Cash Balance 1,475 1,475 -- Adjusted Cash Flow from Operations 675 1,600 650 4,550 7,475 6,975 500 CapEx (excluding other items below): (550) (1,475) (500) (1,275) (3,700) (3,450) (250) Nuclear Fuel n/a n/a n/a (1,000) (1,000) (1,000) -- Dividend (1,075) (1,075) -- Nuclear Uprates n/a n/a n/a (150) (150) (150) -- Wind n/a n/a n/a (75) (75) (75) -- Solar n/a n/a n/a (200) (200) (200) -- Upstream n/a n/a n/a (75) (75) (50) (25) Utility Smart Grid/Smart Meter (75) (275) (150) n/a (525) (525) -- Net Financing (excluding Dividend): Debt Issuances -- 900 300 -- 1,200 1,250 (50) Debt Retirements -- (625) (250) (525) (1,375) (1,375) -- Project Finance/Federal Financing Bank Loan n/a n/a n/a 1,050 1,050 875 175 Other Financing (75) 175 100 (375) 575 575 -- Ending Cash Balance 3,600 3,250 350 (2) (4) (2) (6) (5) |
 21 2014 EEI Financial Conference Pension and OPEB Contributions and Expense 2015 2016 (in $M) Pre-tax Expense (1) Contributions (2) Pre-Tax Expense (1) Contributions (2) Pension (3)(4) $375 $515 $325 $565 OPEB (3)(4) $5 $30 $5 $35 Total $380 $545 $330 $600 (1) Pension and OPEB expenses assume a ~27% and ~28% capitalization rate in 2015 and 2016, respectively (2) Contributions shown in the table above are based on the current contribution policy, which for the pension includes a discretionary component of $250M (3) Expected return on assets for pension is 7.00% and for OPEB is 6.59% (4) Projected 12/31/14 pension and OPEB discount rates are 4.28% and 4.26%, respectively, for the majority of plans |
 22 2014 EEI Financial Conference 2015 Pension and OPEB Sensitivities • Tables below provide sensitivities for the combined company’s 2015 pension and OPEB expense and contributions (1) under various discount rate and S&P 500 asset return scenarios (1) Contributions shown in the table above are based on the current contribution policy, which for the pension includes a discretionary component of $250M (2) Pension and OPEB expenses assume an ~ 27% capitalization rate in 2015 (3) Final 2014 asset return for pension and OPEB will depend in part on overall equity market returns for Q4 2014 as proxied by the S&P 500; The amounts above reflect YTD asset returns through September 30, 2014 (4) The baseline discount rates reflect projected 12/31/14 pension and OPEB discount rates of 4.28% and 4.26%, respectively, for the majority of plans 2015 Pension Sensitivity (2) (in $M) S&P Returns in Q4 2014 (3) 10% 0% -10% Discount Rate at 12/31/14 Pre-Tax Expense (1) Contributions (2) Pre-Tax Expense (1) Contributions (2) Pre-Tax Expense (1) Contributions (2) Baseline Discount Rate (4) $365 $505 $375 $515 $390 $520 +50 bps $345 $265 $345 $520 $355 $525 - 50bps $400 $490 $410 $495 $425 $505 2015 OPEB Sensitivity (2) (in $M) S&P Returns in Q4 2014 (3) 10% 0% -10% Discount Rate at 12/31/14 Pre-Tax Expense (1) Contributions (2) Pre-Tax Expense (1) Contributions (2) Pre-Tax Expense (1) Contributions (2) Baseline Discount Rate (4) $0 $30 $5 $30 $25 $35 +50 bps ($10) $30 $0 $30 $10 $30 - 50bps $10 $30 $25 $35 $35 $50 |
 23 2014 EEI Financial Conference Exelon-PHI Debt Maturity Profile (1) 250 250 325 260 1,275 425 1,350 300 500 650 600 550 700 600 1,100 525 100 125 100 75 200 250 800 2022 1,450 2016 1,575 2015 1,985 2014 2021 900 2020 1,600 2019 925 25 2018 1,600 2017 1,225 25 ExCorp PHI Holdco PHI Regulated EXC Regulated ExGen (1) ExGen debt includes legacy CEG debt; EXC Regulated includes capital trust securities; Excludes PHI unregulated debt, which totals $25M; Excludes acquisition debt and non-recourse debt; (2) Current senior unsecured ratings for Exelon, Exelon Generation and BGE and senior secured ratings for ComEd and PECO (3) All ratings are “Stable” outlook, except for at Fitch, which has BGE on “Positive” and Exelon and ExGen, on “Ratings Watch Negative” As of 10/31/14 Manageable debt maturity profile Current Ratings (2)(3) Moody’s S&P Fitch Corp Baa2 BBB- BBB+ ComEd A2 A- A- PECO Aa3 A- A BGE A3 A- BBB+ Generation Baa2 BBB BBB+ |
 24 2014 EEI Financial Conference GAAP to Operating Adjustments • Exelon’s 2014 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: - 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 - Financial impacts associated with the increase and decrease in certain decommissioning obligations - Financial impacts associated with the sale of interests in generating stations - Non-cash charge to earnings related to the cancellation of previously capitalized nuclear uprate projects and the impairment of certain wind generating assets and certain assets held for sale - Gain recorded upon consolidation of CENG - Certain costs incurred associated with the Constellation, CENG merger, and Pepco Holdings, Inc. merger and integration initiatives - Non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date for 2014 - Favorable settlements of certain income tax positions on Constellation’s 2009-2012 tax returns - CENG interest not owned by Generation, where applicable |
 Exelon Utilities * * * * * |
 26 2014 EEI Financial Conference Exelon Utilities Strategy Strategy Increase Total Enterprise Value Maintain First Quartile Operating Performance Achieve Financial Performance Targets Leverage standardization, common platforms, and best practices across operating companies, building a value creation platform for future scale Optimize Existing Infrastructure (get full potential from current businesses) Invest in Traditional Infrastructure (delivery network investments) Grow Emerging Infrastructure (transformative growth) Innovate Products & Services (expand customer offering) Operational Excellence Growth |
 27 2014 EEI Financial Conference Leveraging Best Practices for Operational Excellence Operations Metric At Merger (2012) Post Merger (2014) BGE PECO ComEd BGE PECO ComEd Electric Operations OSHA Recordable Rate OSHA Severity Rate 2.5 Beta SAIFI 2.5 Beta CAIDI Customer Operations Customer Satisfaction (MSI) Service Level % of Calls Answered in <30 Sec Abandon Rate Calls per Customer Gas Operations Percent of Calls Responded to in <=1 Hour No Gas Operations No Gas Operations 3rd Party Damages per 1,000 Gas Locates Q1 Q2 Q3 Q4 Performance Quartiles Exelon Utilities has identified and transferred best practices at each of its utilities to improve operating performance in areas such as: • System Performance • Emergency Preparedness • Corrective and Preventive Maintenance |
 28 2014 EEI Financial Conference Capital Expenditures (1) Smart Meter/Smart Grid CapEx net of proceeds from U.S. Department of Energy (DOE) grant; For BGE, includes CapEx from Smart Energy Savers program of ~$10M per year 175 150 175 200 275 350 300 225 150 100 475 575 425 375 75 75 125 175 225 200 1,000 1,225 1,225 1,325 350 350 325 325 250 350 350 350 125 125 125 100 25 2017E 775 25 2016E 750 2015E 725 50 2014E 650 2017E 525 2016E 525 2015E 550 50 2014E 650 50 2017E 1,925 2016E 1,950 2015E 2,150 2014E 1,750 Gas Delivery Electric Transmission Smart Grid/Smart Meter (1) Electric Distribution ($ in millions) |
 29 2014 EEI Financial Conference Exelon Utilities: Rate Base (1) and ROE Targets 2014E Long-Term Target Equity Ratio 52% ~53% (4) Earned ROE 7-8% 10% Rate Case 2015 2014E Long-Term Target Equity Ratio ~46% ~53% (2) Earned ROE 8-9% Based on 30-yr US Treasury (3) Rate Case Annual Formula Rate Filing Continued investment in utilities will provide stable earnings growth ($ in billions) (1) ComEd, PECO and BGE rate base represents end-of-year. Numbers may not add due to rounding (2) Equity component for distribution rates will be the actual capital structure adjusted for goodwill (3) Earned ROE will reflect the weighted average of 11.5% allowed transmission ROE and distribution ROE resulting from 30-year Treasury plus 580 basis points for each calendar year (4) Per MDPSC merger commitment, BGE is precluded from paying dividends through 2014 2014E Long-Term Target Equity Ratio 56% ~53% Earned ROE 11-12% 10% Rate Case Possible 2015-2016 1.4 1.4 1.4 7.1 7.8 8.5 9.2 3.7 3.9 4.0 4.1 3.0 3.1 3.2 3.2 2.5 2.8 3.0 3.4 0.7 0.7 0.8 0.8 0.7 0.8 1.0 1.2 1.3 1.2 1.2 1.3 1.2 5.5 2015E 2017E 5.8 2016E 5.2 2014E 4.9 2017E 6.3 2014E 9.6 2016E 6.2 2015E 6.0 2014E 5.6 2017E 12.6 2016E 11.5 2015E 10.6 Gas Distribution Transmission |
 30 2014 EEI Financial Conference 9.9 2017 YE Rate Base Other 2015-2017 $24.7B (1.5) Depreciation 2015-2017 (3.8) CapEx 2015-2017 2014 YE Rate Base $20.1B Rate Base Growth Utility CapEx spend outpaces depreciation, thereby growing rate base and earnings |
 31 2014 EEI Financial Conference Exelon Utility 2014-17 Adjusted Operating EPS Guidance By investing $16B in capital and improving earned ROEs, Exelon Utilities will provide average earnings growth of ~8% per year from 2014-2017 |
 32 2014 EEI Financial Conference Grand Prairie Gateway Transmission Line Key Facts • Line: 60 mile, 345 kV transmission line connecting ComEd’s Byron and Wayne substations alleviating identified congestion and enhancing reliability • Cost: $260 million • Customer Savings: $250 million within the first 15 years of operation – net of all costs • Recovery Mechanism: FERC-filed transmission rate of 11.5% and construction work in progress and abandonment recovery • Construction: Scheduled to begin Q2 2015 • In Service Date: Q2 2017 • Environmental Benefits: 735,000 pounds of carbon dioxide (CO2) reduced over the first 15 years |
 33 2014 EEI Financial Conference ComEd April 2014 Distribution Formula Rate Docket # 14-0312 Filing Year 2013 Calendar Year Actual Costs and 2014 Projected Net Plant Additions are used to set the rates for calendar year 2015. Rates currently in effect (docket 13-0318) for calendar year 2014 were based on 2012 actual costs and 2013 projected net plant additions Reconciliation Year Reconciles Revenue Requirement reflected in rates during 2013 to 2013 Actual Costs Incurred. Revenue requirement for 2013 is based on docket 13-0386 filed in June 2013 and reflect the impacts of PA 98-0015 (SB9) Common Equity Ratio ~ 46% for both the filing and reconciliation year ROE 9.25% for the filing year (2013 30-yr Treasury Yield of 3.45% + 580 basis point risk premium) and 9.20% for the reconciliation year (2013 30-yr Treasury Yield of 3.45% + 580 basis point risk premium – 5 basis points performance metrics penalty). For 2014 and 2015, the actual allowed ROE reflected in net income will ultimately be based on the average of the 30-year Treasury Yield during the respective years plus 580 basis point spread, absent any metric penalties Requested Rate of Return ~ 7% for both the filing and reconciliation years Rate Base (1) $7,369 million– Filing year (represents projected year-end rate base using 2013 actual plus 2014 projected capital additions). 2014 and 2015 earnings will reflect 2014 and 2015 year-end rate base respectively. $6,596 million - Reconciliation year (represents year-end rate base for 2013) Revenue Requirement Increase (1) $269M ($96M is due to the 2013 reconciliation, $173M relates to the filing year). The 2013 reconciliation impact on net income was recorded in 2013 as a regulatory asset. Timeline • 04/16/14 Filing Date • 240 Day Proceeding • ALJ Proposed Order issued on 10/15/14 proposes a $239M revenue requirement increase • ICC order expected by December 12, 2014 (1) Amounts represent ComEd’s position filed in rebuttal testimony on July 23, 2014 Note: Disallowance of any items in the 2014 distribution formula rate filing could impact 2014 earnings in the form of a regulatory asset adjustment Given the retroactive ratemaking provision in the Energy Infrastructure Modernization Act (EIMA) legislation, ComEd net income during the year will be based on actual costs with a regulatory asset/liability recorded to reflect any under/over recovery reflected in rates. Revenue Requirement in rate filings impacts cash flow. The 2014 distribution formula rate filing establishes the net revenue requirement used to set the rates that will take effect in January 2015 after the Illinois Commerce Commission's (ICC’s) review. There are two components to the annual distribution formula rate filing: • Filing Year: Based on prior year costs (2013) and current year (2014) projected plant additions. • Annual Reconciliation: For the prior calendar year (2013), this amount reconciles the revenue requirement reflected in rates during the prior year (2013) in effect to the actual costs for that year. The annual reconciliation impacts cash flow in the following year (2015) but the earnings impact has been recorded in the prior year (2013) as a regulatory asset. |
 34 2014 EEI Financial Conference BGE Rate Case Settlement Electric Gas Docket # 9355 Test Year September 2013 - August 2014 Common Equity Ratio (1)(2) 52.3% Authorized Returns (1)(3) ROE: 9.75%; ROR: 7.46% ROE: 9.65%; ROR: 7.41% Requested Rate of Return 7.93% 7.88% Proposed Rate Base (adjusted) (1)(4) $2.9B $1.2B Revenue Requirement Increase $22.0M $38.0M Distribution Increase as % of overall bill 1% 5% Timeline • 07/02/14 BGE filed application with the MDPSC seeking increases in electric & gas distribution base rates • 210 Day Proceeding • 7/08/14 – Case delegated to the Public Utility Law Judge Division • 10/17/14 – BGE filed unanimous “black box” settlement with MD PSC • Settlement must be approved by the MD PSC • If approved, new rates are expected to be effective no sooner than the middle of December 2014 (1) Due to the “black box” nature of the settlement, the Common Equity Ratio, Authorized Returns, and Proposed Rate Base (adjusted) were not agreed upon by the parties in determining the ultimate revenue requirement increase (2) Reflects BGE’s actual capital structure as of 8/31/2014 (3) ROE and ROR stated in the settlement only apply to AFUDC and carrying costs on regulatory assets (4) BGE’s Proposed Adjusted rate base First BGE rate case settlement agreement since 1999 |
 35 2014 EEI Financial Conference ComEd Load Weather-Normalized Load Growth Economic Forecast of Drivers that Influence Load 2014E 0.6% 0.1% 1.4% 0.7% 1.7% 2013 -0.3% -0.5% 0.0% -0.2% 1.2% GMP Large C&I Small C&I Residential All Customers Driver or Indicator 2015 Outlook Gross Metro Product (GMP) 2.3% growth in real GMP reflects overall better economic conditions than the slower growth in 2014 (Manufacturing and Professional Business Services employment accelerate in 2015) Employment 1.3% increase in total employment is expected for 2015, which is consistent with the average growth for the past three years Manufacturing Manufacturing employment is expected to grow 1.4% in 2015. This is a significant improvement over the (0.4%) decline in 2013 and the (1.1%) decline in 2014 Households Household formations are expected to increase 0.7% in 2015 which is slightly higher than the expected increase of 0.6% in 2014 Energy Efficiency Continued expansion of EE program expected to reduce usage in 2015 by approximately 1.2% Notes: 2013 data is not adjusted for leap year. Source of 2015 economic outlook data is IHS Economics (September 2014). (C&I = Commercial and Industrial) Improving economic conditions and energy efficiency initiatives will continue to impact load growth |
 36 2014 EEI Financial Conference PECO Load Weather-Normalized Load Growth Economic Forecast of Drivers that Influence Load 2014E -0.6% 0.0% 1.1% 0.3% 1.2% 2013 1.5% -1.1% 0.0% 1.3% GMP Large C&I Small C&I Residential All Customers Driver or Indicator 2015 Outlook Gross Metro Product (GMP) GMP projected to grow at 2.5% for 2015, the same as prerecession levels Resident Employment Resident employment outlook is 1.7% in 2015 vs. 1.3% in 2014 Manufacturing Employment Manufacturing employment is expected to grow at 1.7%. Philadelphia has had negative growth from 2000 to 2014 Households Household growth is expected to be 0.7%, strongest growth since 2008, and at the same level as 2014 Energy Efficiency Deemed Energy Efficiency impact forecasted to be ~0.9% reduction in usage in 2015 Moderately strong economic recovery will drive sales in 2015, partially offset by on-going energy efficiency initiatives 0.3% Notes: 2013 data is not adjusted for leap year. Source of 2015 economic outlook data is IHS Economics (September 2014). (C&I = Commercial and Industrial) |
 37 2014 EEI Financial Conference BGE Load Weather-Normalized Load Growth Economic Forecast of Drivers that Influence Load 2014E -1.8% -0.5% -0.7% -1.2% 1.6% 2013 -3.2% 2.1% 2.0% -0.6% 0.4% GMP Large C&I Small C&I Residential All Customers Moderately strong economic recovery will drive sales in 2015, partially offset by energy efficiency initiatives Driver or Indicator 2015 Outlook Gross Metro Product (GMP) GMP is projected to grow at 2.6% for 2015 Employment 2.1% growth projected. BGE’s decoupled non-rate case revenue growth is primarily driven by customer growth. The main driver for customer growth is employment Manufacturing Manufacturing employment is expected to be fairly flat to 2014 levels in 2015 Households Household growth is projected to be 0.8%, almost flat to 2014 Energy Efficiency Continued expansion of EE programs will partially offset growth seen due to improvements in economic conditions Notes: 2013 data is not adjusted for leap year. Source of 2015 economic outlook data is IHS Economics (September 2014). (C&I = Commercial and Industrial) |
 PHI Acquisition * * * * * |
 39 2014 EEI Financial Conference Delivering Value to PHI’s Customers and Communities |
 40 2014 EEI Financial Conference PHI Acquisition Will Create the Leading Mid-Atlantic Utility Operating Statistics Commonwealth Edison Potomac Electric Power Customers: Service Territory: Peak Load: 2013 Rate Base: 3,800,000 11,400 sq. miles 23,753 MW $8.7 bn Customers: Service Territory: Peak Load: 2013 Rate Base: 801,000 640 sq. miles 6,674 MW $3.4 bn PECO Energy Atlantic City Electric Customers: Service Territory: Peak Load: 2013 Rate Base: 2,100,000 2,100 sq. miles 8,983 MW $5.4 bn Customers: Service Territory: Peak Load: 2013 Rate Base: 545,000 2,700 sq. miles 2,797 MW $1.6 bn Baltimore Gas & Electric Delmarva Power & Light Customers: Service Territory: Peak Load: 2013 Rate Base: 1,900,000 2,300 sq. miles 7,236 MW $4.6 bn Customers: Service Territory: Peak Load: 2013 Rate Base: 632,000 5,000 sq. miles 4,121 MW $2.0 bn ___________________________ Source: Company filings. Note: Operational statistics as of 12/31/2013 Combined Service Territory Potomac Electric Power Service Territory Atlantic City Electric Service Territory Delmarva Power & Light Service Territory Baltimore Gas and Electric Service Territory PECO Energy Service Territory ComEd Service Territory |
 41 2014 EEI Financial Conference 2014 EEI Financial Conference Earnings Accretive First Full Year (1) Transaction Economics Exelon Consolidated S&P FFO/Debt 24% 22% 2015 2016 (1) Assumes funding mix of assumed debt, new debt, asset sales and equity issuance with appropriate discount to market price. (2) Reflects year end rate base 2016-2017 Operating Earnings 33%-39% 61%-67% Pro Forma Business Mix Regulated Unregulated Rate Base Growth ($B) (2) $21.8 $23.2 $24.7 $8.1 $8.8 $9.6 $20.1 $34.3 +15% +49% 2017 2014 2015 2016 $29.9 $32.0 Exelon PHI 2017 2016 $0.10 - $0.15 $0.15 - $0.20 Achieve run-rate accretion of $0.15-$0.20 starting in 2017 The transaction is EPS accretive, adds to rate base growth and further strengthens our financials |
 42 2014 EEI Financial Conference 2014 EEI Financial Conference PHI: Capital Expenditures and Rate Base $725 $675 $700 $725 $350 $350 $350 $350 $250 $275 $325 $325 $1,400 2017E 2016E $1,375 2015E $1,300 2014E (2) $1,325 (2) Pepco DPL ACE Rate Base ($B) (1)(3) Capital Expenditures ($M) (1) $4.0 $4.4 $4.8 $2.2 $2.4 $2.5 $2.7 $1.6 $1.7 $1.9 $2.1 $3.6 2016E $8.8 2015E $8.1 2014E $7.5 2017E $9.6 (1) Source: PHI Third Quarter Earnings Materials 10/31/14 (2) Source for 2014 CapEx is PHI 2014 Analyst Day Conference Presentation 03/21/14 and PHI First Quarter 2014 Earnings Materials 05/07/14 (3) Denotes year end rate base Note: CapEx numbers rounded to nearest $25M; totals might not add due to rounding Strong rate base growth will provide stable utility earnings growth |
 43 2014 EEI Financial Conference 2014 EEI Financial Conference Opportunity for ROE Improvement at PHI Utilities Source: Pepco Holdings Inc. 2014 Analyst Conference Presentation, 3/21/14 |
 44 2014 EEI Financial Conference 2014 EEI Financial Conference Regulatory Approval Timeline Supports a Q2/Q3 2015 Close Jurisdiction Application Filing Key Regulatory Milestones Approved Virginia (Case No. PUE-2014-00048) 3-Jun Approved October 7, 2015 Federal Energy Regulatory Commission (FERC) (Docket No. EC14-96-000) 30-May Department of Justice (DOJ) 6-Aug Request for additional information received October 9 Delaware (Docket 14-193) 18-Jun Pre-Hearing Briefs: Feb 11, 2015 Hearings: Feb 18 - 20, 2015 Final Order: Mar 10, 2015 New Jersey (Docket No. EM14060581) 18-Jun Hearings: Jan 12 - 16, 2015 Briefs: Feb 6, 2015 Reply Briefs: March 3, 2015 Maryland (Case No 9361) 19-Aug Hearings: Jan 26 - Feb 6, 2015 Briefs: Feb 27, 2015 Reply Briefs: March 13, 2015 Statutory Deadline: April 1, 2015 District of Columbia (Formal Case No. 1119) 18-Jun Hearings: Feb 9 – 13, 2015 Briefs: March 12, 2015 Reply Briefs: March 26, 2015 |
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 46 2014 EEI Financial Conference 2014 EEI Financial Conference Commercial Business Overview Scale, Scope and Flexibility Across the Energy Value Chain Development and exploration of natural gas and liquids properties 9 assets in six states ~165 BCFe of proved Reserves (1) Leading merchant power generation portfolio in the U.S. ~32 GW of owned generation capacity (2) Clean portfolio, well positioned for evolving regulatory requirements Industry-leading wholesale and retail sales and marketing platform ~150 TWh of load and ~500 BCF of retail gas delivered (3) ~ 1 million residential and 100,000 business and public sector customers One of the largest and most experienced Energy Management providers Over 4,000 energy savings projects implemented across the U.S. A growing Distributed Energy platform with over $1B of investment to date Benefiting from scale, scope and flexibility across the value chain (1) 12/31/13 year-end reserves based upon assets owned as of 9/30/14. Includes Natural Gas (NG), NG Liquids (NGL) and Oil. NGL and Oil are converted to BCFe at a ratio of 6:1. (2) Total owned generation capacity as of 9/30/2014, less capacity for announced divestitures of Fore River, Quail Run, West Valley, and Keystone Conemaugh (3) Expected for 2014 as of 9/30/2014. Electric load and gas includes fixed price and indexed products Note: Does not include the impact of Integrys acquisition |
 47 2014 EEI Financial Conference 2014 EEI Financial Conference 10 15 5 9 18 7 15 16 49 71 27 97 25 ERCOT 38 Mid-Atlantic 108 Canada Midwest 111 23 South/West/ New York 10 New England Generation to Load Match Industry-leading platform with regional diversification of the generation fleet and customer-facing load business Generation Capacity, Expected Generation and Expected Load 2015 in TWh (1,2) (1) Owned and contracted generation capacity converted from MW to MWh assuming 100% capacity factor (CF) for all technology types, except for renewable capacity which is shown at estimated CF (2) Expected generation and load shown in the chart above will not tie out with load volume and ExGen disclosures; Load shown above does not include indexed products and generation reflects a net owned and contracted position; Estimates as of 9/30/2014 Note: Includes divestitures for Safe Harbor, Fore River, Quail Run, and West Valley; Does not include impact of Keystone /Conemaugh divestiture or the Integrys acquisition Expected Load Expected Generation Baseload Intermediate Peaking Renewables Generation to Load match provides portfolio management benefits in differing volatility and price environments • During the first quarter, our nuclear baseload generation fleet, in combination with our dispatchable fleet, allowed us to take advantage of the high volatility/price environment while managing load obligations • During the third quarter, we were able to realize lower costs to serve our load due to the low volatility/price environment |
 48 2014 EEI Financial Conference 2014 EEI Financial Conference Electric Load Serving Business: Growth Targets (1) 0 20 40 60 80 100 120 140 160 180 2015E 2017E 2016E 2014E 165 70-80% 20-30% 165 60-70% 30-40% 150 60-70% 30-40% 165 70-80% 20-30% Retail Load (2) Wholesale Load Total Contracted Commercial Load 2014 – 2017 TWh 8% Load Split by Customer Class (2014 TWh) Expected growth in volumes and margins on the back of a sustainable platform A diverse set of customers enhances portfolio management opportunities Note: Index load expected to be 20% to 30% of total forecasted retail load Customer Type Load Size Mass Markets <1,000 MWhs per year Small C&I 1,001-5,000 MWhs per year Medium C&I 5,001-25,000 MWhs per year Large C&I >25,000 MWhs per year Medium C&I Large C&I 35% 15% Small C&I 10% Mass Markets 5% Wholesale 35% C&I = Commercial & Industrial (1) Does not include Integrys acquisition |
 49 2014 EEI Financial Conference 2014 EEI Financial Conference Electric Load Serving Business: Market Landscape Total U.S. Power Market 2014 (~3,700 TWh load) (2) Eligible Non- Switched Eligible Switched Muni/Co-Op Market Other Ineligible Constellation Active Retail Electric Markets (1) Competitive Retail Market Expected to Grow Faster Than Overall Market 2014-2017 • Underlying 1% load growth across the U.S. • C&I switched market to grow by about 8% • Residential switched market to grow by about 7% Retail Mergers & Acquisitions Activity has Increased • EXC has been active in evaluating opportunities, and acquired Integrys Energy Services earlier this year • 34 deals announced 2014 YTD, compared to 27 deals in 2013, and 23 deals in 2012 Conditions have improved in many markets as impacts of the Polar Vortex have played out • During 2014, we have experienced improved margins, contract tenors, and renewal rates Existing suppliers continue to expand market footprint and product portfolio • Existing suppliers entered 23 new markets in 2014 YTD • Energy efficiency among most popular for cross-selling opportunities Market Landscape (2) (1) Does not include Integrys acquisition (2) Sources are EIA, DNV GL, and internal estimates Improving market driving higher margins and better contract terms |
 50 2014 EEI Financial Conference 2014 EEI Financial Conference Natural Gas Serving Business: Marketing Platform Constellation Active Natural Gas Markets Supply ~4-6 Bcf per day delivered in competitive markets Transportation Active shipper on more than 45 interstate pipelines on a daily basis Trading Active participant in all major supply basins, markets, and trading points in North America Volume Management Schedule, nominate and balance behind more than 100 LDCs Nature Gas markets continue to grow on both the consumption and supply side • Lead by the industrial section, gas consumption is expected to increase by 1.6% in 2014 • EXC expanded it’s gas marketing presence through the Integyrs and ETC ProLiance acquisitions Growing domestic production impacting imports • Continued downward pressure on natural gas imports from Canada • Mexican exports, specifically from Eagle Ford, are expected to increase due to growing demand in the electric power sector The Polar Vortex provided multiple supply opportunities across the US for natural gas LNG imports and exports • Higher prices in Europe and Asia more attractive to sellers than low US prices • LNG exports are still a very small part of the total picture; however, the United States will remain a net importer of natural gas because of pipeline imports from Canada Gas Storage and Pipeline Investment • Gas inventories continue to drop year over year. Currently 373 BCF lower than last year driving storage opportunities • Investment in new pipelines supporting key production areas continue grow supported by multiple parties (Equity, LDCs) (1) Source: EIA and internal estimates Market Landscape 2014 - 2015 (1) Top 10 US Gas Marketer with a growing presence |
 51 2014 EEI Financial Conference Integrys Energy Services Acquisition Natural Gas Electric Electric and Natural Gas • Significantly increases natural gas portfolio by 150 bcf annually • Increases power load by 15 TWh • Many of the power customers served by Integrys are in regions where Exelon owns significant generation, providing generation to load match benefit • Mitigates risk of hedging in illiquid markets • Adds 1.2 million customers, bringing the total Constellation customer base to approximately 2.5 million homes and businesses |
 52 2014 EEI Financial Conference (1) 12/31/13 year-end reserves based upon assets owned as-of 9/30/14. Upstream E&P Assets Estimated Net Proved Reserves (as of 12/31/13) (1) Average Net Daily Production (as of Q2 2014) 165 Bcfe 55 MMcfe Investment Thesis • Our Upstream Gas business achieves strong returns (>16% after-tax IRR) • $110m (~70% utilized) Reserve Based Lending (RBL) facility in place Non-recourse treatment at S&P • Provides valuable market intelligence in complex natural gas markets Forecasted Production 2014 2015 2016 2017 Net Daily Prod (MMcfe / day) 50-55 40-55 35-50 40-55 Current Portfolio Of Investments Mississippi Lime (OK) Hunton Dewatering (OK) Woodford Shale (OK) Fayetteville Shale (AR) Haynesville Shale (LA) Floyd Shale (AL) Woodbine Shale (TX) Trenton Black River (MI) Barnett Shale (TX) |
 53 2014 EEI Financial Conference Pipeline capacity expansions and regional demand should balance higher gas production starting in mid-2017, improving Mid-Atlantic gas basis Mid-Atlantic Gas Basis: Improves Starting 2017 • Northeastern U.S. gas production is projected to approach 25 bcf/day by 2018, up from 19 bcf/day in 2015 • Regional demand is projected to reach 18 bcf/day by 2018, up from 15 bcf/day in 2015 • Based upon public announcements, we expect 19 bcf/day of pipeline takeaway capacity by 2018 • Pipeline projects are underway adding takeaway capacity. 2017 is a transition year where timing of pipeline expansions (~9 bcf/day) will play a role in determining local gas prices, but should be more balanced than in prior years. This is consistent with the current forward market which indicates an improving Mid-Atlantic natural gas basis • Additional pipeline capacity and regional demand will stabilize basis discounts in non winter months and reduce price spikes in the winter Notes: Values represent annual averages; Demand includes storage |
 54 2014 EEI Financial Conference Northeast Gas Pipeline Expansion Projects Almost 19 bcf/day of pipeline expansion projects have been announced for completion by the end of 2018 |
 55 2014 EEI Financial Conference Power Markets - NiHub $2-$3/MWh power price upside in 2016-2017 due to higher dispatch costs and a modest increase in load Expect continued volatility due to incremental coal retirements in the second half of 2015 Forward markets continued their upward trend through 2014 • During 2014, strong spot prices have started to reflect the changing nature of the grid in PJM and new reliance on different resources such as NG supply, demand response, and oil peakers • As a result, we have seen stronger forward power and heat rate curves • Our portfolio is positioned to take advantage of expected volatility and power price upside • 2015 seasonal upside in the second half of the year, especially at NIHUB off peak • 2016-2017 average upside of $2-$3/MWh |
 56 2014 EEI Financial Conference Capacity Markets 2013/ 2014 2014/ 2015 2015/ 2016 2016/ 2017 2017/ 2018 PJM (3,8,9) ComEd Capacity N/A N/A N/A N/A 10,900 Price N/A N/A N/A N/A $120 RTO Capacity 11,500 11,500 11,500 11,250 0 Price $28 $126 $136 $59 $120 EMAAC Capacity (4) 8,900 8,900 8,900 8,900 8,300 Price $245 $137 $168 $119 $120 MAAC Capacity (5) 2,300 2,300 2,300 2,300 2,300 Price $226 $137 $168 $119 $120 SWMAAC Capacity (6) 1,800 1,800 1,800 1,800 900 Price $226 $137 $168 $119 $120 BGE Capacity N/A N/A N/A N/A 900 Price N/A N/A N/A N/A $120 Average Exelon $140 $132 $153 $91 $120 New England (7) NEMA Capacity 2,100 2,100 2,100 2,100 2,100 Price $98 $107 $114 $219 $493 Rest of Pool Capacity 735 445 35 35 35 Price $85 (8) $95 (8) $104 (8) $90 $231 NYISO (9) Rest of Pool Capacity 1,100 1,100 1,100 1,100 1,100 MISO (10) AMIL Capacity 1,100 1,100 1,100 1,100 1,100 Price N/A N/A N/A 1 17 RTO = Regional Transmission Organization, MAAC = Mid-Atlantic Area Council, EMAAC = Eastern Mid-Atlantic Area Council, SWMAAC = South West Mid-Atlantic Area Council, NEMA = North East Massachusetts; SEMA = Southeast Massachusetts, AMIL = Ameren Illinois. PJM RPM Capacity Revenues (1,9) Exelon Fleet Weighted Price ($/MWd) Revenue ($MM) (2) (1) Revenues reflect capacity cleared in base and incremental auctions and are for calendar years. Revenue rounded to nearest $50M (2) Weighted average $/MW-Day would apply if all owned generation cleared (3) Reflects owned and contracted generation Installed Capacity (ICAP) adjusted for mid-year PPA roll offs (4) ICAP is net of Eddystone 1&2, Cromby 1&2 and Schuykill 1 (total ~ 1,100 MW) (5) ICAP is net of Safe Harbor divestiture (total ~300 MW); Impact of Keystone Conemaugh diestiture not included (6) ICAP is net of units divested (Brandon Shores, Wagner & Crane ~2,648 MW; and Riverside 6 CT (~115MW) (7) Reflects Qualified Summer Capacity including owned and contracted units; excludes Fore River after 14/15 (8) Price is pro-rated for auctions that clear at the floor price and there is more capacity procured than suggested by the reliability requirement (9) Reflects 50.01% ownership in CENG (10) Does not include wind under PPA |
 57 2014 EEI Financial Conference PJM – Working to Address Reliability Source: PJM Interconnection, Response to Committee Questions of U.S. House of Representatives Committee on Energy and Commerce, April 18, 2014, Figure 4. Source: PJM Interconnection, “Analysis of Operational Events and Market Impacts During the January 2014 Cold Weather,” May 9, 2014, slide 10. The polar vortex in the winter of 2014 highlighted generator reliability concerns that PJM is now working to address Source: Northbridge Analysis based on PJM data |
 58 2014 EEI Financial Conference PJM’s Proposed Solution - Capacity Performance Proposal • PJM recognizes that generation resources procured through its existing forward capacity market (RPM) may not be sufficient to meet future load conditions, especially at winter peak o Additionally, current revenues and penalty structures are insufficient to provide incentives for necessary investment to maintain highly available capacity • PJM released a revised “Capacity Performance” proposal on October 7, 2014 revamping initial reform concepts suggested in August o The Capacity Performance concept reforms are intended to encourage commitment of capacity resources that have secure fuel and other performance characteristics to provide PJM confidence that units will be available when dispatched to meet peak summer and winter load o PJM proposes to increase the capacity market offer cap to Net CONE, and to substantially raise penalties for performance failure o PJM suggests transition mechanisms for delivery years in which it has already made forward capacity procurements (2015-16, 2016-17, and 2017-18) o PJM proposes a method of integrating “wholesale” demand response through PJM Load Serving Entities in a manner that would clear by adjusting the RPM demand curve |
 59 2014 EEI Financial Conference Capacity Performance Impact on PJM Fleet Total Potential CP Resources Procurement Quantity (80% of RPM Reliability Target) Source: NorthBridge Analysis; Includes FRR resources/Loads; PJM proposal is to fully procure CP for 2016/17 and 2017/18 but to incrementally procure up to 10 GW of base capacity for 2015/16; Potential 2015/16 all-in CP procurement quantity shown for comparison purposes Only qualifies with significant cost Qualifies without significant capital cost Exelon’s fleet is well positioned to benefit from Capacity Performance due to significant investment in reliability |
 60 2014 EEI Financial Conference 2014 EEI Financial Conference Exelon Generation Disclosures As of September 30, 2014 |
 61 2014 EEI Financial Conference 2014 EEI Financial Conference Portfolio Management Strategy Protect Balance Sheet Ensure Earnings Stability Create Value Exercising Market Views Purely ratable Actual hedge % Market views on timing, product allocation and regional spreads reflected in actual hedge % High End of Profit Low End of Profit % Hedged Open Generation with LT Contracts Portfolio Management & Optimization Portfolio Management Over Time Align Hedging & Financials Establishing Minimum Hedge Targets Note: Hedge strategy has not changed as a result of recent and pending asset divestitures Credit Rating Capital Structure Capital & Operating Expenditure Dividend •Aligns hedging program with financial policies and financial outlook •Establish minimum hedge targets to meet financial objectives of the company (dividend, investment-grade credit rating) •Hedge enough commodity risk to meet future cash requirements under a stress scenario •Ensure stability in near-term cash flows and earnings •Disciplined approach to hedging •Tenor aligns with customer preferences and market liquidity •Multiple channels to market that allow us to maximize margins •Large open position in outer years to benefit from price upside • Ability to exercise fundamental market views to create value within the ratable framework • Modified timing of hedges versus purely ratable • Cross-commodity hedging (heat rate positions, options, etc.) • Delivery locations, regional and zonal spread relationships Three-Year Ratable Hedging Bull / Bear Program Strategic Policy Alignment |
           62 2014 EEI Financial Conference 2014 EEI Financial Conference Components of Gross Margin Categories Open Gross Margin •Retail, Wholesale planned gas sales •Load Response •Energy Efficiency (4) •BGE Home (4) •Distributed Solar •Portfolio Management / origination fuels new business •Proprietary trading (3) •Retail, Wholesale executed gas sales •Load Response •Energy Efficiency (4) •BGE Home (4) •Distributed Solar •Retail, Wholesale planned electric sales •Portfolio Management new business •Mid marketing new business •MtM of power, capacity and ancillary hedges, including cross commodity, retail and wholesale load transactions •Provided directly at a consolidated level for five major regions. Provided indirectly for each of the five major regions via EREP, reference price, hedge %, expected generation •Generation Gross Margin at current market prices, including capacity & ancillary revenues, nuclear fuel amortization and fossils fuels expense •Exploration and Production (4) •PPA Costs & Revenues •Provided at a consolidated level for all regions (includes hedged gross margin for South, West & Canada (1) ) MtM of Hedges (2) “Power” New Business “Non Power” Executed “Non Power” New Business Margins move from new business to MtM of hedges over the course of the year as sales are executed (5) Margins move from “Non power new business” to “Non power executed” over the course of the year Gross margin linked to power production and sales Gross margin from other business activities (1) Hedged gross margins for South, West & Canada region will be included with Open Gross Margin, and no expected generation, hedge %, EREP or reference prices provided for this region (2) MtM of hedges provided directly for the five larger regions; MtM of hedges is not provided directly at the regional level but can be easily estimated using EREP, reference price and hedged MWh (3) Proprietary trading gross margins will generally remain within “Non Power” New Business category and only move to “Non Power” Executed category upon management discretion (4) Gross margin for these businesses are net of direct “cost of sales” (5) Margins for South, West & Canada regions and optimization of fuel and PPA activities captured in Open Gross Margin |
 63 2014 EEI Financial Conference 2014 EEI Financial Conference ExGen Disclosures Gross Margin Category ($M) (1) 2014 2015 2016 2017 Open Gross Margin (including South, West & Canada hedged GM) (3) 7,300 6,750 6,500 6,650 Mark to Market of Hedges (3,4) (350) - 150 150 Power New Business / To Go 50 400 550 750 Non-Power Margins Executed 350 100 50 50 Non-Power New Business / To Go 50 300 350 350 Total Gross Margin (2,6) 7,400 7,550 7,600 7,950 Reference Prices (5) 2014 2015 2016 2017 Henry Hub Natural Gas ($/MMbtu) $4.44 $4.00 $4.08 $4.22 Midwest: NiHub ATC prices ($/MWh) $39.45 $33.70 $33.21 $33.62 Mid-Atlantic: PJM-W ATC prices ($/MWh) $51.38 $42.75 $40.69 $40.06 ERCOT-N ATC Spark Spread ($/MWh) HSC Gas, 7.2HR, $2.50 VOM $3.02 $6.47 $6.14 $6.27 New York: NY Zone A ($/MWh) $49.00 $42.14 $38.94 $38.37 New England: Mass Hub ATC Spark Spread($/MWh) ALQN Gas, 7.5HR, $0.50 VOM $3.04 $8.95 $7.64 $5.48 (1) Gross margin categories rounded to nearest $50M (2) Total Gross Margin (Non-GAAP) is defined as operating revenues less purchased power and fuel expense, excluding revenue related to decommissioning, gross receipts tax, Exelon Nuclear Partners and variable interest entities. Total Gross Margin is also net of direct cost of sales for certain Constellation businesses. (3) Excludes EDF’s equity ownership share of the CENG Joint Venture (4) Mark to Market of Hedges assumes mid-point of hedge percentages (5) Based on September 30, 2014 market conditions (6) Reflects the divestiture impact of Fore River, Quail Run and West Valley. Does not include divestiture of Keystone/Conemaugh or the Integrys acquisition |
 64 2014 EEI Financial Conference 2014 EEI Financial Conference ExGen Disclosures Generation and Hedges (6) 2014 2015 2016 2017 Exp. Gen (GWh) (1) 205,300 200,800 202,200 205,000 Midwest 97,000 96,600 97,500 95,800 Mid-Atlantic (2) 74,300 71,300 72,100 68,900 ERCOT 11,400 16,400 16,900 25,300 New York (2) 12,700 9,400 9,300 9,300 New England 9,900 7,100 6,400 5,700 % of Expected Generation Hedged (3) 98-101% 86-89% 55-58% 27-30% Midwest 97-100% 83-86% 49-52% 20-23% Mid-Atlantic (2) 98-101% 88-91% 55-58% 28-31% ERCOT 101-104% 99-102% 82-85% 46-49% New York (2) 98-101% 87-90% 62-65% 42-45% New England 102-105% 82-85% 62-65% 25-28% Effective Realized Energy Price ($/MWh) (4) Midwest $36.50 $33.50 $34.50 $36.00 Mid-Atlantic (2) $48.50 $42.50 $43.00 $46.50 ERCOT (5) $20.00 $8.50 $5.50 $6.00 New York (2) $42.50 $42.50 $40.00 $38.50 New England (5) $6.00 $11.50 $4.50 ($2.50) (1) Expected generation is the volume of energy that best represents our financial exposure through owned or contracted for capacity. Expected generation is based upon a simulated dispatch model that makes assumptions regarding future market conditions, which are calibrated to market quotes for power, fuel, load following products, and options. Expected generation assumes 14 refueling outages in 2014 and 2015, 12 in 2016, and 15 in 2017 at Exelon-operated nuclear plants, and Salem. Expected generation assumes capacity factors of 93.6%, 93.5%, 94.1% and 93.4% in 2014, 2015 , 2016 and 2017 respectively at Exelon-operated nuclear plants, at ownership. These estimates of expected generation in 2015, 2016 and 2017 do not represent guidance or a forecast of future results as Exelon has not completed its planning or optimization processes for those years. (2) Excludes EDF’s equity ownership share of CENG Joint Venture. (3) Percent of expected generation hedged is the amount of equivalent sales divided by expected generation. Includes all hedging products, such as wholesale and retail sales of power, options and swaps. (4) Effective realized energy price is representative of an all-in hedged price, on a per MWh basis, at which expected generation has been hedged. It is developed by considering the energy revenues and costs associated with our hedges and by considering the fossil fuel that has been purchased to lock in margin. It excludes uranium costs and RPM capacity revenue, but includes the mark-to-market value of capacity contracted at prices other than RPM clearing prices including our load obligations. It can be compared with the reference prices used to calculate open gross margin in order to determine the mark-to-market value of Exelon Generation's energy hedges. (5) Spark spreads shown for ERCOT and New England. (6) Reflects the divestiture impact of Fore River, Quail Run and West Valley. Does not include divestiture of Keystone/Conemaugh or the Integrys acquisition |
 65 2014 EEI Financial Conference 2014 EEI Financial Conference ExGen Hedged Gross Margin Sensitivities (1) Based on September 30, 2014 market conditions and hedged position; Gas price sensitivities are based on an assumed gas-power relationship derived from an internal model that is updated periodically; Power prices sensitivities are derived by adjusting the power price assumption while keeping all other prices inputs constant; Due to correlation of the various assumptions, the hedged gross margin impact calculated by aggregating individual sensitivities may not be equal to the hedged gross margin impact calculated when correlations between the various assumptions are also considered; Sensitivities based on commodity exposure which includes open generation and all committed transactions; Excludes EDF’s equity share of CENG Joint Venture; Reflects the divestiture impact of Fore River, Quail Run and West Valley; Does not include divestiture of Keystone/Conemaugh or the Integrys acquisition Gross Margin Sensitivities (With Existing Hedges) (1) 2014 2015 2016 2017 Henry Hub Natural Gas ($/MMbtu) + $1/Mmbtu $15 $120 $440 $830 - $1/Mmbtu $10 $(60) $(400) $(750) NiHub ATC Energy Price + $5/MWh $- $85 $265 $390 - $5/MWh $- $(85) $(260) $(390) PJM-W ATC Energy Price + $5/MWh $(5) $30 $165 $260 - $5/MWh $5 $(25) $(155) $(255) NYPP Zone A ATC Energy Price + $5/MWh $- $5 $15 $25 - $5/MWh $- $(10) $(20) $(25) Nuclear Capacity Factor +/- 1% +/- $15 +/- $50 +/- $45 +/- $45 |
 66 2014 EEI Financial Conference 2014 EEI Financial Conference Exelon Generation Hedged Gross Margin Upside/Risk (1) Represents an approximate range of expected gross margin, taking into account hedges in place, between the 5th and 95th percent confidence levels assuming all unhedged supply is sold into the spot market; Approximate gross margin ranges are based upon an internal simulation model and are subject to change based upon market inputs, future transactions and potential modeling changes; These ranges of approximate gross margin in 2015, 2016 and 2017 do not represent earnings guidance or a forecast of future results as Exelon has not completed its planning or optimization processes for those years; The price distributions that generate this range are calibrated to market quotes for power, fuel, load following products, and options as of September 30, 2014 (2) Gross Margin Upside/Risk based on commodity exposure which includes open generation and all committed transactions $7,450 $7,300 $8,000 $7,050 Note: Reflects the divestiture impact of Fore River, Quail Run and West Valley; Does not include divestiture of Keystone/Conemaugh or the Integrys acquisition |
 67 2014 EEI Financial Conference 2014 EEI Financial Conference (1) Mark-to-market rounded to the nearest $5 million (2) Total Gross Margin (Non-GAAP) is defined as operating revenues less purchased power and fuel expense, excluding revenue related to decommissioning, gross receipts tax, Exelon Nuclear Partners and variable interest entities; Total Gross Margin is also net of direct cost of sales for certain Constellation businesses. Note: Reflects the divestiture impact of Fore River, Quail Run and West Valley; Does not include divestiture of Keystone/Conemaugh Illustrative Example of Modeling Exelon Generation 2015 Gross Margin Row Item Midwest Mid- Atlantic ERCOT New York New England South, West & Canada (A) Start with fleet-wide open gross margin $6.75 billion (B) Expected Generation (TWh) 97.0 71.3 16.4 9.4 7.1 (C) Hedge % (assuming mid-point of range) 84.5% 89.5% 100.5% 88.5% 83.5% (D=B*C) Hedged Volume (TWh) 82.0 63.8 16.4 8.3 5.9 (E) Effective Realized Energy Price ($/MWh) $33.50 $42.50 $8.50 $42.50 $11.50 (F) Reference Price ($/MWh) $33.70 $42.75 $6.47 $42.14 $8.95 (G=E-F) Difference ($/MWh) $(0.20) $(0.25) $2.03 $0.36 $2.55 (H=D*G) Mark-to-market value of hedges ($ million) (1) $(15) million $(15) million $30 million $5 million $15 million (I=A+H) Hedged Gross Margin ($ million) $6,750 million (J) Power New Business / To Go ($ million) $400 million (K) Non-Power Margins Executed ($ million) $100 million (L) Non- Power New Business / To Go ($ million) $300 million (N=I+J+K+L) Total Gross Margin (2) $7,550 million |
 Generation |
 69 2014 EEI Financial Conference 2014 EEI Financial Conference Exelon Generation Fleet A clean and diverse portfolio that is well positioned for environmental upside from EPA regulations (1) Reflects owned generation less announced divestitures of Fore River, Quail Run and West Valley and Keystone Conemaugh National Scope • Power generation assets in 20 states and Canada • Low-cost generation capacity provides unparalleled leverage to rising commodity prices Large and Diverse • 32 GW of diverse generation (1) — 19 GW of Nuclear — 8 GW of Gas — 2 GW of Hydro — 2 GW of Oil — 1 GW of Wind/Solar/Other Clean • One of nation’s cleanest fleets as measured by CO2, SO2 and NOx intensity • Less than 5% of generation capacity will require capital expenditures to comply with Air Toxic rules |
 70 Exelon Nuclear Fleet Overview (including CENG and Salem) Plant Location Type/ Containment Water Body License Extension Status / License Expiration (1) Ownership Spent Fuel Storage/ Date to lose full core discharge capacity (2) Braidwood, IL (Units 1 and 2) PWR Concrete/Steel Lined Kankakee River Filed application in May 2013 (decision expected in 2015)/ 2026, 2027 100% Dry Cask Byron, IL (Units 1 and 2) PWR Concrete/Steel Lined Rock River Filed application in May 2013 (decision expected in 2015)/ 2024, 2026 100% Dry Cask Clinton, IL (Unit 1) BWR Concrete/Steel Lined / Mark III Clinton Lake 2026 100% Dry Cask (2016) Dresden, IL (Units 2 and 3) BWR Steel Vessel / Mark I Kankakee River Renewed / 2029, 2031 100% Dry Cask LaSalle, IL (Units 1 and 2) BWR Concrete/Steel Lined / Mark II Illinois River Application will be filed Dec 2014(decision expected 2017)/2022, 2023 100% Dry Cask Quad Cities, IL (Units 1 and 2) BWR Steel Vessel / Mark I Mississippi River Renewed / 2032 75% Exelon, 25% Mid- American Holdings Dry Cask Limerick, PA (Units 1 and 2) BWR Concrete/Steel Lined / Mark II Schuylkill River Renewed / 2044, 2049 (5) 100% Dry Cask Oyster Creek, NJ (Unit 1) BWR Steel Vessel / Mark I Barnegat Bay Renewed / 2029 (3) 100% Dry Cask Peach Bottom, PA (Units 2 and 3) BWR Steel Vessel / Mark I Susquehanna River Renewed / 2033, 2034 50% Exelon, 50% PSEG Dry Cask TMI, PA (Unit 1) PWR Concrete/Steel Lined Susquehanna River Renewed / 2034 100% 2023 Salem, NJ (Units 1 and 2) PWR Concrete/Steel Lined Delaware River Renewed / 2036, 2040 42.6% Exelon, 57.4% PSEG Dry Cask Calvert Cliffs, MD (Units 1and 2) PWR Concrete/Steel Lined Chesapeake Bay Renewed / 2034, 2036 100% CENG (4) Dry Cask R.E. Ginna, NY (Unit 1) PWR Concrete/Steel Lined Lake Ontario Renewed / 2029 100% CENG (4) Dry Cask Nine Mile Point, NY (Units 1 and 2) BWR Steel Vessel / Mark I Concrete/Steel Vessel/ Mark II Lake Ontario Renewed / 2029, 2046 100% CENG (4) / 82% CENG (4) , 18% Long Island Power Authority Dry Cask (1) Operating license renewal process takes approximately 4--5 years from commencement until completion of NRC review (2) The date for loss of full core reserve identifies when the on-site storage pool will no longer have sufficient space to receive a full complement of fuel from the reactor core; Dry cask storage will be in operation at those sites prior to losing full core discharge capacity in their on-site storage pools (3) On December 8, 2010, Exelon announced that it will permanently cease generation operations at Oyster Creek by December 31, 2019; Oyster Creek’s current NRC license expires in 2029 (4) Exelon Generation has a 50.01% ownership interest in CENG (Constellation Energy Nuclear Group, LLC). Electricite de France SA (EDF) has a 49.99% ownership interest in CENG (5) Limerick Received a 20 year license renewal in October 2014 2014 EEI Financial Conference |
 71 2014 EEI Financial Conference World Class Nuclear Operator (1) 31% 36% 14% 14% 1,208 1,169 1,104 (1) Exelon fleet averages exclude Salem and CENG (2) Source: 2013 Electric Utility Cost Group (EUCG) survey. Includes Fuel Cost plus Direct O&M divided by net generation (3) Source: Platts Nuclear News, Nuclear Energy Institute and Energy Information Administration (Department of Energy) Nuclear Production Cost ($/MWh) (2) Capacity Factor (%) (3) EXC EXC Exelon is consistently one of the lowest-cost and most efficient producers of electricity in the nation 2014 EEI Financial Conference |
 72 2014 EEI Financial Conference Net nuclear generation data at ownership excluding Salem for all years CENG excluded thru 2006 - 2014, but included in 2015 and beyond at ownership 2016 includes Clinton Refueling Only outage of shortened duration. Nuclear Output and Refueling Outages Fleet Average Refueling Outage Duration (Days) 31% 36% 14% 14% Nuclear Output Nuclear Refueling Cycle • All Exelon-owned units are on a 24 month cycle except for Braidwood U1/U2, Byron U1/U2, Ginna, and Salem U1/U2, which are on 18 month cycles • Starting in 2015 Clinton will be on annual cycles Actual Target # of Refueling Outages 2014 Refueling Outage Impact (Includes CENG) • 14 planned refueling outages, including 2 at Salem • 8 spring refueling outages (average duration of 25 days) • 4 fall refueling outages • Salem - 1 refueling outage in the spring and 1 in the fall • 14 planned refueling outages, including 1 at Salem • 7 spring refueling outages and 6 Fall refueling outages • 1 Salem fall refueling outage Exelon fleet averages exclude Salem and CENG EXC 2014 EEI Financial Conference 2015 Refueling Outage Impact |
 73 2014 EEI Financial Conference Nuclear Fuel Costs (1) Projected Exelon Uranium Demand Components of Fuel Expense in 2014 2014 – 2016: 100% hedged in volume 2017: ~96% hedged in volume 2018: ~87% hedged in volume 2019: ~64% hedged in volume 2 1 0 11 10 9 8 7 6 5 4 3 2019E 2018E 2017E 2016E 2015E 2014 Enrichment 33% Tax/Interest 2% Conversion 4% Uranium 40% Nuclear Waste 6% Fabrication 15% (1) All charts exclude Salem. Includes CENG as of 4/1/2014 (2) At ownership. Excludes costs reimbursed under the settlement agreement with the DOE Projected Total Nuclear Fuel Spend (2) 0 200 400 600 800 1,000 1,200 2019E 1048 2018E 1027 2017E 1020 2016E 1016 2015E 988 2014E 1000 Nuclear Fuel Capex Nuclear Fuel Expense (Amortization + Spent Fuel) 2014 EEI Financial Conference |
 74 2014 EEI Financial Conference Exelon Power Fleet Overview (owned generation, excludes wind and solar) (1) 100%, unless otherwise indicated (2) Fossil/Hydro Capacity values shown represent summer ratings. Net Generation Capacity (MW) is stated at proportionate ownership share Station Location Number of Units Primary Fuel Type Percent Owned (1) Net Generation Capacity (MW) (2) Muddy Run Drumore, PA 8 Hydro 1070 Notch Cliff Baltimore, MD 8 Gas 118 Pennsbury Morrisville, PA 2 Landfill Gas 6 Perryman Belcamp, MD 5 Oil/Gas 353 Philadelphia Road Baltimore, MD 4 Oil 61 Richmond Philadelphia, PA 2 Oil 98 Riverside Baltimore, MD 3 Oil/Gas 113 Salem Lower Alloways Creek Twp, NJ 1 Oil 42.59 16 Schuylkill Philadelphia, PA 2 Oil 30 Southwark Philadelphia, PA 4 Oil 52 Westport Baltimore, MD 1 Gas 115 Southeast Chicago Chicago, IL 8 Gas 296 Framingham Framingham, MA 3 Oil 33 Medway West Medway, MA 3 Oil/Gas 117 Mystic 7 Charlestown, MA 1 Oil/Gas 575 Mystic 8, 9 Charlestown, MA 2 Gas 1418 Mystic Jet Charlestown, MA 1 Oil 9 New Boston South Boston, MA 1 Oil 16 Wyman Yarmouth, ME 1 Oil 5.9 36 Grand Prairie Alberta, Canada 1 Gas 75 Hillabee Alexander City, AL 1 Gas 670 Sunnyside Sunnyside, UT 1 Waste Coal 50 26 Station Location Number of Units Primary Fuel Type Percent Owned (1) Net Generation Capacity (MW) (2) Colorado Bend Wharton, TX 1 Gas 498 Handley 3 Fort Worth, TX 1 Gas 395 Handley 4, 5 Fort Worth, TX 2 Gas 870 LaPorte Laporte, TX 4 Gas 152 Mountain Creek 6, 7 Dallas, TX 2 Gas 240 Mountain Creek 8 Dallas, TX 1 Gas 565 Wolf Hollow 1, 2, 3 Granbury, TX 3 Gas 704 Chester Chester, PA 3 Oil 39 Colver Colver Twp., PA 1 Waste Coal 25 26 Conowingo Darlington, MD 11 Hydro 572 Croydon West Bristol, PA 8 Oil 391 Delaware Philadelphia, PA 4 Oil 56 Eddystone Eddystone, PA 4 Oil 60 Eddystone 3, 4 Eddystone, PA 2 Oil/Gas 760 Fairless Hills Fairless Hills, PA 2 Landfill Gas 60 Falls Morrisville, PA 3 Oil 51 Gould Street Baltimore, MD 1 Gas 97 Handsome Lake Kennerdell, PA 5 Gas 268 Moser Lower PottsgroveTwp., PA 3 Oil 51 2014 EEI Financial Conference |
 75 2014 EEI Financial Conference 2014 EEI Financial Conference Investment in New Generation Technology Exelon is investing in an innovative, carbon-free, gas-fired technology through an investment in NET Power to support the development of an 11.4MWe demonstration facility to prove the technology NET Power’s system has the potential to transform both the electricity and the oil and gas markets. Using a novel, supercritical CO 2 - power cycle known as the Allam Cycle, the technology is projected to match or lower the current cost of electricity from natural gas generation technologies while also capturing all carbon dioxide emissions. The system produces carbon dioxide as a low-cost, pipeline-quality byproduct as opposed to a gas emitted through a stack in conventional power plants. The produced CO 2 is ready for sequestration or use in enhanced oil recovery. Exelon is an equity investor in the NET Power entity and will operate the demonstration plant 8Rivers developed and patented the technology and holds an equity stake in NET Power CB&I is an equity investor in NET Power and will provide EPC services for the demonstration plant Toshiba is investing in the development and manufacturing of a novel supercritical CO2 turbine |