Exhibit 99.3
| 2003 Pre-tax O&M | 2003 Cap Ex | |||||||||||||||||
| ($ in millions) | Ramp-up Savings | Ramp-up Savings | ||||||||||||||||
| 2002 | 2003 | 2002 | 2003 | |||||||||||||||
GAAP Operating and Maintenance (O&M) | $ | 4,345 | $ | 4,587 | GAAP Capital Expenditures (CapEx) (A) | $ | 2,150 | $ | 1,862 | |||||||||
Operating Adjustments: | Adjustments: | |||||||||||||||||
| March 2003 ComEd Settlement Agreement | — | (41 | ) | |||||||||||||||
| Severance | (10 | ) | (256 | ) | Exclude net impact of Boston Generating (A) | — | 20 | |||||||||||
| Enterprises goodwill impairment and impairments due to anticipated sales | — | (53 | ) | Include AmerGen | 155 | 171 | ||||||||||||
Operating O&M | 4,335 | 4,237 | Adjusted CapEx | $ | 2,305 | $ | 2,053 | |||||||||||
Exelon Way O&M Adjustments: | Year-over-year CapEx Savings | $ | 252 | |||||||||||||||
| Remove Enterprises and Boston Generating (BG) (1) | (1,228 | ) | (903 | ) | ||||||||||||||
| Add incremental impact of Texas Plants | 10 | — | Exelon Way CapEx Savings: | |||||||||||||||
| Remove nuclear decommissioning accretion expense (2) | — | (197 | ) | |||||||||||||||
| Add 2002 incremental impact of Exelon New England | 50 | — | Difference between 2002 and 2003 Exelon Way CapEx | $ | 252 | |||||||||||||
| Normalize incremental impact of nuclear outages | (24 | ) | — | 2003 inflationary impact (B) | 69 | |||||||||||||
| Add AmerGen, net of decommissioning accretion (3) | 412 | 393 | Calculated 2003 Savings | $ | 321 | |||||||||||||
| Add Payroll Taxes (4) | 95 | 91 | Exclude savings from prior cost management initiatives (e.g., CMI) | (254 | ) | |||||||||||||
Exelon Way O&M | $ | 3,650 | $ | 3,621 | Exelon Way Savings - 2003 Ramp-up | $ | 67 | |||||||||||
Exelon Way O&M Savings: | (A) Net of proceeds from liquidated damages for 2003 | |||||||||||||||||
| Difference between 2002 and 2003 Exelon Way O&M | $ | 29 | (B) Inflation assumed at 3% | |||||||||||||||
| 2003 inflationary impact (5) | 107 | |||||||||||||||||
| Pension and post-retirement increase (6) | 103 | |||||||||||||||||
Calculated 2003 Savings | $ | 239 | Total Ramp-up Cash Savings | |||||||||||||||
| Exclude savings from prior cost management initiatives (e.g., CMI) | (76 | ) | After-tax O&M | $ | 101 | |||||||||||||
Exelon Way O&M Savings — Pre-tax | $ | 163 | CapEx | 67 | ||||||||||||||
| Total Exelon Way Cash Savings | $ | 168 | ||||||||||||||||
After-tax O&M Savings (7) | $ | 101 | ||||||||||||||||
| (1) | O&M is net of intercompany impact and excludes corporate business services costs that remain; Enterprises excludes Exelon Energy | |
| (2) | Accretion expense is a non-cash expense related to nuclear decommissioning and is not included in Exelon Way expenditures | |
| (3) | Normalized to 100% of AmerGen in 2002 and 2003; in 2002 and 2003, AmerGen was included in Equity in Earnings of Unconsolidated Affiliates | |
| (4) | Includes AmerGen and excludes Enterprises | |
| (5) | 2002 base excluding pension and post-retirement expenses of $103m. Inflated at 3% | |
| (6) | Pension and post-retirement expense increase | |
| (7) | Tax rate is 38% |
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| 2004 Pre-tax O&M | 2004 CapEx | |||||||||||||||||
| ($ in millions) | June YTD Savings | June YTD Savings | ||||||||||||||||
| 2003 | 2004 | 2003 | 2004 | |||||||||||||||
GAAP Operating and Maintenance Expense (O&M) | $ | 2,212 | $ | 2,165 | GAAP Capital Expenditures (CapEx) | $ | 1,019 | $ | 844 | |||||||||
Operating Adjustments: | Adjustments: | |||||||||||||||||
| March 3 ComEd Global Settlement Agreement | (41 | ) | — | Include AmerGen CapEx | 33 | — | ||||||||||||
| Boston Generating (BG) | — | (57 | ) | Exclude BG CapEx (incl. 2004 credit) | (80 | ) | 7 | |||||||||||
| Investments in Synthetic Fuel Producing Facilities | — | (48 | ) | Adjusted CapEx | $ | 972 | $ | 851 | ||||||||||
| Exelon Way Severance and Severance-related Charges | — | (22 | ) | |||||||||||||||
| Impairment of Exelon Enterprises’ InfraSource Investment | (48 | ) | — | Year over Year CapEx Savings | $ | 121 | ||||||||||||
Operating O&M | 2,123 | 2,038 | ||||||||||||||||
| Program-to-Date Exelon Way CapEx Savings: | ||||||||||||||||||
Exelon Way O&M Adjustments: | ||||||||||||||||||
| Remove Net Enterprises and BG (1) | (473 | ) | (161 | ) | 2003 Ramp-up | $ | 67 | |||||||||||
| Remove Nuclear Decommissioning Accretion Expense (2) | (117 | ) | (127 | ) | 2004 June YTD | 121 | ||||||||||||
| Remove 2004 Incremental Impact of Sithe | — | (23 | ) | Total Exelon Way CapEx Savings | $ | 188 | ||||||||||||
| Add AmerGen, net of Accretion and Severance (3) | 193 | — | ||||||||||||||||
| Normalize Incremental Impact of Nuclear Outages | — | (63 | ) | |||||||||||||||
| Add Payroll Taxes (4) | 56 | 54 | ||||||||||||||||
Exelon Way O&M | $ | 1,782 | $ | 1,718 | Total YTD Cash Savings thru June 2004 | |||||||||||||
Year over Year Exelon Way O&M Savings | $ | 64 | After-tax O&M | $ | 40 | |||||||||||||
| CapEx | 121 | |||||||||||||||||
| Total Exelon Way Cash Savings | $ | 161 | ||||||||||||||||
Program-to-Date O&M Savings | Pre-tax | After-tax(5) | ||||||||||||||||
| 2003 Ramp-up | $ | 163 | $ | 101 | Total Program-to-Date Cash Savings | |||||||||||||
| 2004 June YTD | 64 | 40 | ||||||||||||||||
Total Exelon Way O&M Savings | $ | 227 | $ | 141 | After-tax O&M | $ | 141 | |||||||||||
| CapEx | 188 | |||||||||||||||||
| Total Exelon Way Cash Savings | $ | 329 | ||||||||||||||||
| (1) | O&M is net of intercompany impact and excludes corporate business services costs that remain. Enterprises excludes Exelon Energy in 2003; in 2004 Exelon Energy is included in Generation. | |
| (2) | Accretion expense is a non-cash expense related to nuclear decommissioning and is not included in Exelon Way expenditures | |
| (3) | Normalize to 100% of AmerGen in 2003; in 2003, AmerGen was included in Equity in Earnings of Unconsolidated Affiliates | |
| (4) | Includes AmerGen and excludes Enterprises | |
| (5) | Tax rate is 38% |
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