Exelon Generation 8-K Exelon Announces Fourth Quarter Earnings and Reports $2.78 Per Diluted Share for Full Year; Declares Quarterly Dividend

EXHIBIT 99.3

December YTD Year-over-Year Exelon Way Savings

	Pre-tax O&M
($ in millions)	December YTD Savings
	2004			2003
GAAP Operating and Maintenance Expense (O&M)	$	3,976		$	4,508
Operating Adjustments:
March 3 ComEd Global Settlement Agreement		—			(41	)
Charges associated with Generation’s investment in Sithe Energies, Inc.		(8	)		—
Settlement Associated with the Storage of Spent Nuclear Fuel		42			—
Charges associated with Exelon’s anticipated merger with Public Service Enterprise Group Inc.		(7	)		—
2004 Financial Impact of Boston Generating (BG)		(62	)		—
Investments in Synthetic Fuel Producing Facilities		(89	)		—
Exelon Way Severance and Severance-related Charges		(83	)		(256	)
Impairment of Exelon Enterprises’ InfraSource Investment		—			(53	)
Operating O&M		3,769			4,158
Exelon Way O&M Adjustments:
Remove Net Enterprises and BG (1)		(204	)		(903	)
Remove Nuclear Decommissioning Accretion Expense and Other SFAS 143 Adjustments (2)		(129	)		(118	)
Remove 2004 Incremental Impact of Sithe		(60	)		—
Add AmerGen, net of Accretion and Severance (3)		—			393
Normalize Incremental Impact of Nuclear Outages		(18	)		—
Other		(7	)		—
Add Payroll Taxes (4)		94			91
Exelon Way O&M	$	3,445		$	3,621
Year-over-Year Exelon Way O&M Savings	$	176

Program-to-Date O&M Savings	Pre-tax		After-tax (5)
2003 Ramp-up	$	163	$	101
2004 December YTD		176		109
Exelon Way 2004 O&M Savings	$	339	$	210

(1) Excludes corporate costs that remain within Exelon and is net of intercompany impact. Enterprises excludes Exelon Energy in 2003; in 2004 Exelon Energy is included in Generation.

(2) Accretion expense and other SFAS 143 adjustments are non-cash expenses related to nuclear decommissioning and are not included in Exelon Way expenditures.

(3) Normalize to 100% in 2003; in 2003, AmerGen was included in Equity in Earnings of Unconsolidated Affiliates

(4) Includes AmerGen and excludes Enterprises.

(5) Tax rate is 38%.

	CapEx
	December YTD Savings
	2004		2003
GAAP Capital Expenditures (CapEx) (A)	$	1,921	$	1,862
Adjustments:
Include AmerGen CapEx		—		171
Other		11		20
Exelon Way CapEx	$	1,932	$	2,053
Year-over-Year CapEx Savings	$	121
Program-to-Date Exelon Way CapEx Savings:
2003 Ramp-up	$	67
2004 December YTD		121
Exelon Way 2004 CapEx Savings	$	188

(A) Net of proceeds from liquidated damages for 2003.

Exelon Way 2004 O&M Cash Savings	Total
After-tax O&M	$	210
CapEx		188
Total Exelon Way Cash Savings	$	398

2003 Ramp-Up Exelon Way Savings

	2003 Pre-tax O&M
($ in millions)	Ramp-up Savings
	2002			2003
GAAP Operating and Maintenance (O&M)	$	4,345		$	4,508
Operating Adjustments:
March 3, 2003 ComEd Settlement Agreement		—			(41	)
Severance		(10	)		(256	)
Enterprises goodwill impairment and impairments due to anticipated sales		—			(53	)
Operating O&M		4,335			4,158
Exelon Way O&M Adjustments:
Remove Enterprises and Boston Generating (BG) (1)		(1,212	)		(903	)
Add incremental impact of Texas Plants		10			—
Remove nuclear decommissioning accretion expense and Other SFAS 143 Adjustments (2)		—			(118	)
Add 2002 incremental impact of Exelon New England		50			—
Normalize incremental impact of nuclear outages		(24	)		—
Add AmerGen, net of decommissioning accretion (3)		412			393
Add Payroll Taxes (4)		95			91
Exelon Way O&M	$	3,666		$	3,621
Exelon Way O&M Savings:
Difference between 2002 and 2003 Exelon Way O&M				$	45
2003 inflationary impact (5)					107
Pension and post-retirement increase (6)					103
Calculated 2003 Savings				$	255
Exclude savings from prior cost management initiatives (e.g., CMI)					(92	)
Exelon Way O&M Savings - Pre-tax				$	163
After-tax O&M Savings(7)				$	101

(1) Excludes corporate costs that will remain within Exelon and is net of intercompany impact. Enterprises excludes Exelon Energy.

(2) Accretion expense and other SFAS 143 adjustments are non-cash expenses related to nuclear decomissioning and are not included in Exelon Way expenditures.

(3) Normalized to 100% of AmerGen in 2002 and 2003; in 2002 and 2003, AmerGen was included in Equity in Earnings of Unconsolidated Affiliates.

(4) Includes AmerGen and excludes Enterprises.

(5) 2002 base excluding pension and post-retirement expenses of $103m, inflated at 3%.

(6) Pension and post-retirement expense increase.

(7) Tax rate is 38%.

	2003 Cap Ex
	Ramp-up Savings
	2002		2003
GAAP Capital Expenditures (CapEx)(A)	$	2,150	$	1,862
Adjustments:
Exclude net impact of Boston Generating (A)		—		20
Include AmerGen		155		171
Exelon Way Adjusted CapEx	$	2,305	$	2,053
Year-over-year CapEx Savings			$	252
Exelon Way CapEx Savings:
Difference between 2002 and 2003 Exelon Way CapEx			$	252
2003 inflationary impact (B)				69
Calculated 2003 Savings			$	321
Exclude savings from prior cost management initiatives (e.g., CMI)				(254	)
Exelon Way Savings - 2003 Ramp-up			$	67

(A) Net of proceeds from liquidated damages for 2003.
(B) Inflation assumed at 3%.

Total Ramp-up Cash Savings
After-tax O&M	$	101
CapEx		67
Total Exelon Way Cash Savings	$	168