Exelon Generation 8-K Morgan Stanley Global Electricity & Energy Conference

Matthew F. Hilzinger

Chief Financial Officer

Morgan Stanley Global Electricity & Energy Conference

April 3, 2008

Exhibit 99.1

2

Forward-Looking Statements

This presentation 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 2007 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 19; and (2) other factors discussed in filings with the Securities and Exchange

Commission by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison

Company, and PECO Energy Company (Companies).  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 Companies undertakes any obligation to publicly release any revision to its forward-

looking statements to reflect events or circumstances after the date of this presentation.

This presentation includes references to adjusted (non-GAAP) operating earnings that exclude the

impact of certain factors. We believe that these adjusted operating earnings are representative of

the underlying operational results of the Companies. Please refer to the appendix to the

presentation for a reconciliation of adjusted (non-GAAP) operating earnings to GAAP earnings.

3

Key Messages

•

2007

was

exceptional

–

financially

and

operationally

•

Platform for continued strong performance in 2008 and beyond

•

Substantial incremental cash flow and balance sheet capacity over

next five years 

•

Executing on Value Return Policy

•

Generation benefiting from continued improvements in market

fundamentals

•

ComEd progressing constructively

on

distribution case

•

Fully engaged in Harrisburg discussion

•

Poised to launch low-carbon strategy

•

Well positioned for current economic environment

4

Exelon Is Uniquely Positioned for

Sustainable

Value

Creation

–

12/07

View

PECO

ExGen

2007

2011

ExGen

ComEd

Major Driver:

End of below-market contract in PA

7.85

PJM

W-Hub

Implied

Heat

Rate

(mmBtu/MWh)

(2)

6.20

NI-Hub

Implied

Heat

Rate

(mmBtu/MWh)

(2)

49.75

Coal (NAPP 3.0) ($/ton)

8.00

Henry Hub Gas Price ($/mmBtu)

2011 Assumptions Used for 12/07 Presentation

~$650M

+/-

0.5 mmBtu/MWh

ATC Heat Rate

~$500M

~$150M

+/-

$1/mmBtu Gas Price

+/-

$15/ton Coal Price (NAPP 3.0)

(Pre

-Tax

Impact)

2011 Sensitivities -

Current

(3)

(1) As published at Exelon’s 12/19/07 investor conference based upon 7/31/07 observable market prices. No assumption for carbon has been made for 2011.

(2)

Implied heat rate = Assumed ATC price ($/MWh) / Assumed Henry Hub Gas Price ($/mmBtu)

(3) Sensitivities are derived by changing one assumption at a time while holding all else constant.  Due to correlation of the various assumptions, the pre-tax earnings impact

calculated by aggregating individual sensitivities may not be equal to the pre-tax earnings impact calculated when correlations between the various assumptions are also

considered.

Operating EPS Guidance:

$4.15 –

$4.30

5

5

5.5

6

6.5

7

7.5

8

8.5

9

2008

2009

2010

2011

2012

45

50

55

60

65

70

75

80

85

90

2008

2009

2010

2011

2012

Positively Exposed to Market Dynamics

7

7.5

8

8.5

9

9.5

10

2008

2009

2010

2011

2012

Henry Hub Gas Price

Coal Prices

2011 Capacity Prices

As of 3/27/08

12/07 Investor

Conference

12/07 Investor

Conference

As of 3/27/08

~$100M

11,000

$150

$175

MAAC

(1)

Assumes

RPM

results

for

2011/2012

are

the

same

as

2010/2011

results.

Price Assumptions

Est. Pre-Tax

Impact

(1)

Capacity

(MWs)

12/07

($/MW-day)

Current

($/MW-day)

Rest of

Market

~$350M

12,700

$100

$175

Improving market fundamentals since our December Investor Conference point

to additional upside in 2011

Implied ATC Heat Rates

PJM West –

As of

3/27/08

PJM West -

12/07

Investor

Conference

Ni-Hub –

As of

3/27/08

Ni-Hub -

12/07

Investor

Conference

6

ComEd –

Rate Case Summary

•

ComEd and ICC Staff are in virtual agreement with respect to proper

capital structure ~45% equity

•

Relatively small difference between ComEd’s requested ROE (10.75%)

and Staff’s recommendation (10.30%)

•

ComEd and ICC Staff are much closer on administrative and general

(A&G) expenses than in the last rate case

•

Seeking to reduce regulatory lag by including pro forma capital additions in

rate base and pursuing more timely recovery of costs through riders

•

About 60% of difference between ComEd’s total revenue requirement and

Staff’s recommendation relates to “timing”

of recovery for 2007 and 2008

capital additions

•

ALJ Order expected:  July 2008

•

Final ICC Order expected:  September 2008

7

ComEd -

Interim Procurement Process

ComEd procured ~14% of its energy needs for June 2008 through

May 2009 through the procurement of 24 block products for on-peak

and off-peak energy

The staggered roll-off of the auction contracts and the financial swap have mitigated

the rate impact for ComEd residential customers to ~2.5%

0%

33%

67%

100%

Auction Contracts

Financial Swap

Future

Procurement

by Illinois

Power Agency

3/08

RFP

Jun 2007

Jun 2008

Jun 2009

Jun 2010

Jun 2011

Jun 2012

Jun 2013

NOTE: For illustrative purposes

only.  Assumes constant load profile

each year. 

8

Pennsylvania Snapshot

•

Governor Rendell’s “Energy Independence Strategy”,

introduced in February 2007, continues to be focus of

legislative activity. 

Legislation aimed at reducing energy costs, increasing

clean energy resources, reducing reliance on foreign

fuels, expanding energy production in PA

Comprehensive bills dealing with procurement and

rate mitigation remain in committee

Modest action on other key bills: Energy Fund bills

passed in House and Senate; House passed an

Efficiency/Demand-side Response bill.

•

Special Session on Energy runs concurrent with Regular

Session which continues thru November 2008.

Current State of Play

•

Governor continues to press for “Energy Independence

Fund”

and measures to mitigate energy prices

•

Legislators concerned with cost of Governor's initiatives, no

new taxes

•

Rate freeze bill being considered in House, but little

momentum

•

Industry coalition working together to develop a

comprehensive package

Positions of Stakeholders

•

Stakeholder outreach

•

Working with industry coalition

•

Negotiating legislative proposals with

Administration and legislative leadership

on key provisions:

Procurement rules

Rate increase phase-in/deferral

Smart meters and real time pricing

Energy efficiency and demand-side

management programs

•

Participating directly or through industry

associations in legislative hearings and

informational meetings

PECO Actions

9

Protect Today’s Value

•

Deliver superior operating performance

–

Assure safety at all times

–

Keep the lights on

–

Maintain nuclear excellence

–

Enhance environmental performance

•

Advance competitive markets

–

Build economic new generation

–

Provide reliable, affordable, low-carbon

products to customers

–

Support the continued improvement of

organized competitive wholesale markets

•

Protect the value of our generation

–

Adapt the generation portfolio to a changing

marketplace

–

Hedge market risk appropriately

•

Build healthy, self-sustaining delivery

companies

–

Pursue fair regulatory treatment and restored

financial health for ComEd

–

Manage PECO’s 2011 transition to market

Grow Long-Term Value

•

Drive the organization to the next level of

performance

–

Continuously improve productivity

–

Insist on accountability for results and

values

–

Foster positive employee relations

–

Acquire, develop and retain key and diverse

talent

•

Set the industry standard for low carbon

energy generation and delivery through

reductions, displacement and offsets

–

Aggressively pursue cost effective energy

efficiency and demand response

–

Develop and deploy reliable and affordable

gas-fired and renewable generation

–

Increase nuclear production

–

Become a model of green operations

•

Pursue and rigorously evaluate new growth

opportunities

+

Exelon’s Strategic Direction

10

Sustainable Value

•

Continued strong financial and operating performance, and long-

term earnings growth driven by unregulated generation

•

Largest, lowest-cost nuclear fleet in competitive markets

•

Executing regulatory recovery plan to put ComEd on a path toward

appropriate returns and solid credit metrics

•

Managing transition to competitive markets in Pennsylvania

•

Increasingly strong cash flows and balance sheet

•

Implementing Value Return Policy

Exelon is uniquely positioned to create sustainable value

11

Appendix

12

ComEd –

Rate Case Summary

Comparison of ComEd revenue request to ICC Staff recommendation:

(26)

333

359

Depreciation and Amortization

(156)

5,706

7,071

Total Rate Base

(130)

358

1,498

Pro Forma Adjustments

($26)

$5,348

$5,573

2006 Test Year

($249)

Total

(16)

640

657

Other O&M Expenses

(26)

315

341

A&G Expenses

(25)

10.30% ROE /   

45.04% Equity

10.75% ROE /

45.11% Equity

ROE/Cap Structure

Rate Base:

Impact on

Revenue

Increase

ICC Staff

ComEd

Request

($ in millions)

13

ComEd Interim Procurement Results

Off-Peak

On-Peak

49.32

720

79.76

1,000

January 2009

250

190

370

600

710

460

290

470

840

960

630

MWs

(1)

42.99

44.64

44.60

48.99

44.28

44.31

43.70

42.65

47.46

47.46

$42.15

Avg. Price

(2)

76.15

650

March 2009

74.71

1,000

December 2008

75.70

520

May 2009

77.50

450

April 2009

79.72

860

February 2009

74.89

750

November 2008

76.01

620

October 2008

76.80

870

September 2008

94.64

1,450

August 2008

94.92

1,640

July 2008

$81.13

1,060

June 2008

Avg. Price

(2)

MWs

(1)

(1)

MWs solicited.

(2)

Weighted

average

of

the

winning

bid

prices

(in

$/MWh)

for

each

contract

type

and

each

contract

term.

14

2.63

2.63

0.48

0.48

2.41

6.00

10.59

PECO Average Electric Rates

(1) System Average Rates based upon Restructuring Settlement Rate Caps on Energy and Capacity increased from original settlement

by 1.6% to

reflect the roll-in of increased Gross Receipts Tax and $0.02/kWh for Universal Service Fund Charge and Nuclear Decommissioning Cost

Adjustment.  System Average Rates also adjusted for sales mix based on current sales forecast.  Assumes continuation of current

Transmission and Distribution Rates.

2011

2008 –

2010

Energy / Capacity

Competitive Transition

Charge (CTC)

Transmission

Distribution

11.52¢

(1)

Unit Rates (¢/kWh)

Electric Restructuring

Settlement

+19%

13.70¢

Assumptions

Projected Rate Increase Based on

Average PPL Procurement  Results

(Illustrative)

2011 default service rate will reflect

associated full requirements costs and

be acquired through multiple

procurements

Using the average results of completed

PPL procurements for 2010 and

assuming a 50/50 weighting of

Residential and Small C&I customers

produces a

proxy of 10.59¢/kWh. This

will result in a system average rate

increase of ~19%

PECO’s 2011 full requirements price

expected to differ from PPL due, in part,

to the timing of the procurement (2011

vs. 2010) and locational differences

Rates will vary by customer class and 

may be impacted by legislation and

procurement model

Residential

Small C&I

Round 1, 7/2007

$101.77

$105.11

Round 2, 10/2007

$105.08

$105.75

Round 3, 3/2008

$108.80

$108.76

Average

$105.22

$106.54

PPL Procurement Results ($/MWh)

15

Pennsylvania Legislative Update

•

More than 100 bills have been introduced since Governor Rendell launched his Energy

Independence Initiative in February 2007.

•

H.B. 2200

-

Energy Efficiency (EE), Demand Response (DR) & Smart Meters:

–

Passed by House on 2/20/08

–

Establishes Program Administrator to oversee development and execution of a state-wide program delivered to

customers

by

network

of

3

-party

service

providers 

–

EE target of 1% reduction off of forecasted total deliveries by 2011 and 2.5% by 2013

–

DR target of 4% reduction in peak load by 2013

–

Cost cap set at 2% of total annual revenues

–

Full deployment of Smart Meters over 10 years

•

H.B. 2201

-

Comprehensive Energy Bill:

–

In Committee

–

Directs distribution companies to procure power using a portfolio approach, including long-term, short-term and

spot market purchases

–

Portfolio may include up to 20% long-term, but limit excludes long-term AEPS purchases and PAPUC may

waive limit and PAPUC may direct specific purchases

–

All customers can opt to phase-in increases early and/or over 3 years after caps expire.

–

Distribution companies must limit initial phase-in to a maximum 15% annual increase over 2010 rates during

the 3-years.  May recover deferrals over additional 3 years

–

Full deployment of Smart Meters over 10 years, with voluntary time-of-use or real-time pricing rates

•

H.B. 0001

-

Special Session House Bill 1:

–

Passed by House on 3/11/08

–

Establishes an $850 million bond fund through existing gross receipts tax to create a Clean Energy Program

–

Promotes low-pollution, state-based energy generation and investment to reduce the Pennsylvania’s

dependence on Middle East oil and other foreign energy sources

rd

16

(1)

Amounts shown per Exelon share and represent contributions to Exelon's EPS.

(0.01)

-

-

-

(0.01)

Settlement of a tax matter at Generation related to Sithe

(0.04)

(0.08)

-

-

0.04

Non-cash deferred tax items

(0.14)

(0.14)

-

-

-

Investments in synthetic fuel-producing facilities

0.41

-

-

0.03

0.38

2007 Illinois electric rate settlement

(0.19)

-

-

-

(0.19)

Termination of State Line PPA

0.11

-

-

-

0.11

Georgia Power tolling agreement

Exelon

Other

(1)

PECO

(1)

ComEd

(1)

ExGen

(1)

$4.32

$(0.18)

$0.75

$0.30

$3.45

2007 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share

(0.01)

-

-

-

(0.01)

Sale of Generation's investments in TEG and TEP

0.02

-

-

0.02

-

City of Chicago settlement

(0.03)

-

-

-

(0.03)

Nuclear decommissioning obligation reduction

0.15

-

-

-

0.15

Mark-to-market adjustments from economic hedging activities

$4.05

$0.04

$0.75

$0.25

$3.01

2007 GAAP Earnings Per Share

GAAP EPS Reconciliation

Year Ended December 31, 2007

17

Exelon Investor Relations Contacts

Inquiries concerning this presentation

should be directed to:

Exelon Investor Relations

10 South Dearborn Street

Chicago, Illinois 60603

312-394-2345

312-394-4082 (Fax)

For copies of other presentations,

annual/quarterly reports, or to be

added to our email distribution list

please contact:

Felicia McGowan, Executive Admin

Coordinator

312-394-4069

Felicia.McGowan@ExelonCorp.com

Investor Relations Contacts:

Chaka Patterson, Vice President

312-394-7234

Chaka.Patterson@ExelonCorp.com

Karie Anderson, Director

312-394-4255

Karie.Anderson@ExelonCorp.com

Marybeth Flater, Manager

312-394-8354

Marybeth.Flater@ExelonCorp.com

Len Epelbaum, Principal Analyst

312-394-7356

Len.Epelbaum@ExelonCorp.com