Confidential Investor Meetings August 20-21, 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; (2) Exelon’s Second Quarter 2008 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 12; and (3) other factors discussed in filings with the Securities and Exchange Commission by Exelon Corporation and Exelon Generation Company, LLC (Companies). Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this 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. |
Power Team: Value Added Intermediary Nuclear Fossil Hydro Generation Power Team PECO Wholesale and Retail Power & Fuel Markets Affiliates Supply Contracts (Including renewables) Long-Term Contracts (Including ComEd) Market Activity Power Team manages the interaction between the generation portfolio and the wholesale and retail markets in order to reduce risk and optimize Exelon Generation profitability. 3 |
4 Multi-Regional Generation Note: Megawatts based on Generation’s ownership as of 12/31/07, using annual mean ratings for nuclear units (excluding Salem) and summer ratings for Salem and the fossil and hydro units. Midwest Capacity Owned: 11,388 MW Contracted: 4,271 MW Total: 15,659 MW ERCOT/South Capacity Owned: 2,222 MW Contracted: 2,917 MW Total: 5,139 MW New England Capacity Owned: 194 MW Total Capacity Owned: 24,808 MW Contracted: 7,524 MW Total: 32,332 MW Generating Plants Nuclear Hydro Coal/Oil/Gas Base-load Intermediate Peaker Mid-Atlantic Capacity Owned: 11,004 MW Contracted: 336 MW Total: 11,340 MW |
5 Total Portfolio Characteristics The value of our portfolio resides in our nuclear fleet 2008 Expected Total Supply (GWh) (1) Nuclear 138,100 Fossil & Hydro (2) 33,800 Forward & Spot Purchases 17,400 Total 189,300 PECO Load 22% Actual Hedges & Open Position 63% ComEd Swap 3% IL Auction 12% 2008 Expected Total Sales (GWh) (1) (1) As published at Exelon’s 12/19/07 Investor Conference. (2) Includes purchases related to long-term contracts. |
6 Hedging Targets Flexibility in our targeted financial hedge ranges allows us to be opportunistic while mitigating downside risk (1) Percent financially hedged is our estimate of the gross margin that is hedged at a 95% confidence level given the current assessment of market volatility. The formula is the gross margin at the 5th percentile / expected gross margin. Power Team employs commodity hedging strategies to optimize Exelon Generation’s earnings: • Maintain length for opportunistic sales • Use cross commodity option strategies to enhance hedge activities • Time hedging around view of market fundamentals • Supplement portfolio with load following products • Use physical and financial fuel products to manage variability in fossil generation output Target Ranges 90% - 98% 70% - 90% 50% - 70% ~96% Current Position Top of range Above the range* Prompt Year (2008) Second Year (2009) Third Year (2010) Financial Hedging Range (1) * Due to ComEd financial swap |
57 67 77 87 97 107 8/07 9/07 10/07 11/07 12/07 1/08 2/08 3/08 4/08 5/08 6/08 7/08 8/08 7 Market Price Snapshot Rolling 12 months, as of August 14, 2008. Source: OTC quotes and electronic trading system. Quotes are daily. 7 Forward NYMEX Natural Gas Forward NYMEX Coal PJM-West and Ni-Hub On-Peak Forward Prices PJM-West and Ni-Hub Wrap Forward Prices 2010 2011 2010 2011 2010 PJM-West 2011 PJM-West 2011 Ni-Hub 2010 Ni-Hub 2010 PJM-West 2011 PJM-West 2011 Ni-Hub 2010 Ni-Hub |
Market Price Snapshot Rolling 12 months, as of August 14, 2008. Source: OTC quotes and electronic trading system. Quotes are daily. 8 8 2010 2011 2010 2011 2010 2011 Houston Ship Channel Natural Gas Forward Prices ERCOT North On Peak Forward Prices ERCOT North On Peak v. Houston Ship Channel Implied Heat Rate ERCOT On Peak Spark Spread (1) 2011 2010 (1) Assumes a 7.2 Heat Rate, $1.50 O&M, and $.15 adder |