Commonwealth Edison 8-K Regulation FD Disclosure

EXHIBIT 99.1

News Release

From:	Exelon Corporation	FOR IMMEDIATE RELEASE
	Corporate Communications
	P.O. Box 805379
	Chicago, IL 60680-5379
Contact:	Jennifer Medley, Media Relations
	312.394.7189
	Michael Metzner, Investor Relations
	312.394.7696

Exelon Announces Strong Second Quarter Earnings;
Expects Full Year Earnings to be Near High End of Guidance;
Increases Common Dividend by 10.9%;
Plans 50 to 60% Dividend Payout Starting Full Year 2005

Chicago(July 28, 2004) – Exelon Corporation’s (Exelon) second quarter 2004 consolidated earnings prepared in accordance with GAAP were $521 million, or $0.78 per diluted share, compared with $372 million, or $0.57 per diluted share, in second quarter 2003.

Exelon’s adjusted (non-GAAP) operating earnings for the second quarter of 2004 were $476 million, or $0.71 per diluted share, compared with $402 million, or $0.61 per diluted share, for the same period in 2003. The 16% adjusted (non-GAAP) operating earnings per share improvement was due to a number of factors including higher retail kWh deliveries, higher wholesale margins, cost savings related to The Exelon Way program, the continued exit from Exelon Enterprises, the acquisition of the second half of AmerGen in late 2003 and lower interest expense. Partially offsetting these positive earnings factors were decreased competitive transition charge (CTC) revenue, as expected, at Commonwealth Edison Company (ComEd) and higher depreciation and amortization expenses.

Adjusted (non-GAAP) operating earnings is a non-GAAP financial measure. Adjusted (non-GAAP) operating earnings for the second quarter of 2004 do not include the following items that are included in reported GAAP earnings:

• After-tax earnings of $15 million, or $0.03 per diluted share, from investments in synthetic fuel producing facilities.

• After-tax earnings of $42 million, or $0.06 per diluted share, from the sale of Boston Generating, LLC (Boston Generating), net of losses on operations of Boston Generating in the second quarter prior to the sale.

• After-tax severance and severance-related costs related to The Exelon Way of $13 million or $0.02 per diluted share.

Adjusted (non-GAAP) operating earnings for the second quarter of 2003 did not include the following item that was included in reported GAAP earnings:

• An after-tax charge of $30 million, or $0.04 per diluted share, for goodwill impairment related to the agreement to sell Exelon Enterprises’ InfraSource business.

“Our strong second quarter results reflect robust load growth, improving wholesale margins, continued operational improvements through The Exelon Way and continued successful execution of our Path to Exit from Enterprises,” said John W. Rowe, Exelon Chairman and CEO. “In light of our strong first half, we are comfortable with our previously announced full year GAAP earnings guidance of $2.78 to $2.93 per share and operating earnings guidance of $2.68 to $2.83 per share and believe we will come in near the top end of this range. In addition to an annual dividend increase of 12 cents per share, our Board of Directors yesterday also approved a policy of targeting a dividend payout ratio of 50 to 60% of ongoing earnings and authorized our plan to achieve that level of payout for the full year of 2005. The dividend increase along with the new dividend policy reflects our confidence in the sustainability of recent earnings and cash flow improvements and demonstrates our continued commitment to increase our payout to shareholders as we complete our efforts to strengthen our balance sheet.”

Earnings guidance is based on the assumption of normal weather for the last two quarters of 2004. Adjusted (non-GAAP) operating earnings guidance excludes earnings from investments in synthetic fuel producing facilities, the cumulative effect of adopting FIN 46-R, any profit or loss related to Boston Generating and severance and severance-related costs related to The Exelon Way. Third quarter adjusted (non-GAAP) operating earnings are expected to be between $0.75 and $0.95 per share.

Common Dividend Increase

The Exelon Board of Directors declared a dividend of $0.305 per share on Exelon’s common stock, payable September 10, 2004, to shareholders of record at 5:00 p.m. New York time on August 15, 2004. The increase of $0.12 per share annually, approximately 10.9%, will result in an annual dividend rate of $1.22 per share or $0.305 per share quarterly. The Exelon Board of Directors also approved a policy of targeting a payout ratio for regular quarterly dividends of between 50 and 60% of ongoing earnings and authorized a plan to achieve that payout level starting in the full year of 2005. Payment of future dividends is subject to approval and declaration by the Board.

Second Quarter Highlights

• Nuclear OperationsExelon Generation’s nuclear fleet produced 34,254 GWhs (including 5,122 GWhs for AmerGen) in the second quarter of 2004, compared with 29,619 GWhs output (excluding AmerGen) in the second quarter of 2003. The fleet, including AmerGen, achieved a capacity factor of 96.1% for the second quarter of 2004, compared with 94.0% for the second quarter of 2003. Operating expenses associated with planned refueling outages were approximately $24 million in the second quarter of 2004 compared with $22 million the prior year. Two planned refueling outages were completed in the second quarter, including one at Generation’s co-owned Salem facility which is operated by PSEG Power LLC, compared with one in the second quarter of 2003.

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• ComEd/PJM IntegrationComEd’s integration into the PJM Interconnection regional transmission organization (PJM) became effective May 1. PJM is considered to be the model transmission market operator for the industry. With ComEd’s integration into PJM, all of Exelon Generation’s facilities in PECO and ComEd’s service territories, as well as most of Exelon’s AmerGen facilities, now operate in the same regional transmission system and the same “organized” wholesale electricity market. Benefits to Exelon from ComEd joining PJM include greater transparency around wholesale prices and product availability in Northern Illinois, access to a much larger, deeper and more liquid spot market and the existence of an independent Market Monitor.

• Enterprises TransactionsDuring the second quarter of 2004, Exelon Enterprises completed the sale of four of its businesses, Thermal Chicago Corporation, PECO TelCove and two businesses of Exelon Services, Inc., including Exelon Solutions, for combined net proceeds of $195 million. The divestiture of these businesses supports Exelon’s Path to Exit strategy from Enterprises and focus on its core integrated utility businesses. Exelon expects to complete the sale of substantially all remaining Enterprises businesses during the second half of 2004.

• Boston GeneratingOn May 25, 2004, Exelon Generation completed the sale of Boston Generating to a special purpose entity owned by the lenders under Boston Generating’s $1.25 billion credit facility. Responsibility for plant operations and power marketing activities will be transferred to the lenders’ special purpose entities in a separate transaction expected to be completed in the third quarter of 2004. Pending completion of the transfer of operation and marketing activities, Generation affiliates will continue to operate and market power from the plants on behalf of the new owners. Approximately $1.0 billion of debt outstanding under the Boston Generating Credit Facility was eliminated from Exelon’s and Generation’s financial statements upon the sale of Boston Generating in May.

• Debt Refinancings/RetirementsIn April, PECO Energy closed on the sale of $75 million of 5.90% First Mortgage Bonds, which are due May 1, 2034. The purpose of the issue was to refinance $75 million of existing PECO First Mortgage Bonds with a 6.375% coupon. Year to date, ComEd retired or redeemed $178 million of debt, including a $150 million 7.375% Note and $26 million of 5.30% Pollution Control Revenue Bonds, both in January.

• Share RepurchasesIn April 2004, Exelon’s Board of Directors approved a discretionary share repurchase program that allows Exelon to periodically repurchase shares of its common stock in the open market. Exelon intends to use the economic benefit it receives from stock option exercises and the company’s Employee Stock Purchase Plan in 2004 and beyond to buy back shares in order to partially offset dilution. The share repurchase program has no specified limit on the number of shares that may be repurchased and no specified termination date. During the second quarter of 2004, approximately 2.3 million shares of common stock were purchased under the program for approximately $75 million.

BUSINESS UNIT RESULTS

Exelon Energy Deliveryconsists of the retail electricity transmission and distribution operations of ComEd and PECO and the natural gas distribution business of PECO. Energy Delivery’s net income in the second quarter of 2004 was $303 million compared with net income of $291 million in the second quarter of 2003. Second quarter 2004 net income

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included severance and severance-related costs related to The Exelon Way of $9 million after-tax. Excluding this item, Energy Delivery’s net income was up $21 million compared to the same quarter last year, primarily due to increased retail kWh deliveries at both ComEd and PECO, Exelon Way savings and lower interest expense, partially offset by lower CTC collections at ComEd, increased depreciation and amortization expense and higher taxes other than income.

Cooling degree-days for the second quarter of 2004 in the ComEd service territory were up 68% relative to the same period in 2003 and were 14% below normal. In the PECO service territory, cooling degree-days were up 66% compared with 2003 and were 32% above normal. Retail kWh deliveries increased 6% for ComEd, with a 12% increase in deliveries to the residential customer class. PECO’s retail kWh deliveries increased 7% overall, with residential deliveries up 12%. Energy Delivery’s second quarter 2004 revenues were $2,435 million, up 5% from $2,322 million in 2003. Energy Delivery’s second quarter 2004 fuel and purchased power expense was $1,059 million, up 7% from $986 million in 2003. The impact of warmer weather increased second quarter 2004 earnings per share by approximately $0.02 relative to 2003, and decreased second quarter 2004 earnings per share by approximately $0.01 relative to the normal weather that was incorporated in our earnings guidance.

Exelon Generationconsists of Exelon’s electric generation operations and power marketing and trading functions. Second quarter 2004 net income was $178 million compared with net income of $142 million in the second quarter of 2003. Second quarter 2004 net income included after-tax earnings of $42 million related to Boston Generating, including the gain recognized on disposition and losses on operations in the second quarter prior to its sale. Second quarter net income also included an unrealized mark-to-market gain of $9 million after-tax from non-trading activities compared with a $20 million after-tax unrealized mark-to-market gain in the second quarter of 2003. Excluding the impact of the items listed above, Generation’s net income increased by $5 million compared with the same quarter last year, primarily due to higher revenue net of fuel and purchased power and Exelon Way savings, partially offset by higher operating and maintenance expense primarily due to the consolidation of AmerGen and Sithe.

Energy sales, exclusive of trading volumes, totaled 51,109 GWhs for the second quarter of 2004 compared with 54,318 GWhs in 2003, reflecting the adoption of a new accounting standard (EITF 03-11), which required certain energy transactions to be netted within revenues and lower market sales, partially offset by higher sales to Energy Delivery and the acquisition of the remaining 50% of AmerGen. The new standard resulted in a reduction of 6,185 GWhs for the second quarter of 2004. Generation’s second quarter 2004 revenues were $1,948 million, up 3% from second quarter 2003 revenue of $1,886 million, and were relatively unaffected by trading activities. Increased revenues were due to increased sales to Energy Delivery, the acquisition of the remaining 50% of AmerGen, the transfer of Exelon Energy Company from Enterprises to Generation as of January 1, 2004 and the consolidation of Generation’s investment in Sithe Energies, Inc. as of March 31, 2004, partially offset by decreased revenues at Boston Generating and the adoption of EITF 03-11. The adoption of this new standard resulted in reductions in revenues, purchased power expense and fuel expense of $239 million, $238 million and $1 million, respectively, but had no impact on net income. Earnings from prior periods were not affected.

Generation’s revenue, net of purchased power and fuel expense, increased by $209 million in the second quarter of 2004 compared with the second quarter of 2003 excluding the mark-to-market impact in both years. The revenue net fuel improvement includes $168 million of incremental margin contribution from AmerGen, Exelon Energy and Sithe. The remaining year-over-year increase was driven by an increase in average realized wholesale prices, a

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decrease in capacity payments to Midwest Generation and lower average fossil fuel costs. Fuel costs per MWh were lower year over year despite higher market prices due to hedging. Generation’s average realized margin on all sales, excluding trading activity, was $13.28 per MWh in the second quarter of 2004 compared with $11.53 per MWh in the second quarter of 2003.

Exelon Enterprisesconsists of the remaining businesses of Exelon Services, the electrical contracting business of F&M Holdings, Inc. and other minor investments most of which are in the process of being sold or shut down. Enterprises’ second quarter 2004 net income was $27 million including gains on the sale of businesses of $66 million. Enterprises’ second quarter 2003 net loss was $61 million including a $30 million after-tax charge for goodwill impairment related to the agreement to sell certain InfraSource businesses and a $23 million after-tax charge related to the impairment of certain Enterprises’ venture capital investments. Enterprises reported significant decreases in revenues, purchased power and fuel expense, and operating and maintenance expense mainly due to the sale of InfraSource, Inc. during the third quarter of 2003, the transfer of its retail energy business, Exelon Energy Company, to Generation as of January 1, 2004, and the sale and wind-down of other Enterprises businesses. Enterprises had a decrease in operating losses of $34 million primarily reflecting the sale and wind-downs of Enterprises businesses.

Adjusted (non-GAAP) Operating Earnings

Adjusted (non-GAAP) operating earnings, which generally exclude non-operational items as well as significant one-time charges or credits that are not normally associated with ongoing operations, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-GAAP) operating earnings measures internally to evaluate the company’s performance and manage its operations. A reconciliation of GAAP to adjusted (non-GAAP) operating earnings for historical periods is provided on pages 7 and 8 of the Earnings Release Attachments.

Conference call information:Exelon has scheduled a conference call for 11 AM ET (10 AM CT) on July 28, 2004. The call-in number in the U.S. is 888-802-8581 and the international call-in number is 973-935-8515. No password is required. Media representatives are invited to participate on a listen-only basis. The call will be web-cast and archived on Exelon’s web site: www.exeloncorp.com. (Please select the Investor Relations page.)

Telephone replays will be available until August 15. The U.S. call-in number for replays is 877-519-4471 and the international call-in number is 973-341-3080. The confirmation code is 4934193.

Certain of the matters discussed in this news release are 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 a registrant include those discussed herein as well as those discussed in Exelon Corporation’s 2003 Annual Report on Form 10-K in (a) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Outlook and the Challenges in Managing Our Business for Exelon, ComEd, PECO and Generation and (b) ITEM 8. Financial Statements and Supplementary Data: Exelon—Note 19, ComEd—Note 15,

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PECO—Note 14 and Generation—Note 13, and (c) other factors discussed in filings with the Securities and Exchange Commission (SEC) by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company and Exelon Generation Company, LLC (Registrants). Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this press release. 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 press release.

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Exelon Corporation is one of the nation’s largest electric utilities with approximately 5 million
customers and $15 billion in annual revenues. The company has one of the industry’s largest portfolios
of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and
Mid-Atlantic. Exelon distributes electricity to approximately 5 million customers in Illinois and
Pennsylvania and gas to approximately 460,000 customers in the Philadelphia area. Exelon is
headquartered in Chicago and trades on the NYSE under the ticker EXC.

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EXELON CORPORATION
Earnings Release Attachments
Table of Contents

Consolidating Statements of Income — Three Months Ended June 30, 2004 and 2003	1
Consolidating Statements of Income — Six Months Ended June 30, 2004 and 2003	2
Business Segment Comparative Income Statements — Energy Delivery and Generation — Three and Six Months Ended June 30, 2004 and 2003	3
Business Segment Comparative Income Statements — Enterprises and Corporate and Eliminations — Three and Six Months Ended June 30, 2004 and 2003	4
Consolidated Balance Sheets — June 30, 2004 and December 31, 2003	5
Consolidated Statements of Cash Flows — Six Months Ended June 30, 2004 and 2003	6
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income — Three Months Ended June 30, 2004 and 2003	7
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income — Six Months Ended June 30, 2004 and 2003	8
Reconciliation of Adjusted (non-GAAP) Operating Earnings Per Diluted Share to GAAP Earnings Per Diluted Share — Three Months Ended June 30, 2004 and 2003	9
Reconciliation of Adjusted (non-GAAP) Operating Earnings Per Diluted Share to GAAP Earnings Per Diluted Share — Six Months Ended June 30, 2004 and 2003	10
Electric Sales Statistics — Three and Six Months Ended June 30, 2004 and 2003	11
Energy Delivery Sales Statistics — Three Months Ended June 30, 2004 and 2003	12
Energy Delivery Sales Statistics — Six Months Ended June 30, 2004 and 2003	13
Exelon Generation Power Marketing Statistics — Three and Six Months Ended June 30, 2004 and 2003	14

EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)

	Three Months Ended June 30, 2004
	Energy												Exelon
	Delivery			Generation			Enterprises			Corp/Elim			Consolidated
Operating revenues	$	2,435		$	1,948		$	43		$	(876	)	$	3,550
Operating expenses
Purchased power		976			563			—			(866	)		673
Fuel		83			462			—			(7	)		538
Operating and maintenance		355			623			65			13			1,056
Depreciation and amortization		228			69			—			18			315
Taxes other than income		132			48			1			4			185
Total operating expenses		1,774			1,765			66			(838	)		2,767
Operating income (loss)		661			183			(23	)		(38	)		783
Other income and deductions			��
Interest expense		(172	)		(51	)		(11	)		(12	)		(246	)
Distributions on preferred securities of subsidiaries		(1	)		—			—			—			(1	)
Equity in earnings (losses) of unconsolidated affiliates		(13	)		—			(1	)		(17	)		(31	)
Other, net		10			134			86			—			230
Total other income and deductions		(176	)		83			74			(29	)		(48	)
Income (loss) before income taxes and minority interest		485			266			51			(67	)		735
Income taxes		182			100			24			(80	)		226
Income before minority interest		303			166			27			13			509
Minority interest		—			12			—			—			12
Net income	$	303		$	178		$	27		$	13		$	521

	Three Months Ended June 30, 2003
	Energy												Exelon
	Delivery			Generation			Enterprises			Corp/Elim			Consolidated
Operating revenues	$	2,322		$	1,886		$	443		$	(930	)	$	3,721
Operating expenses
Purchased power		919			800			49			(912	)		856
Fuel		67			348			117			(1	)		531
Operating and maintenance		342			451			322			(15	)		1,100
Depreciation and amortization		213			46			10			6			275
Taxes other than income		115			40			2			2			159
Total operating expenses		1,656			1,685			500			(920	)		2,921
Operating income (loss)		666			201			(57	)		(10	)		800
Other income and deductions
Interest expense		(189	)		(20	)		(3	)		(8	)		(220	)
Distributions on preferred securities of subsidiaries		(10	)		—			—			—			(10	)
Equity in earnings (losses) of unconsolidated affiliates		—			18			(1	)		(2	)		15
Other, net		14			34			(34	)		(4	)		10
Total other income and deductions		(185	)		32			(38	)		(14	)		(205	)
Income (loss) before income taxes and minority interest		481			233			(95	)		(24	)		595
Income taxes		190			91			(34	)		(25	)		222
Income (loss) before minority interest		291			142			(61	)		1			373
Minority interest		—			—			—			(1	)		(1	)
Net income (loss)	$	291		$	142		$	(61	)	$	—		$	372

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EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)

	Six Months Ended June 30, 2004
	Energy												Exelon
	Delivery			Generation			Enterprises			Corp/Elim			Consolidated(a)
Operating revenues	$	5,010		$	3,900		$	133		$	(1,771	)	$	7,272
Operating expenses
Purchased power		1,907			1,081			—			(1,754	)		1,234
Fuel		332			1,048			—			(6	)		1,374
Operating and maintenance		704			1,273			170			18			2,165
Depreciation and amortization		455			124			—			37			616
Taxes other than income		269			95			5			9			378
Total operating expenses		3,667			3,621			175			(1,696	)		5,767
Operating income (loss)		1,343			279			(42	)		(75	)		1,505
Other income and deductions
Interest expense		(355	)		(77	)		(13	)		(24	)		(469	)
Distributions on preferred securities of subsidiaries		(2	)		—			—			—			(2	)
Equity in earnings (losses) of unconsolidated affiliates		(22	)		(2	)		(2	)		(29	)		(55	)
Other, net		22			183			83			(1	)		287
Total other income and deductions		(357	)		104			68			(54	)		(239	)
Income (loss) before income taxes, minority interest and cumulative effect of change in accounting principle		986			383			26			(129	)		1,266
Income taxes		367			146			15			(152	)		376
Income before minority interest and cumulative effect of change in accounting principle		619			237			11			23			890
Minority interest		—			11			—			—			11
Income before cumulative effect of change in accounting principle		619			248			11			23			901
Cumulative effect of change in accounting principle, net of income taxes		—			32			—			—			32
Net income	$	619		$	280		$	11		$	23		$	933

	Six Months Ended June 30, 2003
	Energy												Exelon
	Delivery			Generation			Enterprises			Corp/Elim			Consolidated
Operating revenues	$	4,964		$	3,765		$	1,022		$	(1,956	)	$	7,795
Operating expenses
Purchased power		1,918			1,642			113			(1,910	)		1,763
Fuel		257			706			392			1			1,356
Operating and maintenance		744			943			575			(50	)		2,212
Depreciation and amortization		427			91			20			11			549
Taxes other than income		258			88			6			6			358
Total operating expenses		3,604			3,470			1,106			(1,942	)		6,238
Operating income (loss)		1,360			295			(84	)		(14	)		1,557
Other income and deductions
Interest expense		(383	)		(38	)		(5	)		(17	)		(443	)
Distributions on preferred securities of subsidiaries		(22	)		—			—			—			(22	)
Equity in earnings (losses) of unconsolidated affiliates		—			37			1			(5	)		33
Other, net		43			(132	)		(37	)		(5	)		(131	)
Total other income and deductions		(362	)		(133	)		(41	)		(27	)		(563	)
Income (loss) before income taxes, minority interest and cumulative effect of change in accounting principle		998			162			(125	)		(41	)		994
Income taxes		382			71			(47	)		(36	)		370
Income (loss) before minority interest and cumulative effect of change in accounting principle		616			91			(78	)		(5	)		624
Minority interest		—			(2	)		—			(1	)		(3	)
Income (loss) before cumulative effect of change in accounting principle		616			89			(78	)		(6	)		621
Cumulative effect of change in accounting principle, net of income taxes		5			108			(1	)		—			112
Net income (loss)	$	621		$	197		$	(79	)	$	(6	)	$	733

(a) Consolidated results for the six months ended June 30, 2004 include a $12 million reduction in net periodic postretirement benefit cost due to the early adoption of FSP FAS 106-2, including $6 million related to the three months ended March 31, 2004. Previously reported financial information for the three months ended March 31, 2004 will be adjusted when presented for comparative purposes in future periods.

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EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)

	Energy Delivery
	Three Months Ended June 30,									Six Months Ended June 30,
	2004			2003			Variance			2004			2003			Variance
Operating revenues	$	2,435		$	2,322		$	113		$	5,010		$	4,964		$	46
Operating expenses
Purchased power		976			919			57			1,907			1,918			(11	)
Fuel		83			67			16			332			257			75
Operating and maintenance		355			342			13			704			744			(40	)
Depreciation and amortization		228			213			15			455			427			28
Taxes other than income		132			115			17			269			258			11
Total operating expenses		1,774			1,656			118			3,667			3,604			63
Operating income		661			666			(5	)		1,343			1,360			(17	)
Other income and deductions
Interest expense		(172	)		(189	)		17			(355	)		(383	)		28
Distributions on preferred securities of subsidiaries		(1	)		(10	)		9			(2	)		(22	)		20
Equity in earnings (losses) of unconsolidated affiliates		(13	)		—			(13	)		(22	)		—			(22	)
Other, net		10			14			(4	)		22			43			(21	)
Total other income and deductions		(176	)		(185	)		9			(357	)		(362	)		5
Income before income taxes and cumulative effect of change in accounting principle		485			481			4			986			998			(12	)
Income taxes		182			190			(8	)		367			382			(15	)
Income before cumulative effect of change in accounting principle		303			291			12			619			616			3
Cumulative effect of change in accounting principle, net of income taxes		—			—			—			—			5			(5	)
Net income	$	303		$	291		$	12		$	619		$	621		$	(2	)

	Generation
	Three Months Ended June 30,									Six Months Ended June 30,
	2004			2003			Variance			2004			2003			Variance
Operating revenues	$	1,948		$	1,886		$	62		$	3,900		$	3,765		$	135
Operating expenses
Purchased power		563			800			(237	)		1,081			1,642			(561	)
Fuel		462			348			114			1,048			706			342
Operating and maintenance		623			451			172			1,273			943			330
Depreciation and amortization		69			46			23			124			91			33
Taxes other than income		48			40			8			95			88			7
Total operating expenses		1,765			1,685			80			3,621			3,470			151
Operating income		183			201			(18	)		279			295			(16	)
Other income and deductions
Interest expense		(51	)		(20	)		(31	)		(77	)		(38	)		(39	)
Equity in earnings (losses) of unconsolidated affiliates		—			18			(18	)		(2	)		37			(39	)
Other, net		134			34			100			183			(132	)		315
Total other income and deductions		83			32			51			104			(133	)		237
Income  before income taxes, minority interest and cumulative effect of changes in accounting principles		266			233			33			383			162			221
Income taxes		100			91			9			146			71			75
Income  before minority interest and cumulative effect of changes in accounting principles		166			142			24			237			91			146
Minority interest		12			—			12			11			(2	)		13
Income  before cumulative effect of changes in accounting principles		178			142			36			248			89			159
Cumulative effect of changes in accounting principles, net of income taxes		—			—			—			32			108			(76	)
Net income	$	178		$	142		$	36		$	280		$	197		$	83

3

EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)

	Enterprises
	Three Months Ended June 30,									Six Months Ended June 30,
	2004			2003			Variance			2004			2003			Variance
Operating revenues	$	43		$	443		$	(400	)	$	133		$	1,022		$	(889	)
Operating expenses
Purchased power		—			49			(49	)		—			113			(113	)
Fuel		—			117			(117	)		—			392			(392	)
Operating and maintenance		65			322			(257	)		170			575			(405	)
Depreciation and amortization		—			10			(10	)		—			20			(20	)
Taxes other than income		1			2			(1	)		5			6			(1	)
Total operating expenses		66			500			(434	)		175			1,106			(931	)
Operating income (loss)		(23	)		(57	)		34			(42	)		(84	)		42
Other income and deductions
Interest expense		(11	)		(3	)		(8	)		(13	)		(5	)		(8	)
Equity in earnings (losses) of unconsolidated affiliates		(1	)		(1	)		—			(2	)		1			(3	)
Other, net		86			(34	)		120			83			(37	)		120
Total other income and deductions		74			(38	)		112			68			(41	)		109
effect of change in accounting principle		51			(95	)		146			26			(125	)		151
Income taxes		24			(34	)		58			15			(47	)		62
Income (loss) before cumulative effect of change in accounting principle		27			(61	)		88			11			(78	)		89
Cumulative effect of change in accounting principle, net of income taxes		—			—			—			—			(1	)		1
Net income (loss)	$	27		$	(61	)	$	88		$	11		$	(79	)	$	90

	Corporate and Eliminations
	Three Months Ended June 30,									Six Months Ended June 30,
	2004			2003			Variance			2004			2003			Variance
Operating revenues	$	(876	)	$	(930	)	$	54		$	(1,771	)	$	(1,956	)	$	185
Operating expenses
Purchased power		(866	)		(912	)		46			(1,754	)		(1,910	)		156
Fuel		(7	)		(1	)		(6	)		(6	)		1			(7	)
Operating and maintenance		13			(15	)		28			18			(50	)		68
Depreciation and amortization		18			6			12			37			11			26
Taxes other than income		4			2			2			9			6			3
Total operating expenses		(838	)		(920	)		82			(1,696	)		(1,942	)		246
Operating income (loss)		(38	)		(10	)		(28	)		(75	)		(14	)		(61	)
Other income and deductions
Interest expense		(12	)		(8	)		(4	)		(24	)		(17	)		(7	)
Equity in earnings (losses) of unconsolidated affiliates		(17	)		(2	)		(15	)		(29	)		(5	)		(24	)
Other, net		—			(4	)		4			(1	)		(5	)		4
Total other income and deductions		(29	)		(14	)		(15	)		(54	)		(27	)		(27	)
Income (loss) before income taxes and minority interest		(67	)		(24	)		(43	)		(129	)		(41	)		(88	)
Income taxes		(80	)		(25	)		(55	)		(152	)		(36	)		(116	)
Income (loss) before minority interest		13			1			12			23			(5	)		28
Minority interest		—			(1	)		1			—			(1	)		1
Net income (loss)	$	13		$	—		$	13		$	23		$	(6	)	$	29

4

EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)

	June 30,			December 31,
	2004			2003
Current assets
Cash and cash equivalents	$	794		$	493
Restricted cash and investments		179			97
Accounts receivable, net
Customers		1,645			1,567
Other		403			582
Mark-to-market derivative assets		433			337
Inventories — fossil fuel		165			212
Inventories — materials and supplies		318			310
Notes receivable from affiliate		—			92
Deferred income taxes		145			162
Assets held for sale		20			242
Other		449			413
Total current assets		4,551			4,507
Property, plant and equipment, net		20,228			20,630
Deferred debits and other assets
Regulatory assets		5,038			5,226
Nuclear decommissioning trust funds		4,890			4,721
Investments		922			955
Goodwill		4,714			4,719
Mark-to-market derivative assets		391			133
Other		1,368			991
Total deferred debits and other assets		17,323			16,745
Total assets	$	42,102		$	41,882
Liabilities and shareholders’ equity
Current liabilities
Commercial paper	$	261		$	326
Notes payable to Sithe Energies, Inc.		—			90
Long-term debt due within one year		177			1,385
Long-term debt to ComEd Transitional Funding Trust and PECO Energy Transitional Trust due within one year		478			470
Accounts payable		1,221			1,238
Mark-to-market derivative liabilities		805			584
Accrued expenses		1,080			1,166
Liabilities held for sale		14			61
Other		293			306
Total current liabilities		4,329			5,626
Long-term debt		8,672			7,889
Long-term debt to ComEd Transitional Funding Trust and PECO Energy Transitional Trust		4,702			5,055
Long-term debt to other financing trusts		545			545
Deferred credits and other liabilities
Deferred income taxes		4,580			4,360
Unamortized investment tax credits		281			288
Asset retirement obligation		3,100			2,997
Pension obligations		1,445			1,668
Non-pension postretirement benefits obligations		1,102			1,053
Spent nuclear fuel obligation		872			867
Regulatory liabilities		1,967			1,891
Mark-to-market derivative liabilities		425			141
Other		919			912
Total deferred credits and other liabilities		14,691			14,177
Total liabilities		32,939			33,292
Minority interest of consolidated subsidiaries		50			—
Preferred securities of subsidiaries		87			87
Shareholders’ equity
Common stock		7,463			7,292
Treasury stock, at cost		(75	)		—
Retained earnings		2,889			2,320
Accumulated other comprehensive income (loss)		(1,251	)		(1,109	)
Total shareholders’ equity		9,026			8,503
Total liabilities and shareholders’ equity	$	42,102		$	41,882

5

EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)

	Six Months Ended
	June 30,
	2004			2003
Cash flows from operating activities
Net income	$	933		$	733
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization and accretion, including nuclear fuel		930			846
Cumulative effect of changes in accounting principles (net of income taxes)		(32	)		(112	)
Impairment of investments		1			238
Impairment of goodwill and other long-lived assets		—			53
Deferred income taxes and amortization of investment tax credits		154			(100	)
Provision for uncollectible accounts		39			43
Equity in losses (earnings) of unconsolidated affiliates		55			(33	)
Gain on sale of investments and wholly owned subsidiaries		(155	)		—
Net realized losses (gains) on nuclear decommissioning trust funds		1			(12	)
Other operating activities		(16	)		52
Changes in assets and liabilities:
Receivables		269			70
Inventories		14			(16	)
Other current assets		(66	)		(219	)
Accounts payable, accrued expenses and other current liabilities		(134	)		(143	)
Net realized and unrealized mark-to-market and hedging transactions		54			76
Pension and non-pension postretirement benefit obligations		(175	)		(146	)
Other noncurrent assets and liabilities		35			(38	)
Net cash flows provided by operating activities		1,907			1,292
Cash flows from investing activities
Capital expenditures		(844	)		(1,019	)
Proceeds from liquidated damages		—			86
Proceeds from nuclear decommissioning trust fund sales		1,042			1,262
Investment in nuclear decommissioning trust funds		(1,178	)		(1,368	)
Note receivable from unconsolidated affiliate		—			35
Proceeds from sales of investments and wholly-owned subsidiaries		227			6
Change in restricted cash		(2	)		(29	)
Net cash increase from consolidation of Sithe Energies, Inc.		19			—
Other investing activities		67			11
Net cash flows used in investing activities		(669	)		(1,016	)
Cash flows from financing activities
Issuance of long-term debt		75			1,813
Retirement of long-term debt		(312	)		(1,479	)
Retirement of long-term debt to financing affiliates		(345	)		—
Change in short-term debt		(65	)		(100	)
Issuance of mandatorily redeemable preferred securities		—			300
Retirement of mandatorily redeemable preferred securities		—			(300	)
Payment on acquisition note payable to Sithe Energies, Inc.		(27	)		(210	)
Dividends paid on common stock		(364	)		(285	)
Proceeds from employee stock plans		140			91
Purchase of treasury stock		(75	)		—
Other financing activities		36			(85	)
Net cash flows used in financing activities		(937	)		(255	)
Increase in cash and cash equivalents		301			21
Cash and cash equivalents at beginning of period		493			469
Cash and cash equivalents, including cash classified as held for sale		794			490
Cash classified as held for sale on the consolidated balance sheet		—			(26	)
Cash and cash equivalents at end of period	$	794		$	464

6

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income
(unaudited)
(in millions, except per share data)

	Three Months Ended June 30, 2004										Three Months Ended June 30, 2003
								Adjusted										Adjusted
	GAAP (a)			Adjustments				Non-GAAP			GAAP (a)			Adjustments				Non-GAAP
Operating revenues	$	3,550		$	(89	)	(b)	$	3,461		$	3,721		$	—			$	3,721
Operating expenses
Purchased power		673			6		(b)		679			856			—				856
Fuel		538			(77	)	(b)		461			531			—				531
Operating and maintenance		1,056			(76	)	(b),(c),(d)		980			1,100			(48	)	(e)		1,052
Depreciation and amortization		315			(11	)	(c)		304			275			—				275
Taxes other than income		185			(3	)	(b)		182			159			—				159
Total operating expenses		2,767			(161	)			2,606			2,921			(48	)			2,873
Operating income		783			72				855			800			48				848
Other income and deductions
Interest expense		(246	)		4		(c)		(242	)		(220	)		—				(220	)
Distributions on preferred securities of subsidiaries		(1	)		—				(1	)		(10	)		—				(10	)
Equity in earnings (losses) of unconsolidated affiliates		(31	)		14		(c)		(17	)		15			—				15
Other, net		230			(85	)	(b)		145			10			—				10
Total other income and deductions		(48	)		(67	)			(115	)		(205	)		—				(205	)
Income before income taxes and minority interest		735			5				740			595			48				643
Income taxes		226			50		(b),(c),(d)		276			222			18		(e)		240
Income before minority interest		509			(45	)			464			373			30				403
Minority interest		12			—				12			(1	)		—				(1	)
Net income	$	521		$	(45	)		$	476		$	372		$	30			$	402
Earnings per average common share
Basic	$	0.79		$	(0.07	)		$	0.72		$	0.57		$	0.05			$	0.62
Diluted	$	0.78		$	(0.07	)		$	0.71		$	0.57		$	0.04			$	0.61
Average common shares outstanding
Basic		661							661			650							650
Diluted		667							667			655							655
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Investments in synthetic fuel producing facilities				$	0.03									$	—
Boston Generating, LLC					0.06										—
Exelon Way severance and severance-related charges					(0.02	)									—
Impairment of Exelon Enterprises’ InfraSource goodwill					—										(0.04	)
Total adjustments				$	0.07									$	(0.04	)

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude the financial impact of Boston Generating, LLC.
(c)	Adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel producing facilities.
(d)	Adjustment to exclude severance and severance-related charges associated with The Exelon Way.
(e)	Adjustment for the impairment of Exelon Enterprises’ InfraSource goodwill.

7

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income
(unaudited)
(in millions, except per share data)

	Six Months Ended June 30, 2004										Six Months Ended June 30, 2003
								Adjusted										Adjusted
	GAAP (a,b)			Adjustments				Non-GAAP			GAAP (a)			Adjustments				Non-GAAP
Operating revenues	$	7,272		$	(248	)	(c)	$	7,024		$	7,795		$	—			$	7,795
Operating expenses
Purchased power		1,234			4		(c)		1,238			1,763			—				1,763
Fuel		1,374			(226	)	(c)		1,148			1,356			—				1,356
Operating and maintenance		2,165			(127	)	(c),(d),(e)		2,038			2,212			(89	)	(g),(h)		2,123
Depreciation and amortization		616			(27	)	(c),(d)		589			549			—				549
Taxes other than income		378			(9	)	(c)		369			358			—				358
Total operating expenses		5,767			(385	)			5,382			6,238			(89	)			6,149
Operating income		1,505			137				1,642			1,557			89				1,646
Other income and deductions
Interest expense		(469	)		14		(c),(d)		(455	)		(443	)		—				(443	)
Distributions on preferred securities of subsidiaries		(2	)		—				(2	)		(22	)		—				(22	)
Equity in earnings (losses) of unconsolidated affiliates		(55	)		23		(d)		(32	)		33			—				33
Other, net		287			(90	)	(c)		197			(131	)		187		(g), (i)		56
Total other income and deductions		(239	)		(53	)			(292	)		(563	)		187				(376	)
Income before income taxes, minority interest and cumulative effect of changes in accounting principles		1,266			84				1,350			994			276				1,270
Income taxes		376			124		(c),(d),(e)		500			370			99				469
Income before income taxes, minority interest and cumulative effect of changes in accounting principles		890			(40	)			850			624			177				801
Minority interest		11			—				11			(3	)		—				(3	)
Income before minority interest and cumulative effect of changes in accounting principles		901			(40	)			861			621			177				798
Cumulative effect of changes in accounting principles, net of income taxes		32			(32	)	(f)		—			112			(112	)	(j)		—
Net income	$	933		$	(72	)		$	861		$	733		$	65			$	798
Earnings per average common share
Basic:
Income before cumulative effect of changes in accounting principles	$	1.36		$	(0.06	)		$	1.30		$	0.96		$	0.27			$	1.23
Cumulative effect of changes in accounting principles, net of income taxes		0.05			(0.05	)			—			0.17			(0.17	)			—
Net income	$	1.41		$	(0.11	)		$	1.30		$	1.13		$	0.10			$	1.23
Diluted:
Income before cumulative effect of changes in accounting principles	$	1.35		$	(0.06	)		$	1.29		$	0.95		$	0.27			$	1.22
Cumulative effect of changes in accounting principles, net of income taxes		0.05			(0.05	)			—			0.17			(0.17	)			—
Net income	$	1.40		$	(0.11	)		$	1.29		$	1.12		$	0.10			$	1.22
Average common shares outstanding
Basic		660							660			649							649
Diluted		666							666			653							653
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Cumulative effect pursuant to FIN No. 46-R				$	0.05									$	—
Boston Generating, LLC					0.04										—
Investments in synthetic fuel producing facilities					0.04										—
Exelon Way severance and severance-related charges					(0.02	)									—
Impairment of Sithe Energies, Inc. investment					—										(0.20	)
Cumulative effect of adopting SFAS No. 143					—										0.17
Impairment of Exelon Enterprises’ InfraSource goodwill					—										(0.04	)
March 3 ComEd Settlement Agreement					—										(0.03	)
Total adjustments				$	0.11									$	(0.10	)

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Consolidated results for the six months ended June 30, 2004 include a $12 million reduction in net periodic postretirement benefit cost due to the early adoption of FSP FAS 106-2, including $6 million related to the three months ended March 31, 2004. Previously reported financial information for the three months ended March 31, 2004 will be adjusted when presented for comparative purposes in future periods.
(c)	Adjustment to exclude the financial impact of Boston Generating, LLC.
(d)	Adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel producing facilities.
(e)	Adjustment to exclude severance and severance-related charges associated with The Exelon Way.
(f)	Adjustment for the cumulative effect of adopting FIN No. 46-R.
(g)	Adjustment for the March 3 ComEd Settlement Agreement.
(h)	Adjustment for the impairment of Exelon Enterprises’ InfraSource goodwill.
(i)	Adjustment for the impairment of Generation’s investment in Sithe Energies, Inc.
(j)	Adjustment for the cumulative effect of adopting SFAS No. 143.

8

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings
Per Diluted Share to GAAP Earnings Per Diluted Share
Three Months Ended June 30, 2004 vs. Three Months Ended June 30, 2003

2003 GAAP Earnings per Diluted Share	$	0.57
Impairment of InfraSource Goodwill (1)		0.04
2003 Adjusted (non-GAAP) Operating Earnings		0.61
Year Over Year Effects on Earnings:
Energy Margins:
CTC Recoveries at ComEd (2)		(0.04	)
Energy Delivery, Excluding CTC Recoveries (3)		0.08
Generation, Excluding Mark-to-Market (4)		0.03
Mark-to-Market		(0.02	)
Financial Impact of Enterprises (5)		0.09
Higher Depreciation and Amortization Expense (6)		(0.04	)
Acquisition of Remaining 50% of AmerGen (7)		0.03
Operating and Maintenance Expense (8)		(0.02	)
Higher Taxes Other Than Income (9)		(0.02	)
Lower Interest Expense (10)		0.02
Lower Equity in Earnings (11)		(0.01	)
2004 Adjusted (non-GAAP) Operating Earnings		0.71
2004 Adjusted (non-GAAP) Operating Earnings Adjustments:
Boston Generating, LLC 2004 Impact (12)		0.06
Investments in Synthetic Fuel-Producing Facilities (13)		0.03
Exelon Way Severance and Severance-Related Charges (14)		(0.02	)
2004 GAAP Earnings per Diluted Share	$	0.78

(1)	Reflects an impairment of goodwill related to InfraSource, Inc., which was sold during the third quarter of 2003.
(2)	Reflects a decrease in the competative transition charge (CTC) rates recovered by ComEd due to increased wholesale market prices of electricity and other adjustments to the energy component.
(3)	Reflects increased volume and favorable weather conditions at Energy Delivery, partially offset by decreased revenues due to customers purchasing energy from alternative electric suppliers or the ComEd PPO.
(4)	Reflects increased energy margins at Generation, excluding the effects of AmerGen, Sithe, Boston Generating, Exelon Energy and mark-to-market, primarily due to an increase in average realized wholesale prices and a decrease in capacity payments to Midwest Generation, partially offset by higher fuel costs.
(5)	Reflects the impact on net income of Enterprises, excluding the 2003 InfraSource goodwill impairment, due to gains recognized in 2004 related to the sale of the Chicago Thermal operations, PECO Telcove and certain businesses of Exelon Services, Inc. The decrease also reflects investment impairment charges recorded by Enterprises in 2003.
(6)	Reflects higher depreciation and amortization expense due to capital additions and assets placed into service in addition to higher CTC amortization at PECO. Excludes the effects of Enterprises, AmerGen, Sithe, Boston Generating and investments in synthetic fuel-producing facilities.
(7)	Reflects the impact on net income of the acquisition of the remaining 50% of AmerGen.
(8)	Reflects increased operating and maintenance expenses, excluding the effects of decommissioning, Enterprises, AmerGen, Sithe, Boston Generating, investments in synthetic fuel-producing facilities and Exelon Way severance and severance-related charges.
(9)	Reflects higher taxes other than income, primarily at Energy Delivery due to a 2003 use tax accrual adjustment. Excludes the effects of Enterprises, AmerGen, Sithe, and Boston Generating.
(10)	Reflects lower interest expense, primarily at Energy Delivery due to refinancing of existing debt at lower rates and scheduled principal payments. Excludes the effects of Enterprises, AmerGen, Sithe, Boston Generating and investments in synthetic fuel-producing facilities.
(11)	Reflects equity in losses recorded at ComEd and PECO due to the deconsolidation of certain financing trusts as of July 1, 2003 and December 31, 2003. Excludes the effects of AmerGen, Sithe and investments in synthetic fuel-producing facilities.
(12)	Reflects the 2004 financial impact of Boston Generating.
(13)	Reflects adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel-producing facilities.
(14)	Reflects severance and severance-related charges recorded during the second quarter of 2004 associated with The Exelon Way.

9

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings
Per Diluted Share to GAAP Earnings Per Diluted Share
Six Months Ended June 30, 2004 vs. Six Months Ended June 30, 2003

2003 GAAP Earnings per Diluted Share	$	1.12
2003 Adjusted (non-GAAP) Operating Earnings Adjustments:
Impairment of Investment in Sithe Energies, Inc. (1)		0.20
Cumulative Effect of Adopting SFAS No. 143		(0.17	)
Impairment of InfraSource Goodwill (2)		0.04
March 3 ComEd Settlement Agreement (3)		0.03
2003 Adjusted (non-GAAP) Operating Earnings		1.22
Year Over Year Effects on Earnings:
Energy Margins:
CTC Recoveries at ComEd (4)		(0.11	)
Energy Delivery, Excluding CTC Recoveries (5)		0.09
Generation, Excluding Mark-to-Market (6)		0.07
Mark-to-Market		(0.01	)
Financial Impact of Enterprises (7)		0.09
Lower Interest Expense (8)		0.05
Higher Depreciation and Amortization Expense (9)		(0.05	)
Lower Equity in Earnings of Unconsolidated Affiliates (10)		(0.02	)
Operating and Maintenance Expense (11)		—
Acquisition of Remaining 50% of AmerGen (12)		0.02
Other		(0.06	)
2004 Adjusted (non-GAAP) Operating Earnings		1.29
2004 Adjusted (non-GAAP) Operating Earnings Adjustments:
Cumulative Effect of Adopting FIN No. 46-R		0.05
Boston Generating, LLC 2004 Impact (13)		0.04
Investments in Synthetic Fuel-Producing Facilities (14)		0.04
Exelon Way Severance and Severance-Related Charges (15)		(0.02	)
2004 GAAP Earnings per Diluted Share	$	1.40

(1)	Reflects impairment of the investment held by Generation in Sithe Energies, Inc. recorded during the first quarter of 2003.
(2)	Reflects an impairment of goodwill related to InfraSource, Inc., which was recorded during the second quarter of 2003.
(3)	Reflects the March 3 ComEd Settlement Agreement, an agreement reached during the first quarter of 2003 by ComEd and various Illinois suppliers, customers and governmental parties, regarding several matters affecting ComEd’s rates for electric service.
(4)	Reflects a decrease in the CTC rates recovered by ComEd due to increased wholesale market prices of electricity and other adjustments to the energy component.
(5)	Reflects increased electric volume at Energy Delivery, partially offset by decreased revenues due to customers purchasing energy from alternative electric suppliers or the ComEd PPO.
(6)	Reflects increased energy margins at Generation, excluding the effects of AmerGen, Sithe, Boston Generating, Exelon Energy and mark-to-market, primarily due to an increase in average realized wholesale prices and a decrease in capacity payments to Midwest Generation, partially offset by higher fuel costs.
(7)	Reflects the impact on net income of Enterprises, excluding the 2003 InfraSource goodwill impairment, due to gains recognized in 2004 related to the sale of the Chicago Thermal operations, PECO Telcove and certain businesses of Exelon Services, Inc. The decrease also reflects investment impairment charges recorded by Enterprises in 2003.
(8)	Reflects lower interest expense, primarily at Energy Delivery due to refinancing of existing debt at lower rates and scheduled principal payments. Excludes the effects of Enterprises, AmerGen, Sithe, Boston Generating and investments in synthetic fuel-producing facilities.
(9)	Reflects higher depreciation and amortization expense due to capital additions and assets placed into service in addition to higher CTC amortization at PECO. Excludes the effects of Enterprises, AmerGen, Sithe, Boston Generating, Exelon Energy and investments in synthetic fuel-producing facilities.
(10)	Reflects equity in losses recorded at ComEd and PECO due to the deconsolidation of certain financing trusts as of July 1, 2003 and December 31, 2003. Excludes the effects of AmerGen, Sithe and investments in synthetic fuel-producing facilities.
(11)	Reflects no significant change in operating and maintenance expenses, primarily due to increased planned refueling outages at Generation, partially offset by reduced contractor and payroll costs at Energy Delivery. Excludes the effects of decommissioning, Enterprises, AmerGen, Sithe, Boston Generating, investments in synthetic fuel-producing facilities and Exelon Way severance and severance-related charges.
(12)	Reflects the impact on net income of the acquisition of the remaining 50% of AmerGen.
(13)	Reflects the 2004 financial impact of Boston Generating.
(14)	Reflects adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel-producing facilities.
(15)	Reflects severance and severance-related charges recorded during 2004 associated with The Exelon Way.

10

EXELON CORPORATION
Electric Sales Statistics

	Three Months Ended June 30,
(in GWhs)	2004			2003			% Change
Supply
Nuclear, excluding AmerGen in 2003		34,254			29,619			15.6	%
Purchased Power — Generation (a)		11,904	(b)		19,344			(38.5	%)
Fossil, excluding Sithe Energies, and Hydro		4,951			5,355			(7.5	%)
Power Team Supply		51,109			54,318			(5.9	%)
Purchased Power — Other		212			234			(9.4	%)
Total Electric Supply Available for Sale		51,321			54,552			(5.9	%)
Less: Line Loss and Company Use		(2,347	)		(1,655	)		41.8	%
Total Supply		48,974			52,897			(7.4	%)
Energy Sales
Retail Sales		31,281			29,198			7.1	%
Power Team Market Sales (a)		23,482	(b)		27,449			(14.5	%)
Interchange Sales and Sales to Other Utilities		579			575			0.7	%
		55,342			57,222			(3.3	%)
Less: Distribution Only Sales		(6,368	)		(4,325	)		47.2	%
Total Energy Sales		48,974			52,897			(7.4	%)

	Six Months Ended June 30,
(in GWhs)	2004			2003			% Change
Supply
Nuclear, excluding AmerGen in 2003		67,665			58,949			14.8	%
Purchased Power — Generation (a)		23,595	(b)		39,373			(40.1	%)
Fossil, excluding Sithe Energies, and Hydro		11,296			10,405			8.6	%
Power Team Supply		102,556			108,727			(5.7	%)
Purchased Power — Other		309			428			(27.8	%)
Total Electric Supply Available for Sale		102,865			109,155			(5.8	%)
Less: Line Loss and Company Use		(4,418	)		(3,677	)		20.2	%
Total Supply		98,447			105,478			(6.7	%)
Energy Sales
Retail Sales		64,027			61,405			4.3	%
Power Team Market Sales (a)		45,991	(b)		51,264			(10.3	%)
Interchange Sales and Sales to Other Utilities		1,153			1,272			(9.4	%)
		111,171			113,941			(2.4	%)
Less: Distribution Only Sales		(12,724	)		(8,463	)		50.3	%
Total Energy Sales		98,447			105,478			(6.7	%)

(a)	Purchased power and market sales do not include trading volume of 5,324 GWhs and 7,919 GWhs for the three months ended June 30, 2004 and 2003, respectively, and 10,437 GWhs and 17,446 GWhs for the six months ended June 30, 2004 and 2003, respectively.
(b)	Purchased power and market sales reflect the adoption of EITF 03-11, which required certain energy transactions to be netted. The adoption of this standard resulted in a reduction of 6,185 GWhs and 11,638 GWhs for the three and six months ended June 30, 2004, respectively.

11

EXELON CORPORATION
Energy Delivery Sales Statistics
For the Three Months Ended June 30,

	ComEd									PECO
Electric Deliveries (GWh)	2004			2003			% Change			2004		2003		% Change
Full Service(a)
Residential		5,793			5,163			12.2	%		2,272		2,274		(0.1	%)
Small Commercial & Industrial		4,791			5,114			(6.3	%)		1,686		1,532		10.1	%
Large Commercial & Industrial		1,426			1,683			(15.3	%)		3,703		3,695		0.2	%
Public Authorities & Electric Railroads		1,200			1,333			(10.0	%)		224		222		0.9	%
Total Full Service		13,210			13,293			(0.6	%)		7,885		7,723		2.1	%
PPO (ComEd Only)
Small Commercial & Industrial		870			869			0.1	%
Large Commercial & Industrial		877			1,318			(33.5	%)
Public Authorities & Electric Railroads		577			531			8.7	%
		2,324			2,718			(14.5	%)
Delivery Only(b)
Residential		(d	)		(d	)					488		186		162.4	%
Small Commercial & Industrial		1,761			1,257			40.1	%		433		323		34.1	%
Large Commercial & Industrial		3,090			2,128			45.2	%		190		192		(1.0	%)
Public Authorities & Electric Railroads		406			247			64.4	%		—		—
		5,257			3,632			44.7	%		1,111		701		58.5	%
Total PPO and Delivery Only		7,581			6,350			19.4	%		1,111		701		58.5	%
Total Retail Deliveries		20,791			19,643			5.8	%		8,996		8,424		6.8	%
Gas Deliveries (mmcf) (PECO only)											14,572		15,001		(2.9	%)
Revenue (in millions)
Full Service(a)
Residential	$	521		$	472			10.4	%	$	298	$	297		0.3	%
Small Commercial & Industrial		396			405			(2.2	%)		197		180		9.4	%
Large Commercial & Industrial		71			84			(15.5	%)		281		267		5.2	%
Public Authorities & Electric Railroads		74			81			(8.6	%)		20		21		(4.8	%)
Total Full Service		1,062			1,042			1.9	%		796		765		4.1	%
PPO (ComEd Only)(c)
Small Commercial & Industrial		60			59			1.7	%
Large Commercial & Industrial		51			72			(29.2	%)
Public Authorities & Electric Railroads		31			28			10.7	%
		142			159			(10.7	%)
Delivery Only(b)
Residential		(d	)		(d	)					38		14		171.4	%
Small Commercial & Industrial		35			32			9.4	%		23		17		35.3	%
Large Commercial & Industrial		43			43			0.0	%		5		5		0.0	%
Public Authorities & Electric Railroads		9			8			12.5	%		—		—
		87			83			4.8	%		66		36		83.3	%
Total PPO and Delivery Only		229			242			(5.4	%)		66		36		83.3	%
Total Retail Electric Revenue		1,291			1,284			0.5	%		862		801		7.6	%
Wholesale Electric Revenue		24			22			9.1	%		1		3		(66.7	%)
Other Revenue(e)		88			55			60.0	%		50		47		6.4	%
Gas Revenue (PECO only)		n/a			n/a						119		110		8.2	%
Total Revenues	$	1,403			1,361			3.1	%	$	1,032	$	961		7.4	%

Heating and Cooling Degree-Days	2004		2003		Normal		2004		2003		Normal
Heating Degree-Days		692		848		794		399		584		488
Cooling Degree-Days		186		111		216		416		250		316

(a)	Full service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy and the delivery cost of the transmission and distribution of the energy. PECO’s tariffed rates also include a competitive transition charge (CTC).
(b)	Delivery only service reflects customers electing to receive electric generation service from an alternative energy supplier. Revenue from customers choosing an alternative energy supplier includes a distribution charge and a CTC.
(c)	Revenue from customers choosing ComEd’s PPO includes an energy charge at market rates, transmission and distribution charges and a CTC.
(d)	All ComEd residential customers are eligible to choose their supplier of electricity; however, as of June 30, 2004, no alternative electric supplier has sought approval from the Illinois Commerce Commission and no electric utilities have chosen to enter the ComEd residential market for the supply of electricity.
(e)	Other revenue includes transmission revenue from PJM and prior to ComEd’s full integration into PJM on May 1, 2004, ComEd’s transmission charges received from alternative energy suppliers.
	n/a — not applicable

12

EXELON CORPORATION

Energy Delivery Sales Statistics
For the Six Months Ended June 30,

	ComEd									PECO
Electric Deliveries (GWh)	2004			2003			% Change			2004		2003		% Change
Full Service(a)
Residential		12,805			12,049			6.3	%		5,016		5,389		(6.9	%)
Small Commercial & Industrial		9,924			10,741			(7.6	%)		3,370		3,312		1.8	%
Large Commercial & Industrial		2,771			3,167			(12.5	%)		7,320		7,177		2.0	%
Public Authorities & Electric Railroads		2,440			2,749			(11.2	%)		453		475		(4.6	%)
Total Full Service		27,940			28,706			(2.7	%)		16,159		16,353		(1.2	%)
PPO (ComEd Only)
Small Commercial & Industrial		1,600			1,662			(3.7	%)
Large Commercial & Industrial		1,624			2,750			(40.9	%)
Public Authorities & Electric Railroads		1,012			1,069			(5.3	%)
		4,236			5,481			(22.7	%)
Delivery Only(b)
Residential		(d	)		(d	)					1,070		450		137.8	%
Small Commercial & Industrial		3,532			2,606			35.5	%		857		525		63.2	%
Large Commercial & Industrial		6,031			3,960			52.3	%		340		402		(15.4	%)
Public Authorities & Electric Railroads		894			529			69.0	%		—		—
		10,457			7,095			47.4	%		2,267		1,377		64.6	%
Total PPO and Delivery Only		14,693			12,576			16.8	%		2,267		1,377		64.6	%
Total Retail Deliveries		42,633			41,282			3.3	%		18,426		17,730		3.9	%
Gas Deliveries (mmcf) (PECO only)											51,507		54,627		(5.7	%)
Revenue (in millions)
Full Service(a)
Residential	$	1,080		$	1,018			6.1	%	$	611	$	656		(6.9	%)
Small Commercial & Industrial		769			802			(4.1	%)		374		374		0.0	%
Large Commercial & Industrial		131			158			(17.1	%)		551		534		3.2	%
Public Authorities & Electric Railroads		148			165			(10.3	%)		40		42		(4.8	%)
Total Full Service		2,128			2,143			(0.7	%)		1,576		1,606		(1.9	%)
PPO (ComEd Only)(c)
Small Commercial & Industrial		108			109			(0.9	%)
Large Commercial & Industrial		92			144			(36.1	%)
Public Authorities & Electric Railroads		53			55			(3.6	%)
		253			308			(17.9	%)
Delivery Only(b)
Residential		(d	)		(d	)					80		31		158.1	%
Small Commercial & Industrial		67			73			(8.2	%)		43		27		59.3	%
Large Commercial & Industrial		84			91			(7.7	%)		9		11		(18.2	%)
Public Authorities & Electric Railroads		18			17			5.9	%		—		—
		169			181			(6.6	%)		132		69		91.3	%
Total PPO and Delivery Only		422			489			(13.7	%)		132		69		91.3	%
Total Retail Electric Revenue		2,550			2,632			(3.1	%)		1,708		1,675		2.0	%
Wholesale Electric Revenue		47			50			(6.0	%)		1		5		(80.0	%)
Other Revenue(e)		142			103			37.9	%		98		99		(1.0	%)
Gas Revenue (PECO only)		n/a			n/a						464		399		16.3	%
Total Revenues	$	2,739			2,785			(1.7	%)	$	2,271	$	2,178		4.3	%

Heating and Cooling Degree-Days	2004		2003		Normal		2004		2003		Normal
Heating Degree-Days		3,887		4,214		4,060		3,064		3,336		3,075
Cooling Degree-Days		186		111		217		416		250		316

(a)	Full service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy and the delivery cost of the transmission and distribution of the energy. PECO’s tariffed rates also include a competitive transition charge (CTC).
(b)	Delivery only service reflects customers electing to receive electric generation service from an alternative energy supplier. Revenue from customers choosing an alternative energy supplier includes a distribution charge and a CTC.
(c)	Revenue from customers choosing ComEd’s PPO includes an energy charge at market rates, transmission and distribution charges and a CTC.
(d)	All ComEd residential customers are eligible to choose their supplier of electricity; however, as of June 30, 2004, no alternative electric supplier has sought approval from the Illinois Commerce Commission and no electric utilities have chosen to enter the ComEd residential market for the supply of electricity.
(e)	Other revenue includes transmission revenue from PJM and prior to ComEd’s full integration into PJM on May 1, 2004, ComEd’s transmission charges received from alternative energy suppliers.
	n/a — not applicable

13

EXELON CORPORATION
Exelon Generation Power Marketing Statistics

	Three Months Ended June 30,					Six Months Ended June 30,
	2004			2003		2004			2003
GWh Sales
Energy Delivery and Exelon Energy (a)		26,133			26,869		53,597			57,463
Market and Retail Sales (a)		24,976	(c)		27,449		48,959	(c)		51,264
Total Sales (b)		51,109			54,318		102,556			108,727
Average Margin ($/MWh)
Average Realized Revenue
Energy Delivery and Exelon Energy (a)	$	32.37		$	32.64	$	31.83		$	32.06
Market and Retail Sales (a)(d)		34.35			32.68		35.58			34.22
Total Sales — without trading		33.34			32.66		33.62			33.07
Average Purchased Power and Fuel Cost — without trading	$	20.06		$	21.13	$	20.77		$	21.60
Average Margin — without trading	$	13.28		$	11.53	$	12.85		$	11.47
Around-the-clock Market Prices ($/MWh)
PJM	$	42.96		$	33.25	$	44.57		$	41.09
MAIN		31.76			24.06		33.08			30.48
2004 Forward market prices — July through December
Around-the-clock Market Prices ($/MWh)
PJM	$	44.50
MAIN		32.00
NEPOOL		58.00
Gas Prices ($/Mmbtu)
Henry Hub	$	6.30

(a)	Effective January 1, 2004, Exelon Energy Company became a part of Generation. Generation’s retail sales consist of Exelon Energy Company sales of 1,494 GWhs and 2,968 GWhs for the three and six months ended June 30, 2004, respectively.
(b)	Total sales do not include trading volume of 5,324 GWhs and 7,919 GWhs for the three months ended June 30, 2004 and 2003, respectively, and 10,437 GWhs and 17,446 GWhs for the six months ended June 30, 2004 and 2003, respectively.
(c)	Market and retail sales reflect the adoption of EITF 03-11, which required certain energy transactions to be netted. The adoption of this standard resulted in a reduction of 6,185 GWhs and 11,638 GWhs for the three and six months ended June 30, 2004, respectively.
(d)	Market and retail sales exclude revenues related to tolling agreements of $109 million and $38 million for the three and six months ended June 30, 2004 and 2003, respectively,

14