EXHIBIT 99.3
Exelon Way — 2004 September YTD Savings
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| | | 2004 Pre-tax O&M |
| | | September YTD Savings
|
| | | 2003
| | 2004
|
| ($ in millions) | | | | | | | | |
GAAP Operating and Maintenance Expense (O&M) | | $ | 3,362 | | | $ | 2,921 | |
Operating Adjustments: | | | | | | | | |
| March 3 ComEd Global Settlement Agreement | | | (41 | ) | | | — | |
| 2004 Financial Impact of Boston Generating (BG) | | | — | | | | (57 | ) |
| Investments in Synthetic Fuel Producing Facilities | | | — | | | | (69 | ) |
| Settlement Associated with the Storage of Spent Nuclear Fuel | | | — | | | | 42 | |
| Exelon Way Severance and Severance-related Charges | | | (167 | ) | | | (53 | ) |
| Impairment of Exelon Enterprises’ InfraSource Investment | | | (4 | ) | | | — | |
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Operating O&M | | | 3,150 | | | | 2,784 | |
Exelon Way O&M Adjustments: | | | | | | | | |
| Remove Net Enterprises and BG (1) | | | (740 | ) | | | (183 | ) |
| Remove Nuclear Decommissioning Accretion Expense and Other SFAS 143 Adjustments (2) | | | (86 | ) | | | (73 | ) |
| Remove 2004 Incremental Impact of Sithe | | | — | | | | (41 | ) |
| Add AmerGen, net of Accretion and Severance (3) | | | 268 | | | | — | |
| Normalize Incremental Impact of Nuclear Outages | | | — | | | | (48 | ) |
| Add Payroll Taxes (4) | | | 78 | | | | 77 | |
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Exelon Way O&M | | $ | 2,670 | | | $ | 2,516 | |
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Year over Year Exelon Way O&M Savings | | | | | | $ | 154 | |
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Program-to-Date O&M Savings | | Pre-tax | | After-tax (5) |
| 2003 Ramp-up | | $ | 163 | | | $ | 101 | |
| 2004 September YTD | | | 154 | | | | 95 | |
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Total Exelon Way O&M Savings | | $ | 317 | | | $ | 196 | |
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(1) Excludes corporate costs that will 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%
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| | | 2004 CapEx |
| | | September YTD Savings
|
| | | 2003
| | 2004
|
GAAP Capital Expenditures (CapEx) (A) | | $ | 1,409 | | | $ | 1,295 | |
Adjustments: | | | | | | | | |
| Include AmerGen CapEx | | | 100 | | | | — | |
| Exclude BG CapEx (incl. 2004 credit) | | | (5 | ) | | | 7 | |
| Settlement Associated with the Storage of Spent Nuclear Fuel | | | — | | | | 18 | |
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Adjusted CapEx | | $ | 1,504 | | | $ | 1,320 | |
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Year over Year CapEx Savings | | | | | | $ | 184 | |
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Program-to-Date Exelon Way CapEx Savings: | | | | | | | | |
| 2003 Ramp-up | | | | | | $ | 67 | |
| 2004 September YTD | | | | | | | 184 | |
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Total Exelon Way CapEx Savings | | | | | | $ | 251 | |
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Total YTD Cash Savings thru September 2004 | | | | | | | | |
| After-tax O&M | | | | | | $ | 95 | |
| CapEx | | | | | | | 184 | |
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Total Exelon Way Cash Savings | | | | | | $ | 279 | |
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Total Program-to-Date Cash Savings | | | | | | | | |
| After-tax O&M | | | | | | $ | 196 | |
| CapEx | | | | | | | 251 | |
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Total Exelon Way Cash Savings | | | | | | $ | 447 | |
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(A) Net of proceeds from liquidated damages for 2003
2003 Ramp-Up Exelon Way Savings
| | | | | | | | | |
| | | 2003 Pre-tax O&M |
| | | Ramp-up Savings
|
| | | 2002
| | 2003
|
| ($ in millions) | | | | | | | | |
GAAP Operating and Maintenance (O&M) | | $ | 4,345 | | | $ | 4,508 | |
Operating Adjustments: | | | | | | | | |
| March 2003 ComEd Settlement Agreement | | | — | | | | (41 | ) |
| Severance | | | (10 | ) | | | (256 | ) |
| Enterprises goodwill impairment and impairments due to anticipated sales | | | — | | | | (53 | ) |
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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 | |
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Exelon Way O&M | | $ | 3,666 | | | $ | 3,621 | |
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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 | |
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Calculated 2003 Savings | | | | | | $ | 255 | |
| Exclude savings from prior cost management initiatives (e.g., CMI) | | | | | | | (92 | ) |
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Exelon Way O&M Savings — Pre-tax | | | | | | $ | 163 | |
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After-tax O&M Savings (7) | | | | | | $ | 101 | |
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(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 decommissioning 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%
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| | | 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 | |
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Adjusted CapEx | | $ | 2,305 | | | $ | 2,053 | |
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Year-over-year CapEx Savings | | | | | | $ | 252 | |
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Exelon Way CapEx Savings: | | | | | | | | |
| Difference between 2002 and 2003 Exelon Way CapEx | | | | | | $ | 252 | |
| 2003 inflationary impact (B) | | | | | | | 69 | |
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Calculated 2003 Savings | | | | | | $ | 321 | |
| Exclude savings from prior cost management initiatives (e.g., CMI) | | | | | | | (254 | ) |
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Exelon Way Savings - 2003 Ramp-up | | | | | | $ | 67 | |
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Total Ramp-up Cash Savings | | | | | | | | |
| After-tax O&M | | | | | | $ | 101 | |
| CapEx | | | | | | | 67 | |
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Total Exelon Way Cash Savings | | | | | | $ | 168 | |
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(A) Net of proceeds from liquidated damages for 2003
(B) Inflation assumed at 3%
