Commonwealth Edison 8-K Sanford C. Bernstein Strategic Decisions Conference

Sanford C. Bernstein Strategic Decisions Conference

2013

Christopher M. Crane

Chief Executive Officer, Exelon Corporation

May 30, 2013

Exhibit 99.1

Cautionary Statements Regarding Forward Looking Information

Sanford C. Bernstein Strategic Decisions Conference 2013

1

This

presentation

contains

certain

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

Exelon

Corporation,

Commonwealth

Edison

Company,

PECO

Energy

Company,

Baltimore

Gas

and

Electric

Company

and

Exelon

Generation

Company,

LLC

(Registrants)

include

those

factors

discussed

herein,

as

well

as

the

items

discussed

in

(1)

Exelon’s

2012

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

First

Quarter

2013

Quarterly

Report

on

Form

10-Q

in

(a)

Part

II,

Other

Information,

ITEM

1A.

Risk

Factors;

(b)

Part

1,

Financial

Information,

ITEM

2.

Management’s

Discussion

and

Analysis

of

Financial

Condition

and

Results

of

Operations

and

(c)

Part

I,

Financial

Information,

ITEM

1.

Financial

Statements:

Note

17;

and

(3)

other

factors

discussed

in

filings

with

the

SEC

by

the

Registrants.

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

Registrants

undertakes

any

obligation

to

publicly

release

any

revision

to

its

forward-looking

statements

to

reflect

events

or

circumstances

after

the

date

of

this

presentation.

2

Exelon Overview

Power Generation

Constellation

ComEd, PECO & BGE

Competitive Business

Regulated Business

Exelon is one of the largest competitive integrated energy companies in the U.S. 

•

One of the largest merchant

fleets in the nation (~35 GW of

capacity)

•

One of the largest and best

managed nuclear fleets in the

world (~19 GW)

•

Significant gas generation

capacity (~10 GW)

•

Renewable portfolio (~1.5 GW),

mostly contracted

•

Leading competitive energy

provider in the U.S.

•

Customer-facing business, with

~1.1 M competitive customers

and large wholesale business

•

Top-notch portfolio and risk

management capabilities

•

Extensive suite of products

including Load Response,

RECs, Distributed Solar

•

One of the largest electric and

gas distribution companies in

the nation (~6.6 M customers)

•

Diversified across three utility

jurisdictions –

Illinois, Maryland

and Pennsylvania

•

Significant investments in

Smart Grid technologies

•

Transmission infrastructure

improvement at utilities

Exelon Generation

Exelon Utilities

Sanford C. Bernstein Strategic Decisions Conference 2013

National Presence

Power Generation

Constellation

Exelon Utilities

Operations in seven RTOs, with

strong positions across PJM,

ERCOT & New England

Serves more than 2/3

rds

of the 

Fortune 100 companies in the

U.S.

Large urban presence with

operations in three states –

IL,

PA and MD

3

Sanford C. Bernstein Strategic Decisions Conference 2013

Substantial presence across the value chain

Unique combination of scale and scope in the industry

Exelon is one of the largest competitive integrated energy companies in the U.S. with a

balanced national presence.  This unique and metrics-focused platform enables us to invest

and drive growth in both our competitive and regulated businesses

Operational

Excellence

Regulatory

Advocacy

Disciplined Growth

& Investment

Financial

Discipline

We create value through our core competencies

Sanford C. Bernstein Strategic Decisions Conference 2013

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Scale:

One

of

the

largest

competitive

integrated

energy

companies

in

the

U.S.,

with

a

balance

sheet

that

affords

us

investment

opportunities

like

few

others

in

the

sector

Scope:

Coast-to-coast

presence

with

operations

in

47

states,

the

District

of

Columbia

and

Canada

gives

us

a

unique

platform

to

identify

targeted

investments

•

Invested $6 billion

(1)

over the last three years across the

energy value chain via organic growth and M&A

Provided returns in excess of cost of capital

Accretive from a free cash flow, earnings and credit

metrics perspective

•

On track to install 230 MW of solar by year end

•

Added 404 MW of wind in 2012, all of which were done

under long-term PPAs

•

Expect 5%-6% utility rate base growth

•

Decision to resize dividend based on:

Investment grade at all registrants

65% -

70% payout ratio at the Utilities

Sustainable under various stress scenarios

•

Delay or cancel uneconomic capital programs

•

On track to achieve $550 million of merger synergies by

2014

•

History of top quartile Nuclear operating performance:

Best ever first quarter generation output and

fourth best ever nuclear capacity factor of

96.4% in Q1

Trademarked management model recognized

worldwide

•

Establishment of Exelon Utilities to exploit

standardization, common platforms, and the sharing of

best practices across the three utilities.  Targeted goal

of 1

st

quartile operating performance by 2015. 

Exelon’s competencies drive value for the shareholder

Sanford C. Bernstein Strategic Decisions Conference 2013

5

Operational Excellence

Capitalize on reliability and efficiency in our operations as a

competitive advantage

Financial Discipline

Committed to strong balance sheet and sustainable

dividend

Disciplined Growth & Investment

Invest in projects that build on our existing platform and

add shareholder value

Current 5-year plan includes ~$16B of growth investments across the business;

~$13B

at

Utilities

and

~$3B

at

ExGen

(2)

•

Formula rate established at ComEd. Passage of Senate Bill

9 puts grid modernization plans on track in IL

•

Constructive outcome on latest BGE rate case

•

Promote competitive markets:

Advocate

for

phasing

out

of

subsidies

for

generation

Expand customer choice

Regulatory Advocacy

Champion competitive energy markets to empower our

customers and enhance value for our shareholders

1.

Excludes Constellation merger

2.

Exclusive of base capex and nuclear fuel

6

Incremental growth drivers include operating efficiency,

opportunistic investments and exposure to commodity upside

Sanford C. Bernstein Strategic Decisions Conference 2013

On a fully open basis, $1/mmbtu move in natural gas results in $1B of gross margin

2015 ATC Price Change

2015 Heat Rate Change

Intrinsic value creation

Incremental balance sheet capacity deployed towards growth investments plus additional

productivity improvements to provide earnings boost over current

plan

(1)

$41.47

$39.17

$33.89

$31.87

$40

$38

$36

$34

$32

$30

6/1/13

5/1/13

4/1/13

3/1/13

2/1/13

1/1/13

$42

NiHub

PJM-W

9.4

9.3

7.7

7.5

5/1/13

6/1/13

9.5

7.5

9.0

8.5

8.0

10.0

7.0

4/1/13

3/1/13

2/1/13

1/1/13

NiHub

PJM-W

•

Continue to improve balance sheet strength

Pursue project financing opportunities

•

Productivity improvements

•

Utilities

•

Exelon Generation

•

Scale and scope affords us access to and ability to

execute across a wide range of opportunities

•

Look for value creating opportunities that will complement

our existing portfolio

Contracted generation assets both conventional

and renewable

Merchant generation in attractive markets

Regulated

Retail expansion

Beyond the Meter (rooftop solar)

Opportunistic Investments

Drive costs down across the enterprise,

incremental to synergy targets

Improve ROE and drive efficiency model across

the three utilities

Nuclear uprates

Investments in upstream gas and renewables

1. Balance sheet capacity grows over time through the next five years given forward energy and capacity prices and assumption that any cash surplus is used to pay down debt

Our company and our value proposition

Sanford C. Bernstein Strategic Decisions Conference 2013

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•

We believe in clean energy and competitive markets

•

Our management model for fleet operations is world renowned

•

With the Constellation merger, we have an industry leading retail and

wholesale platform and portfolio management expertise

•

We have a proven track record of operational excellence and investments

in growth

•

We are focused on value return to shareholders

Sustainable dividend with opportunities for growth in the future

Pursuing opportunities for earnings growth via driving business efficiencies,

opportunistic growth and intrinsic investments

Unparalleled upside to commodity price recovery