EXHIBIT 99.1
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| Contact: | | Karie Anderson | | FOR IMMEDIATE RELEASE |
| | Investor Relations | | |
| | 312-394-4255 | | |
| | |
| | Kathleen Cantillon | | |
| | Corporate Communications | | |
| | 312-394-7417 | | |
Exelon Announces Third Quarter Results;
Narrows Full Year 2009 Earnings Guidance
CHICAGO(October 23, 2009) – Exelon Corporation (NYSE: EXC) today announced that its third quarter 2009 consolidated earnings prepared in accordance with GAAP were $757 million, or $1.14 per diluted share, compared with earnings of $700 million, or $1.06 per diluted share, in the third quarter of 2008.
Exelon’s adjusted (non-GAAP) operating earnings for the third quarter of 2009 were $633 million, or $0.96 per diluted share, compared with $706 million, or $1.07 per diluted share, for the same period in 2008.
“We are achieving our financial commitments despite difficult weather, economic and market conditions,” said John W. Rowe, Exelon’s chairman and CEO. “We continue to deliver cost savings and solid operations as shown by a 94.7 percent nuclear capacity factor for the third quarter and reliable utility performance through the critical summer months. We remain committed to achieving full year 2009 operating earnings within the guidance range we issued last fall and are narrowing that range to $4.00 to $4.10 per share.”
The decrease in third quarter 2009 adjusted (non-GAAP) operating earnings to $0.96 per share from $1.07 per share in third quarter 2008 was primarily due to:
| | • | | Lower energy gross margins at Exelon Generation Company, LLC (Generation) largely due to unfavorable portfolio and market conditions; |
| | • | | Higher costs at Generation associated with a higher number of scheduled nuclear refueling outage days; |
| | • | | Reversal of benefits recorded in the first quarter of 2009 related to an Illinois investment tax credit ruling; |
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| | • | | Reduced load at Commonwealth Edison Company (ComEd) and PECO Energy Company (PECO), primarily driven by the impact of unfavorable weather conditions and current economic conditions; and |
| | • | | Increased depreciation and amortization expense primarily related to the higher scheduled competitive transition charge (CTC) amortization at PECO and increased depreciation across the operating companies due to ongoing capital expenditures. |
Lower third quarter 2009 earnings were partially offset by:
| | • | | Increased electric distribution revenue at ComEd resulting from the September 2008 distribution rate case order; and |
| | • | | Decreased operating and maintenance expense largely due to savings achieved through the ongoing cost management initiative and lower uncollectible accounts expense at PECO, partially offset by increased pension and other postretirement benefits (OPEB) expense. |
Adjusted (non-GAAP) operating earnings for the third quarter of 2009 do not include the following items (after-tax) that were included in reported GAAP earnings:
| | • | | Unrealized gains of $87 million, or $0.13 per diluted share, related to nuclear decommissioning trust (NDT) fund investments; |
| | • | | Mark-to-market gains of $77 million, or $0.12 per diluted share, primarily from Generation’s economic hedging activities; |
| | • | | Costs totaling $58 million, or $0.09 per diluted share, associated with early debt retirements; |
| | • | | Income of $32 million, or $0.05 per diluted share, resulting from the reduction in Generation’s decommissioning obligations; |
| | • | | Costs of $11 million, or $0.02 per diluted share, associated with the 2007 Illinois electric rate settlement agreement; |
| | • | | External costs of $6 million, or $0.01 per diluted share, related to Exelon’s terminated offer to acquire NRG Energy, Inc. (NRG); and |
| | • | | Income of $3 million for the true-up of severance costs as a result of headcount reductions associated with Exelon’s cost management program. |
Adjusted (non-GAAP) operating earnings for the third quarter of 2008 did not include the following items (after-tax) that were included in reported GAAP earnings:
| | • | | Mark-to-market gains of $65 million, or $0.10 per diluted share, primarily from Generation’s economic hedging activities; |
| | • | | Costs of $26 million, or $0.04 per diluted share, associated with the 2007 Illinois electric rate settlement agreement; |
| | • | | Unrealized losses of $60 million, or $0.09 per diluted share, related to NDT fund investments; and |
| | • | | Income of $15 million, or $0.02 per diluted share, resulting from the reduction in Generation’s decommissioning obligations. |
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2009 Earnings Outlook
Exelon narrowed its guidance range for 2009 adjusted (non-GAAP) operating earnings to $4.00 to $4.10 per share from $4.00 to $4.30 per share. Operating earnings guidance is based on the assumption of normal weather for the remainder of the year.
The outlook for 2009 adjusted (non-GAAP) operating earnings for Exelon and its subsidiaries excludes the following items:
| | • | | Mark-to-market adjustments from economic hedging activities |
| | • | | Unrealized gains and losses from NDT fund investments primarily related to the Clinton, Oyster Creek and Three Mile Island nuclear plants (the former AmerGen units) |
| | • | | Significant impairments of assets, including goodwill |
| | • | | Changes in decommissioning obligation estimates |
| | • | | Costs associated with the 2007 Illinois electric rate settlement agreement |
| | • | | Costs associated with ComEd’s 2007 settlement with the City of Chicago |
| | • | | Costs incurred for employee severance related to the cost reduction program announced in June 2009 |
| | • | | Costs associated with early debt retirements |
| | • | | External costs associated with the terminated offer to acquire NRG |
| | • | | Non-cash remeasurement of income tax uncertainties and reassessment of state deferred income taxes |
| | • | | Significant future changes to GAAP |
Third Quarter and Recent Highlights
| | • | | Nuclear Operations:Generation’s nuclear fleet, including its owned output from the Salem Generating Station, produced 35,684 gigawatt-hours (GWh) in the third quarter of 2009, compared with 36,451 GWh in the third quarter of 2008. The Exelon-operated nuclear plants achieved a 94.7 percent capacity factor for the third quarter of 2009 compared with 97.2 percent for the third quarter of 2008. The Exelon-operated nuclear plants began two scheduled refueling outages in the third quarter of 2009, compared with beginning one scheduled refueling outage in the third quarter of 2008. The number of refueling outage days totaled 36 and 17, respectively, in the third quarter of 2009 and 2008. Also contributing to lower total nuclear output was a higher number of non-refueling outage days at the Exelon-operated plants, which totaled 21 days in the third quarter of 2009, compared to 8 days in the third quarter of 2008. |
| | • | | Fossil and Hydro Operations: Generation’s fossil fleet commercial availability was 87.0 percent in the third quarter of 2009, compared with 95.1 percent in the third quarter of 2008, primarily reflecting the impact of extended maintenance outages in 2009. The equivalent availability factor for the hydroelectric facilities was 97.1 percent in the third quarter of 2009, compared with 90.9 percent in the third quarter of 2008, primarily due to an extended planned outage in 2008 to overhaul one of the Conowingo units. |
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| | • | | Three Mile Island (TMI) Unit 1 Nuclear Plant License Extension:On October 22, 2009, the Nuclear Regulatory Commission approved a 20-year operating license extension until April 19, 2034 for the TMI Unit 1 Generating Station. TMI Unit 1 began operating in 1974. |
| | • | | Hedging Update: Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. Expected generation represents the amount of energy estimated to be generated or purchased through owned or contracted-for capacity. The proportion of expected generation hedged as of September 30, 2009 is 98-100 percent for 2009, 88-91 percent for 2010 and 63-66 percent for 2011. The primary objective of Exelon’s hedging program is to manage market risks and protect the value of its generation and its investment grade balance sheet while preserving its ability to participate in improving long-term market fundamentals. |
| | • | | ComEd Smart Meter/Smart Grid Plan: On June 1, 2009, ComEd filed a petition with the Illinois Commerce Commission (ICC) recommending a one-year Advanced Metering Infrastructure (AMI) pilot program. Current plans call for the deployment of approximately 131,000 smart meters in 10 suburban communities and in the City of Chicago, and will include tests of customers’ responses to alternative pricing plans, in-home displays and Home Area Network control systems. ComEd requested recovery of and a return on its investment through a rider beginning in 2010. On October 14, 2009, the ICC approved ComEd’s AMI pilot program and rider with minor modifications. |
On August 4, 2009, ComEd announced it filed an application with the U.S. Department of Energy (DOE) for $175 million in matching funds made available under the American Recovery and Reinvestment Act of 2009. The matching funds would enable an expansion of the company’s AMI pilot, from approximately 131,000 customers to 310,000 customers, and additional investments in Smart Grid technologies. The DOE is expected to select projects for funding later this year.
On September 2, 2009, ComEd submitted a petition to the ICC requesting recovery of the remaining costs of the stimulus projects after receiving the matching funds from the DOE.
| | • | | Illinois Uncollectibles Recovery Rider:On August 9, 2009, Illinois Governor Pat Quinn signed legislation that includes assistance to low-income customers to manage their energy bills. In addition, the legislation includes a provision for utilities to recover their actual uncollectible accounts expenses through a rider adjustment mechanism. The rider would minimize regulatory lag during times when uncollectible accounts expenses are increasing beyond what is recovered through base rates and provide credits when lower than what is covered in base rates. On September 8, 2009, ComEd filed a proposed tariff with the ICC to implement this rider. An ICC decision is expected in the first quarter of 2010. |
| | • | | PECO Smart Meter/Smart Grid Plan: PECO is planning to spend up to approximately $650 million on its smart meter and smart grid infrastructure. On August 14, 2009, PECO filed its $550 million Smart Meter Procurement and Installation Plan with the Pennsylvania Public Utility Commission (PAPUC) in accordance with the requirements of Pennsylvania Act 129. PECO is requesting PAPUC approval to install more than 1.6 million smart meters and deploy advanced |
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communication networks over a 15-year period. The first phase of the plan includes the procurement and deployment of automated meter infrastructure and initial deployment of 100,000 smart meters over the next three years.
On August 6, 2009, PECO filed with the DOE its application seeking $200 million in American Recovery and Reinvestment Act grant funds under the Smart Grid Investment Grant Program. PECO’s “Smart Future Greater Philadelphia” project will increase the number of smart meters initially installed to 600,000, accelerate universal meter deployment by five years and increase Smart Grid investments up to approximately $100 million over the next three years.
| | • | | PECO Energy Procurement:On September 23, 2009, the PAPUC approved the results of PECO’s second competitive procurement request for proposal (RFP) for residential customers and its initial generation supply procurement for the small and medium commercial classes. The September procurements for the residential class included full requirements fixed price contracts for 17-month and 29-month periods beginning January 1, 2011, and forward purchase block contracts to procure electric generation for the 12-month period beginning January 1, 2011. The procurements for the small and medium commercial classes included full requirements fixed-price contracts for the 17-month period beginning January 1, 2011. |
The June and September procurements combined accounted for approximately 49 percent of the total full requirements electricity needed for PECO’s residential customers beginning in 2011 at an average retail price of 9.41 cents per kilowatt-hour (kWh), about a 4 percent increase compared to current prices. The September procurement accounted for approximately 24 percent and 16 percent of the full requirement fixed-price product for PECO’s small and medium commercial customers, respectively, at an average blended retail price of 9.79 cents per kWh. PECO’s next supply purchases for the residential and the small and medium commercial classes will take place in May 2010.
| | • | | Pension Contribution: On September 9, 2009, Exelon announced that it was making a $350 million discretionary pension contribution allocated to the 2008 plan year, taking advantage of Federal pension funding relief provided by the Worker, Retiree and Employer Recovery Act of 2008 that allows use of average expected returns to establish asset values for determining funding requirements. The U.S. Treasury Department also has provided some funding relief through options in selecting the interest rates used for funding. The discretionary pension contribution – funded with cash from operations in excess of Exelon’s original 2009 plan – and Exelon’s pension funding elections will lower near-term mandatory pension contributions, which should increase future financial flexibility. |
| | • | | Financing Activities:On September 23, 2009, Generation issued $600 million of Senior Notes maturing on October 1, 2019, with a coupon of 5.20 percent and $900 million of Senior Notes maturing on October 1, 2039, with a coupon of 6.25 percent. Generation used the net proceeds from the sale (1) to pay approximately $622 million of principal, premium and accrued interest in connection with the purchase of approximately $555 million in aggregate principal amount of its 6.95 percent Notes due June 15, 2011 pursuant to Generation’s cash tender offer announced on September 16, 2009, (2) for a $432 million distribution to Exelon Corporation to fund its purchase of approximately $387 million in aggregate principal amount of its 6.75 percent Senior |
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Notes due May 1, 2011 pursuant to its cash tender offer announced on September 16, 2009, and (3) to fund Generation’s repurchase of $307 million of pollution-control bonds in early September. On September 23, 2009, Exelon Corporation and Generation called the remaining bonds that were not tendered pursuant to their tender offers, according to the terms of the respective bond issues. These bonds are obligated to be tendered today under the terms of the bonds and the call notices. Through these debt repurchase and refinancing activities, Exelon was able to capitalize on favorable market conditions, resulting in lower interest expense and an extended debt maturity profile.
| | • | | Credit Rating Actions:Following the termination of Exelon’s proposed offer for NRG on July 21, 2009, the rating agencies took the following actions. |
On July 21, 2009, Fitch Ratings, Ltd. removed Exelon and Generation from Ratings Watch Negative. The ratings for Exelon and Generation were affirmed and each entity was assigned a Stable Ratings Outlook.
On July 22, 2009, Standard & Poor’s Ratings Services (S&P) affirmed its corporate credit rating on Exelon, Generation and PECO of “BBB” and removed their ratings from CreditWatch Negative. In addition, S&P raised the corporate credit rating of ComEd to “BBB” from “BBB-”, raised its debt and preferred stock ratings and removed its ratings from CreditWatch Negative. An S&P research report cited “improvement in both ComEd’s business risk profile and its financial measures”. The outlook for ratings of all the Exelon entities is stable.
On July 23, 2009, Moody’s Investors Service (Moody’s) confirmed the ratings of Exelon and Generation and assigned a stable outlook. Moody’s also confirmed the long-term debt rating of PECO but downgraded its short-term rating to “P-2” from “P-1” and changed the outlook on PECO’s long-term debt to negative.
On August 3, 2009, Moody’s changed its credit rating methodology, widening the notching between most senior secured debt ratings and senior unsecured debt ratings of investment grade regulated utilities. As a result, Moody’s upgraded ComEd’s senior secured debt rating to “Baa1” from “Baa2”.
OPERATING COMPANY RESULTS
Generationconsists of owned and contracted electric generating facilities, wholesale energy marketing operations and competitive retail sales operations.
Third quarter 2009 net income was $657 million compared with $635 million in the third quarter of 2008. Third quarter 2009 net income included (all after tax) costs of $9 million associated with the 2007 Illinois electric rate settlement, mark-to-market gains of $77 million from economic hedging activities before the elimination of intercompany transactions, unrealized gains of $87 million related to NDT fund investments, income of $32 million resulting from the reduction in decommissioning obligations primarily related to the former AmerGen nuclear plants, income of $2 million from the true-up of 2009 costs incurred for severance, and costs of $36 million associated with the early retirement of long-term debt. Third quarter 2008 net income included (all after tax) costs of $25 million associated with the
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2007 Illinois electric rate settlement, mark-to-market gains of $96 million from economic hedging activities before the elimination of intercompany transactions, unrealized losses of $60 million related to NDT fund investments primarily related to the former AmerGen nuclear plants, and income of $15 million resulting from the reduction in decommissioning obligations primarily related to the former AmerGen nuclear plants. Excluding the impact of these items, Generation’s net income in the third quarter of 2009 decreased $105 million compared with the same quarter last year primarily due to:
| | • | | Lower energy gross margins, largely due to unfavorable portfolio and market conditions, decreased nuclear output as a result of a higher number of refueling and non-refueling outage days and higher nuclear fuel costs; and |
| | • | | Higher costs related to a higher number of scheduled nuclear refueling outage days and increased pension and OPEB expense. |
The decrease in net income was partially offset by:
| | • | | Establishment of a reserve in 2008 related to Generation’s accounts receivable from Lehman Brothers Holdings Inc. due to its bankruptcy filing; and |
| | • | | Savings achieved through the cost management initiative. |
Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $36.32 per MWh in the third quarter of 2009 compared with $36.54 per MWh in the third quarter of 2008.
ComEdconsists of the electricity transmission and distribution operations in northern Illinois.
ComEd recorded net income of $46 million in the third quarter of 2009, compared with net income of $33 million in the third quarter of 2008. Third quarter net income in 2009 and 2008 included costs of $2 million and $1 million after tax, respectively, associated with the Illinois electric rate settlement. Excluding the impact of these items, ComEd’s net income in the third quarter of 2009 increased $14 million from the same quarter last year primarily due to:
| | • | | Increased distribution revenue due to the September 2008 distribution rate case order; |
| | • | | Lower operating and maintenance expense, which primarily reflected savings achieved through the cost management initiative and the impact of decreased storm costs, partially offset by increased pension and OPEB expense; and |
| | • | | Discrete disallowances recorded in 2008, net of allowed regulatory assets, mandated by the September 2008 rate case order. |
The increase in net income was partially offset by:
| | • | | Reversal of an Illinois investment tax credit ruling – this benefit previously was recorded in the first quarter of 2009; and |
| | • | | Reduced load, primarily driven by the impact of unfavorable weather conditions and current economic conditions. |
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In the third quarter of 2009, cooling degree-days in the ComEd service territory were down 34.2 percent relative to the same period in 2008, and were 34.0 percent below normal. This reflected the Chicago area’s coolest summer weather in 17 years. ComEd’s total retail kilowatt-hour (kWh) deliveries decreased by 9.8 percent quarter over quarter, with declines in deliveries to all major customer classes. In addition, the number of residential customers being served in the ComEd region decreased 0.5 percent from the third quarter of 2008.
Weather-normalized retail kWh deliveries decreased by 3.8 percent from the third quarter of 2008. For ComEd, weather had an unfavorable after-tax impact of $18 million on third quarter 2009 earnings relative to 2008 and an unfavorable after-tax impact of $24 million relative to normal weather that was incorporated in earnings guidance.
PECO consists of the electricity transmission and distribution operations and the retail natural gas distribution business in southeastern Pennsylvania.
PECO’s net income in the third quarter of 2009 was $92 million, up from $90 million in the third quarter of 2008. This increase was primarily due to:
| | • | | Lower uncollectible accounts expense. |
The increase in net income was partially offset by:
| | • | | Reduced load, primarily driven by the impact of current economic conditions and unfavorable weather conditions; and |
| | • | | Higher CTC amortization, which was in accordance with PECO’s 1998 restructuring settlement with the PAPUC. As expected, the increase in amortization expense exceeded the increase in CTC revenues. |
In the third quarter of 2009, cooling degree-days in the PECO service territory were down 6.2 percent from 2008, and were 5.9 percent below normal. Total retail kWh deliveries were down 5.6 percent from last year, reflecting a decline in deliveries across all customer classes, primarily driven by the impact of current economic conditions and unfavorable weather conditions. The number of residential electric customers being served in the PECO region decreased 0.4 percent from the third quarter of 2008.
Weather-normalized retail kWh deliveries decreased by 3.9 percent from the third quarter of 2008, primarily reflecting decreased residential and large commercial and industrial deliveries. For PECO, weather had an unfavorable after-tax impact of $9 million on third quarter 2009 earnings relative to 2008 and an unfavorable after-tax impact of $19 million relative to normal weather that was incorporated in earnings guidance.
Adjusted (non-GAAP) Operating Earnings
Adjusted (non-GAAP) operating earnings, which generally exclude significant one-time charges or credits that are not normally associated with ongoing operations, mark-to-market adjustments from economic hedging activities and unrealized gains and losses from NDT fund investments, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-
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GAAP) operating earnings measures internally to evaluate the company’s performance and manage its operations. Reconciliation of GAAP to adjusted (non-GAAP) operating earnings for historical periods is attached. Additional earnings release attachments, which include the reconciliation on page 7, are posted on Exelon’s Web site:www.exeloncorp.com and have been filed with the Securities and Exchange Commission on Form 8-K on October 23, 2009.
Conference call information: Exelon has scheduled a conference call for 10:30 AM ET (9:30 AM CT) on October 23, 2009. The call-in number in the U.S. and Canada is 800-690-3108, and the international call-in number is 973-935-8753. If requested, the conference ID number is 32242270. 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 November 6. The U.S. and Canada call-in number for replays is 800-642-1687, and the international call-in number is 706-645-9291. The conference ID number is 32242270.
Forward Looking Statements
This press release 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 2008 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 18; (2) Exelon’s Third Quarter 2009 Quarterly Report on Form 10-Q (to be filed on October 23, 2009) in (a) Part II, Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 14; and (3) 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 (Companies). 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 Companies 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 5.4 million customers and $19 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 5.4 million customers in Illinois and Pennsylvania and natural gas to approximately 485,000 customers in southeastern Pennsylvania. 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
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Consolidating Statements of Operations - Three Months Ended September 30, 2009 and 2008 | | 1 |
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Consolidating Statements of Operations - Nine Months Ended September 30, 2009 and 2008 | | 2 |
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Business Segment Comparative Statements of Operations - Generation and ComEd - Three and Nine Months Ended September 30, 2009 and 2008 | | 3 |
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Business Segment Comparative Statements of Operations - PECO and Other - Three and Nine Months Ended September 30, 2009 and 2008 | | 4 |
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Consolidated Balance Sheets - September 30, 2009 and December 31, 2008 | | 5 |
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Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2009 and 2008 | | 6 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Three Months Ended September 30, 2009 and 2008 | | 7 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Nine Months Ended September 30, 2009 and 2008 | | 8 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended September 30, 2009 and 2008 | | 9 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Nine Months Ended September 30, 2009 and 2008 | | 10 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Generation - Three and Nine Months Ended September 30, 2009 and 2008 | | 11 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - ComEd - Three and Nine Months Ended September 30, 2009 and 2008 | �� | 12 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - PECO - Three and Nine Months Ended September 30, 2009 and 2008 | | 13 |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Other - Three and Nine Months Ended September 30, 2009 and 2008 | | 14 |
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Exelon Generation Statistics - Three Months Ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008 and September 30, 2008 | | 15 |
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Exelon Generation Statistics - Nine Months Ended September 30, 2009 and 2008 | | 16 |
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ComEd Statistics - Three and Nine Months Ended September 30, 2009 and 2008 | | 17 |
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PECO Statistics - Three and Nine Months Ended September 30, 2009 and 2008 | | 18 |
EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
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| | | Three Months Ended September 30, 2009 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon
Consolidated | |
Operating revenues | | $ | 2,445 | | | $ | 1,475 | | | $ | 1,327 | | | $ | (908 | ) | | $ | 4,339 | |
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Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 303 | | | | 776 | | | | 625 | | | | (908 | ) | | | 796 | |
Fuel | | | 379 | | | | — | | | | 26 | | | | (1 | ) | | | 404 | |
Operating and maintenance | | | 592 | | | | 273 | | | | 154 | | | | 1 | | | | 1,020 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 19 | | | | — | | | | — | | | | 19 | |
Depreciation and amortization | | | 74 | | | | 125 | | | | 272 | | | | 14 | | | | 485 | |
Taxes other than income | | | 51 | | | | 79 | | | | 78 | | | | 4 | | | | 212 | |
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Total operating expenses | | | 1,399 | | | | 1,272 | | | | 1,155 | | | | (890 | ) | | | 2,936 | |
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Operating income (loss) | | | 1,046 | | | | 203 | | | | 172 | | | | (18 | ) | | | 1,403 | |
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Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (24 | ) | | | (82 | ) | | | (46 | ) | | | (36 | ) | | | (188 | ) |
Equity in losses of unconsolidated affiliates and investments | | | (1 | ) | | | — | | | | (6 | ) | | | (1 | ) | | | (8 | ) |
Other, net | | | 192 | | | | (19 | ) | | | 2 | | | | (27 | ) | | | 148 | |
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Total other income and deductions | | | 167 | | | | (101 | ) | | | (50 | ) | | | (64 | ) | | | (48 | ) |
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Income (loss) before income taxes | | | 1,213 | | | | 102 | | | | 122 | | | | (82 | ) | | | 1,355 | |
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Income taxes | | | 556 | | | | 56 | | | | 30 | | | | (44 | ) | | | 598 | |
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Net income (loss) | | $ | 657 | | | $ | 46 | | | $ | 92 | | | $ | (38 | ) | | $ | 757 | |
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| | | Three Months Ended September 30, 2008 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon
Consolidated | |
Operating revenues | | $ | 3,073 | | | $ | 1,729 | | | $ | 1,441 | | | $ | (1,015 | ) | | $ | 5,228 | |
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Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 528 | | | | 1,068 | | | | 693 | | | | (962 | ) | | | 1,327 | |
Fuel | | | 669 | | | | — | | | | 50 | | | | (1 | ) | | | 718 | |
Operating and maintenance | | | 625 | | | | 306 | | | | 192 | | | | (13 | ) | | | 1,110 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 11 | | | | — | | | | — | | | | 11 | |
Depreciation and amortization | | | 58 | | | | 119 | | | | 243 | | | | 11 | | | | 431 | |
Taxes other than income | | | 53 | | | | 87 | | | | 73 | | | | 5 | | | | 218 | |
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Total operating expenses | | | 1,933 | | | | 1,591 | | | | 1,251 | | | | (960 | ) | | | 3,815 | |
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Operating income (loss) | | | 1,140 | | | | 138 | | | | 190 | | | | (55 | ) | | | 1,413 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (34 | ) | | | (87 | ) | | | (55 | ) | | | (27 | ) | | | (203 | ) |
Equity in losses of unconsolidated affiliates and investments | | | — | | | | (2 | ) | | | (4 | ) | | | — | | | | (6 | ) |
Other, net | | | (164 | ) | | | 3 | | | | 2 | | | | 1 | | | | (158 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total other income and deductions | | | (198 | ) | | | (86 | ) | | | (57 | ) | | | (26 | ) | | | (367 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) before income taxes | | | 942 | | | | 52 | | | | 133 | | | | (81 | ) | | | 1,046 | |
| | | | | |
Income taxes | | | 307 | | | | 19 | | | | 43 | | | | (23 | ) | | | 346 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income (loss) | | $ | 635 | | | $ | 33 | | | $ | 90 | | | $ | (58 | ) | | $ | 700 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period. |
1
EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, 2009 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon
Consolidated | |
Operating revenues | | $ | 7,424 | | | $ | 4,417 | | | $ | 4,045 | | | $ | (2,684 | ) | | $ | 13,202 | |
| | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 962 | | | | 2,373 | | | | 1,742 | | | | (2,677 | ) | | | 2,400 | |
Fuel | | | 1,295 | | | | — | | | | 346 | | | | (1 | ) | | | 1,640 | |
Operating and maintenance | | | 2,210 | | | | 796 | | | | 481 | | | | 5 | | | | 3,492 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 44 | | | | — | | | | — | | | | 44 | |
Depreciation and amortization | | | 223 | | | | 371 | | | | 726 | | | | 40 | | | | 1,360 | |
Taxes other than income | | | 150 | | | | 215 | | | | 213 | | | | 14 | | | | 592 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total operating expenses | | | 4,840 | | | | 3,799 | | | | 3,508 | | | | (2,619 | ) | | | 9,528 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Operating income (loss) | | | 2,584 | | | | 618 | | | | 537 | | | | (65 | ) | | | 3,674 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (77 | ) | | | (241 | ) | | | (145 | ) | | | (92 | ) | | | (555 | ) |
Equity in losses of unconsolidated affiliates and investments | | | (2 | ) | | | — | | | | (19 | ) | | | — | | | | (21 | ) |
Other, net | | | 325 | | | | 67 | | | | 8 | | | | (33 | ) | | | 367 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total other income and deductions | | | 246 | | | | (174 | ) | | | (156 | ) | | | (125 | ) | | | (209 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) before income taxes | | | 2,830 | | | | 444 | | | | 381 | | | | (190 | ) | | | 3,465 | |
| | | | | |
Income taxes | | | 1,133 | | | | 169 | | | | 106 | | | | (69 | ) | | | 1,339 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income (loss) | | $ | 1,697 | | | $ | 275 | | | $ | 275 | | | $ | (121 | ) | | $ | 2,126 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Nine Months Ended September 30, 2008 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon
Consolidated | |
Operating revenues | | $ | 8,311 | | | $ | 4,594 | | | $ | 4,195 | | | $ | (2,734 | ) | | $ | 14,366 | |
| | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,704 | | | | 2,729 | | | | 1,859 | | | | (2,727 | ) | | | 3,565 | |
Fuel | | | 1,211 | | | | — | | | | 397 | | | | — | | | | 1,608 | |
Operating and maintenance | | | 2,023 | | | | 828 | | | | 557 | | | | (25 | ) | | | 3,383 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 17 | | | | — | | | | — | | | | 17 | |
Depreciation and amortization | | | 202 | | | | 343 | | | | 653 | | | | 32 | | | | 1,230 | |
Taxes other than income | | | 153 | | | | 227 | | | | 203 | | | | 14 | | | | 597 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total operating expenses | | | 5,293 | | | | 4,144 | | | | 3,669 | | | | (2,706 | ) | | | 10,400 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Operating income (loss) | | | 3,018 | | | | 450 | | | | 526 | | | | (28 | ) | | | 3,966 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (108 | ) | | | (279 | ) | | | (171 | ) | | | (80 | ) | | | (638 | ) |
Equity in losses of unconsolidated affiliates and investments | | | (1 | ) | | | (7 | ) | | | (11 | ) | | | — | | | | (19 | ) |
Other, net | | | (292 | ) | | | 12 | | | | 13 | | | | 11 | | | | (256 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total other income and deductions | | | (401 | ) | | | (274 | ) | | | (169 | ) | | | (69 | ) | | | (913 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) from continuing operations before income taxes | | | 2,617 | | | | 176 | | | | 357 | | | | (97 | ) | | | 3,053 | |
| | | | | |
Income taxes | | | 891 | | | | 66 | | | | 111 | | | | (46 | ) | | | 1,022 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) from continuing operations | | | 1,726 | | | | 110 | | | | 246 | | | | (51 | ) | | | 2,031 | |
| | | | | |
Loss from discontinued operations | | | (1 | ) | | | — | | | | — | | | | — | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income (loss) | | $ | 1,725 | | | $ | 110 | | | $ | 246 | | | $ | (51 | ) | | $ | 2,030 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period. |
2
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Generation | |
| | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2009 | | | 2008 | | | Variance | | | 2009 | | | 2008 | | | Variance | |
Operating revenues | | $ | 2,445 | | | $ | 3,073 | | | $ | (628 | ) | | $ | 7,424 | | | $ | 8,311 | | | $ | (887 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 303 | | | | 528 | | | | (225 | ) | | | 962 | | | | 1,704 | | | | (742 | ) |
Fuel | | | 379 | | | | 669 | | | | (290 | ) | | | 1,295 | | | | 1,211 | | | | 84 | |
Operating and maintenance | | | 592 | | | | 625 | | | | (33 | ) | | | 2,210 | | | | 2,023 | | | | 187 | |
Depreciation and amortization | | | 74 | | | | 58 | | | | 16 | | | | 223 | | | | 202 | | | | 21 | |
Taxes other than income | | | 51 | | | | 53 | | | | (2 | ) | | | 150 | | | | 153 | | | | (3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,399 | | | | 1,933 | | | | (534 | ) | | | 4,840 | | | | 5,293 | | | | (453 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 1,046 | | | | 1,140 | | | | (94 | ) | | | 2,584 | | | | 3,018 | | | | (434 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (24 | ) | | | (34 | ) | | | 10 | | | | (77 | ) | | | (108 | ) | | | 31 | |
Equity in losses of investments | | | (1 | ) | | | — | | | | (1 | ) | | | (2 | ) | | | (1 | ) | | | (1 | ) |
Other, net | | | 192 | | | | (164 | ) | | | 356 | | | | 325 | | | | (292 | ) | | | 617 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | 167 | | | | (198 | ) | | | 365 | | | | 246 | | | | (401 | ) | | | 647 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income from continuing operations before income taxes | | | 1,213 | | | | 942 | | | | 271 | | | | 2,830 | | | | 2,617 | | | | 213 | |
| | | | | | |
Income taxes | | | 556 | | | | 307 | | | | 249 | | | | 1,133 | | | | 891 | | | | 242 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income from continuing operations | | | 657 | | | | 635 | | | | 22 | | | | 1,697 | | | | 1,726 | | | | (29 | ) |
| | | | | | |
Loss from discontinued operations | | | — | | | | — | | | | — | | | | — | | | | (1 | ) | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 657 | | | $ | 635 | | | $ | 22 | | | $ | 1,697 | | | $ | 1,725 | | | $ | (28 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | ComEd | |
| | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2009 | | | 2008 | | | Variance | | | 2009 | | | 2008 | | | Variance | |
Operating revenues | | $ | 1,475 | | | $ | 1,729 | | | $ | (254 | ) | | $ | 4,417 | | | $ | 4,594 | | | $ | (177 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 776 | | | | 1,068 | | | | (292 | ) | | | 2,373 | | | | 2,729 | | | | (356 | ) |
Operating and maintenance | | | 273 | | | | 306 | | | | (33 | ) | | | 796 | | | | 828 | | | | (32 | ) |
Operating and maintenance for regulatory required programs (a) | | | 19 | | | | 11 | | | | 8 | | | | 44 | | | | 17 | | | | 27 | |
Depreciation and amortization | | | 125 | | | | 119 | | | | 6 | | | | 371 | | | | 343 | | | | 28 | |
Taxes other than income | | | 79 | | | | 87 | | | | (8 | ) | | | 215 | | | | 227 | | | | (12 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,272 | | | | 1,591 | | | | (319 | ) | | | 3,799 | | | | 4,144 | | | | (345 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 203 | | | | 138 | | | | 65 | | | | 618 | | | | 450 | | | | 168 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (82 | ) | | | (87 | ) | | | 5 | | | | (241 | ) | | | (279 | ) | | | 38 | |
Equity in losses of unconsolidated affiliates | | | — | | | | (2 | ) | | | 2 | | | | — | | | | (7 | ) | | | 7 | |
Other, net | | | (19 | ) | | | 3 | | | | (22 | ) | | | 67 | | | | 12 | | | | 55 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (101 | ) | | | (86 | ) | | | (15 | ) | | | (174 | ) | | | (274 | ) | | | 100 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 102 | | | | 52 | | | | 50 | | | | 444 | | | | 176 | | | | 268 | |
| | | | | | |
Income taxes | | | 56 | | | | 19 | | | | 37 | | | | 169 | | | | 66 | | | | 103 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 46 | | | $ | 33 | | | $ | 13 | | | $ | 275 | | | $ | 110 | | | $ | 165 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period. |
3
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | PECO | |
| | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2009 | | | 2008 | | | Variance | | | 2009 | | | 2008 | | | Variance | |
Operating revenues | | | $1,327 | | | $ | 1,441 | | | $ | (114 | ) | | $ | 4,045 | | | $ | 4,195 | | | $ | (150 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 625 | | | | 693 | | | | (68 | ) | | | 1,742 | | | | 1,859 | | | | (117 | ) |
Fuel | | | 26 | | | | 50 | | | | (24 | ) | | | 346 | | | | 397 | | | | (51 | ) |
Operating and maintenance | | | 154 | | | | 192 | | | | (38 | ) | | | 481 | | | | 557 | | | | (76 | ) |
Depreciation and amortization | | | 272 | | | | 243 | | | | 29 | | | | 726 | | | | 653 | | | | 73 | |
Taxes other than income | | | 78 | | | | 73 | | | | 5 | | | | 213 | | | | 203 | | | | 10 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,155 | | | | 1,251 | | | | (96 | ) | | | 3,508 | | | | 3,669 | | | | (161 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 172 | | | | 190 | | | | (18 | ) | | | 537 | | | | 526 | | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (46 | ) | | | (55 | ) | | | 9 | | | | (145 | ) | | | (171 | ) | | | 26 | |
Equity in losses of unconsolidated affiliates | | | (6 | ) | | | (4 | ) | | | (2 | ) | | | (19 | ) | | | (11 | ) | | | (8 | ) |
Other, net | | | 2 | | | | 2 | | | | — | | | | 8 | | | | 13 | | | | (5 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (50 | ) | | | (57 | ) | | | 7 | | | | (156 | ) | | | (169 | ) | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 122 | | | | 133 | | | | (11 | ) | | | 381 | | | | 357 | | | | 24 | |
| | | | | | |
Income taxes | | | 30 | | | | 43 | | | | (13 | ) | | | 106 | | | | 111 | | | | (5 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 92 | | | $ | 90 | | | $ | 2 | | | $ | 275 | | | $ | 246 | | | $ | 29 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Other (a) | |
| | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| | | 2009 | | | 2008 | | | Variance | | | 2009 | | | 2008 | | | Variance | |
Operating revenues | | $ | (908 | ) | | $ | (1,015 | ) | | $ | 107 | | | $ | (2,684 | ) | | $ | (2,734 | ) | | $ | 50 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | (908 | ) | | | (962 | ) | | | 54 | | | | (2,677 | ) | | | (2,727 | ) | | | 50 | |
Fuel | | | (1 | ) | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
Operating and maintenance | | | 1 | | | | (13 | ) | | | 14 | | | | 5 | | | | (25 | ) | | | 30 | |
Depreciation and amortization | | | 14 | | | | 11 | | | | 3 | | | | 40 | | | | 32 | | | | 8 | |
Taxes other than income | | | 4 | | | | 5 | | | | (1 | ) | | | 14 | | | | 14 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | (890 | ) | | | (960 | ) | | | 70 | | | | (2,619 | ) | | | (2,706 | ) | | | 87 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating loss | | | (18 | ) | | | (55 | ) | | | 37 | | | | (65 | ) | | | (28 | ) | | | (37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (36 | ) | | | (27 | ) | | | (9 | ) | | | (92 | ) | | | (80 | ) | | | (12 | ) |
Equity in losses of unconsolidated affiliates and investments | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | — | | | | — | |
Other, net | | | (27 | ) | | | 1 | | | | (28 | ) | | | (33 | ) | | | 11 | | | | (44 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (64 | ) | | | (26 | ) | | | (38 | ) | | | (125 | ) | | | (69 | ) | | | (56 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loss before income taxes | | | (82 | ) | | | (81 | ) | | | (1 | ) | | | (190 | ) | | | (97 | ) | | | (93 | ) |
| | | | | | |
Income taxes | | | (44 | ) | | | (23 | ) | | | (21 | ) | | | (69 | ) | | | (46 | ) | | | (23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net loss | | $ | (38 | ) | | $ | (58 | ) | | $ | 20 | | | $ | (121 | ) | | $ | (51 | ) | | $ | (70 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities, including investments in synthetic fuel-producing facilities. |
4
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)
| | | | | | | | |
| | | September 30,
2009 | | | December 31,
2008 | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 2,374 | | | $ | 1,271 | |
Restricted cash and investments | | | 43 | | | | 75 | |
Accounts receivable, net | | | | | | | | |
Customer | | | 1,418 | | | | 1,928 | |
Other | | | 442 | | | | 324 | |
Mark-to-market derivative assets | | | 467 | | | | 410 | |
Inventories, net | | | | | | | | |
Fossil fuel | | | 216 | | | | 315 | |
Materials and supplies | | | 568 | | | | 528 | |
Other | | | 367 | | | | 517 | |
| | | | | | | | |
| | |
Total current assets | | | 5,895 | | | | 5,368 | |
| | | | | | | | |
| | |
Property, plant and equipment, net | | | 26,653 | | | | 25,813 | |
| | |
Deferred debits and other assets | | | | | | | | |
Regulatory assets | | | 5,137 | | | | 5,940 | |
Nuclear decommissioning trust (NDT) funds | | | 6,502 | | | | 5,500 | |
Investments | | | 732 | | | | 715 | |
Goodwill | | | 2,625 | | | | 2,625 | |
Mark-to-market derivative assets | | | 482 | | | | 507 | |
Other | | | 1,476 | | | | 1,349 | |
| | | | | | | | |
| | |
Total deferred debits and other assets | | | 16,954 | | | | 16,636 | |
| | | | | | | | |
Total assets | | $ | 49,502 | | | $ | 47,817 | |
| | | | | | | | |
| | |
Liabilities and equity | | | | | | | | |
Current liabilities | | | | | | | | |
Short-term borrowings | | $ | 140 | | | $ | 211 | |
Long-term debt due within one year | | | 873 | | | | 29 | |
Long-term debt to PECO Energy Transition Trust (PETT) due within one year | | | 591 | | | | 319 | |
Accounts payable | | | 1,075 | | | | 1,416 | |
Mark-to-market derivative liabilities | | | 206 | | | | 214 | |
Accrued expenses | | | 888 | | | | 1,151 | |
Deferred income taxes | | | 117 | | | | 77 | |
Other | | | 554 | | | | 663 | |
| | | | | | | | |
| | |
Total current liabilities | | | 4,444 | | | | 4,080 | |
| | | | | | | | |
Long-term debt | | | 11,021 | | | | 11,397 | |
Long-term debt to PECO Energy Transition Trust | | | — | | | | 805 | |
Long-term debt to other financing trusts | | | 390 | | | | 390 | |
| | |
Deferred credits and other liabilities | | | | | | | | |
Deferred income taxes and unamortized investment tax credits | | | 5,858 | | | | 4,939 | |
Asset retirement obligations | | | 3,381 | | | | 3,734 | |
Pension obligations | | | 3,782 | | | | 4,111 | |
Non-pension postretirement benefits obligations | | | 2,248 | | | | 2,255 | |
Spent nuclear fuel obligation | | | 1,017 | | | | 1,015 | |
Regulatory liabilities | | | 3,395 | | | | 2,520 | |
Mark-to-market derivative liabilities | | | 72 | | | | 24 | |
Other | | | 1,317 | | | | 1,413 | |
| | | | | | | | |
| | |
Total deferred credits and other liabilities | | | 21,070 | | | | 20,011 | |
| | | | | | | | |
Total liabilities | | | 36,925 | | | | 36,683 | |
| | | | | | | | |
| | |
Preferred securities of subsidiary | | | 87 | | | | 87 | |
| | |
Shareholders’ equity | | | | | | | | |
Common stock | | | 8,896 | | | | 8,816 | |
Treasury stock, at cost | | | (2,338 | ) | | | (2,338 | ) |
Retained earnings | | | 7,905 | | | | 6,820 | |
Accumulated other comprehensive loss, net | | | (1,973 | ) | | | (2,251 | ) |
| | | | | | | | |
| | |
Total shareholders’ equity | | | 12,490 | | | | 11,047 | |
| | | | | | | | |
| | |
Total liabilities and shareholders’ equity | | $ | 49,502 | | | $ | 47,817 | |
| | | | | | | | |
5
EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
| | | | | | | | |
| | | Nine Months Ended
September 30, | |
| | | 2009 | | | 2008 | |
Cash flows from operating activities | | | | | | | | |
Net income | | $ | 2,126 | | | $ | 2,030 | |
Adjustments to reconcile net income to net cash flows provided by operating activities: | | | | | | | | |
Depreciation, amortization and accretion, including nuclear fuel amortization | | | 1,935 | | | | 1,725 | |
Impairment of long-lived assets | | | 223 | | | | — | |
Deferred income taxes and amortization of investment tax credits | | | 740 | | | | 111 | |
Net fair value changes related to derivatives and NDT funds | | | (257 | ) | | | (115 | ) |
Other non-cash operating activities | | | 464 | | | | 658 | |
Changes in assets and liabilities: | | | | | | | | |
Accounts receivable | | | 335 | | | | 226 | |
Inventories | | | 41 | | | | (158 | ) |
Accounts payable, accrued expenses and other current liabilities | | | (463 | ) | | | (261 | ) |
Counterparty collateral received, net | | | 380 | | | | 245 | |
Income taxes | | | (176 | ) | | | 457 | |
Pension and non-pension postretirement benefit contributions | | | (456 | ) | | | (103 | ) |
Other assets and liabilities | | | (263 | ) | | | (448 | ) |
| | | | | | | | |
Net cash flows provided by operating activities | | | 4,629 | | | | 4,367 | |
| | | | | | | | |
| | |
Cash flows from investing activities | | | | | | | | |
Capital expenditures | | | (2,252 | ) | | | (2,282 | ) |
Proceeds from NDT fund sales | | | 18,769 | | | | 14,392 | |
Investment in NDT funds | | | (18,949 | ) | | | (14,621 | ) |
Change in restricted cash | | | 32 | | | | 28 | |
Other investing activities | | | 16 | | | | 6 | |
| | | | | | | | |
Net cash flows used in investing activities | | | (2,384 | ) | | | (2,477 | ) |
| | | | | | | | |
| | |
Cash flows from financing activities | | | | | | | | |
Changes in short-term debt | | | (71 | ) | | | (431 | ) |
Issuance of long-term debt | | | 1,987 | | | | 1,969 | |
Retirement of long-term debt | | | (1,515 | ) | | | (1,397 | ) |
Retirement of long-term debt to financing affiliates | | | (533 | ) | | | (862 | ) |
Dividends paid on common stock | | | (1,038 | ) | | | (989 | ) |
Proceeds from employee stock plans | | | 28 | | | | 122 | |
Purchase of treasury stock | | | — | | | | (436 | ) |
Purchase of forward contract in relation to certain treasury stock | | | — | | | | (64 | ) |
Other financing activities | | | — | | | | 69 | |
| | | | | | | | |
Net cash flows used in financing activities | | | (1,142 | ) | | | (2,019 | ) |
| | | | | | | | |
| | |
Increase (decrease) in cash and cash equivalents | | | 1,103 | | | | (129 | ) |
Cash and cash equivalents at beginning of period | | | 1,271 | | | | 311 | |
| | | | | | | | |
Cash and cash equivalents at end of period | | $ | 2,374 | | | $ | 182 | |
| | | | | | | | |
6
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations
(unaudited)
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, 2009 | | | Three Months Ended September 30, 2008 | |
| | | GAAP (a) | | | Adjustments | | | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 4,339 | | | $ | 16 | (c) | | | | $ | 4,355 | | | $ | 5,228 | | | $ | 43 | (c) | | | | $ | 5,271 | |
| | | | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 796 | | | | 89 | (d) | | | | | 885 | | | | 1,327 | | | | 305 | (d) | | | | | 1,632 | |
Fuel | | | 404 | | | | 37 | (d) | | | | | 441 | | | | 718 | | | | (198 | )(d) | | | | | 520 | |
Operating and maintenance | | | 1,020 | | | | 46 | (c),(e),(f),(g) | | | | | 1,066 | | | | 1,110 | | | | 26 | (c),(g) | | | | | 1,136 | |
Operating and maintenance for regulatory required programs (b) | | | 19 | | | | — | | | | | | 19 | | | | 11 | | | | — | | | | | | 11 | |
Depreciation and amortization | | | 485 | | | | — | | | | | | 485 | | | | 431 | | | | — | | | | | | 431 | |
Taxes other than income | | | 212 | | | | — | | | | | | 212 | | | | 218 | | | | — | | | | | | 218 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Total operating expenses | | | 2,936 | | | | 172 | | | | | | 3,108 | | | | 3,815 | | | | 133 | | | | | | 3,948 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Operating income | | | 1,403 | | | | (156 | ) | | | | | 1,247 | | | | 1,413 | | | | (90 | ) | | | | | 1,323 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (188 | ) | | | 3 | (h) | | | | | (185 | ) | | | (203 | ) | | | — | | | | | | (203 | ) |
Equity in losses of unconsolidated affiliates and investments | | | (8 | ) | | | — | | | | | | (8 | ) | | | (6 | ) | | | — | | | | | | (6 | ) |
Other, net | | | 148 | | | | (152 | )(h),(i) | | | | | (4 | ) | | | (158 | ) | | | 170 | (i) | | | | | 12 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Total other income and deductions | | | (48 | ) | | | (149 | ) | | | | | (197 | ) | | | (367 | ) | | | 170 | | | | | | (197 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Income before income taxes | | | 1,355 | | | | (305 | ) | | | | | 1,050 | | | | 1,046 | | | | 80 | | | | | | 1,126 | |
| | | | | | | | |
Income taxes | | | 598 | | | | (181 | )(c),(d),(e),(f),(g),(h),(i) | | | | | 417 | | | | 346 | | | | 74 | (c),(d),(g),(i) | | | | | 420 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Net income | | $ | 757 | | | $ | (124 | ) | | | | $ | 633 | | | $ | 700 | | | $ | 6 | | | | | $ | 706 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Effective tax rate | | | 44.1 | % | | | | | | | | | 39.7 | % | | | 33.1 | % | | | | | | | | | 37.3 | % |
| | | | | | | | |
Earnings per average common share | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 1.15 | | | $ | (0.19 | ) | | | | $ | 0.96 | | | $ | 1.06 | | | $ | 0.01 | | | | | $ | 1.07 | |
Income from discontinued operations | | | — | | | | — | | | | | | — | | | | — | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 1.15 | | | $ | (0.19 | ) | | | | $ | 0.96 | | | $ | 1.06 | | | $ | 0.01 | | | | | $ | 1.07 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 1.14 | | | $ | (0.18 | ) | | | | $ | 0.96 | | | $ | 1.06 | | | $ | 0.01 | | | | | $ | 1.07 | |
Income from discontinued operations | | | — | | | | — | | | | | | — | | | | — | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 1.14 | | | $ | (0.18 | ) | | | | $ | 0.96 | | | $ | 1.06 | | | $ | 0.01 | | | | | $ | 1.07 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 660 | | | | | | | | | | 660 | | | | 658 | | | | | | | | | | 658 | |
Diluted | | | 662 | | | | | | | | | | 662 | | | | 662 | | | | | | | | | | 662 | |
| | | | | | | | |
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois electric rate settlement (c) | | | | | | $ | 0.02 | | | | | | | | | | | | | $ | 0.04 | | | | | | | |
Mark-to-market impact of economic hedging activities (d) | | | | | | | (0.12 | ) | | | | | | | | | | | | | (0.10 | ) | | | | | | |
NRG acquisition costs (e) | | | | | | | 0.01 | | | | | | | | | | | | | | — | | | | | | | |
2009 severance charges (f) | | | | | | | — | | | | | | | | | | | | | | — | | | | | | | |
Decommissioning obligation reduction (g) | | | | | | | (0.05 | ) | | | | | | | | | | | | | (0.02 | ) | | | | | | |
Costs associated with early debt retirements (h) | | | | | | | 0.09 | | | | | | | | | | | | | | — | | | | | | | |
Unrealized gains and losses related to NDT fund investments (i) | | | | | | | (0.13 | ) | | | | | | | | | | | | | 0.09 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total adjustments | | | | | | $ | (0.18 | ) | | | | | | | | | | | | $ | 0.01 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period. |
| (c) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (d) | Adjustment to exclude the mark-to-market impact of Exelon's economic hedging activities. |
| (e) | Adjustment to exclude external costs in 2009 associated with Exelon’s proposed acquisition of NRG Energy, Inc. (NRG), which was terminated in July 2009. |
| (f) | Adjustment to exclude 2009 severance charges. |
| (g) | Adjustment to exclude the reduction in Generation's decommissioning obligation. |
| (h) | Adjustment to exclude 2009 costs associated with early debt retirements. |
| (i) | Adjustment to exclude the unrealized gains in 2009 and unrealized losses in 2008 associated with Generation's NDT fund investments and the associated contractual accounting relating to income taxes. |
7
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations
(unaudited)
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended
September 30, 2009 | | | Nine Months Ended
September 30, 2008 | |
| | | GAAP
(a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP
(a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 13,202 | | | $ | 82 | (c) | | $ | 13,284 | | | $ | 14,366 | | | $ | 189 | (c) | | $ | 14,555 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 2,400 | | | | 129 | (d) | | | 2,529 | | | | 3,565 | | | | 210 | (d) | | | 3,775 | |
Fuel | | | 1,640 | | | | 9 | (d) | | | 1,649 | | | | 1,608 | | | | 88 | (d) | | | 1,696 | |
Operating and maintenance | | | 3,492 | | | | (241 | )(c),(e),(f),(g),(h) | | | 3,251 | | | | 3,383 | | | | 22 | (c),(h) | | | 3,405 | |
Operating and maintenance for regulatory required programs (b) | | | 44 | | | | — | | | | 44 | | | | 17 | | | | — | | | | 17 | |
Depreciation and amortization | | | 1,360 | | | | — | | | | 1,360 | | | | 1,230 | | | | — | | | | 1,230 | |
Taxes other than income | | | 592 | | | | — | | | | 592 | | | | 597 | | | | — | | | | 597 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 9,528 | | | | (103 | ) | | | 9,425 | | | | 10,400 | | | | 320 | | | | 10,720 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 3,674 | | | | 185 | | | | 3,859 | | | | 3,966 | | | | (131 | ) | | | 3,835 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (555 | ) | | | 12 | (i),(j) | | | (543 | ) | | | (638 | ) | | | — | | | | (638 | ) |
Equity in losses of unconsolidated affiliates and investments | | | (21 | ) | | | — | | | | (21 | ) | | | (19 | ) | | | — | | | | (19 | ) |
Other, net | | | 367 | | | | (308 | )(i),(j),(k) | | | 59 | | | | (256 | ) | |
| 335
|
(k) | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (209 | ) | | | (296 | ) | | | (505 | ) | | | (913 | ) | | | 335 | | | | (578 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 3,465 | | | | (111 | ) | | | 3,354 | | | | 3,053 | | | | 204 | | | | 3,257 | |
| | | | | | |
Income taxes | | | 1,339 | | | | (97 | )(c),(d),(e),(f),(g),(h),(i),(j),(k) | | | 1,242 | | | | 1,022 | | | | 162 | (c),(d),(h),(k) | | | 1,184 | |
| | | | �� | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income from continuing operations | | | 2,126 | | | | (14 | ) | | | 2,112 | | | | 2,031 | | | | 42 | | | | 2,073 | |
| | | | | | |
Loss from discontinued operations | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net Income | | $ | 2,126 | | | $ | (14 | ) | | $ | 2,112 | | | $ | 2,030 | | | $ | 42 | | | $ | 2,072 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Effective tax rate | | | 38.6 | % | | | | | | | 37.0 | % | | | 33.5 | % | | | | | | | 36.4 | % |
| | | | | | |
Earnings per average common share | | | | | | | | | | | | | | | | | | | | | | | | |
Basic: | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 3.22 | | | $ | (0.02 | ) | | $ | 3.20 | | | $ | 3.09 | | | $ | 0.07 | | | $ | 3.16 | |
Income from discontinued operations | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 3.22 | | | $ | (0.02 | ) | | $ | 3.20 | | | $ | 3.09 | | | $ | 0.07 | | | $ | 3.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Diluted: | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 3.21 | | | $ | (0.02 | ) | | $ | 3.19 | | | $ | 3.06 | | | $ | 0.07 | | | $ | 3.13 | |
Income from discontinued operations | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 3.21 | | | $ | (0.02 | ) | | $ | 3.19 | | | $ | 3.06 | | | $ | 0.07 | | | $ | 3.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 659 | | | | | | | | 659 | | | | 658 | | | | | | | | 658 | |
Diluted | | | 661 | | | | | | | | 661 | | | | 663 | | | | | | | | 663 | |
| | | | | | |
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois electric rate settlement (c) | | | | | | $ | 0.08 | | | | | | | | | | | $ | 0.18 | | | | | |
Mark-to-market impact of economic hedging activities (d) | | | | | | | (0.12 | ) | | | | | | | | | | | (0.27 | ) | | | | |
NRG acquisition costs (e) | | | | | | | 0.03 | | | | | | | | | | | | — | | | | | |
Impairment of certain generating assets (f) | | | | | | | 0.20 | | | | | | | | | | | | — | | | | | |
2009 severance charges (g) | | | | | | | 0.03 | | | | | | | | | | | | — | | | | | |
Decommissioning obligation reduction (h) | | | | | | | (0.05 | ) | | | | | | | | | | | (0.02 | ) | | | | |
Non-cash income tax matters and state taxes (i) | | | | | | | (0.10 | ) | | | | | | | | | | | — | | | | | |
Costs associated with early debt retirements (j) | | | | | | | 0.09 | | | | | | | | | | | | — | | | | | |
Unrealized gains and losses related to NDT fund investments (k) | | | | | | | (0.18 | ) | | | | | | | | | | | 0.18 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total adjustments | | | | | | $ | (0.02 | ) | | | | | | | | | | $ | 0.07 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period. |
| (c) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (d) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities. |
| (e) | Adjustment to exclude external costs in 2009 associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (f) | Adjustment to exclude the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009. |
| (g) | Adjustment to exclude 2009 severance charges. |
| (h) | Adjustment to exclude the reduction in Generation's decommissioning obligation. |
| (i) | Adjustment to exclude 2009 remeasurements of tax uncertainties and a change in state deferred income taxes. |
| (j) | Adjustment to exclude 2009 costs associated with early debt retirements. |
| (k) | Adjustment to exclude the unrealized gains in 2009 and unrealized losses in 2008 associated with Generation's NDT fund investments and the associated contractual accounting relating to income taxes. |
8
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings
to GAAP Earnings By Business Segment (in millions)
Three Months Ended September 30, 2009 and 2008
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exelon
Earnings per
Diluted Share | | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon | |
2008 GAAP Earnings (Loss) | | $ | 1.06 | | | $ | 635 | | | $ | 33 | | | $ | 90 | | | $ | (58 | ) | | $ | 700 | |
| | | | | | |
2008 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | 0.04 | | | | 25 | | | | 1 | | | | — | | | | — | | | | 26 | |
Mark-to-Market Impact of Economic Hedging Activities | | | (0.10 | ) | | | (96 | ) | | | — | | | | — | | | | 31 | | | | (65 | ) |
Unrealized Losses Related to NDT Fund Investments | | | 0.09 | | | | 60 | | | | — | | | | — | | | | — | | | | 60 | |
Decommissioning Obligation Reduction (1) | | | (0.02 | ) | | �� | (15 | ) | | | — | | | | — | | | | — | | | | (15 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2008 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 1.07 | | | | 609 | | | | 34 | | | | 90 | | | | (27 | ) | | | 706 | |
| | | | | | |
Year Over Year Effects on Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Generation Energy Margins, Excluding Mark-to-Market (2) | | | (0.10 | ) | | | (64 | ) | | | — | | | | — | | | | — | | | | (64 | ) |
ComEd and PECO Margins: | | | | | | | | | | | | | | | | | | | | | | | | |
Weather (3) | | | (0.04 | ) | | | — | | | | (18 | ) | | | (9 | ) | | | — | | | | (27 | ) |
Other Energy Delivery (4) | | | 0.05 | | | | — | | | | 36 | | | | (6 | ) | | | — | | | | 30 | |
Operating and Maintenance Expense: | | | | | | | | | | | | | | | | | | | | | | | | |
Bad Debt (5) | | | 0.05 | | | | 14 | | | | (7 | ) | | | 29 | | | | — | | | | 36 | |
Labor, Contracting and Materials (6) | | | 0.02 | | | | 15 | | | | 5 | | | | (6 | ) | | | — | | | | 14 | |
Other Operating and Maintenance Expense (7) | | | 0.04 | | | | — | | | | 19 | | | | 4 | | | | 3 | | | | 26 | |
Pension and Non-Pension Postretirement Benefits Expense (8) | | | (0.04 | ) | | | (12 | ) | | | (9 | ) | | | (1 | ) | | | (5 | ) | | | (27 | ) |
Planned Nuclear Refueling Outages (9) | | | (0.02 | ) | | | (15 | ) | | | — | | | | — | | | | — | | | | (15 | ) |
Discrete Items Resulting From the Distribution Rate Case (10) | | | 0.02 | | | | — | | | | 15 | | | | — | | | | — | | | | 15 | |
Depreciation and Amortization (11) | | | (0.06 | ) | | | (10 | ) | | | (6 | ) | | | (21 | ) | | | (1 | ) | | | (38 | ) |
Reversal of Benefit From Tax Ruling (12) | | | (0.06 | ) | | | (8 | ) | | | (35 | ) | | | — | | | | 1 | | | | (42 | ) |
Income Taxes (13) | | | — | | | | (25 | ) | | | 1 | | | | 10 | | | | 17 | | | | 3 | |
Other (14) | | | 0.03 | | | | — | | | | 13 | | | | 1 | | | | 2 | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 0.96 | | | | 504 | | | | 48 | | | | 91 | | | | (10 | ) | | | 633 | |
| | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | (0.02 | ) | | | (9 | ) | | | (2 | ) | | | — | | | | — | | | | (11 | ) |
Mark-to-Market Impact of Economic Hedging Activities | | | 0.12 | | | | 77 | | | | — | | | | — | | | | — | | | | 77 | |
Unrealized Gains Related to NDT Fund Investments | | | 0.13 | | | | 87 | | | | — | | | | — | | | | — | | | | 87 | |
Decommissioning Obligation Reduction (1) | | | 0.05 | | | | 32 | | | | — | | | | — | | | | — | | | | 32 | |
NRG Acquisition Costs (15) | | | (0.01 | ) | | | — | | | | — | | | | — | | | | (6 | ) | | | (6 | ) |
2009 Severance Charges (16) | | | — | | | | 2 | | | | — | | | | 1 | | | | — | | | | 3 | |
Costs Associated with Early Debt Retirements (17) | | | (0.09 | ) | | | (36 | ) | | | — | | | | — | | | | (22 | ) | | | (58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2009 GAAP Earnings (Loss) | | $ | 1.14 | | | $ | 657 | | | $ | 46 | | | $ | 92 | | | $ | (38 | ) | | $ | 757 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Reflects a decrease in Generation’s decommissioning obligation liability primarily related to the former AmerGen nuclear plants. |
| (2) | Primarily reflects in 2009 unfavorable portfolio and market conditions, decreased nuclear output as a result of more planned and unplanned nuclear outage days and higher nuclear fuel costs. |
| (3) | Primarily reflects the impact of unfavorable 2009 weather conditions, compared to 2008, in the ComEd and PECO service territories. |
| (4) | For ComEd, reflects the impact of increased distribution rates effective September 2008, partially offset by reduced load. For PECO, reflects reduced load, partially offset by increased gas distribution rates effective January 2009. |
| (5) | For Generation, reflects the impact of a reserve recorded in 2008 for counterparty exposure to Lehman Brothers Holdings, Inc. For ComEd, reflects an increase in uncollectible accounts, in part as a result of the current overall negative economic conditions, partially mitigated by ComEd’s increased collection activities in 2009. For PECO, reflects the impact of improved accounts receivable aging as a result of enhancements to its credit processes and increased termination and collection activities in late 2008 and 2009. |
| (6) | Primarily reflects Exelon’s ongoing cost savings initiative, partially offset by inflation related to labor, contracting and materials expenses (exclusive of planned nuclear refueling outages as disclosed in number 9 below). |
| (7) | Primarily reflects decreased storm costs in 2009 in the ComEd and PECO service territories. |
| (8) | Reflects increased pension and non-pension postretirement benefits expense primarily due to lower than expected asset returns in 2008. |
| (9) | Reflects increased operating and maintenance expense related to nuclear refueling outage costs associated with a higher number of planned refueling outage days during 2009 as compared to 2008, excluding Salem Generating Station (Salem). |
| (10) | Reflects the 2008 impact of discrete disallowances, net of allowed regulatory assets, mandated by the September 2008 Illinois Commerce Commission (ICC) rate order. |
| (11) | Reflects increased scheduled competitive transition charge (CTC) amortization at PECO and increased depreciation across the operating companies due to ongoing capital expenditures. |
| (12) | Reflects the reversal of benefits associated with Investment Tax Credits as a result of the modified opinion issued by the Illinois Supreme Court in July 2009. |
| (13) | Primarily reflects the 2008 impact at PECO of an IRS settlement related to prior tax years, partially offset by a decrease in Generation’s manufacturing deduction. |
| (14) | Primarily reflects decreased interest expense across the operating companies and decreased taxes other than income at ComEd, partially offset by realized NDT fund losses related to market conditions in 2009. |
| (15) | Reflects external costs incurred in 2009 associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (16) | Reflects a true-up of expenses associated with the elimination of management and staff positions pursuant to Exelon’s 2009 cost management plan to achieve sustainable cost savings. |
| (17) | Reflects 2009 costs associated with early debt retirements at Generation and Exelon Corporate. |
9
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Earnings By Business Segment (in millions)
Nine Months Ended September 30, 2009 and 2008
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exelon
Earnings per
Diluted Share | | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon | |
2008 GAAP Earnings (Loss) | | $ | 3.06 | | | $ | 1,725 | | | $ | 110 | | | $ | 246 | | | $ | (51 | ) | | $ | 2,030 | |
| | | | | | |
2008 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | 0.18 | | | | 115 | | | | 5 | | | | — | | | | — | | | | 120 | |
Mark-to-Market Impact of Economic Hedging Activities | | | (0.27 | ) | | | (180 | ) | | | — | | | | — | | | | — | | | | (180 | ) |
Unrealized Losses Related to NDT Fund Investments | | | 0.18 | | | | 117 | | | | — | | | | — | | | | — | | | | 117 | |
Decommissioning Obligation Reduction (1) | | | (0.02 | ) | | | (15 | ) | | | — | | | | — | | | | — | | | | (15 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2008 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 3.13 | | | | 1,762 | | | | 115 | | | | 246 | | | | (51 | ) | | | 2,072 | |
| | | | | | |
Year Over Year Effects on Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Generation Energy Margins, Excluding Mark-to-Market (2) | | | (0.16 | ) | | | (108 | ) | | | — | | | | — | | | | — | | | | (108 | ) |
ComEd and PECO Margins: | | | | | | | | | | | | | | | | | | | | | | | | |
Weather (3) | | | (0.04 | ) | | | — | | | | (21 | ) | | | (8 | ) | | | — | | | | (29 | ) |
Other Energy Delivery (4) | | | 0.21 | | | | — | | | | 115 | | | | 21 | | | | — | | | | 136 | |
Operating and Maintenance Expense: | | | | | | | | | | | | | | | | | | | | | | | | |
Bad Debt (5) | | | 0.10 | | | | 15 | | | | (9 | ) | | | 59 | | | | — | | | | 65 | |
Labor, Contracting and Materials (6) | | | 0.02 | | | | 5 | | | | 17 | | | | (9 | ) | | | — | | | | 13 | |
Other Operating and Maintenance Expense (7) | | | 0.10 | | | | 15 | | | | 33 | | | | 12 | | | | 10 | | | | 70 | |
Pension and Non-Pension Postretirement Benefits Expense (8) | | | (0.11 | ) | | | (38 | ) | | | (25 | ) | | | (5 | ) | | | (6 | ) | | | (74 | ) |
Planned Nuclear Refueling Outages (9) | | | 0.02 | | | | 15 | | | | — | | | | — | | | | — | | | | 15 | |
Discrete Items Resulting From the Distribution Rate Case (10) | | | 0.02 | | | | — | | | | 15 | | | | — | | | | — | | | | 15 | |
Depreciation and Amortization (11) | | | (0.14 | ) | | | (13 | ) | | | (19 | ) | | | (53 | ) | | | (5 | ) | | | (90 | ) |
Income Taxes (12) | | | (0.03 | ) | | | (26 | ) | | | 10 | | | | 13 | | | | (18 | ) | | | (21 | ) |
Other (13) | | | 0.07 | | | | 24 | | | | 20 | | | | — | | | | 4 | | | | 48 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 3.19 | | | | 1,651 | | | | 251 | | | | 276 | | | | (66 | ) | | | 2,112 | |
| | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | (0.08 | ) | | | (49 | ) | | | (3 | ) | | | — | | | | — | | | | (52 | ) |
Mark-to-Market Impact of Economic Hedging Activities | | | 0.12 | | | | 84 | | | | — | | | | — | | | | — | | | | 84 | |
Unrealized Gains Related to NDT Fund Investments | | | 0.18 | | | | 119 | | | | — | | | | — | | | | — | | | | 119 | |
Decommissioning Obligation Reduction (1) | | | 0.05 | | | | 32 | | | | — | | | | — | | | | — | | | | 32 | |
NRG Acquisition Costs (14) | | | (0.03 | ) | | | — | | | | — | | | | — | | | | (20 | ) | | | (20 | ) |
Impairment of Certain Generating Assets (15) | | | (0.20 | ) | | | (135 | ) | | | — | | | | — | | | | — | | | | (135 | ) |
2009 Severance Charges (16) | | | (0.03 | ) | | | (7 | ) | | | (13 | ) | | | (1 | ) | | | (1 | ) | | | (22 | ) |
Non-Cash Remeasurement of Income Tax Uncertainties and Reassessment of State Deferred Income Taxes (17) | | | 0.10 | | | | 38 | | | | 40 | | | | — | | | | (12 | ) | | | 66 | |
Costs Associated with Early Debt Retirements (18) | | | (0.09 | ) | | | (36 | ) | | | — | | | | — | | | | (22 | ) | | | (58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2009 GAAP Earnings (Loss) | | $ | 3.21 | | | $ | 1,697 | | | $ | 275 | | | $ | 275 | | | $ | (121 | ) | | $ | 2,126 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Reflects a decrease in Generation’s decommissioning obligation liability primarily related to the former AmerGen nuclear plants. |
| (2) | Primarily reflects the impact of revenue from certain long options in Generation’s proprietary trading portfolio in 2008, the impact of gains related to the settlement of uranium supply agreements in 2008 and higher nuclear fuel costs, partially offset by increased nuclear output as a result of fewer planned refueling outage days in 2009. |
| (3) | Primarily reflects the impact of unfavorable 2009 weather conditions, compared to 2008, in the ComEd and PECO service territories. |
| (4) | Primarily reflects the impact of increased distribution rates at ComEd effective September 2008 and increased gas distribution rates at PECO effective January 2009, partially offset by reduced load at ComEd and PECO. |
| (5) | For Generation, reflects the impact of a reserve recorded in 2008 for counterparty exposure to Lehman Brothers Holdings, Inc. For ComEd, reflects an increase in uncollectible accounts, in part as a result of the current overall negative economic conditions, partially mitigated by ComEd’s increased collection activities in 2009. For PECO, reflects the impact of improved accounts receivable aging as a result of enhancements to its credit processes and increased termination and collection activities in late 2008 and 2009. |
| (6) | Primarily reflects Exelon’s ongoing cost savings initiative and lower planned outage costs at Generation’s non-nuclear generating plants, partially offset by inflation related to labor, contracting and materials expenses (exclusive of planned nuclear refueling outages as disclosed in number 9 below). |
| (7) | Primarily reflects the impact of decreased storm costs in 2009 in the ComEd and PECO service territories, decreased nuclear refueling outage costs related to Generation’s ownership interest in Salem and decreased costs associated with the possible construction of a new nuclear plant in Texas. |
| (8) | Reflects increased pension and non-pension postretirement benefits expense primarily due to lower than expected asset returns in 2008. |
| (9) | Reflects decreased operating and maintenance expense related to nuclear refueling outage costs associated with a lower number of planned refueling outage days during 2009 as compared to 2008, excluding Salem. |
| (10) | Reflects the 2008 impact of discrete disallowances, net of allowed regulatory assets, mandated by the September 2008 ICC rate order. |
| (11) | Primarily reflects increased scheduled CTC amortization at PECO and increased depreciation across the operating companies due to ongoing capital expenditures. |
| (12) | Primarily reflects a decrease in Generation’s manufacturing deduction and the 2008 impact of income from state tax settlements, partially offset by a decrease in PECO’s 2009 state income tax expense due to higher deductible interest expense. |
| (13) | Primarily reflects decreased interest expense due to lower outstanding debt at ComEd and PECO (including to PETT) and lower interest rates on Generation’s spent nuclear fuel obligation, partially offset by the impact of income in 2008 related to the termination of a gas supply guarantee at Generation and the impact of 2008 income tax benefits associated with Exelon’s tax method of capitalizing overhead costs. |
| (14) | Reflects external costs incurred in 2009 associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (15) | Reflects the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009. |
| (16) | Reflects expenses associated with the elimination of management and staff positions pursuant to Exelon’s 2009 cost management plan to achieve sustainable cost savings. |
| (17) | Reflects the impacts of the 2009 remeasurement of tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and a change in state deferred tax rates resulting from a reassessment of anticipated apportionment of Exelon’s income. |
| (18) | Reflects 2009 costs associated with early debt retirements at Generation and Exelon Corporate. |
10
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Generation | |
| | | Three Months Ended September 30, 2009 | | | Three Months Ended September 30, 2008 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 2,445 | | | $ | 14 | (b) | | $ | 2,459 | | | $ | 3,073 | | | $ | 41 | (b) | | $ | 3,114 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 303 | | | | 89 | (c) | | | 392 | | | | 528 | | | | 356 | (c) | | | 884 | |
Fuel | | | 379 | | | | 37 | (c) | | | 416 | | | | 669 | | | | (198 | )(c) | | | 471 | |
Operating and maintenance | | | 592 | | | | 55 | (d),(e) | | | 647 | | | | 625 | | | | 25 | (e) | | | 650 | |
Depreciation and amortization | | | 74 | | | | — | | | | 74 | | | | 58 | | | | — | | | | 58 | |
Taxes other than income | | | 51 | | | | — | | | | 51 | | | | 53 | | | | — | | | | 53 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,399 | | | | 181 | | | | 1,580 | | | | 1,933 | | | | 183 | | | | 2,116 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 1,046 | | | | (167 | ) | | | 879 | | | | 1,140 | | | | (142 | ) | | | 998 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (24 | ) | | | 2 | (f) | | | (22 | ) | | | (34 | ) | | | — | | | | (34 | ) |
Equity in losses of investments | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | — | | | | — | |
Other, net | | | 192 | | | | (188 | )(f),(g) | | | 4 | | | | (164 | ) | | | 170 | (g) | | | 6 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | 167 | | | | (186 | ) | | | (19 | ) | | | (198 | ) | | | 170 | | | | (28 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 1,213 | | | | (353 | ) | | | 860 | | | | 942 | | | | 28 | | | | 970 | |
| | | | | | |
Income taxes | | | 556 | | | | (200 | )(b),(c),(d),(e),(f),(g) | | | 356 | | | | 307 | | | | 54 | (b),(c),(e),(g) | | | 361 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net Income | | $ | 657 | | | $ | (153 | ) | | $ | 504 | | | $ | 635 | | | $ | (26 | ) | | $ | 609 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Nine Months Ended September 30, 2009 | | | Nine Months Ended September 30, 2008 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 7,424 | | | $ | 78 | (b) | | $ | 7,502 | | | $ | 8,311 | | | $ | 184 | (b) | | $ | 8,495 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 962 | | | | 129 | (c) | | | 1,091 | | | | 1,704 | | | | 210 | (c) | | | 1,914 | |
Fuel | | | 1,295 | | | | 9 | (c) | | | 1,304 | | | | 1,211 | | | | 88 | (c) | | | 1,299 | |
Operating and maintenance | | | 2,210 | | | | (181 | )(d),(e),(h) | | | 2,029 | | | | 2,023 | | | | 25 | (e) | | | 2,048 | |
Depreciation and amortization | | | 223 | | | | — | | | | 223 | | | | 202 | | | | — | | | | 202 | |
Taxes other than income | | | 150 | | | | — | | | | 150 | | | | 153 | | | | — | | | | 153 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 4,840 | | | | (43 | ) | | | 4,797 | | | | 5,293 | | | | 323 | | | | 5,616 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 2,584 | | | | 121 | | | | 2,705 | | | | 3,018 | | | | (139 | ) | | | 2,879 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (77 | ) | | | 2 | (f) | | | (75 | ) | | | (108 | ) | | | — | | | | (108 | ) |
Equity in losses of investments | | | (2 | ) | | | — | | | | (2 | ) | | | (1 | ) | | | — | | | | (1 | ) |
Other, net | | | 325 | | | | (294 | )(f),(g),(i) | | | 31 | | | | (292 | ) | | | 335 | (g) | | | 43 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | 246 | | | | (292 | ) | | | (46 | ) | | | (401 | ) | | | 335 | | | | (66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income from continuing operations before income taxes | | | 2,830 | | | | (171 | ) | | | 2,659 | | | | 2,617 | | | | 196 | | | | 2,813 | |
| | | | | | |
Income taxes | | | 1,133 | | | | (125 | )(b),(c),(d),(e),(f),(g),(h),(i) | | | 1,008 | | | | 891 | | | | 159 | (b),(c),(e),(g) | | | 1,050 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income from continuing operations | | | 1,697 | | | | (46 | ) | | | 1,651 | | | | 1,726 | | | | 37 | | | | 1,763 | |
| | | | | | |
Loss from discontinued operations | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 1,697 | | | $ | (46 | ) | | $ | 1,651 | | | $ | 1,725 | | | $ | 37 | | | $ | 1,762 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (c) | Adjustment to exclude the mark-to-market impact of Generation’s economic hedging activities. |
| (d) | Adjustment to exclude 2009 severance charges. |
| (e) | Adjustment to exclude the reduction in Generation’s decommissioning obligation. |
| (f) | Adjustment to exclude 2009 costs associated with early debt retirements. |
| (g) | Adjustment to exclude the unrealized gains in 2009 and unrealized losses in 2008 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes. |
| (h) | Adjustment to exclude the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009. |
| (i) | Adjustment to exclude a change in state deferred income taxes. |
11
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | ComEd | |
| | | Three Months Ended September 30, 2009 | | | Three Months Ended September 30, 2008 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 1,475 | | | $ | 2 | (c) | | $ | 1,477 | | | $ | 1,729 | | | $ | 2 | (c) | | $ | 1,731 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 776 | | | | — | | | | 776 | | | | 1,068 | | | | — | | | | 1,068 | |
Operating and maintenance | | | 273 | | | | (2 | )(c),(d) | | | 271 | | | | 306 | | | | — | | | | 306 | |
Operating and maintenance for regulatory required programs (b) | | | 19 | | | | — | | | | 19 | | | | 11 | | | | — | | | | 11 | |
Depreciation and amortization | | | 125 | | | | — | | | | 125 | | | | 119 | | | | — | | | | 119 | |
Taxes other than income | | | 79 | | | | — | | | | 79 | | | | 87 | | | | — | | | | 87 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,272 | | | | (2 | ) | | | 1,270 | | | | 1,591 | | | | — | | | | 1,591 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 203 | | | | 4 | | | | 207 | | | | 138 | | | | 2 | | | | 140 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (82 | ) | | | — | | | | (82 | ) | | | (87 | ) | | | — | | | | (87 | ) |
Equity in losses of unconsolidated affiliates | | | — | | | | — | | | | — | | | | (2 | ) | | | — | | | | (2 | ) |
Other, net | | | (19 | ) | | | — | | | | (19 | ) | | | 3 | | | | — | | | | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (101 | ) | | | — | | | | (101 | ) | | | (86 | ) | | | — | | | | (86 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 102 | | | | 4 | | | | 106 | | | | 52 | | | | 2 | | | | 54 | |
| | | | | | |
Income taxes | | | 56 | | | | 2 | (c),(d) | | | 58 | | | | 19 | | | | 1 | (c) | | | 20 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 46 | | | $ | 2 | | | $ | 48 | | | $ | 33 | | | $ | 1 | | | $ | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Nine Months Ended September 30, 2009 | | | Nine Months Ended September 30, 2008 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 4,417 | | | $ | 4 | (c) | | $ | 4,421 | | | $ | 4,594 | | | $ | 5 | (c) | | $ | 4,599 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 2,373 | | | | — | | | | 2,373 | | | | 2,729 | | | | — | | | | 2,729 | |
Operating and maintenance | | | 796 | | | | (21 | )(c),(d) | | | 775 | | | | 828 | | | | (4 | )(c) | | | 824 | |
Operating and maintenance for regulatory required programs (b) | | | 44 | | | | — | | | | 44 | | | | 17 | | | | | | | | 17 | |
Depreciation and amortization | | | 371 | | | | — | | | | 371 | | | | 343 | | | | — | | | | 343 | |
Taxes other than income | | | 215 | | | | — | | | | 215 | | | | 227 | | | | — | | | | 227 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 3,799 | | | | (21 | ) | | | 3,778 | | | | 4,144 | | | | (4 | ) | | | 4,140 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 618 | | | | 25 | | | | 643 | | | | 450 | | | | 9 | | | | 459 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (241 | ) | | | (6 | )(e) | | | (247 | ) | | | (279 | ) | | | — | | | | (279 | ) |
Equity in losses of unconsolidated affiliates | | | — | | | | — | | | | — | | | | (7 | ) | | | — | | | | (7 | ) |
Other, net | | | 67 | | | | (60 | )(e) | | | 7 | | | | 12 | | | | — | | | | 12 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (174 | ) | | | (66 | ) | | | (240 | ) | | | (274 | ) | | | — | | | | (274 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 444 | | | | (41 | ) | | | 403 | | | | 176 | | | | 9 | | | | 185 | |
| | | | | | |
Income taxes | | | 169 | | | | (17 | )(c),(d),(e) | | | 152 | | | | 66 | | | | 4 | (c) | | | 70 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 275 | | | $ | (24 | ) | | $ | 251 | | | $ | 110 | | | $ | 5 | | | $ | 115 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period. |
| (c) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (d) | Adjustment to exclude 2009 severance charges. |
| (e) | Adjustment to exclude 2009 remeasurements of income tax uncertainties. |
12
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | PECO | |
| | | Three Months Ended September 30, 2009 | | | Three Months Ended September 30, 2008 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 1,327 | | | $ | — | �� | | $ | 1,327 | | | $ | 1,441 | | | $ | — | | $ | 1,441 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 625 | | | | — | | | | 625 | | | | 693 | | | | — | | | 693 | |
Fuel | | | 26 | | | | — | | | | 26 | | | | 50 | | | | — | | | 50 | |
Operating and maintenance | | | 154 | | | | 2 | (b) | | | 156 | | | | 192 | | | | — | | | 192 | |
Depreciation and amortization | | | 272 | | | | — | | | | 272 | | | | 243 | | | | — | | | 243 | |
Taxes other than income | | | 78 | | | | — | | | | 78 | | | | 73 | | | | — | | | 73 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,155 | | | | 2 | | | | 1,157 | | | | 1,251 | | | | — | | | 1,251 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 172 | | | | (2 | ) | | | 170 | | | | 190 | | | | — | | | 190 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (46 | ) | | | — | | | | (46 | ) | | | (55 | ) | | | — | | | (55 | ) |
Equity in losses of unconsolidated affiliates | | | (6 | ) | | | — | | | | (6 | ) | | | (4 | ) | | | — | | | (4 | ) |
Other, net | | | 2 | | | | — | | | | 2 | | | | 2 | | | | — | | | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (50 | ) | | | — | | | | (50 | ) | | | (57 | ) | | | — | | | (57 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 122 | | | | (2 | ) | | | 120 | | | | 133 | | | | — | | | 133 | |
| | | | | | |
Income taxes | | | 30 | | | | (1 | )(b) | | | 29 | | | | 43 | | | | — | | | 43 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 92 | | | $ | (1 | ) | | $ | 91 | | | $ | 90 | | | $ | — | | $ | 90 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Nine Months Ended September 30, 2009 | | | Nine Months Ended September 30, 2008 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 4,045 | | | $ | — | | | $ | 4,045 | | | $ | 4,195 | | | $ | — | | $ | 4,195 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,742 | | | | — | | | | 1,742 | | | | 1,859 | | | | — | | | 1,859 | |
Fuel | | | 346 | | | | — | | | | 346 | | | | 397 | | | | | | | 397 | |
Operating and maintenance | | | 481 | | | | (3 | )(b) | | | 478 | | | | 557 | | | | — | | | 557 | |
Depreciation and amortization | | | 726 | | | | — | | | | 726 | | | | 653 | | | | — | | | 653 | |
Taxes other than income | | | 213 | | | | — | | | | 213 | | | | 203 | | | | — | | | 203 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 3,508 | | | | (3 | ) | | | 3,505 | | | | 3,669 | | | | — | | | 3,669 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 537 | | | | 3 | | | | 540 | | | | 526 | | | | — | | | 526 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (145 | ) | | | — | | | | (145 | ) | | | (171 | ) | | | — | | | (171 | ) |
Equity in losses of unconsolidated affiliates | | | (19 | ) | | | — | | | | (19 | ) | | | (11 | ) | | | — | | | (11 | ) |
Other, net | | | 8 | | | | — | | | | 8 | | | | 13 | | | | — | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (156 | ) | | | — | | | | (156 | ) | | | (169 | ) | | | — | | | (169 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 381 | | | | 3 | | | | 384 | | | | 357 | | | | — | | | 357 | |
| | | | | | |
Income taxes | | | 106 | | | | 2 | (b) | | | 108 | | | | 111 | | | | — | | | 111 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 275 | | | $ | 1 | | | $ | 276 | | | $ | 246 | | | $ | — | | $ | 246 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Adjustment to exclude 2009 severance charges. |
13
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Other | |
| | |
| | | Three Months Ended September 30, 2009 | | | Three Months Ended September 30, 2008 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | (908 | ) | | $ | — | | | $ | (908 | ) | | $ | (1,015 | ) | | $ | — | | | $ | (1,015 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | (908 | ) | | | — | | | | (908 | ) | | | (962 | ) | | | (51 | )(d) | | | (1,013 | ) |
Fuel | | | (1 | ) | | | — | | | | (1 | ) | | | (1 | ) | | | — | | | | (1 | ) |
Operating and maintenance | | | 1 | | | | (9 | )(b) | | | (8 | ) | | | (13 | ) | | | — | | | | (13 | ) |
Depreciation and amortization | | | 14 | | | | — | | | | 14 | | | | 11 | | | | — | | | | 11 | |
Taxes other than income | | | 4 | | | | — | | | | 4 | | | | 5 | | | | — | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | (890 | ) | | | (9 | ) | | | (899 | ) | | | (960 | ) | | | (51 | ) | | | (1,011 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating loss | | | (18 | ) | | | 9 | | | | (9 | ) | | | (55 | ) | | | 51 | | | | (4 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (36 | ) | | | 1 | (c) | | | (35 | ) | | | (27 | ) | | | — | | | | (27 | ) |
Equity in losses of unconsolidated affiliates and investments | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | — | | | | — | |
Other, net | | | (27 | ) | | | 36 | (c) | | | 9 | | | | 1 | | | | — | | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (64 | ) | | | 37 | | | | (27 | ) | | | (26 | ) | | | — | | | | (26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loss before income taxes | | | (82 | ) | | | 46 | | | | (36 | ) | | | (81 | ) | | | 51 | | | | (30 | ) |
| | | | | | |
Income taxes | | | (44 | ) | | | 18 | (b),(c) | | | (26 | ) | | | (23 | ) | | | 20 | (d) | | | (3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net loss | | $ | (38 | ) | | $ | 28 | | | $ | (10 | ) | | $ | (58 | ) | | $ | 31 | | | $ | (27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, 2009 | | | Nine Months Ended September 30, 2008 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | Adjusted
Non-GAAP | |
Operating revenues | | $ | (2,684 | ) | | $ | — | | | $ | (2,684 | ) | | $ | (2,734 | ) | | $ | — | | $ | (2,734 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | (2,677 | ) | | | — | | | | (2,677 | ) | | | (2,727 | ) | | | — | | | (2,727 | ) |
Fuel | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | — | | | — | |
Operating and maintenance | | | 5 | | | | (36 | )(b),(e) | | | (31 | ) | | | (25 | ) | | | — | | | (25 | ) |
Depreciation and amortization | | | 40 | | | | — | | | | 40 | | | | 32 | | | | — | | | 32 | |
Taxes other than income | | | 14 | | | | — | | | | 14 | | | | 14 | | | | — | | | 14 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | (2,619 | ) | | | (36 | ) | | | (2,655 | ) | | | (2,706 | ) | | | — | | | (2,706 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating loss | | | (65 | ) | | | 36 | | | | (29 | ) | | | (28 | ) | | | — | | | (28 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | (92 | ) | | | 16 | (c),(f) | | | (76 | ) | | | (80 | ) | | | — | | | (80 | ) |
Equity in losses of unconsolidated affiliates and investments | | | — | | | | — | | | | — | | | | — | | | | — | | | — | |
Other, net | | | (33 | ) | | | 46 | (c),(f) | | | 13 | | | | 11 | | | | — | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (125 | ) | | | 62 | | | | (63 | ) | | | (69 | ) | | | — | | | (69 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loss before income taxes | | | (190 | ) | | | 98 | | | | (92 | ) | | | (97 | ) | | | — | | | (97 | ) |
| | | | | | |
Income taxes | | | (69 | ) | | | 43 | (b),(c),(d),(e),(f) | | | (26 | ) | | | (46 | ) | | | — | | | (46 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net loss | | $ | (121 | ) | | $ | 55 | | | $ | (66 | ) | | $ | (51 | ) | | $ | — | | $ | (51 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Adjustment to exclude external costs associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (c) | Adjustment to exclude 2009 costs associated with early debt retirements. |
| (d) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities. |
| (e) | Adjustment to exclude 2009 severance charges. |
| (f) | Adjustment to exclude a change in state deferred income taxes. |
14
EXELON CORPORATION
Exelon Generation Statistics
| | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | Sept. 30, 2009 | | Jun. 30, 2009 | | Mar. 31, 2009 | | Dec. 31, 2008 | | Sept. 30, 2008 |
Supply (in GWhs) | | | | | | | | | | | | | | | |
Nuclear | | | 35,684 | | | 34,995 | | | 35,382 | | | 34,887 | | | 36,451 |
Purchased Power | | | 6,669 | | | 5,276 | | | 6,077 | | | 6,100 | | | 8,761 |
Fossil and Hydro | | | 2,689 | | | 2,701 | | | 2,765 | | | 2,162 | | | 2,685 |
| | | | | | | | | | | | | | | |
Power Team Supply | | | 45,042 | | | 42,972 | | | 44,224 | | | 43,149 | | | 47,897 |
| | | | | | | | | | | | | | | |
| |
| | | Three Months Ended |
| | | Sept. 30, 2009 | | Jun. 30, 2009 | | Mar. 31, 2009 | | Dec. 31, 2008 | | Sept. 30, 2008 |
Electric Sales (in GWhs) | | | | | | | | | | | | | | | |
ComEd (a) | | | 3,639 | | | 4,215 | | | 5,537 | | | 5,261 | | | 6,629 |
PECO (a) | | | 10,809 | | | 9,277 | | | 10,223 | | | 9,760 | | | 11,333 |
Market and Retail (a) | | | 30,594 | | | 29,480 | | | 28,464 | | | 28,128 | | | 29,935 |
| | | | | | | | | | | | | | | |
Total Electric Sales (b) (c) | | | 45,042 | | | 42,972 | | | 44,224 | | | 43,149 | | | 47,897 |
| | | | | | | | | | | | | | | |
| | | | | |
Average Margin ($/MWh) | | | | | | | | | | | | | | | |
Average Realized Revenue | | | | | | | | | | | | | | | |
ComEd (a) | | $ | 64.03 | | $ | 63.58 | | $ | 63.21 | | $ | 63.30 | | $ | 64.41 |
PECO (a) | | | 51.35 | | | 51.74 | | | 49.30 | | | 49.28 | | | 53.03 |
Market and Retail (a) | | | 52.99 | | | 54.27 | | | 57.12 | | | 54.18 | | | 65.98 |
Total Electric Sales | | | 53.48 | | | 54.64 | | | 56.08 | | | 54.18 | | | 62.70 |
Average Purchased Power and Fuel Cost (d) | | $ | 17.16 | | $ | 15.68 | | $ | 16.82 | | $ | 15.90 | | $ | 26.16 |
Average Margin (d) | | $ | 36.32 | | $ | 38.96 | | $ | 39.25 | | $ | 38.28 | | $ | 36.54 |
| | | | | |
Around-the-clock Market Prices ($/MWh) (e) | | | | | | | | | | | | | | | |
PJM West Hub | | $ | 33.20 | | $ | 33.70 | | $ | 49.18 | | $ | 52.62 | | $ | 77.37 |
NiHub | | | 25.69 | | | 26.11 | | | 34.09 | | | 38.06 | | | 53.28 |
| (a) | $104 million, $69 million, $31 million and $20 million of pre-tax revenue, and $15 million of a pre-tax reduction in revenue, resulting from the settlement of the ComEd swap starting in June 2008, have been excluded from ComEd and included in Market and Retail sales for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008 and September, 30, 2008, respectively. Additionally, $11 million (397 GWhs), $7 million (209 GWhs), $58 million (898 GWhs), and $29 million (486 GWhs) of pre-tax revenue, resulting from sales to ComEd under the RFP, which started in September 2008, have been excluded from ComEd and included in Market and Retail sales for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively. In addition, renewable energy credits sales to affiliates have been included within Market and Retail Sales. |
| (b) | Excludes retail gas activity, trading portfolio and other operating revenue. |
| (c) | Total sales do not include trading volume of 1,645 GWhs, 2,003 GWhs, 2,331 GWhs, 2,153 GWhs and 3,092 GWhs for the three months ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008 and September 30, 2008, respectively. |
| (d) | Excludes the mark-to-market impact of Generation’s economic hedging activities. |
| (e) | Represents the average for the quarter. |
15
EXELON CORPORATION
Exelon Generation Statistics
Nine Months Ended September 30, 2009 and 2008
| | | | | | |
| | | September 30, 2009 | | September 30, 2008 |
Supply (in GWhs) | | | | | | |
Nuclear | | | 106,061 | | | 104,454 |
Purchased Power | | | 18,022 | | | 20,164 |
Fossil and Hydro | | | 8,155 | | | 8,407 |
| | | | | | |
Power Team Supply | | | 132,238 | | | 133,025 |
| | | | | | |
| | |
| | | September 30, 2009 | | September 30, 2008 |
Electric Sales (in GWhs) | | | | | | |
ComEd (a) | | | 13,391 | | | 17,939 |
PECO (a) | | | 30,309 | | | 31,206 |
Market and Retail (a) | | | 88,538 | | | 83,880 |
| | | | | | |
Total Electric Sales (b) (c) | | | 132,238 | | | 133,025 |
| | | | | | |
| | |
Average Margin ($/MWh) | | | | | | |
Average Realized Revenue | | | | | | |
ComEd (a) | | $ | 63.55 | | $ | 63.83 |
PECO (a) | | | 50.78 | | | 51.34 |
Market and Retail (a) | | | 54.74 | | | 61.93 |
Total Electric Sales | | | 54.70 | | | 59.70 |
Average Purchased Power and Fuel Cost (d) | | $ | 16.58 | | $ | 21.16 |
Average Margin (d) | | $ | 38.12 | | $ | 38.54 |
| | |
Around-the-clock Market Prices ($/MWh) (e) | | | | | | |
PJM West Hub | | $ | 38.64 | | $ | 73.86 |
NiHub | | | 28.59 | | | 52.68 |
| (a) | $204 million of pre-tax revenue, and $22 million of a pre-tax reduction in revenue, resulting from the settlement of the ComEd swap starting in June 2008, have been excluded from ComEd and included in Market and Retail sales for the nine months ended September 30, 2009 and September 30, 2008, respectively. Additionally, $76 million (1,504 GWhs) of pre-tax revenue, resulting from sales to ComEd under the RFP, which started in September 2008, have been excluded from ComEd and included in Market and Retail sales for the nine months ended September 30, 2009. In addition, renewable energy credits sales to affiliates have been included within Market and Retail Sales. |
| (b) | Excludes retail gas sales, trading portfolio and other operating revenue. |
| (c) | Total sales do not include trading volume of 5,979 GWhs and 6,738 GWhs for the nine months ended September 30, 2009 and 2008, respectively. |
| (d) | Excludes the mark-to-market impact of Generation’s economic hedging activities. |
| (e) | Represents the average for the year. |
16
EXELON CORPORATION
ComEd Statistics
Three Months Ended September 30, 2009 and 2008
| | | | | | | | | | | | | | | | |
| | | Electric Deliveries (in GWhs) | | | Revenue (in millions) | |
| | | 2009 | | 2008 | | % Change | | | 2009 | | 2008 | | % Change | |
Full Service (a) | | | | | | | | | | | | | | | | |
Residential | | 6,983 | | 8,114 | | (13.9 | )% | | $ | 797 | | $ | 950 | | (16.1 | )% |
Small Commercial & Industrial | | 3,494 | | 4,047 | | (13.7 | )% | | | 333 | | | 428 | | (22.2 | )% |
Large Commercial & Industrial | | 295 | | 319 | | (7.5 | )% | | | 17 | | | 31 | | (45.2 | )% |
Public Authorities & Electric Railroads | | 98 | | 168 | | (41.7 | )% | | | 10 | | | 14 | | (28.6 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Total Full Service | | 10,870 | | 12,648 | | (14.1 | )% | | | 1,157 | | | 1,423 | | (18.7 | )% |
| | | | | | | | | | | | | | | | |
Delivery Only (b) | | | | | | | | | | | | | | | | |
Residential (c) | | 1 | | — | | n.m. | | | | — | | | — | | n.m. | |
Small Commercial & Industrial | | 4,954 | | 4,932 | | 0.4 | % | | | 88 | | | 75 | | 17.3 | % |
Large Commercial & Industrial | | 6,627 | | 7,379 | | (10.2 | )% | | | 85 | | | 78 | | 9.0 | % |
Public Authorities & Electric Railroads | | 189 | | 137 | | 38.0 | % | | | 3 | | | 2 | | 50.0 | % |
| | | | | | | | | | | | | | | | |
Total Delivery Only | | 11,771 | | 12,448 | | (5.4 | )% | | | 176 | | | 155 | | 13.5 | % |
| | | | | | | | | | | | | | | | |
Total Retail | | 22,641 | | 25,096 | | (9.8 | )% | | | 1,333 | | | 1,578 | | (15.5 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Other Revenue(d) | | | | | | | | | | 142 | | | 151 | | (6.0 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Total Revenues | | | | | | | | | $ | 1,475 | | $ | 1,729 | | (14.7 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Purchased Power | | | | | | | | | $ | 776 | | $ | 1,068 | | (27.3 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Heating and Cooling Degree-Days (e) | | 2009 | | 2008 | | Normal | | | | | | | | |
Heating Degree-Days | | 77 | | 53 | | 110 | | | | | | | | | | |
Cooling Degree-Days | | 412 | | 626 | | 624 | | | | | | | | | | |
| (a) | Reflects deliveries to customers purchasing electricity from ComEd. |
| (b) | Reflects customers electing to purchase electricity from an alternative electric generation supplier. |
| (c) | There were a minimal number of residential customers being served by alternative electric generation suppliers with total revenue of less than $1 million. |
| (d) | Other revenue primarily includes transmission revenue from PJM Interconnection, LLC (PJM). Other items include late payment charges and mutual assistance program revenues. |
| (e) | Reflects the impact of the leap year day in 2008. |
Nine Months Ended September 30, 2009 and 2008
| | | | | | | | | | | | | | | | |
| | | Electric Deliveries (in GWhs) | | | Revenue (in millions) | |
| | | 2009 | | 2008 | | % Change | | | 2009 | | 2008 | | % Change | |
Full Service (a) | | | | | | | | | | | | | | | | |
Residential | | 20,078 | | 21,521 | | (6.7 | )% | | $ | 2,374 | | $ | 2,444 | | (2.9 | )% |
Small Commercial & Industrial | | 10,445 | | 11,392 | | (8.3 | )% | | | 1,038 | | | 1,169 | | (11.2 | )% |
Large Commercial & Industrial | | 924 | | 803 | | 15.1 | % | | | 56 | | | 73 | | (23.3 | )% |
Public Authorities & Electric Railroads | | 305 | | 481 | | (36.6 | )% | | | 32 | | | 40 | | (20.0 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Total Full Service | | 31,752 | | 34,197 | | (7.1 | )% | | | 3,500 | | | 3,726 | | (6.1 | )% |
| | | | | | | | | | | | | | | | |
Delivery Only (b) | | | | | | | | | | | | | | | | |
Residential (c) | | 1 | | — | | n | .m. | | | — | | | — | | n.m. | |
Small Commercial & Industrial | | 13,892 | | 14,029 | | (1.0 | )% | | | 244 | | | 211 | | 15.6 | % |
Large Commercial & Industrial | | 19,240 | | 21,133 | | (9.0 | )% | | | 238 | | | 215 | | 10.7 | % |
Public Authorities & Electric Railroads | | 603 | | 423 | | 42.6 | % | | | 10 | | | 5 | | 100.0 | % |
| | | | | | | | | | | | | | | | |
Total Delivery Only | | 33,736 | | 35,585 | | (5.2 | )% | | | 492 | | | 431 | | 14.2 | % |
| | | | | | | | | | | | | | | | |
Total Retail | | 65,488 | | 69,782 | | (6.2 | )% | | | 3,992 | | | 4,157 | | (4.0 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Other Revenue (d) | | | | | | | | | | 425 | | | 437 | | (2.7 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Total Revenues | | | | | | | | | $ | 4,417 | | $ | 4,594 | | (3.9 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Purchased Power | | | | | | | | | $ | 2,373 | | $ | 2,729 | | (13.0 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Heating and Cooling Degree-Days (e) | | 2009 | | 2008 | | Normal | | | | | | | | |
Heating Degree-Days | | 4,165 | | 4,225 | | 4,084 | | | | | | | | | | |
Cooling Degree-Days | | 589 | | 818 | | 848 | | | | | | | | | | |
| (a) | Reflects deliveries to customers purchasing electricity from ComEd. |
| (b) | Reflects customers electing to purchase electricity from an alternative electric generation supplier. |
| (c) | There were a minimal number of residential customers being served by alternative electric generation suppliers with total revenue of less than $1 million. |
| (d) | Other revenue primarily includes transmission revenue from PJM Interconnection, LLC (PJM). Other items include late payment charges and mutual assistance program revenues. |
| (e) | Reflects the impact of the leap year day in 2008. |
17
EXELON CORPORATION
PECO Statistics
Three Months Ended September 30, 2009 and 2008
| | | | | | | | | | | | | | | | |
| | | Electric and Gas Deliveries | | | Revenue (in millions) | |
| | | 2009 | | 2008 | | % Change | | | 2009 | | 2008 | | % Change | |
Electric (in GWhs) | | | | | | | | | | | | | | | | |
Full Service (a) | | | | | | | | | | | | | | | | |
Residential | | 3,501 | | 3,802 | | (7.9 | )% | | $ | 547 | | $ | 591 | | (7.4 | )% |
Small Commercial & Industrial | | 2,128 | | 2,258 | | (5.8 | )% | | | 286 | | | 293 | | (2.4 | )% |
Large Commercial & Industrial | | 4,294 | | 4,445 | | (3.4 | )% | | | 339 | | | 376 | | (9.8 | )% |
Public Authorities & Electric Railroads | | 233 | | 221 | | 5.4 | % | | | 22 | | | 22 | | 0.0 | % |
| | | | | | | | | | | | | | | | |
Total Full Service | | 10,156 | | 10,726 | | (5.3 | )% | | | 1,194 | | | 1,282 | | (6.9 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Delivery Only (b) | | | | | | | | | | | | | | | | |
Residential | | 5 | | 9 | | (44.4 | )% | | | 1 | | | 1 | | 0.0 | % |
Small Commercial & Industrial | | 95 | | 131 | | (27.5 | )% | | | 5 | | | 7 | | (28.6 | )% |
Large Commercial & Industrial | | 7 | | 1 | | 600.0 | % | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | | | | |
Total Delivery Only | | 107 | | 141 | | (24.1 | )% | | | 6 | | | 8 | | (25.0 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Total Electric Retail | | 10,263 | | 10,867 | | (5.6 | )% | | | 1,200 | | | 1,290 | | (7.0 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Other Revenue (c) | | | | | | | | | | 65 | | | 76 | | (14.5 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Total Electric Revenue | | | | | | | | | | 1,265 | | | 1,366 | | (7.4 | )% |
| | | | | | | | | | | | | | | | |
Gas (in mmcfs) | | | | | | | | | | | | | | | | |
Retail Sales | | 3,694 | | 3,794 | | (2.6 | )% | | | 55 | | | 70 | | (21.4 | )% |
Transportation and Other | | 6,145 | | 6,455 | | (4.8 | )% | | | 7 | | | 5 | | 40.0 | % |
| | | | | | | | | | | | | | | | |
Total Gas | | 9,839 | | 10,249 | | (4.0 | )% | | | 62 | | | 75 | | (17.3 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Total Electric and Gas Revenues | | | | | | | | | $ | 1,327 | | $ | 1,441 | | (7.9 | )% |
| | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | $ | 625 | | $ | 693 | | (9.8 | )% |
Fuel | | | | | | | | | | 26 | | | 50 | | (48.0 | )% |
| | | | | | | | | | | | | | | | |
Total Purchased Power and Fuel | | | | | | | | | $ | 651 | | $ | 743 | | (12.4 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Heating and Cooling Degree-Days | | 2009 | | 2008 | | Normal | | | | | | | | |
Heating Degree-Days | | 19 | | 12 | | 36 | | | | | | | | | | |
Cooling Degree-Days | | 884 | | 942 | | 939 | | | | | | | | | | |
Nine Months Ended September 30, 2009 and 2008
| | | | | | | | | | | | | | | | |
| | | Electric and Gas Deliveries | | | Revenue (in millions) | |
| | | 2009 | | 2008 | | % Change | | | 2009 | | 2008 | | % Change | |
Electric (in GWhs) | | | | | | | | | | | | | | | | |
Full Service (a) | | | | | | | | | | | | | | | | |
Residential | | 9,788 | | 10,151 | | (3.6 | )% | | $ | 1,428 | | $ | 1,485 | | (3.8 | )% |
Small Commercial & Industrial | | 6,155 | | 6,257 | | (1.6 | )% | | | 787 | | | 793 | | (0.8 | )% |
Large Commercial & Industrial | | 11,961 | | 12,520 | | (4.5 | )% | | | 995 | | | 1,074 | | (7.4 | )% |
Public Authorities & Electric Railroads | | 702 | | 681 | | 3.1 | % | | | 68 | | | 66 | | 3.0 | % |
| | | | | | | | | | | | | | | | |
Total Full Service | | 28,606 | | 29,609 | | (3.4 | )% | | | 3,278 | | | 3,418 | | (4.1 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Delivery Only (b) | | | | | | | | | | | | | | | | |
Residential | | 17 | | 24 | | (29.2 | )% | | | 2 | | | 2 | | 0.0 | % |
Small Commercial & Industrial | | 277 | | 370 | | (25.1 | )% | | | 15 | | | 20 | | (25.0 | )% |
Large Commercial & Industrial | | 9 | | 3 | | 200.0 | % | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | | | | |
Total Delivery Only | | 303 | | 397 | | (23.7 | )% | | | 17 | | | 22 | | (22.7 | )% |
| | | | | | |
Total Electric Retail | | 28,909 | | 30,006 | | (3.7 | )% | | | 3,295 | | | 3,440 | | (4.2 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Other Revenue (c) | | | | | | | | | | 200 | | | 212 | | (5.7 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Total Electric Revenue | | | | | | | | | | 3,495 | | | 3,652 | | (4.3 | )% |
| | | | | | | | | | | | | | | | |
Gas (in mmcfs) | | | | | | | | | | | | | | | | |
Retail Sales | | 39,444 | | 36,979 | | 6.7 | % | | | 530 | | | 522 | | 1.5 | % |
Transportation and Other | | 20,128 | | 20,806 | | (3.3 | )% | | | 20 | | | 21 | | (4.8 | )% |
| | | | | | | | | | | | | | | | |
Total Gas | | 59,572 | | 57,785 | | 3.1 | % | | | 550 | | | 543 | | 1.3 | % |
| | | | | | | | | | | | | | | | |
| | | | | | |
Total Electric and Gas Revenues | | | | | | | | | $ | 4,045 | | $ | 4,195 | | (3.6 | )% |
| | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | $ | 1,742 | | $ | 1,859 | | (6.3 | )% |
Fuel | | | | | | | | | | 346 | | | 397 | | (12.8 | )% |
| | | | | | | | | | | | | | | | |
Total Purchased Power and Fuel | | | | | | | | | $ | 2,088 | | $ | 2,256 | | (7.4 | )% |
| | | | | | | | | | | | | | | | |
| | | | | | |
Heating and Cooling Degree-Days (d) | | 2009 | | 2008 | | Normal | | | | | | | | |
Heating Degree-Days | | 2,967 | | 2,744 | | 3,004 | | | | | | | | | | |
Cooling Degree-Days | | 1,236 | | 1,335 | | 1,271 | | | | | | | | | | |
| (a) | Full service reflects deliveries to customers purchasing electricity directly from PECO. Revenue reflects the cost of energy, the cost of the transmission and the distribution of the energy and a CTC. |
| (b) | Delivery only service reflects deliveries to customers electing to receive electric generation service from a competitive electric generation supplier. Revenue reflects a distribution charge and a CTC. |
| (c) | Other revenue includes transmission revenue from PJM, wholesale revenue and other wholesale energy sales. |
| (d) | Reflects the impact of the leap year day in 2008. |
18
