Peco Energy 8-K Raises Full-year Operating Earnings Guidance Range

Earnings Conference Call

3

rd

Quarter 2012

November 1

, 2012

Exhibit 99.2

st

Cautionary Statements Regarding

Forward-Looking Information

1

2012 3Q Earnings Release Slides

2012 3Q Earnings Release Slides

This presentation contains certain forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual

results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth

Edison Company, PECO Energy Company, Baltimore Gas and Electric Company and Exelon Generation

Company, LLC (Registrants) include those factors discussed herein, as well as the items discussed in (1) 

Exelon’s 2011 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) Constellation Energy Group’s 2011 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 12; (3) the

Registrant’s Second Quarter 2012 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A.

Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial

Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note

16; and (4) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to

place undue reliance on these forward-looking statements, which apply only as of the date of this

presentation. None of the Registrants undertakes any obligation to publicly release any revision to its forward-

looking statements to reflect events or circumstances after the date of this presentation.

2012 3Q Earnings Release Slides

2

3Q Update

•

Strong 3Q financial performance

Operating

earnings

of

$0.77/share,

above

$0.65

-

$0.75/share

guidance

range

•

Expect 2012 full year operating earnings of $2.75 -

$2.95/share

Guidance increase driven by year-to-date financial performance and ICC Rehearing

Order

•

Merger is working

Expect

to

achieve

$170M

in

merger

related

O&M

synergies

for

2012

and

$550M

run

rate synergies starting in 2014

Includes additional $50M of O&M reductions starting in 2014

Expect to close Maryland asset divestiture in 4Q 2012

Benefiting from well-matched generation and load footprint

Integrated operations are seamless

Market Fundamentals: Upside in Power Prices

3

Medium & Long Term (2014+)

Market Dynamics

•

Low

gas

prices

and

MATS

(4)

rule

are

major

drivers

of

coal

retirements

•

~42

GW

of

coal

retirements

expected 

(2)

.

Includes

~27

GW

of

retirements in 2014-2016

•

Internal view of $3-6/MWh upside in power prices not currently

reflected in forward prices

•

Over 40% open in 2014, over 75% open in 2015 and mostly open in

2016 and beyond

•

Use of cross-commodity hedges leaves even more upside to heat rate

expansion

Expected upside is the result of plant retirements, higher operating costs for

compliance with environmental standards and a continued disconnect between

heat rates and gas prices

PJM NiHub

ATC Power

(Forecast vs

Market)

(5)

-

1

2

3

4

5

6

7

2013

2014

2015

2016

2017

Retirement/Environmental

Market Discount/Other

PJM West Hub ATC Power (Forecast vs

Market)

(5)

-

1

2

3

4

5

6

7

2013

2014

2015

2016

2017

Retirement/Environmental

Market Discount/Other

(1)

Cross State Air Pollution Rule.

(2)

Retirements estimate is for the Eastern Interconnect as per Exelon’s internal

projections.

(3)

Portfolio hedge percentages are shown as of 9/30/12.

(5)

Mercury and Air Toxics Standards.

(6)

Upside figures are rounded to the nearest $0.50/MWh and are based on 9/30/12

pricing.

         Note: Internal views assume normal weather patterns.

Market Dynamics

•

No

major

impact

on

power

prices

from

CSAPR

(1)

being

vacated

•

~15 GW of retirements expected

(2)

•

Volatile heat rates in 2012 due to volatile gas prices and

weather

•

Fully hedged in 2012 and greater than 85% hedged in 2013

Current & Near Term (2012/2013)

2012 3Q Earnings Release Slides

Portfolio

Portfolio

Impact

(3)

Impact

(3)

4

Exelon Generation: Load Serving Update

2012 3Q Earnings Release Slides

Strategy

•

Serve new customers as existing markets grow

and new markets open

Retail expected to grow at ~11% CAGR for 2011-

2015

Wholesale expected to remain static starting in

2013

•

Improve market share in existing markets

•

Cross sell suite of products to existing

customers  to create higher retention

•

Leverage operational efficiency and national

footprint

2012E

30-40%

60-70%

165

175

2013E

25-35%

185

2015E

2014E

20-30%

170

55-65%

35-45%

2011A

170

90

80

Wholesale Load

Total Contracted

Retail Load

Retail & Wholesale Load (TWh)

(1)

65-75%

70-80%

(1)

(2)

(2)

2012 3Q Earnings Release Slides

+9%

0

50

100

150

200

•

Expected load growth of 1% across the U.S.

•

Switched market expected to grow by

approximately 11% in C&I from 2011 to 2015

•

Switched market expected to grow by

approximately 22% in residential from 2011 to

2015

Retail Landscape

•

Recently, the market has been impacted by

increased competition and aggressive pricing

•

Our disciplined approach to pricing has led to a

reduction in expected volumes and margins

•

Various channels to market are available to

optimize our generation

Execution

Numbers and percentages are rounded to the nearest 5.

Index load expected to be 20% to 30% of total forecasted retail load.

2012 3Q Earnings Release Slides

5

Exelon Generation: Gross Margin Update

September  30, 2012

June 30, 2012

Gross Margin Category ($M)

(1)

2012

(2)

2013

2014

2015

2012

(2)

2013

2014

Open Gross Margin

(2,3,4)

(including South, West, Canada hedged gross margin)

$4,500

$5,750

$6,050

$6,200

$4,450

$5,400

$5,850

Mark-to-Market of Hedges

(4,5)

$3,200

$1,350

$500

$250

$3,100

$1,650

$600

Power New Business / To Go

$50

$500

$750

$950

$100

$550

$850

Non-Power Margins Executed

$300

$150

$100

$50

$250

$100

$100

Non-Power New Business / To Go

$100

$450

$500

$550

$150

$500

$500

Total Gross Margin

$8,150

$8,200

$7,900

$8,000

$8,050

$8,200

$7,900

(1) Gross margin rounded to nearest $50M.

(2)

(3)

Excludes

Maryland

assets

to

be

divested. 

(4) Includes

CENG

Joint

Venture.

(5)

Key Highlights of 3Q 2012

•

We

have

optimized

our

hedging

during

this

volatile

period

and

are

back

on

ratable

•

Expect

to

employ

a

variety

of

strategies

to

leverage

ourselves

for

expected

upside

Position our regional portfolios within our Bull/Bear framework to best take advantage of various market anomalies

Further utilize cross-commodity hedges to protect against further downside in the natural gas market, while remaining

open to our view that heat rates will expand

Our forward view continues to be that there is upside in power prices and our

fleet is leveraged for that upside

September

30 

gross

margins

reflect

our

new

expectations

for

wholesale

and

retail

load

volumes

and

margins

Forward

power

market

prices

experienced

sizeable

swings

through

the

3 

quarter

th

rd

Stub period calculated by excluding Jan 2012 through mid-March 2012 for Constellation only.

Mark to Market of Hedges assumes mid-point of hedge percentages.

Exelon’s Financial Priorities & Actions

6

2012 3Q Earnings Release Slides

Priorities

•

Number one priority is to maintain

investment grade across all

registrants

•

Second priority is return value to our

shareholders through our dividend

•

Third priority is investing in

sustainable growth projects

Actions

•

Significant reduction in capital

expenditures in 2013-2015

•

Deferral of Limerick and LaSalle

uprates to allow for power market

recovery

•

Removed unidentified renewable

capex

•

Further reduction in O&M of $50M

starting in 2014

2012 3Q Earnings Release Slides

Taking action to meet our top priorities through changes in spending plans and 

timing  of  investments to align with a power market recovery

Updating Exelon Generation Growth Capital Spend

7

•

Nuclear uprates capex reduced by $1,025M in 2012-2015

-

Deferred Limerick EPU project completion from 2017 to 2021

-

Deferred LaSalle EPU project completion another two years from 2018 to 2020

•

Eliminated unidentified wind and solar capex of $1,250M in 2013-2015

-

Renewable projects will be pursued in the future if they meet our internal parameters

•

Peach Bottom EPU project to be completed as planned

-

Strong returns (well above 10% IRR on a go forward basis) under range of different pricing scenarios

-

Invested $55M to date, at ownership level

-

At

ownership,

project

is

smallest

of

the

EPUs

with

total

capex

of

$415M

through

2016;

limited

impact

on

balance sheet

•

Maintained Upstream Gas spend

-

Strong returns (>12% IRR)

-

Off-balance sheet financing

2012 3Q Earnings Release Slides

ExGen Growth Capex (June 2012 Analyst Day)

(in $M)

300

100

50

75

100

2015

200

100

2014

275

175

2013

850

575

225

2012

(1)

1,675

625

675

Wind

Solar

Upstream Gas

Nuclear Uprates

(in $M)

ExGen Growth Capex (3Q 2012)

(1)

2012 CapEx includes CEG from merger close date.

EPU = Extended Power Uprate

400

375

475

50

100

100

425

1,125

2014

175

2013

1,225

75

675

2012

(1)

1,775

650

625

Nuclear Uprates

Upstream Gas

Solar

Wind

2012 3Q Earnings Release Slides

2012 3Q Earnings Release Slides

8

ComEd Regulatory Update

•

ICC Rehearing Order (issued 10/3/12) on pension asset, interest rate on cost

reconciliation and average vs. year-end rate base

Reversed

decision

on

pension

asset

by

granting

ComEd

recovery

on

the

cost

of

funding its pension

Upheld the decision to use average rate base (vs. ComEd’s position of using year

end rate base)

Revised the decision on interest on reconciliation balances, granting a rate equal

to the short term debt rate (vs. ComEd’s view of using WACC rate)

•

As a result of the order, ComEd has deferred $450 million of capital

expenditures from 2012-2014 to 2015 and beyond

•

Filed a notice of appeal on 10/4/12 to challenge the interest rate on

reconciliation and average rate base issues plus other items lost in May

2012 order

2012 3Q Earnings Release Slides

9

3Q 2012 Operating Results

•

Delivered non-GAAP operating earnings in 3Q of

$0.77/share

(1)

, above guidance expectations,

primarily due to:

ExGen

•

Portfolio optimization of $0.07/share

•

Lower than expected nuclear volume of

$(0.03)/share

ComEd

•

Favorable weather of $0.01/share

PECO

•

Favorable weather of $0.01/share

•

Higher than expected benefit of $0.02/share from

gas distribution tax repairs deduction

3Q 2012

$0.77

$0.53

$0.10

$0.14

$0.00

HoldCo

ExGen

ComEd

PECO

BGE

2012 3Q Results

(1)

Refer to Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP) operating EPS to GAAP EPS.

2012 Projected Sources and Uses of Cash

10

($ in Millions)

2012 3Q Earnings Release Slides

(1)

Exelon beginning cash balance as of  12/31/11. Excludes counterparty collateral activity.

(2)

Includes $675 million of Constellation net collateral paid to counterparties prior to merger completion.

(3)

Cash Flow from Operations primarily includes net cash flows provided by operating activities, estimated proceeds from Maryland clean coal fleet divestitures and net cash flows used in

investing activities other than capital expenditures. 

(4)

Dividends are subject to declaration by the Board of Directors.

(5)

Excludes PECO’s $225 million Accounts Receivable (A/R) Agreement with Bank of Tokyo. PECO’s A/R Agreement was extended in accordance with its terms through August 30, 2013.

(6)

“Other”

includes proceeds from options and expected changes in short-term debt.

(7)

Includes cash flow activity from Holding Company, eliminations, and other corporate entities.  Represents Constellation cash flows from merger close through December 31, 2012.

(7)

Beginning Cash Balance

(1)

$550

Cash acquired from Constellation

(2)

150

n/a

n/a

1,375

1,650

Cash Flow from Operations

(3)

250

1,175

900

3,475

5,825

CapEx (excluding other items below):

(425)

(1,225)

(350)

(975)

(3,050)

Nuclear Fuel

n/a

n/a

n/a

(1,150)

(1,150)

Dividend

(4)

(1,725)

Nuclear Uprates

n/a

n/a

n/a

(300)

(300)

Wind

n/a

n/a

n/a

(625)

(625)

Solar

n/a

n/a

n/a

(675)

(675)

Upstream

n/a

n/a

n/a

(75)

(75)

Utility Smart Grid/Smart Meter

(75)

(50)

(75)

n/a

(200)

Net Financing (excluding Dividend):

Debt Issuances

(5)

250

350

350

775

1,725

Debt Retirements

(175)

(450)

(375)

(125)

(1,125)

Project Finance/Federal Financing Bank

Loan

n/a

n/a

n/a

375

375

Other

(6)

25

(25)

(100)

Ending Cash Balance

(1)

$1,100

2012 3Q Earnings Release Slides

11

2012 Earnings Guidance

2012 Prior Guidance

$2.55 -

$2.85

(1)

$0.30 -

$0.40

$0.40

-

$0.50

$0.05

-

$0.15

HoldCo

ExGen

ComEd

PECO

BGE

(1)

2012 Revised Guidance

$2.75 -

$2.95

(1)

$0.45 -

$0.50

$0.40

-

$0.50

$0.05

-

$0.10

HoldCo

ExGen

ComEd

PECO

BGE

+ Impact of ICC Rehearing

Order on ComEd’s earnings

+ Higher than expected RNF

at ExGen in 3Q 2012

$1.75 -

$1.95

$1.85 -

$1.95

Updated

FY

2012

operating

earnings

to

$2.75

-

$2.95/share

2012 guidance includes Constellation Energy and BGE earnings for March 12 – December 31, 2012. Based on expected 2012 average outstanding shares of 819M.  Guidance incorporates

preliminary cost estimates of the impact of Hurricane Sandy. Earnings guidance for OpCos may not add up to consolidated EPS guidance.

Key Drivers of Change

in Full Year Guidance

2012 3Q Earnings Release Slides

12

Wrap Up

•

Strong financial performance in 2012; increasing and tightening our full year

2012 earnings guidance to $2.75 -

$2.95/share

•

Expect $3 –

6/MWh upside to materialize in the forward curves in 2013

•

Right platform to take advantage of a power market recovery

•

Investment grade ratings and dividend are our top priorities

•

Timing our investments to align with a power market recovery

Commitment to protect and create shareholder value

13

APPENDIX

2012 3Q Earnings Release Slides

14

Exelon Generation Disclosures

September 30, 2012

2012 3Q Earnings Release Slides

15

Portfolio Management Strategy

Protect Balance Sheet

Ensure Earnings Stability

Create Value

Align Hedging & Financials

Establishing Minimum Hedge Targets

Capital

Structure

Dividend

Capital &

Operating

Expenditure

Credit Rating

High End of Profit

Low End of Profit

% Hedged

Open Generation

with LT Contracts

Portfolio Management &

Optimization

Portfolio Management Over Time

Exercising Market Views

Purely ratable

Actual hedge %

Market views on timing, product

allocation and regional spreads

reflected in actual hedge %

Strategic Policy Alignment

•Aligns hedging program with

financial policies and financial

outlook

•Establish minimum hedge targets

to meet financial objectives of the

company (dividend, credit rating)

•Hedge enough commodity risk to

meet future cash requirements

under a stress scenario

Three-Year Ratable Hedging

•Ensure stability in near-term cash

flows and earnings

•Disciplined approach to hedging

•Tenor aligns with customer

preferences and market liquidity

•Multiple channels to market that

allow us to maximize margins

•Large open position in outer years

to benefit from price upside

Bull / Bear Program

•Ability to exercise fundamental

market views to create value within

the ratable framework

•Modified timing of hedges versus

purely ratable

•Cross-commodity hedging (heat

rate positions, options, etc.)

•Delivery locations, regional and

zonal spread relationships

2012 3Q Earnings Release Slides

16

Components of Gross Margin Categories

2012 3Q Earnings Release Slides

2012 3Q Earnings Release Slides

Margins move from new business to MtM of hedges over

the course of the year as sales are executed

Margins move from “Non power new business”

to

“Non power executed”

over the course of the year

Open Gross

Margin

MtM of

Hedges

(2)

“Power”

New

Business

“Non Power”

Executed

“Non Power”

New Business

Gross margin linked to power production and sales

Gross margin from

other business activities

•

MtM of power,

capacity and

ancillary hedges,

including cross

commodity, retail

and wholesale

load transactions

•

Provided directly

at a consolidated

level for five major

regions. Provided

indirectly for each

of the five major

regions via EREP,

reference price,

hedge %, expected

generation

•

Generation Gross

Margin at current

market prices,

including capacity

& ancillary

revenues, nuclear fuel

amortization

and fossils fuels

expense

•

Exploration and

Production

•

PPA Costs & Revenues

•

Provided at a

consolidated level for

all regions (includes

hedged gross margin

for South, West &

Canada

(1)

)

•

Retail, Wholesale

planned electric

sales

•

Portfolio

Management new

business

•

Mid marketing

new business

•

Retail, Wholesale 

executed gas sales

•

Load Response

•

Energy Efficiency

•

BGE Home

•

Distributed Solar

•

Retail, Wholesale

planned gas sales

•

Load Response

•

Energy Efficiency

•

BGE Home

•

Distributed Solar

•

Portfolio

Management /

origination fuels

new business

•

Proprietary trading

(3)

(1) Hedged gross margins for South, West & Canada region will be included with Open Gross Margin, and no expected generation, hedge %, EREP or reference prices provided for this region.

(2) MtM of hedges provided directly for the five larger regions. MtM of hedges is not provided directly at the regional level but can be easily estimated using EREP, reference price and hedged MWh.

(3) Proprietary trading gross margins will remain within “Non Power” New Business category and not move to “Non Power” Executed category.

17

ExGen Disclosures 

Gross Margin Category ($M)

(1,2)

2012

(3)

2013

2014

2015

Open Gross Margin

(including South, West & Canada hedged GM)

(4,5)

$4,500

$5,750

$6,050

$6,200

Mark to Market of Hedges

(5,6)

$3,200

$1,350

$500

$250

Power New Business / To Go

$50

$500

$750

$950

Non-Power Margins Executed

$300

$150

$100

$50

Non-Power New Business / To Go

$100

$450

$500

$550

Total Gross Margin

$8,150

$8,200

$7,900

$8,000

Reference Prices

(7)

2012

2013

2014

2015

Henry Hub Natural Gas ($/MMbtu)

$2.77

$3.84

$4.18

$4.37

Midwest: NiHub ATC prices ($/MWh)

$28.95

$30.59

$31.34

$32.32

Mid-Atlantic: PJM-W ATC prices ($/MWh)

$33.93

$38.24

$39.44

$40.77

ERCOT-N ATC Spark Spread ($/MWh)

HSC Gas, 7.2HR, $2.50 VOM

$3.67

$8.37

$8.30

$7.15

New York: NY Zone A ($/MWh)

$30.85

$35.19

$35.98

$36.55

New England: Mass Hub ATC Spark Spread($/MWh)

ALQN Gas, 7.5HR, $0.50 VOM

$6.72

$4.42

$3.79

$4.07

2012 3Q Earnings Release Slides

2012 3Q Earnings Release Slides

(1)

Gross margin does not include revenue related to decommissioning, Exelon Nuclear Partners

and entities consolidated solely as a result of the application of FIN 46R.

(2)

Gross margin rounded to nearest $50M.

(3)

Stub period calculated by excluding Jan 2012 through mid-March 2012 for Constellation

only.

(4)

Excludes Maryland assets to be divested.

(5)

Includes CENG Joint Venture.

(6)

(7)

Based on September 30, 2012 market conditions.

Mark

to

Market

of

Hedges

assumes

mid

-

point

of

hedge

percentages.

18

ExGen Disclosures

Generation and Hedges

2012

(1)

2013

2014

2015

Exp. Gen (GWh)

(4)

219,500

218,700

211,400

209,800

Midwest

100,700

97,400

97,500

99,000

Mid-Atlantic

(2,3)

71,800

75,000

72,200

71,800

ERCOT

19,900

18,500

16,900

15,800

New York

(3)

13,000

13,800

10,900

9,300

New England

14,100

14,000

13,900

13,900

% of Expected Generation Hedged

(5)

99-102%

88-91%

56-59%

21-24%

Midwest

99-102%

89-92%

56-59%

20-23%

Mid-Atlantic

(2,3)

99-102%

88-91%

57-60%

24-27%

ERCOT

96-99%

78-81%

53-56%

28-31%

New York

(3)

98-101%

92-95%

61-64%

15-18%

New England

97-100%

89-92%

51-54%

11-14%

Effective Realized Energy Price ($/MWh)

(6)

Midwest

$42.00

$38.00

$35.00

$34.50

Mid-Atlantic

(2,3)

$56.00

$48.00

$47.50

$50.50

ERCOT

(7)

$9.00

$7.50

$5.00

$5.00

New York

(3)

$44.00

$36.00

$35.00

$52.00

New England

(7)

$8.00

$7.00

$4.00

$5.00

2012 3Q Earnings Release Slides

2012 3Q Earnings Release Slides

(1) Stub period calculated by excluding Jan 2012 through mid-March 2012 for Constellation only. (2) Excludes Maryland assets to be divested (3) Includes CENG Joint Venture. (4) Expected

generation represents the amount of energy estimated to be generated or purchased through owned or contracted for capacity.  Expected generation is based upon a simulated dispatch model

that makes assumptions regarding future market conditions, which are calibrated to market quotes for power, fuel, load following products, and options. Expected generation assumes 10

refueling outages in 2012 and 2013 and 11 refueling outages in 2014 and 2015 at Exelon-operated nuclear plants and Salem but excludes CENG.  Expected generation assumes capacity

factors of 92.8%, 93.5%, 93.8%, and 93.3% in 2012, 2013, 2014 and 2015 at Exelon-operated nuclear plants excluding Salem and CENG. These estimates of expected generation in 2012,

2013, 2014 and 2015 do not represent guidance or a forecast of future results as Exelon has not completed its planning or optimization processes for those years.  (5) Percent of expected

generation hedged is the amount of equivalent sales divided by expected generation.  Includes all hedging products, such as wholesale and retail sales of power, options and swaps. Uses

expected value on options. (6) Effective realized energy price is representative of an all-in hedged price, on a per MWh basis, at which expected generation has been hedged.  It is developed by

considering the energy revenues and costs associated with our hedges and by considering the fossil fuel that has been purchased to lock in margin. It excludes uranium costs and RPM

capacity revenue, but includes the mark-to-market value of capacity contracted at prices other than RPM clearing prices including our load obligations.  It can be compared with the reference

prices used to calculate open gross margin in order to determine the mark-to-market value of Exelon Generation's energy hedges. (7) Spark spreads shown for ERCOT and New England.

19

ExGen Hedged Gross Margin Sensitivities

Gross Margin Sensitivities (With Existing Hedges) 

(1, 4)

2012

2013

2014

2015

Henry Hub Natural Gas ($/MMbtu)

(2)

+ $1/MMbtu

$(5)

$55

$400

$780

-

$1/MMbtu

$25

$(15)

$(325)

$(700)

NiHub ATC Energy Price

+ $5/MWh

$(5)

$40

$230

$390

-

$5/MWh

$5

$(35)

$(230)

$(385)

PJM-W ATC Energy Price

(2)

+ $5/MWh

$(5)

$50

$165

$295

-

$5/MWh

$5

$(40)

$(160)

$(285)

NYPP Zone A ATC Energy Price

+ $5/MWh

$5

$15

$35

$45

-

$5/MWh

$(5)

$(15)

$(35)

$(45)

Nuclear Capacity Factor

(3)

+/-

1%

+/-

$10

+/-

$40

+/-

$45

+/-

$45

2012 3Q Earnings Release Slides

2012 3Q Earnings Release Slides

(1) Based on September 30, 2012 market conditions and hedged position. Gas price sensitivities are based on an assumed gas-power relationship derived from an internal model

that is updated periodically. Power prices sensitivities are derived by adjusting the power price assumption while keeping all other prices inputs constant. Due to correlation of the

various assumptions, the hedged gross margin impact calculated by aggregating individual sensitivities may not be equal to the hedged gross margin impact calculated when

correlations between the various assumptions are also considered. (2) Excludes Maryland assets to be divested. (3) Includes CENG Joint Venture (4) Sensitivities based on

commodity exposure which includes open generation and all committed transactions.

20

Exelon Generation Hedged Gross Margin Upside/Risk

2012 3Q Earnings Release Slides

2012 3Q Earnings Release Slides

(1) Represents an approximate range of expected gross margin, taking into account hedges in place, between the 5th and 95th percent confidence levels assuming all unhedged

supply is sold into the spot market.  Approximate gross margin ranges are based upon an internal simulation model and are subject to change based upon market inputs, future

transactions and potential modeling changes. These ranges of approximate gross margin in 2013 and 2014 do not represent earnings guidance or a forecast of future results as

Exelon has not completed its planning or optimization processes for those years. The price distributions that generate this range are calibrated to market quotes for power, fuel, load

following products, and options as of September 30, 2012 (2) Gross Margin Upside/Risk based on commodity exposure which includes open generation and all committed

transactions. (3) Excludes Maryland assets to be divested.

$8,200

$8,100

$8,500

$7,850

$8,950

$7,150

21

Illustrative Example of Modeling Exelon Generation             

2013 Gross Margin

Row

Item

Midwest

Mid-

Atlantic

ERCOT

New

England

New York

South,

West &

Canada

(A)

Start with fleet-wide open gross margin 

$5.75 billion

(B)

Expected Generation (TWh)

97.4

75.0

18.5

14.0

13.8

(C)

Hedge % (assuming mid-point of range)

90.5%

89.5%

79.5%

90.5%

93.5%

(D=B*C)

Hedged Volume (TWh)

88.2

67.1

14.7

12.7

12.9

(E)

Effective Realized Energy Price ($/MWh)

$38.00

$48.00

$7.50

$7.00

$36.00

(F)

Reference Price ($/MWh)

$30.59

$38.24

$8.37

$4.42

$35.19

(G=E-F)

Difference ($/MWh)

$7.41

$9.76

($0.87)

$2.58

$0.81

(H=D*G)

Mark-to-market

value

of

hedges

($

million)

(1)

$655 million

$655 million

($15) million

$35 million

$10 million

(I=A+H)

Hedged Gross Margin ($ million)

$7,100 million

(J)

Power New Business / To Go ($ million)

$500 million

(K)

Non-Power Margins Executed ($ million)

$150 million

(L)

Non-

Power New Business / To Go ($ million)

$450 million

(N=I+J+K+L)

Total Gross Margin

$8,200 million

(1) Mark-to-market rounded to the nearest $5 million. 

2012 3Q Earnings Release Slides

2012 3Q Earnings Release Slides

ComEd Load Trends

-3%

-2%

-1%

0%

1%

2%

4Q12

3Q12

2Q12

1Q12

4Q11

3Q11

2Q11

1Q11

Gross Metro Product

Residential

Large C&I

All Customer Classes

2011 

3Q12        2012E

(3)

Average Customer Growth

0.4%  

0.3%    

0.3%

Average Use-Per-Customer

(1.7)%

1.1%

(0.9)%

Total Residential

(1.3)%   

1.4%         (0.6)%

Small C&I

(0.8)%

(0.1)%    

(0.2)%

Large C&I

0.6%  

(0.8)%     

(0.3)%

All Customer Classes

(0.5)%   

0.2%      

(0.3)%

Weather-Normalized Electric Load Year-over-Year

Key Economic Indicators

Weather-Normalized Electric Load

(1)

Source:  U.S. Dept. of Labor (September 2012) and Illinois

Department of Security (September 2012)

(2)

Source: Global Insight (August 2012)

(3)

Not adjusted for leap year

Chicago

U.S.

Unemployment rate

(1)

8.7%

7.8%               

2012 annualized growth in

gross domestic/metro product

(2)

1.7%                   2.1%

22

2012 3Q Earnings Release Slides

Notes: C&I = Commercial & Industrial. Global Insight re-stated 2011 GMP amounts in August 2012 so there will be a change since 2Q12 earnings release.

ComEd load activity impacts net income to the extent that it does not result in an ROE outside of the collar, which ensures that the earned ROE is within 0.5% of the allowed ROE.

23

PECO Load Trends

2011 

3Q12        2012E

(3)

Average Customer Growth

0.3%  

0.3%    

0.4%

Average Use-Per-Customer

1.3%

(3.9)%

(2.4)%

Total Residential

1.7%    

(3.6)%        (2.0)%

Small C&I

(0.7)%

(1.7)%    

(3.5)%

Large C&I

(3.3)%  

(4.8)%     

(2.4)%

All Customer Classes

(0.9)%   

(3.6)%     

(2.4)%

Weather-Normalized Electric Load Year-over-Year

Key Economic Indicators

Weather-Normalized Electric Load

(1)

Source:

U.S.

Dept.

of

Labor

(Sept

2012)

-

US

US

Dept

of

Labor

prelim.

data

(August

2012)

-

Philadelphia

(2)

Source: Global Insight (August 2012)

(3)

Not adjusted for leap year

Philadelphia

U.S.

Unemployment rate

(1)

8.8%

7.8%

2012 annualized growth in

gross domestic/metro product

(2)

1.9%                   2.1%

2012 3Q Earnings Release Slides

Note: C&I = Commercial & Industrial.  Global Insight re-stated 2011 GMP amounts in August 2012 so there will be a change since 2Q12 earnings release.

24

BGE Load Trends

-8%

-6%

-4%

-2%

0%

2%

4%

6%

4Q12

3Q12

2Q12

1Q12

4Q11

3Q11

2Q11

1Q11

Gross Metro Product

Residential

Large C&I

All Customer Classes

2011 

3Q12        2012E

(3)

Average Customer Growth

0.2%  

0.0%    

0.1%

Average Use-Per-Customer

(4.4)%

(1.4)%

(1.3)%

Total Residential

(4.3)%   

(1.4)%        (1.2)%

Small C&I

0.8%

0.5%    

(3.1)%

Large C&I

2.0%  

(0.3)%     

(0.6)%

All Customer Classes

(1.1)%   

(3.0)%     

(2.2)%

Weather-Normalized Electric Load Year-over-Year

Key Economic Indicators

Weather-Normalized Electric Load

(1)

Source:

U.S.

Dept.

of

Labor

(Sept

2012)

-

US

US

Dept

of

Labor

prelim.

data

(August

2012)

-

Baltimore

(2)

Source: Global Insight (August 2012)

(3)

Not adjusted for leap year

Baltimore

U.S.

Unemployment rate

(1)

7.7%

7.8%

2012 annualized growth in

gross domestic/metro product

(2)

1.7%                   2.1%

2012 3Q Earnings Release Slides

Note: C&I = Commercial & Industrial.  Global Insight re-stated 2011 GMP amounts in August 2012 so there will be a change since June 2012 Analyst Day presentation.

25

BGE Rate Case (Updated to reflect 10/22/12 filing)

Rate

Case

Request

(1)

Electric

Gas

Docket #

9299

Test Year

October 2011 –

September 2012

Common Equity Ratio

48.4%

Requested Returns

ROE: 10.5%; ROR: 7.96%

Rate Base

$2.7B

$1B

Revenue Requirement Increase

$131M

$45M

Proposed Distribution Price

Increase as % of overall bill

4%

6%

Timeline

•10/22/12: Update 8 months actual/4 month estimated test period data with actuals for last 4 months

(June-Sept. 2012)

•11/9/12: BGE and staff/intervenors file rebuttal testimony

•11/20/12: Staff/Intervenors  and BGE file surrebuttal testimony

•12/3/12 –

12/18/12: Hearings

•1/11/13: Initial Briefs

•1/23/13: Reply Briefs

•2/23/13: Decision

•New rates are in effect shortly after the decision

(1)

2012 3Q Earnings Release Slides

Initial filing on 7/27/12 used 8 months of actuals and 4 months of projections for October 2011 – September 2012 time period and requested an ROR of 8.02%, electric revenue

increase of $151M and gas revenue increase of $53M.  Rate base, equity ratio and ROE have not changed materially since the 7/27/12 filing.

Minimum Offer Price Rules (MOPR) Update

26

PJM is proposing modifications to the MOPR to ensure uneconomic generation does not

distort market

•

Restructured MOPR

MOPR to apply to all new gas-fired and IGCC units in PJM, with limited exceptions

MOPR exemption to be available only to self-supply entities and competitive market

entrants

MOPR

floor

to

apply

for

three

years,

set

at

100%

of

the

net

cost

of

new

entry

•

Implementation/Timing

PJM currently reviewing restructured MOPR with all stakeholders

PJM expected to file for FERC approval by November 30, 2012

Exelon, other generators, and other stakeholders to support PJM’s filing

FERC approval expected in early February, 2013

PJM RPM

Auction

2015/16 –

May 2012

Stakeholder

Discussions -

Summer 2012

FERC Filing –

November  30, 2012

PJM RPM

Auction

2016/17 –

Spring 2013

FERC Ruling –

February 1, 2013

2012 3Q Earnings Release Slides

Note: IGCC = Integrated Gasification Combined Cycle.  FERC = Federal Energy Regulatory Commission.  RPM= Reliability Pricing Model.

Sufficient Liquidity

(1)

Excludes commitments from Exelon’s Community and Minority Bank Credit Facility

(2)

Available Capacity Under Facilities represents the unused commitments under the borrower’s credit agreements net of outstanding letters of credit and facility draws. 

The amount of commercial paper outstanding does not reduce the available capacity under the credit agreements.

(3)

Includes Exelon Corporate’s $500M credit facility and legacy Constellation credit facilities assumed as part of the merger, letters of credit and commercial paper

outstanding.  Exelon will have unwound the $4.2B in credit facilities assumed from legacy Constellation by the end of the year.

($ in Millions)

Exelon Corp, ExGen, PECO and BGE facilities were amended and extended on August 10, 2012

to align maturities of facilities and secure liquidity and pricing through 2017

27

2012 3Q Earnings Release Slides

Aggregate Bank Commitments

(1)

600

1,000

600

5,600

9,800

Outstanding Facility Draws

--

--

--

--

--

Outstanding Letters of Credit

(1)

(121)

(1)

(1,950)

(2,089)

Available Capacity Under Facilities

(2)

599

879

599

3,650

7,711

Outstanding Commercial Paper

--

--

--

--

--

Available Capacity Less Outstanding

Commercial Paper

599

879

599

3,650

7,711

Available Capacity Under Bank Facilities as of October 24, 2012

(3)

28

ComEd Operating EPS Contribution

Key

Drivers

–

3Q12

vs.

3Q11

(1)

•

Share differential: $(0.04)

•

Decreased storm costs

(2)

: $0.04

•

Lower distribution revenue primarily due to

lower allowed ROE

(3)

: $(0.06)

(1)

(2)

(3)

3Q12

Actual

Actual

Normal

Heating Degree-Days        147           107          119

Cooling Degree-Days         785

859          613       

3Q11

2012 3Q Earnings Release Slides

$0.43

$0.17

$0.27

$0.10

YTD

3Q

2011

2012

Net of costs recoverable through EIMA. During the fourth quarter of 2011, ComEd received a credit of $0.04 earnings per share, net of amortization, for the allowed recovery of certain 2011

storm costs pursuant to EIMA. During the fourth quarter of 2012, ComEd anticipates recording $0.10 earnings per share to recognize the impact of the ICC’s rehearing decision issued on

October 3, 2012.

Due to the true-up mechanism in the distribution formula rate, the primary driver of year-over-year change in earnings will be due to changes in allowed ROE, rate base and capital structure.

Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP) operating EPS to GAAP EPS.

29

PECO Operating EPS Contribution

Key

Drivers

–

3Q12

vs.

3Q11

(1)

•

Lower income tax in 2011 due to electric

T&D tax repairs deduction: $(0.03)

•

Share differential: $(0.03)

•

Lower load growth: $(0.01)

•

Decreased storm costs: $0.02

•

Lower income tax in 2012 due to gas

distribution tax repairs deduction: $0.03

Note: T&D = Transmission and Distribution

3Q12

Actual

Actual

Normal

Heating Degree-Days        18              14              35

Cooling Degree-Days        1,109

1,138        934         

3Q11

$0.47

$0.16

$0.38

$0.14

YTD

3Q

2011

2012

2012 3Q Earnings Release Slides

(1)

Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP) operating EPS to GAAP EPS.

30

3Q GAAP EPS Reconciliation

Three Months Ended September 30, 2012

ExGen

ComEd

PECO

BGE

Other

Exelon

2012 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share

$0.53

$0.10

$0.14

$(0.00)

$(0.01)

$0.77

Mark-to-market impact of economic hedging activities

0.01

-

-

-

0.01

0.02

Unrealized gains related to nuclear decommissioning trust funds

0.04

-

-

-

-

0.04

Plant retirements and divestitures

(0.22)

-

-

-

-

(0.22)

Asset retirement obligation

(0.01)

-

-

-

-

(0.01)

Constellation merger and integration costs

(0.04)

-

(0.00)

(0.00)

(0.00)

(0.04)

Amortization of commodity contract intangibles

(0.21)

-

-

-

-

(0.21)

Amortization of the fair value of certain debt

0.00

-

-

-

-

0.00

3Q 2012 GAAP Earnings (Loss) Per Share

$0.11

$0.11

$0.14

$(0.00)

$(0.00)

$0.35

NOTE:  All amounts shown are per Exelon share and represent contributions to Exelon's EPS.  Amounts may not add due to rounding.

Three Months Ended September 30, 2011

ExGen

ComEd

PECO

Other

Exelon

2011 Adjusted (non-GAAP) Operating Earnings Per Share

$0.79

$0.17

$0.16

$0.01

$1.12

Mark-to-market impact of economic hedging activities

(0.08)

-

-

-

(0.08)

Unrealized losses related to nuclear decommissioning trust funds

(0.12)

-

-

-

(0.12)

Plant retirements and divestitures

(0.00)

-

-

-

(0.00)

Asset retirement obligation

(0.03)

-

0.00

-

(0.02)

Constellation merger and integration costs

(0.00)

(0.00)

(0.00)

(0.01)

(0.02)

Other acquisition costs

(0.01)

-

-

-

(0.01)

Wolf Hollow acquisition

0.03

-

-

-

0.03

3Q 2011 GAAP Earnings (Loss) Per Share

$0.58

$0.17

$0.16

$(0.00)

$0.90

2012 3Q Earnings Release Slides

31

YTD GAAP EPS Reconciliation

Nine Months Ended September 30, 2012

ExGen

ComEd

PECO

BGE

Other

Exelon

2012 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share

$1.57

$0.27

$0.38

$0.04

$(0.05)

$2.21

Mark-to-market impact of economic hedging activities

0.21

-

-

-

0.02

0.23

Unrealized gains related to nuclear decommissioning trust funds

0.07

-

-

-

-

0.07

Plant retirements and divestitures

(0.25)

-

-

-

-

(0.25)

Asset retirement obligation

(0.01)

-

-

-

-

(0.01)

Constellation merger and integration costs

(0.16)

-

(0.01)

(0.00)

(0.08)

(0.26)

Maryland commitments

(0.03)

-

-

(0.10)

(0.15)

(0.28)

Amortization of commodity contract intangibles

(0.68)

-

-

-

-

(0.68)

FERC settlement

(0.22)

-

-

-

-

(0.22)

Reassessment of state deferred income taxes

0.02

-

-

-

0.13

0.15

Amortization of the fair value of certain debt

0.01

-

-

-

-

0.01

Other acquisition costs

(0.00)

-

-

-

(0.00)

YTD 2012 GAAP Earnings (Loss) Per Share

$0.53

$0.27

$0.37

$(0.07)

$(0.13)

$0.97

Nine Months Ended September 30, 2011

ExGen

ComEd

PECO

Other

Exelon

2011 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share

$2.47

$0.43

$0.47

$(0.03)

$3.34

Mark-to-market impact of economic hedging activities

(0.34)

-

-

-

(0.34)

Unrealized losses related to nuclear decommissioning trust funds

(0.07)

-

-

-

(0.07)

Plant retirements and divestitures

(0.04)

-

-

-

(0.04)

Asset retirement obligation

(0.03)

-

0.00

-

(0.02)

Constellation merger and integration costs

(0.00)

(0.00)

(0.00)

(0.03)

(0.04)

Other acquisitions costs

(0.01)

-

-

-

(0.01)

Wolf Hollow acquisition

0.03

-

-

-

0.03

Recovery of costs pursuant to the 2011 distribution rate case order

-

0.03

-

-

0.03

Non-cash charge resulting from Illinois tax rate change legislation

(0.03)

(0.01)

-

(0.00)

(0.04)

YTD 2011 GAAP Earnings (Loss) Per Share

$1.99

$0.44

$0.47

$(0.07)

$2.84

2012 3Q Earnings Release Slides

NOTE:  All amounts shown are per Exelon share and represent contributions to Exelon's EPS.  Amounts may not add due to rounding.

GAAP to Operating Adjustments

32

•

Exelon’s 2012 adjusted (non-GAAP) operating earnings outlook excludes the earnings effects of the

following:

-

Mark-to-market adjustments from economic hedging activities

-

Unrealized gains and losses from nuclear decommissioning trust fund investments to the extent not

offset by contractual accounting as described in the notes to the consolidated financial statements

-

Financial impacts associated with the planned retirement of fossil generating units and the expected

sale in the fourth quarter of 2012 of three generating stations as required by the merger

-

Changes in decommissioning obligation estimates

-

Certain costs incurred related to the Constellation merger and integration initiatives

-

Costs incurred as part of Maryland commitments in connection with the merger

-

Non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at

the merger date

-

Costs incurred as part of a March 2012 settlement with the Federal Energy Regulatory Commission

(FERC) related to Constellation’s prior period hedging and risk management transactions

-

Changes in state deferred tax rates resulting from a reassessment of anticipated apportionment of

Exelon’s deferred taxes as a result of the merger

-

Non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in

2013

-

Certain costs incurred associated with other acquisitions

-

Significant impairments of assets, including goodwill

-

Other unusual items

-

Significant changes to GAAP

•

Operating

earnings

guidance

assumes

normal

weather

for

remainder

of

the

year

2012 3Q Earnings Release Slides