Exhibit 99.1
Contact: | Ravi Ganti Investor Relations 312-394-2348
Paul Adams Corporate Communications 410-470-4167 | FOR IMMEDIATE RELEASE |
EXELON ANNOUNCES FOURTH QUARTER AND FULL YEAR 2012
RESULTS; INTRODUCES 2013 GUIDANCE; DECLARES FIRST QUARTER
DIVIDEND AND SETS REVISED DIVIDEND POLICY
CHICAGO (Feb. 7, 2013) — Exelon Corporation (NYSE: EXC) announced fourth quarter and full year 2012 consolidated earnings as follows:
Exelon Consolidated Earnings (unaudited)
Full Year | Fourth Quarter | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Adjusted (non-GAAP) Operating Results: | ||||||||||||||||
Net Income ($ millions) | $ | 2,330 | $ | 2,763 | $ | 547 | $ | 544 | ||||||||
Diluted Earnings per Share | $ | 2.85 | $ | 4.16 | $ | 0.64 | $ | 0.82 | ||||||||
|
|
|
|
|
|
|
| |||||||||
GAAP Results: | ||||||||||||||||
Net Income ($ millions) | $ | 1,160 | $ | 2,495 | $ | 378 | $ | 606 | ||||||||
Diluted Earnings per Share | $ | 1.42 | $ | 3.75 | $ | 0.44 | $ | 0.91 | ||||||||
|
|
|
|
|
|
|
|
“Exelon had another strong year of operational performance and closed on a very successful, transformational merger that gives us a presence across the value chain,” said Christopher M. Crane, Exelon’s president and CEO. “Despite major storms and severe economic challenges, we delivered 2012 earnings within our guidance range. We have revised our dividend, effective with the second quarter 2013 dividend, to position us to maintain our investment grade rating, return a stable dividend and provide capacity to invest in growth.”
Fourth Quarter Operating Results
Fourth quarter 2012 earnings include financial results for Constellation Energy and Baltimore Gas and Electric Company (BGE). Therefore, the composition of results of operations from 2012 and 2011 are not comparable for Exelon Generation Company, LLC (Generation), BGE and Exelon.
1
As shown in the table above, Exelon’s adjusted (non-GAAP) operating earnings declined to $0.64 per share in the fourth quarter of 2012 from $0.82 per share in the fourth quarter of 2011. Earnings in fourth quarter 2012 primarily reflected the following negative factors:
• | Lower energy margins at Generation, resulting from decreased capacity pricing related to the Reliability Pricing Model (RPM) for the PJM Interconnection, LLC (PJM) market, higher nuclear fuel costs and lower realized market prices for the sale of energy in the Mid-Atlantic and Midwest regions; |
• | Higher operating and maintenance expenses, including increased labor, contracting and materials and the impact of higher storm costs at PECO and BGE due to Sandy; |
• | Impact of increased average diluted common shares outstanding as a result of the merger; and |
• | Higher depreciation and amortization expense due to ongoing capital expenditures. |
These factors were partially offset by:
• | The addition of Constellation Energy’s contribution to Generation’s energy margins; and |
• | Favorable impacts of weather at ComEd and PECO. |
Adjusted (non-GAAP) operating earnings for the fourth quarter of 2012 do not include the following items (after tax) that were included in reported GAAP earnings:
(in millions) | (per diluted share) | |||||||
Mark-to-Market Impact of Economic Hedging Activities | $ | 123 | $ | 0.14 | ||||
Unrealized Gains Related to NDT (Nuclear Decommissioning Trust) Fund Investments | $ | 2 | — | |||||
Plant Retirements and Divestitures | $ | (38 | ) | $ | (0.05 | ) | ||
Constellation Merger and Integration Costs | $ | (46 | ) | $ | (0.05 | ) | ||
Non-Cash Remeasurement of Deferred Income Taxes | $ | 1 | — | |||||
Amortization of Commodity Contract Intangibles | $ | (211 | ) | $ | (0.24 | ) | ||
Amortization of the Fair Value of Certain Debt | $ | 3 | — | |||||
Asset Retirement Obligation | $ | 5 | $ | 0.01 | ||||
Midwest Generation Bankruptcy Charges | $ | (8 | ) | $ | (0.01 | ) |
Adjusted (non-GAAP) operating earnings for the fourth quarter of 2011 do not include the following items (after tax) that were included in reported GAAP earnings:
(in millions) | (per diluted share) | |||||||
Mark-to-Market Impact of Economic Hedging Activities | $ | 45 | $ | 0.07 | ||||
Unrealized Gains Related to NDT Fund Investments | $ | 46 | $ | 0.07 | ||||
Plant Retirements and Divestitures | $ | (4 | ) | $ | (0.01 | ) | ||
Constellation Merger and Integration Costs | $ | (21 | ) | $ | (0.03 | ) | ||
Non-Cash Remeasurement of Deferred Income Taxes | $ | (4 | ) | $ | (0.01 | ) |
2
Dividend
Exelon’s Board of Directors declared the first quarter 2013 dividend of $0.525 per share and approved a revised dividend policy going forward. The first quarter dividend is payable on March 8, 2013 to shareholders of record at 5:00 PM EST on Feb. 19, 2013. The first quarter dividend is based on our previous level of $2.10 per share on an annualized basis, while the new dividend contemplates a regular $0.31 per share quarterly dividend beginning in the second quarter of 2013 (or $1.24 per share on an annualized basis). Exelon intends to maintain the normal cadence of quarterly dividend declarations by the Board, so the Board will take formal action to declare the next dividend in the second quarter.
2013 Earnings Outlook
Exelon introduced a guidance range for 2013 adjusted (non-GAAP) operating earnings of $2.35 to $2.65 per share. Operating earnings guidance is based on the assumption of normal weather.
The outlook for 2013 adjusted (non-GAAP) operating earnings for Exelon and its subsidiaries excludes the following items:
• | Mark-to-market adjustments from economic hedging activities; |
• | Financial impacts associated with the planned retirement of fossil generating units and the sale in the fourth quarter of 2012 of three generating stations as required by the merger; |
• | Certain costs incurred related to the Constellation merger and integration initiatives; |
• | Non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date; |
• | Non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013; |
• | Significant impairments of assets, including goodwill; |
• | Other unusual items; and |
• | Significant changes to GAAP. |
Fourth Quarter and Recent Highlights
• | Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station, produced 34,882 gigawatt-hours (GWh) in the fourth quarter of 2012, compared with 34,893 GWh in the fourth quarter of 2011. The output data excludes the units owned by Constellation Energy Nuclear Group LLC (CENG). Excluding Salem and the units owned by CENG, the Exelon-operated nuclear plants achieved a 93.0 percent capacity factor for both the fourth quarter of 2012 and fourth quarter of 2011. The number of planned refueling outage days totaled 113 in the fourth quarter of 2012 versus 103 days in the fourth quarter of 2011. The number of non-refueling outage days at the Exelon-operated plants totaled one day in the fourth quarter of 2012, compared with 11 days in the fourth quarter of 2011. |
3
• | Fossil and Renewables Operations: The equivalent demand forced outage rate for Generation’s fossil fleet was 1.5 percent in the fourth quarter of 2012, compared with 1.6 percent in the fourth quarter of 2011. The 2012 results include former Constellation plants, exclusive of the Maryland Clean Coal plants that were sold on Dec. 3, 2012, whereas 2011 data includes only legacy Exelon plants. The equivalent availability factor for the hydroelectric facilities was 95.0 percent in the fourth quarter of 2012, compared with 95.9 percent in the fourth quarter of 2011. The energy capture for the wind fleet was 92.2 percent in the fourth quarter of 2012, compared with 94.8 percent in the fourth quarter of 2011. |
• | ComEd Distribution Formula Rate Cases: On Oct. 3, 2012, the Illinois Commerce Commission (ICC) issued its final Order on Remand (Rehearing Order) in ComEd’s expedited rehearing of specific items pursuant to the Electric Infrastructure Modernization Act (EIMA). The Rehearing Order (which covered docket 11-0721) addressed three key conclusions reached in the ICC’s May Order: (1) ComEd’s pension asset recovery; (2) the rate of interest to affix to over or under recovered costs; and (3) the use of a year-end or an “average year” rate base in determining ComEd’s reconciliation revenue requirement. In the Rehearing Order, the ICC adopted ComEd’s position on the return on its pension asset. As a result, ComEd recorded in the fourth quarter an increase in revenue of approximately $135 million pre-tax in 2012 consistent with the terms of the Rehearing Order. |
On Dec. 19, 2012, the ICC ruled on ComEd’s formula rate (docket 12-0321) setting rates for 2013 based on (1) 2011 actual costs updated for 2012 plant additions and the associated depreciation and accumulated deferred income taxes and (2) reconciling the revenue requirements underlying the rates in effect in 2011 with 2011 actual costs and factoring in the ROE Collar. The ICC approved a $72.6 million increase over the rates approved in docket 11-0721 on re-hearing. ComEd had requested an increase of $74.2 million. The contested items from docket 11-0721 on re-hearing such as use of average vs. year-end rate base and the interest rate on the reconciliation are currently under appeal with the court and are not included in the approved amount.
• | Credit Facility Synergies: On Dec. 31, 2012, Exelon achieved targeted credit facility reductions and associated synergies with the termination of the $1.5 billion legacy Constellation revolver. Cost effective liquidity was established earlier in 2012 for all operating companies through 2017. The ComEd $1 billion facility was established in March 2012. Via the “Amend and Extend” program executed in August 2012, facilities were refinanced at BGE ($600 million), Exelon Corp ($500 million), Generation ($5.3 billion) and PECO ($600 million), |
• | Pension Funding Strategy: Exelon executed a lump sum buyout offering for terminated vested employees in the largest pension plans (approximately 7,500 former employees). This transaction involved using $260 million of pension trust assets to buyout terminated vested employees and permanently settling the associated obligation. Exelon’s gross pension liability was reduced by $425 million, resulting in a $165 million improvement in the funded status of the pension plans at year end. The lump sum buyout option was an incremental step in Exelon’s ongoing effort to manage benefit costs and de-risk the pension plans over time. |
4
• | ComEd Like-Kind-Exchange: As previously disclosed, in 1999 ComEd deferred $1.2 billion of gain on the sale of its fossil generating facilities by acquiring like-kind property in a purchase leaseback transaction. In a recent decision, a court disallowed deductions stemming from a lease-in, lease-out transaction. This decision has caused Exelon to assess whether it is more likely than not that it will prevail in litigation with the IRS concerning the purchase leaseback transaction. As a result of the assessment, Exelon expects to record in the first quarter of 2013 a non-cash charge to earnings of approximately $270 million, which represents the full amount of interest expense (after-tax) and incremental state tax expense that would be payable if Exelon is unsuccessful in litigation. Of this amount, approximately $185 million will be recorded at ComEd and the balance at Exelon. These charges to expense will not be reflected in adjusted (non-GAAP) operating earnings. Exelon intends to hold ComEd harmless from any unfavorable impacts of the after-tax interest amounts on ComEd’s equity. For additional information, please see the Form 8-K that Exelon filed on January 31, 2013. |
• | Renewable Fleet: Four wind construction projects (totaling 273 megawatts (MW)) achieved commercial operation in the fourth quarter: Harvest II (59 MW in Huron County, Mich.) on Nov. 1, 2012; Beebe (82 MW in Gratiot, Mich.) on Dec. 18, 2012; Whitetail (92 MW in Webb, Texas) on Dec. 21, 2012; and High Mesa (40 MW in Twin Falls County, Idaho) on Dec. 27, 2012. In addition, the first block (31 MW) of the Antelope Valley Solar Ranch Project became operational in December 2012. The remaining phases of the project are on track to be completed by the original planned commercial operation date of December 2013. |
• | Fossil Fleet Sales and Retirements:Exelon Power finalized the sale of its three Maryland power plants (2,648 MW of installed capacity) to Raven Power Holdings LLC on Dec. 3, 2012. The sale fulfills Exelon’s commitment to divest the plants as a part of its merger with Constellation. Exelon Power also completed the sale of its ownership stake in ACE Cogeneration, a 102-MW coal facility in Trona, Calif., to DCO Energy on Nov. 6, 2012. In addition to the asset sales, Exelon Power informed PJM on Oct. 31, 2012 of its intent to retire Schuylkill Unit 1 in Philadelphia and Riverside Unit 6 in Baltimore County. Schuylkill Unit 1 was deactivated on Jan. 1, 2013. Riverside 6 will be deactivated by Jun. 1, 2014. |
• | 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 Dec. 31, 2012, is 94 to 97 percent for 2013, 62 to 65 percent for 2014, and 27 to 30 percent for 2015. 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. |
5
Operating Company Results
Generation consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products, risk management services and natural gas exploration and production activities.
Fourth quarter 2012 GAAP net income was $137 million, compared with $446 million in the fourth quarter of 2011. Adjusted (non-GAAP) operating earnings for the fourth quarter of 2011 and 2012 do not include various items (after tax) that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:
($ millions) | 4Q12 | 4Q11 | ||||||
Generation Adjusted (non-GAAP) Operating Earnings | $ | 283 | $ | 359 | ||||
Mark-to-Market Impact of Economic Hedging Activities | $ | 145 | $ | 45 | ||||
Unrealized Gains Related to NDT Fund Investments | $ | 2 | $ | 46 | ||||
Plant Retirements and Divestitures | $ | (38 | ) | $ | (4 | ) | ||
Constellation Merger and Integration Costs | $ | (35 | ) | $ | (6 | ) | ||
Non-Cash Remeasurement of Deferred Income Taxes | $ | (9 | ) | $ | 6 | |||
Amortization of Commodity Contract Intangibles | $ | (211 | ) | — | ||||
Amortization of Fair Value of Certain Debt | $ | 3 | — | |||||
Asset Retirement Obligation | $ | 5 | — | |||||
Midwest Generation Bankruptcy Charges | $ | (8 | ) | — | ||||
|
|
|
| |||||
Generation GAAP Net Income | $ | 137 | $ | 446 | ||||
|
|
|
|
Generation’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2012 decreased $76 million compared with the same quarter in 2011. This decrease primarily reflected:
• | Lower energy margins at Generation, resulting from decreased capacity pricing related to RPM for the PJM market, higher nuclear fuel costs and lower realized market prices for the sale of energy in the Mid-Atlantic and Midwest regions; |
• | Higher operating and maintenance expenses; |
• | Higher depreciation and amortization expense due to ongoing capital expenditures; and |
• | Higher interest due to higher outstanding debt balance. |
These items were partially offset by contribution to Generation’s energy margins from the addition of Constellation Energy to Generation’s operations.
6
Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $26.52 per megawatt-hour (MWh) in the fourth quarter of 2012, compared with $39.31 per MWh in the fourth quarter of 2011.
ComEd consists of electricity transmission and distribution operations in northern Illinois.
ComEd recorded GAAP net income of $160 million in the fourth quarter of 2012, compared with net income of $121 million in the fourth quarter of 2011. Adjusted (non-GAAP) operating earnings for the fourth quarter of 2011 and 2012 do not include an item (after tax) that was included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:
($ millions) | 4Q12 | 4Q11 | ||||||
ComEd Adjusted (non-GAAP) Operating Earnings | $ | 162 | $ | 121 | ||||
Constellation Merger and Integration Costs | $ | (2 | ) | — | ||||
|
|
|
| |||||
ComEd GAAP Net Income | $ | 160 | $ | 121 | ||||
|
|
|
|
ComEd’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2012 were up $41 million from the same quarter in 2011, primarily due to:
• | Impacts of the October 2012 rehearing order issued by the ICC primarily related to ComEd’s recovery of the pension asset; |
• | Lower interest expense due to tax settlements; and |
• | Lower income taxes. |
These items were partially offset by lower distribution revenue due to lower allowed ROE under the provision of the formula rate mechanism and a 2011 credit for the allowed recovery of certain storm costs pursuant to EIMA.
For the fourth quarter of 2012, heating degree-days in the ComEd service territory were up 10.8 percent relative to the same period in 2011 but were 11.5 percent below normal. Total retail electric deliveries increased 0.4 percent quarter over quarter.
Weather-normalized retail electric deliveries decreased 0.1 percent in the fourth quarter of 2012 relative to 2011, reflecting decreases in deliveries to residential and large commercial & industrial customers, partially offset by increases in deliveries to small commercial & industrial customers. For ComEd, weather had a favorable after-tax effect of $1 million on fourth quarter 2012 earnings relative to 2011 and an unfavorable after-tax effect of $4 million relative to normal weather.
PECO consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania.
PECO’s GAAP net income in the fourth quarter of 2012 was $79 million, compared with $73 million in the fourth quarter of 2011. Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2011 and 2012 do not include an item (after tax) that was included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:
($ millions) | 4Q12 | 4Q11 | ||||||
PECO Adjusted (non-GAAP) Operating Earnings | $ | 81 | $ | 74 | ||||
Constellation Merger and Integration Costs | $ | (2 | ) | $ | (1 | ) | ||
|
|
|
| |||||
PECO GAAP Net Income | $ | 79 | $ | 73 | ||||
|
|
|
|
7
PECO’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2012 increased $7 million from the same quarter in 2011, reflecting the impact of favorable weather and lower income taxes primarily due to gas tax repairs deduction; these favorable items were partially offset by higher storm costs from Sandy.
For the fourth quarter of 2012, heating degree-days in the PECO service territory were up 13.8 percent from 2011 but were 9.0 percent below normal. Total retail electric deliveries were up 2.3 percent quarter over quarter. On the gas side, deliveries in the fourth quarter of 2012 were up 12.4 percent from the fourth quarter of 2011.
Weather-normalized retail electric deliveries were up 0.6 percent in the fourth quarter of 2012 relative to 2011, reflecting increases in deliveries to residential and large consumer & industrial customers and declines in deliveries to small commercial & industrial customers. Weather-normalized gas deliveries were up 0.6 percent in the fourth quarter of 2012. For PECO, weather had a favorable after-tax effect of $17 million on fourth quarter 2012 earnings relative to 2011 and unfavorable after-tax effect of $10 million relative to normal weather.
BGE consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland.
BGE’s GAAP net income in the fourth quarter of 2012 was $15 million. The net income included after-tax costs of $3 million associated with the merger and integration initiatives. Excluding the effects of these items, BGE’s adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2012 were $18 million.
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-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 pages 10 and 11 are posted on Exelon’s Web site:www.exeloncorp.com and have been furnished to the Securities and Exchange Commission on Form 8-K on February 7, 2013.
8
Cautionary Statements Regarding Forward-Looking Information
This news release 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 Registrants’ Third Quarter 2012 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 15; 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 new release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this news release.
# # #
Exelon Corporation is the nation’s leading competitive energy provider, with 2012 revenues of approximately $23.5 billion. Headquartered in Chicago, Exelon has operations and business activities in 47 states, the District of Columbia and Canada. Exelon is one of the largest competitive U.S. power generators, with approximately 35,000 megawatts of owned capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 100,000 business and public sector customers and more than 1 million residential customers. Exelon’s utilities deliver electricity and natural gas to more than 6.6 million customers in central Maryland (BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO).
9
Earnings Release Attachments
Table of Contents
Consolidating Statements of Operations - Three Months Ended December 31, 2012 and 2011 | 1 | |||
Consolidating Statements of Operations - Twelve Months Ended December 31, 2012 and 2011 | 2 | |||
Business Segment Comparative Statements of Operations - Generation and ComEd - Three and Twelve Months Ended December 31, 2012 and 2011 | 3 | |||
Business Segment Comparative Statements of Operations - PECO and BGE - Three and Twelve Months Ended December 31, 2012 and 2011 | 4 | |||
Business Segment Comparative Statements of Operations - Other - Three and Twelve Months Ended December 31, 2012 and 2011 | 5 | |||
Consolidated Balance Sheets - December 31, 2012 and December 31, 2011 | 6 | |||
Consolidated Statements of Cash Flows - Twelve Months Ended December 31, 2012 and 2011 | 7 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Three Months Ended December 31, 2012 and 2011 | 8 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Twelve Months Ended December 31, 2012 and 2011 | 9 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended December 31, 2012 and 2011 | 10 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Twelve Months Ended December 31, 2012 and 2011 | 11 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Generation - Three and Twelve Months Ended December 31, 2012 and 2011 | 12 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - ComEd - Three and Twelve Months Ended December 31, 2012 and 2011 | 13 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - PECO - Three and Twelve Months Ended December 31, 2012 and 2011 | 14 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - BGE - Three Months Ended December 31, 2012 and March 12, 2012 through December 31, 2012. | 15 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Other - Three and Twelve Months Ended December 31, 2012 and 2011 | 16 | |||
Exelon Generation Statistics - Three Months Ended December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011 | 17 | |||
Exelon Generation Statistics - Twelve Months Ended December 31, 2012 and 2011 | 18 | |||
ComEd Statistics - Three and Twelve Months Ended December 31, 2012 and 2011 | 19 | |||
PECO Statistics - Three and Twelve Months Ended December 31, 2012 and 2011 | 20 | |||
BGE Statistics - Three Months Ended December 31, 2012 and March 12, 2012 through December 31, 2012. | 21 |
EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
Three Months Ended December 31, 2012 | ||||||||||||||||||||||||
Generation | ComEd | PECO | BGE | Other (a) | Exelon Consolidated | |||||||||||||||||||
Operating revenues | $ | 3,928 | $ | 1,289 | $ | 790 | $ | 703 | $ | (426 | ) | $ | 6,284 | |||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 2,043 | 421 | 342 | 326 | (373 | ) | 2,759 | |||||||||||||||||
Operating and maintenance | 1,272 | 345 | 235 | 171 | (11 | ) | 2,012 | |||||||||||||||||
Depreciation, amortization, accretion and depletion | 204 | 152 | 56 | 80 | 13 | 505 | ||||||||||||||||||
Taxes other than income | 97 | 71 | 40 | 65 | 9 | 282 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 3,616 | 989 | 673 | 642 | (362 | ) | 5,558 | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | (22 | ) | — | — | — | — | (22 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 290 | 300 | 117 | 61 | (64 | ) | 704 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (78 | ) | (77 | ) | (30 | ) | (34 | ) | (12 | ) | (231 | ) | ||||||||||||
Other, net | 54 | 27 | 2 | 5 | 5 | 93 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (24 | ) | (50 | ) | (28 | ) | (29 | ) | (7 | ) | (138 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) before income taxes | 266 | 250 | 89 | 32 | (71 | ) | 566 | |||||||||||||||||
Income taxes | 127 | 90 | 9 | 14 | (58 | ) | 182 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) | 139 | 160 | 80 | 18 | (13 | ) | 384 | |||||||||||||||||
Net loss attributable to noncontrolling interests, preferred security dividends and preference stock dividends | 2 | — | 1 | 3 | �� | — | 6 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) on common stock | $ | 137 | $ | 160 | $ | 79 | $ | 15 | $ | (13 | ) | $ | 378 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Three Months Ended December 31, 2011 | ||||||||||||||||||||||||
Generation | ComEd | PECO | BGE | Other (a) | Exelon Consolidated | |||||||||||||||||||
Operating revenues | $ | 2,528 | $ | 1,362 | $ | 778 | $ | — | $ | (310 | ) | $ | 4,358 | |||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 794 | 599 | 358 | — | (320 | ) | 1,431 | |||||||||||||||||
Operating and maintenance | 842 | 258 | 196 | — | 26 | 1,322 | ||||||||||||||||||
Depreciation, amortization, accretion and depletion | 154 | 149 | 53 | — | 4 | 360 | ||||||||||||||||||
Taxes other than income | 65 | 71 | 40 | — | 7 | 183 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 1,855 | 1,077 | 647 | — | (283 | ) | 3,296 | |||||||||||||||||
Equity in loss of unconsolidated affiliates | (1 | ) | — | — | — | — | (1 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 672 | 285 | 131 | — | (27 | ) | 1,061 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (43 | ) | (87 | ) | (32 | ) | — | (19 | ) | (181 | ) | |||||||||||||
Other, net | 135 | 4 | 2 | — | 9 | 150 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | 92 | (83 | ) | (30 | ) | — | (10 | ) | (31 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 764 | 202 | 101 | (37 | ) | 1,030 | ||||||||||||||||||
Income taxes | 318 | 81 | 27 | — | (3 | ) | 423 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) | 446 | 121 | 74 | — | (34 | ) | 607 | |||||||||||||||||
Preferred security dividends | — | — | 1 | — | — | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) on common stock | $ | 446 | $ | 121 | $ | 73 | $ | — | $ | (34 | ) | $ | 606 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
1
EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
Twelve Months Ended December 31, 2012 (a) | ||||||||||||||||||||||||
Generation | ComEd | PECO | BGE | Other (b) | Exelon Consolidated | |||||||||||||||||||
Operating revenues | $ | 14,437 | $ | 5,443 | $ | 3,186 | $ | 2,091 | $ | (1,668 | ) | $ | 23,489 | |||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 7,061 | 2,307 | 1,375 | 1,052 | (1,638 | ) | 10,157 | |||||||||||||||||
Operating and maintenance | 5,028 | 1,345 | 809 | 596 | 183 | 7,961 | ||||||||||||||||||
Depreciation, amortization, accretion and depletion | 768 | 610 | 217 | 238 | 48 | 1,881 | ||||||||||||||||||
Taxes other than income | 369 | 295 | 162 | 167 | 26 | 1,019 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 13,226 | 4,557 | 2,563 | 2,053 | (1,381 | ) | 21,018 | |||||||||||||||||
Equity in losses of unconsolidated affiliates | (91 | ) | — | — | — | — | (91 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income (loss) | 1,120 | 886 | 623 | 38 | (287 | ) | 2,380 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (301 | ) | (307 | ) | (123 | ) | (111 | ) | (86 | ) | (928 | ) | ||||||||||||
Other, net | 239 | 39 | 8 | 19 | 41 | 346 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (62 | ) | (268 | ) | (115 | ) | (92 | ) | (45 | ) | (582 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) before income taxes | 1,058 | 618 | 508 | (54 | ) | (332 | ) | 1,798 | ||||||||||||||||
Income taxes | 500 | 239 | 127 | (23 | ) | (216 | ) | 627 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) | 558 | 379 | 381 | (31 | ) | (116 | ) | 1,171 | ||||||||||||||||
Net loss attributable to noncontrolling interests, preferred security dividends and preference stock dividends | (4 | ) | — | 4 | 11 | — | 11 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) on common stock | $ | 562 | $ | 379 | $ | 377 | $ | (42 | ) | $ | (116 | ) | $ | 1,160 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Twelve Months Ended December 31, 2011 | ||||||||||||||||||||||||
Generation | ComEd | PECO | BGE | Other (b) | Exelon Consolidated | |||||||||||||||||||
Operating revenues | $ | 10,447 | $ | 6,056 | $ | 3,720 | $ | — | $ | (1,160 | ) | $ | 19,063 | |||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 3,589 | 3,035 | 1,864 | — | (1,221 | ) | 7,267 | |||||||||||||||||
Operating and maintenance | 3,148 | 1,189 | 794 | — | 53 | 5,184 | ||||||||||||||||||
Depreciation, amortization, accretion and depletion | 570 | 554 | 202 | — | 21 | 1,347 | ||||||||||||||||||
Taxes other than income | 264 | 296 | 205 | — | 20 | 785 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 7,571 | 5,074 | 3,065 | — | (1,127 | ) | 14,583 | |||||||||||||||||
Equity in loss of unconsolidated affiliates | (1 | ) | — | — | — | — | (1 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income (loss) | 2,875 | 982 | 655 | — | (33 | ) | 4,479 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (170 | ) | (345 | ) | (134 | ) | — | (77 | ) | (726 | ) | |||||||||||||
Other, net | 122 | 29 | 14 | — | 38 | 203 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (48 | ) | (316 | ) | (120 | ) | — | (39 | ) | (523 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) before income taxes | 2,827 | 666 | 535 | — | (72 | ) | 3,956 | |||||||||||||||||
Income taxes | 1,056 | 250 | 146 | — | 5 | 1,457 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) | 1,771 | 416 | 389 | — | (77 | ) | 2,499 | |||||||||||||||||
Preferred security dividends | — | — | 4 | — | — | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) on common stock | $ | 1,771 | $ | 416 | $ | 385 | $ | — | $ | (77 | ) | $ | 2,495 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed. |
(b) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
2
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
Generation | ||||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | Variance | 2012 (a) | 2011 | Variance | |||||||||||||||||||
Operating revenues | $ | 3,928 | $ | 2,528 | $ | 1,400 | $ | 14,437 | $ | 10,447 | $ | 3,990 | ||||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 2,043 | 794 | 1,249 | 7,061 | 3,589 | 3,472 | ||||||||||||||||||
Operating and maintenance | 1,272 | 842 | 430 | 5,028 | 3,148 | 1,880 | ||||||||||||||||||
Depreciation, amortization, accretion and depletion | 204 | 154 | 50 | 768 | 570 | 198 | ||||||||||||||||||
Taxes other than income | 97 | 65 | 32 | 369 | 264 | 105 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 3,616 | 1,855 | 1,761 | 13,226 | 7,571 | 5,655 | ||||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | (22 | ) | (1 | ) | (21 | ) | (91 | ) | (1 | ) | (90 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 290 | 672 | (382 | ) | 1,120 | 2,875 | (1,755 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (78 | ) | (43 | ) | (35 | ) | (301 | ) | (170 | ) | (131 | ) | ||||||||||||
Other, net | 54 | 135 | (81 | ) | 239 | 122 | 117 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (24 | ) | 92 | (116 | ) | (62 | ) | (48 | ) | (14 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 266 | 764 | (498 | ) | 1,058 | 2,827 | (1,769 | ) | ||||||||||||||||
Income taxes | 127 | 318 | (191 | ) | 500 | 1,056 | (556 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | 139 | 446 | (307 | ) | 558 | 1,771 | (1,213 | ) | ||||||||||||||||
Net loss attributable to noncontrolling interests | 2 | — | 2 | (4 | ) | — | (4 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income on common stock | $ | 137 | $ | 446 | $ | (309 | ) | $ | 562 | $ | 1,771 | $ | (1,209 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes financial results for Constellation beginning on March 12, 2012, the date the merger was completed. |
ComEd | ||||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | Variance | 2012 | 2011 | Variance | |||||||||||||||||||
Operating revenues | $ | 1,289 | $ | 1,362 | $ | (73 | ) | $ | 5,443 | $ | 6,056 | $ | (613 | ) | ||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power | 421 | 599 | (178 | ) | 2,307 | 3,035 | (728 | ) | ||||||||||||||||
Operating and maintenance | 345 | 258 | 87 | 1,345 | 1,189 | 156 | ||||||||||||||||||
Depreciation and amortization | 152 | 149 | 3 | 610 | 554 | 56 | ||||||||||||||||||
Taxes other than income | 71 | 71 | — | 295 | 296 | (1 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 989 | 1,077 | (88 | ) | 4,557 | 5,074 | (517 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 300 | 285 | 15 | 886 | 982 | (96 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (77 | ) | (87 | ) | 10 | (307 | ) | (345 | ) | 38 | ||||||||||||||
Other, net | 27 | 4 | 23 | 39 | 29 | 10 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (50 | ) | (83 | ) | 33 | (268 | ) | (316 | ) | 48 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 250 | 202 | 48 | 618 | 666 | (48 | ) | |||||||||||||||||
Income taxes | 90 | 81 | 9 | 239 | 250 | (11 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | $ | 160 | $ | 121 | $ | 39 | $ | 379 | $ | 416 | $ | (37 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
3
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
PECO | ||||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | Variance | 2012 | 2011 | Variance | |||||||||||||||||||
Operating revenues | $ | 790 | $ | 778 | $ | 12 | $ | 3,186 | $ | 3,720 | $ | (534 | ) | |||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 342 | 358 | (16 | ) | 1,375 | 1,864 | (489 | ) | ||||||||||||||||
Operating and maintenance | 235 | 196 | 39 | 809 | 794 | 15 | ||||||||||||||||||
Depreciation and amortization | 56 | 53 | 3 | 217 | 202 | 15 | ||||||||||||||||||
Taxes other than income | 40 | 40 | — | 162 | 205 | (43 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 673 | 647 | 26 | 2,563 | 3,065 | (502 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 117 | 131 | (14 | ) | 623 | 655 | (32 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (30 | ) | (32 | ) | 2 | (123 | ) | (134 | ) | 11 | ||||||||||||||
Other, net | 2 | 2 | — | 8 | 14 | (6 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (28 | ) | (30 | ) | 2 | (115 | ) | (120 | ) | 5 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 89 | 101 | (12 | ) | 508 | 535 | (27 | ) | ||||||||||||||||
Income taxes | 9 | 27 | (18 | ) | 127 | 146 | (19 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | 80 | 74 | 6 | 381 | 389 | (8 | ) | |||||||||||||||||
Preferred security dividends | 1 | 1 | — | 4 | 4 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income on common stock | $ | 79 | $ | 73 | $ | 6 | $ | 377 | $ | 385 | $ | (8 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
BGE | ||||||||||||||||||||||||
Three Months Ended December 31, | March 12, 2012 through December 31, | |||||||||||||||||||||||
2012 | 2011 | Variance | 2012 | 2011 | Variance | |||||||||||||||||||
Operating revenues | $ | 703 | $ | — | $ | 703 | $ | 2,091 | $ | — | $ | 2,091 | ||||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 326 | — | 326 | 1,052 | — | 1,052 | ||||||||||||||||||
Operating and maintenance | 171 | — | 171 | 596 | — | 596 | ||||||||||||||||||
Depreciation and amortization | 80 | — | 80 | 238 | — | 238 | ||||||||||||||||||
Taxes other than income | 65 | — | 65 | 167 | — | 167 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 642 | — | 642 | 2,053 | — | 2,053 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 61 | — | 61 | 38 | — | 38 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (34 | ) | — | (34 | ) | (111 | ) | — | (111 | ) | ||||||||||||||
Other, net | 5 | — | 5 | 19 | — | 19 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (29 | ) | — | (29 | ) | (92 | ) | — | (92 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) before income taxes | 32 | — | 32 | (54 | ) | — | (54 | ) | ||||||||||||||||
Income taxes | 14 | — | 14 | (23 | ) | — | (23 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) | 18 | — | 18 | (31 | ) | — | (31 | ) | ||||||||||||||||
Preference stock dividends | 3 | — | 3 | 11 | — | 11 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) on common stock | $ | 15 | $ | — | $ | 15 | $ | (42 | ) | $ | — | $ | (42 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
4
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
Other (a) | ||||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | Variance | 2012 (b) | 2011 | Variance | |||||||||||||||||||
Operating revenues | $ | (426 | ) | $ | (310 | ) | $ | (116 | ) | $ | (1,668 | ) | $ | (1,160 | ) | $ | (508 | ) | ||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | (373 | ) | (320 | ) | (53 | ) | (1,638 | ) | (1,221 | ) | (417 | ) | ||||||||||||
Operating and maintenance | (11 | ) | 26 | (37 | ) | 183 | 53 | 130 | ||||||||||||||||
Depreciation and amortization | 13 | 4 | 9 | 48 | 21 | 27 | ||||||||||||||||||
Taxes other than income | 9 | 7 | 2 | 26 | 20 | 6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | (362 | ) | (283 | ) | (79 | ) | (1,381 | ) | (1,127 | ) | (254 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income (loss) | (64 | ) | (27 | ) | (37 | ) | (287 | ) | (33 | ) | (254 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (12 | ) | (19 | ) | 7 | (86 | ) | (77 | ) | (9 | ) | |||||||||||||
Other, net | 5 | 9 | (4 | ) | 41 | 38 | 3 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (7 | ) | (10 | ) | 3 | (45 | ) | (39 | ) | (6 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) before income taxes | (71 | ) | (37 | ) | (34 | ) | (332 | ) | (72 | ) | (260 | ) | ||||||||||||
Income taxes | (58 | ) | (3 | ) | (55 | ) | (216 | ) | 5 | (221 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net loss | $ | (13 | ) | $ | (34 | ) | $ | 21 | $ | (116 | ) | $ | (77 | ) | $ | (39 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
(b) | Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed. |
5
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)
December 31, 2012 (a) | December 31, 2011 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 1,411 | $ | 1,016 | ||||
Cash and cash equivalents of variable interest entities | 75 | — | ||||||
Restricted cash and investments | 86 | 40 | ||||||
Restricted cash and investments of variable interest entities | 47 | — | ||||||
Accounts receivable, net | ||||||||
Customer | 2,787 | 1,613 | ||||||
Other | 1,107 | 1,000 | ||||||
Accounts receivable, net, variable interest entities | 292 | — | ||||||
Mark-to-market derivative assets | 879 | 432 | ||||||
Unamortized energy contract assets | 886 | 16 | ||||||
Inventories, net | ||||||||
Fossil fuel | 246 | 208 | ||||||
Materials and supplies | 768 | 656 | ||||||
Deferred income taxes | 210 | — | ||||||
Regulatory assets | 759 | 390 | ||||||
Other | 561 | 342 | ||||||
|
|
|
| |||||
Total current assets | 10,114 | 5,713 | ||||||
|
|
|
| |||||
Property, plant and equipment, net | 45,149 | 32,570 | ||||||
Deferred debits and other assets | ||||||||
Regulatory assets | 6,497 | 4,518 | ||||||
Nuclear decommissioning trust (NDT) funds | 7,248 | 6,507 | ||||||
Investments | 1,184 | 751 | ||||||
Investments in affiliates | 22 | 15 | ||||||
Investment in CENG | 1,849 | — | ||||||
Goodwill | 2,625 | 2,625 | ||||||
Mark-to-market derivative assets | 968 | 650 | ||||||
Unamortized energy contract assets | 1,073 | 424 | ||||||
Pledged assets for Zion Station decommissioning | 614 | 734 | ||||||
Deferred income taxes | 634 | — | ||||||
Other | 1,128 | 488 | ||||||
|
|
|
| |||||
Total deferred debits and other assets | 23,842 | 16,712 | ||||||
|
|
|
| |||||
Total assets | $ | 79,105 | $ | 54,995 | ||||
|
|
|
| |||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities | ||||||||
Short-term borrowings | $ | — | $ | 163 | ||||
Short-term notes payable - accounts receivable agreement | 210 | 225 | ||||||
Long-term debt due within one year | 975 | 828 | ||||||
Long-term debt due within one year of variable interest entities | 72 | — | ||||||
Accounts payable | 2,446 | 1,444 | ||||||
Accounts payable of variable interest entities | 202 | — | ||||||
Mark-to-market derivative liabilities | 293 | 112 | ||||||
Unamortized energy contract liabilities | 455 | — | ||||||
Accrued expenses | 1,854 | 1,255 | ||||||
Deferred income taxes | 57 | 1 | ||||||
Regulatory liabilities | 321 | 197 | ||||||
Dividends payable | 4 | 349 | ||||||
Other | 888 | 560 | ||||||
|
|
|
| |||||
Total current liabilities | 7,777 | 5,134 | ||||||
|
|
|
| |||||
Long-term debt | 17,192 | 11,799 | ||||||
Long-term debt to financing trusts | 648 | 390 | ||||||
Long-term debt of variable interest entity | 506 | — | ||||||
Deferred credits and other liabilities | ||||||||
Deferred income taxes and unamortized investment tax credits | 12,139 | 8,253 | ||||||
Asset retirement obligations | 5,074 | 3,884 | ||||||
Pension obligations | 3,428 | 2,194 | ||||||
Non-pension postretirement benefit obligations | 2,662 | 2,263 | ||||||
Spent nuclear fuel obligation | 1,020 | 1,019 | ||||||
Regulatory liabilities | 3,981 | 3,627 | ||||||
Mark-to-market derivative liabilities | 313 | 126 | ||||||
Unamortized energy contract liabilities | 528 | — | ||||||
Payable for Zion Station decommissioning | 432 | 563 | ||||||
Other | 1,625 | 1,268 | ||||||
|
|
|
| |||||
Total deferred credits and other liabilities | 31,202 | 23,197 | ||||||
|
|
|
| |||||
Total liabilities | 57,325 | 40,520 | ||||||
|
|
|
| |||||
Commitments and contingencies | ||||||||
Preferred securities of subsidiary | 87 | 87 | ||||||
Shareholders’ equity | ||||||||
Common stock | 16,610 | 9,107 | ||||||
Treasury stock, at cost | (2,327 | ) | (2,327 | ) | ||||
Retained earnings | 9,893 | 10,055 | ||||||
Accumulated other comprehensive loss, net | (2,767 | ) | (2,450 | ) | ||||
|
|
|
| |||||
Total shareholders’ equity | 21,409 | 14,385 | ||||||
BGE preference stock not subject to mandatory redemption | 193 | — | ||||||
Noncontrolling interest | 91 | 3 | ||||||
|
|
|
| |||||
Total equity | 21,693 | 14,388 | ||||||
|
|
|
| |||||
Total liabilities and shareholders’ equity | $ | 79,105 | $ | 54,995 | ||||
|
|
|
|
(a) | Includes the financial information of Constellation and BGE. |
6
EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Twelve Months Ended December 31, | ||||||||
2012 (a) | 2011 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 1,171 | $ | 2,499 | ||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization | 4,073 | 2,316 | ||||||
Loss on sale of three Maryland generating stations | 272 | — | ||||||
Deferred income taxes and amortization of investment tax credits | 547 | 1,457 | ||||||
Net fair value changes related to derivatives | (604 | ) | 291 | |||||
Net realized and unrealized (gains) losses on nuclear decommissioning trust fund investments | (157 | ) | 14 | |||||
Other non-cash operating activities | 1,389 | 770 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 113 | 57 | ||||||
Inventories | 26 | (58 | ) | |||||
Accounts payable, accrued expenses and other current liabilities | (524 | ) | (254 | ) | ||||
Option premiums paid, net | (114 | ) | (3 | ) | ||||
Counterparty collateral received (posted), net | 135 | (344 | ) | |||||
Income taxes | 717 | 492 | ||||||
Pension and non-pension postretirement benefit contributions | (462 | ) | (2,360 | ) | ||||
Other assets and liabilities | (450 | ) | (24 | ) | ||||
|
|
|
| |||||
Net cash flows provided by operating activities | 6,132 | 4,853 | ||||||
|
|
|
| |||||
Cash flows from investing activities | ||||||||
Capital expenditures | (5,789 | ) | (4,042 | ) | ||||
Proceeds from nuclear decommissioning trust fund sales | 7,265 | 6,139 | ||||||
Investment in nuclear decommissioning trust funds | (7,483 | ) | (6,332 | ) | ||||
Cash acquired from Constellation | 964 | — | ||||||
Acquisitions of long lived assets | (21 | ) | (387 | ) | ||||
Proceeds from sale of three Maryland generating stations | 371 | — | ||||||
Proceeds from sales of investments | 28 | 6 | ||||||
Purchases of investments | (13 | ) | (4 | ) | ||||
Change in restricted cash | (34 | ) | (3 | ) | ||||
Other investing activities | 137 | 20 | ||||||
|
|
|
| |||||
Net cash flows used in investing activities | (4,575 | ) | (4,603 | ) | ||||
|
|
|
| |||||
Cash flows from financing activities | ||||||||
Payment of accounts receivable agreement | (15 | ) | — | |||||
Changes in short-term debt | (197 | ) | 161 | |||||
Issuance of long-term debt | 2,027 | 1,199 | ||||||
Retirement of long-term debt | (1,145 | ) | (789 | ) | ||||
Dividends paid on common stock | (1,716 | ) | (1,393 | ) | ||||
Proceeds from employee stock plans | 72 | 38 | ||||||
Other financing activities | (113 | ) | (62 | ) | ||||
|
|
|
| |||||
Net cash flows used in financing activities | (1,087 | ) | (846 | ) | ||||
|
|
|
| |||||
Increase (decrease) in cash and cash equivalents | 470 | (596 | ) | |||||
Cash and cash equivalents at beginning of period | 1,016 | 1,612 | ||||||
|
|
|
| |||||
Cash and cash equivalents at end of period | $ | 1,486 | $ | 1,016 | ||||
|
|
|
|
(a) | Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed. |
7
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 December 31, 2012 (a) | Three Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (b) | Adjustments | Adjusted Non-GAAP | GAAP (b) | Adjustments | Adjusted Non-GAAP | |||||||||||||||||||
Operating revenues | $ | 6,284 | $ | 160 | (c),(d),(e) | $ | 6,444 | $ | 4,358 | $ | (24 | ) (c) | $ | 4,334 | ||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 2,759 | 66 | (c),(d),(e) | 2,825 | 1,431 | 73 | (c),(d) | 1,504 | ||||||||||||||||
Operating and maintenance | 2,012 | (130 | ) (c),(f),(g),(h) | 1,882 | 1,322 | (43 | ) (c),(f) | 1,279 | ||||||||||||||||
Depreciation, amortization, accretion and depletion | 505 | (3 | ) (c) | 502 | 360 | (22 | ) (c) | 338 | ||||||||||||||||
Taxes other than income | 282 | (3 | ) (c) | 279 | 183 | — | 183 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 5,558 | (70 | ) | 5,488 | 3,296 | 8 | 3,304 | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | (22 | ) | 40 | (e) | 18 | (1 | ) | — | (1 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 704 | 270 | 974 | 1,061 | (32 | ) | 1,029 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (231 | ) | (5 | ) (i) | (236 | ) | (181 | ) | — | (181 | ) | |||||||||||||
Other, net | 93 | (20 | ) (c),(f),(j) | 73 | 150 | (114 | ) (j) | 36 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (138 | ) | (25 | ) | (163 | ) | (31 | ) | (114 | ) | (145 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 566 | 245 | 811 | 1,030 | (146 | ) | 884 | |||||||||||||||||
Income taxes | 182 |
| 76 | (c),(d),(e),(f), (g),(h),(i),(j),(k) | 258 | 423 | | (84 | (c),(d),(f), ) (j),(k) | 339 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | 384 | 169 | 553 | 607 | (62 | ) | 545 | |||||||||||||||||
Net loss attributable to noncontrolling interests, preferred security dividends and preference stock dividends | 6 | — | 6 | 1 | — | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income on common stock | $ | 378 | $ | 169 | $ | 547 | $ | 606 | $ | (62 | ) | $ | 544 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Effective tax rate | 32.2 | % | 31.8 | % | 41.1 | % | 38.3 | % | ||||||||||||||||
Earnings per average common share | ||||||||||||||||||||||||
Basic | $ | 0.44 | $ | 0.20 | $ | 0.64 | $ | 0.91 | $ | (0.09 | ) | $ | 0.82 | |||||||||||
Diluted | $ | 0.44 | $ | 0.20 | $ | 0.64 | $ | 0.91 | $ | (0.09 | ) | $ | 0.82 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Average common shares outstanding | ||||||||||||||||||||||||
Basic | 854 | 854 | 664 | 664 | ||||||||||||||||||||
Diluted | 857 | 857 | 666 | 666 | ||||||||||||||||||||
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
|
| |||||||||||||||||||||||
Plant retirements and divestitures (c) | $ | 0.05 | $ | 0.01 | ||||||||||||||||||||
Mark-to-market impact of economic hedging activities (d) | (0.14 | ) | (0.07 | ) | ||||||||||||||||||||
Amortization of commodity contract intangibles (e) | 0.24 | — | ||||||||||||||||||||||
Constellation merger and integration costs (f) | 0.05 | 0.03 | ||||||||||||||||||||||
Asset retirement obligation (g) | (0.01 | ) | — | |||||||||||||||||||||
Midwest Generation bankruptcy charges (h) | 0.01 | — | ||||||||||||||||||||||
Amortization of the fair value of certain debt (i) | — | — | ||||||||||||||||||||||
Unrealized (gains) losses related to NDT fund investments (j) | — | (0.07 | ) | |||||||||||||||||||||
Non-cash remeasurement of deferred income taxes (k) | — | 0.01 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total adjustments | $ | 0.20 | $ | (0.09 | ) | |||||||||||||||||||
|
|
|
|
(a) | Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed. |
(b) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
(c) | Adjustment to exclude costs associated with the retirement of fossil generating units, the impacts of the FERC approved reliability-must-run rate schedule and the impact associated with the sale in the fourth quarter of 2012 of three generating stations associated with certain of the regulatory approvals required for the merger. |
(d) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations. |
(e) | Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date. |
(f) | Adjustment to exclude certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives. |
(g) | Adjustment to exclude the decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations. |
(h) | Adjustment to exclude estimated liabilities pursuant to the Midwest Generation bankruptcy. |
(i) | Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013. |
(j) | Adjustment to exclude the unrealized gains associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes. |
(k) | Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of the merger in 2012 and as a result of revised estimates of state apportionments in 2011. |
8
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations
(unaudited)
(in millions, except per share data)
Twelve Months Ended December 31, 2012 (a) | Twelve Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (b) | Adjustments | Adjusted Non-GAAP | GAAP (b) | Adjustments | Adjusted Non-GAAP | |||||||||||||||||||
Operating revenues | $ | 23,489 | $ | 1,185 | (c),(d),(e),(f) | $ | 24,674 | $ | 19,063 | $ | (66 | ) (c),(o) | $ | 18,997 | ||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 10,157 | 607 | (c),(d),(e),(g) | 10,764 | 7,267 | (292 | ) (c),(d) | 6,975 | ||||||||||||||||
Operating and maintenance | 7,961 |
| (1,182 | (c),(e),(f),(g), ) (h),(i),(j),(k) | 6,779 | 5,184 |
| (124 | (c),(g),(j),(k), ) (o),(p) | 5,060 | ||||||||||||||
Depreciation, amortization, accretion and depletion | 1,881 | (47 | ) (c),(g) | 1,834 | 1,347 | (87 | ) (c) | 1,260 | ||||||||||||||||
Taxes other than income | 1,019 | (9 | ) (c),(f),(g) | 1,010 | 785 | (1 | ) (c) | 784 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 21,018 | (631 | ) | 20,387 | 14,583 | (504 | ) | 14,079 | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | (91 | ) | 150 | (e),(g) | 59 | (1 | ) | — | (1 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 2,380 | 1,966 | 4,346 | 4,479 | 438 | 4,917 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (928 | ) | (13 | ) (g),(l) | (941 | ) | (726 | ) | — | (726 | ) | |||||||||||||
Other, net | 346 | (94 | ) (c),(g),(m) | 252 | 203 | (21 | ) (m),(o) | 182 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (582 | ) | (107 | ) | (689 | ) | (523 | ) | (21 | ) | (544 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 1,798 | 1,859 | 3,657 | 3,956 | 417 | 4,373 | ||||||||||||||||||
Income taxes | 627 |
|
689 | (c),(d),(e),(f), (g),(h),(i),(j), (k),(l),(m),(n) | 1,316 | 1,457 |
| 149 | (c),(d),(g),(j), (k),(m),(n), (o),(p) | 1,606 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income on common stock | 1,171 | 1,170 | 2,341 | 2,499 | 268 | 2,767 | ||||||||||||||||||
Net loss attributable to noncontrolling interests, preferred security dividends and preference stock dividends | 11 | — | 11 | 4 | — | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | $ | 1,160 | $ | 1,170 | $ | 2,330 | $ | 2,495 | $ | 268 | $ | 2,763 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Effective tax rate | 34.9 | % | 36.0 | % | 36.8 | % | 36.7 | % | ||||||||||||||||
Earnings per average common share | ||||||||||||||||||||||||
Basic | $ | 1.42 | $ | 1.43 | $ | 2.85 | $ | 3.76 | $ | 0.41 | $ | 4.17 | ||||||||||||
Diluted | $ | 1.42 | $ | 1.43 | $ | 2.85 | $ | 3.75 | $ | 0.41 | $ | 4.16 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Average common shares outstanding | ||||||||||||||||||||||||
Basic | 816 | 816 | 663 | 663 | ||||||||||||||||||||
Diluted | 819 | 819 | 665 | 665 | ||||||||||||||||||||
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: |
| |||||||||||||||||||||||
Plant retirements and divestitures (c) | $ | 0.29 | $ | 0.05 | ||||||||||||||||||||
Mark-to-market impact of economic hedging activities (d) | (0.38 | ) | 0.27 | |||||||||||||||||||||
Amortization of commodity contract intangibles (e) | 0.93 | — | ||||||||||||||||||||||
Maryland commitments (f) | 0.28 | — | ||||||||||||||||||||||
Constellation merger and integration costs (g) | 0.31 | 0.07 | ||||||||||||||||||||||
Midwest Generation bankruptcy charges (h) | 0.01 | — | ||||||||||||||||||||||
FERC settlement (i) | 0.21 | — | ||||||||||||||||||||||
Other acquisition costs (j) | — | 0.01 | ||||||||||||||||||||||
Asset retirement obligation (k) | — | 0.02 | ||||||||||||||||||||||
Amortization of the fair value of certain debt (l) | (0.01 | ) | — | |||||||||||||||||||||
Unrealized (gains) losses related to NDT fund investments (m) | (0.07 | ) | — | |||||||||||||||||||||
Remeasurement of state deferred income taxes (n) | (0.14 | ) | 0.05 | |||||||||||||||||||||
Wolf Hollow acquisition (o) | — | (0.03 | ) | |||||||||||||||||||||
Recovery of costs pursuant to the 2011 distribution rate case order (p) | — | (0.03 | ) | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total adjustments | $ | 1.43 | $ | 0.41 | ||||||||||||||||||||
|
|
|
|
(a) | Includes financial results for Constellation Energy including BGE, beginning on March 12, 2012, the date the acquisition was completed. |
(b) | Results reported in accordance with GAAP. |
(c) | Adjustment to exclude costs associated with the retirement of fossil generating units, the impacts of the FERC approved reliability-must-run rate schedule and the impact associated with the sale in the fourth quarter of 2012 of three generation stations associated with certain of the regulatory approvals required for the merger. |
(d) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations. |
(e) | Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date. |
(f) | Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction. |
(g) | Adjustment to exclude certain activities associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives. |
(h) | Adjustment to exclude estimated liabilities pursuant to the Midwest Generation bankruptcy. |
(i) | Adjustment to exclude costs associated with the March 2012 settlement with the FERC. |
(j) | Adjustment to exclude certain costs associated with various acquisitions. |
(k) | Adjustment to exclude the increase in Generation’s decommissioning obligation for spent nuclear fuel at retired nuclear units in 2011 and 2012, a decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations in 2012 and a decrease in PECO’s asset retirement obligation in 2011. |
(l) | Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013. |
(m) | Adjustment to exclude the unrealized losses in 2011 and gains in 2012 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes. |
(n) | Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of the merger in 2012 and as a result of revised estimates of state apportionments in 2011. |
(o) | Adjustment to exclude the non-cash bargain purchase gain (negative goodwill) associated with the acquisition of Wolf Hollow, net of acquisition costs. |
(p) | Adjustment to exclude one-time benefits for the recovery of previously incurred costs related to the 2009 restructuring plan and for the passage of Federal health care legislation in 2010. |
9
EXELON CORPORATION (a)
Reconciliation of Adjusted (non-GAAP) Operating
Earnings to GAAP Earnings (in millions)
Three Months Ended December 31, 2012 and 2011
Exelon Earnings per Diluted Share | Generation | ComEd | PECO | BGE | Other (b) | Exelon | ||||||||||||||||||||||
2011 GAAP Earnings (Loss) | $ | 0.91 | $ | 446 | $ | 121 | $ | 73 | $ | — | $ | (34 | ) | $ | 606 | |||||||||||||
2011 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments: | ||||||||||||||||||||||||||||
Mark-to-Market Impact of Economic Hedging Activities | (0.07 | ) | (45 | ) | — | — | — | — | (45 | ) | ||||||||||||||||||
Unrealized Gains Related to NDT Fund Investments (1) | (0.07 | ) | (46 | ) | — | — | — | — | (46 | ) | ||||||||||||||||||
Plant Retirements and Divestitures (2) | 0.01 | 4 | — | — | — | — | 4 | |||||||||||||||||||||
Constellation Merger and Integration Costs (3) | 0.03 | 6 | — | 1 | — | 14 | 21 | |||||||||||||||||||||
Non-Cash Remeasurement of Deferred Income Taxes (4) | 0.01 | (6 | ) | — | — | — | 10 | 4 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2011 Adjusted (non-GAAP) Operating Earnings (Loss) | 0.82 | 359 | 121 | 74 | — | (10 | ) | 544 | ||||||||||||||||||||
Year Over Year Effects on Earnings: | ||||||||||||||||||||||||||||
Generation Energy Margins, Excluding Mark-to-Market: | ||||||||||||||||||||||||||||
Nuclear Volume | — | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||||||
Nuclear Fuel Costs (5) | (0.01 | ) | (12 | ) | — | — | — | — | (12 | ) | ||||||||||||||||||
Capacity Pricing (6) | — | (4 | ) | — | — | — | — | (4 | ) | |||||||||||||||||||
Market and Portfolio Conditions (7) | 0.22 | 188 | — | — | — | — | 188 | |||||||||||||||||||||
Transmission Upgrades (8) | — | 19 | — | — | — | (19 | ) | — | ||||||||||||||||||||
ComEd, PECO and BGE Margins: | ||||||||||||||||||||||||||||
Weather | 0.02 | — | 1 | 17 | — | (c) | — | 18 | ||||||||||||||||||||
Load | — | — | 1 | — | — | (c) | — | 1 | ||||||||||||||||||||
Other Energy Delivery (9) | 0.34 | — | 61 | 8 | 226 | — | 295 | |||||||||||||||||||||
Operating and Maintenance Expense: | ||||||||||||||||||||||||||||
Labor, Contracting and Materials (10) | (0.20 | ) | (115 | ) | (13 | ) | 3 | (46 | ) | — | (171 | ) | ||||||||||||||||
Planned Nuclear Refueling Outages | 0.01 | 8 | — | — | — | — | 8 | |||||||||||||||||||||
Pension and Non-Pension Postretirement Benefits (11) | (0.04 | ) | (10 | ) | (4 | ) | (3 | ) | (5 | ) | (12 | ) | (34 | ) | ||||||||||||||
Other Operating and Maintenance (12) | (0.21 | ) | (90 | ) | (34 | ) | (32 | ) | (49 | ) | 25 | (180 | ) | |||||||||||||||
Depreciation and Amortization Expense (13) | (0.12 | ) | (42 | ) | (2 | ) | (3 | ) | (48 | ) | (5 | ) | (100 | ) | ||||||||||||||
Equity in Earnings of Unconsolidated Affiliates (14) | 0.01 | 12 | — | — | — | — | 12 | |||||||||||||||||||||
Income Taxes (15) | 0.06 | 8 | 11 | 16 | (1 | ) | 20 | 54 | ||||||||||||||||||||
Interest Expense, Net (16) | (0.03 | ) | (24 | ) | 17 | 1 | (20 | ) | 2 | (24 | ) | |||||||||||||||||
Other | (0.05 | ) | (13 | ) | 3 | — | (39 | ) | 2 | (47 | ) | |||||||||||||||||
Share Differential (17) | (0.18 | ) | — | — | — | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2012 Adjusted (non-GAAP) Operating Earnings | 0.64 | 283 | 162 | 81 | 18 | 3 | 547 | |||||||||||||||||||||
2012 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments: | ||||||||||||||||||||||||||||
Mark-to-Market Impact of Economic Hedging Activities | 0.14 | 145 | — | — | — | (22 | ) | 123 | ||||||||||||||||||||
Unrealized Gains Related to NDT Fund Investments (1) | — | 2 | — | — | — | — | 2 | |||||||||||||||||||||
Plant Retirements and Divestitures (2) | (0.05 | ) | (38 | ) | — | — | — | — | (38 | ) | ||||||||||||||||||
Constellation Merger and Integration Costs (3) | (0.05 | ) | (35 | ) | (2 | ) | (2 | ) | (3 | ) | (4 | ) | (46 | ) | ||||||||||||||
Non-Cash Remeasurement of Deferred Income Taxes (4) | — | (9 | ) | — | — | — | 10 | 1 | ||||||||||||||||||||
Amortization of Commodity Contract Intangibles (18) | (0.24 | ) | (211 | ) | — | — | — | — | (211 | ) | ||||||||||||||||||
Amortization of the Fair Value of Certain Debt (19) | — | 3 | — | — | — | — | 3 | |||||||||||||||||||||
Asset Retirement Obligation (20) | 0.01 | 5 | — | — | — | — | 5 | |||||||||||||||||||||
Midwest Generation Bankruptcy Charges (21) | (0.01 | ) | (8 | ) | — | — | — | — | (8 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2012 GAAP Earnings (Loss) | $ | 0.44 | $ | 137 | $ | 160 | $ | 79 | $ | 15 | $ | (13 | ) | $ | 378 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | For the three months ended December 31, 2012, includes financial results for Constellation and BGE. Therefore, the results of operations from 2012 and 2011 are not comparable for Generation, BGE, Other and Exelon. The explanations below identify any other significant or unusual items affecting the results of operations. |
(b) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
(c) | As approved by the Maryland PSC, BGE records a monthly adjustment to rates for residential and the majority of its commercial and industrial customers to eliminate the effect of abnormal weather and usage patterns per customer on distribution volumes. |
(1) | Reflects the impact of unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements. |
(2) | For 2012, primarily reflects the impact associated with the sale of three generating stations associated with certain of the regulatory approvals required for the merger. For 2011, primarily reflects incremental accelerated depreciation associated with the retirement of four fossil generating units and compensation for operating two of the units past their planned retirement date under a FERC-approved reliability-must-run rate schedule. |
(3) | Reflects certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives. |
(4) | Reflects the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of the merger in 2012 and as a result of revised estimates of state apportionments in 2011. |
(5) | Primarily reflects the impact of higher nuclear fuel prices during the amortization period, excluding CENG. |
(6) | Primarily reflects the impact of decreased capacity prices related to the Reliability Pricing Model (RPM) for the PJM Interconnection, LLC (PJM) market, partially offset by the addition of Constellation’s financial results in 2012. |
(7) | Primarily reflects the addition of Constellation’s financial results in 2012, partially offset by the impact of decreased realized market prices for the sale of energy in the Mid-Atlantic and Midwest regions. |
(8) | For Generation, reflects intercompany expense in 2011 and PJM bill credits in 2012 related to upgrades in transmission assets owned by ComEd, which are reflected as assets at Exelon Corporate. |
(9) | For ComEd, primarily reflects the impacts of the October 2012 rehearing order issued by the ICC related to ComEd’s recovery of pension asset costs associated with the formula rate proceeding under EIMA. For ComEd, also reflects recovery of increased costs and capital investment, net of lower allowed return on equity, pursuant to the formula rate under EIMA, and recovery of increased costs and capital investment pursuant to the FERC approved transmission formula rate. For PECO, primarily reflects increased cost recovery for regulatory required programs (partially offset in operating and maintenance expense, depreciation expense and income taxes). |
(10) | Primarily reflects the addition of Constellation and BGE’s financial results in 2012 and the impacts of increased wages and other benefits and increased contracting expenses (exclusive of planned nuclear refueling outages and incremental storm costs). At ComEd, primarily reflects increased contracting expenses on new projects related to EIMA. At PECO, primarily reflects a decrease in contracting expenses. |
(11) | The increase in pension and OPEB costs primarily reflects the impact of lower actuarially assumed discount rates and expected return on assets for 2012 as compared to 2011. |
(12) | Primarily reflects the addition of Constellation and BGE’s financial results in 2012 and the impact of higher storm costs in the PECO and BGE service territories. For ComEd, primarily reflects a credit in 2011 for the allowed recovery of certain storm costs pursuant to EIMA, partially offset by a 2011 one-time contribution by ComEd also pursuant to EIMA. |
(13) | Primarily reflects the addition of Constellation and BGE’s financial results in 2012, increased depreciation expense across the operating companies for ongoing capital expenditures and the non-cash amortization of intangible assets at Generation primarily related to the trade name and retail relationships recorded at fair value at the merger date. |
(14) | Primarily reflects equity in earnings in CENG, partially offset by the non-cash amortization of the fair value basis difference recorded at the merger date. |
(15) | At Generation, primarily reflects changes in state income tax rates. At ComEd, primarily reflects a benefit related to the final 1999-2001 IRS settlement (offset at Generation) and a favorable remeasurement of Illinois state deferred taxes. At PECO, primarily reflects a benefit for the gas property repairs deduction. |
(16) | Primarily reflects the addition of Constellation and BGE’s financial results in 2012. For Generation and BGE, also reflects the impact of higher interest expense due to higher outstanding debt during 2012. For ComEd, primarily reflects lower interest expense related to the 1999-2001 IRS settlement, lower outstanding debt during 2012 and lower interest rates on long-term debt. |
(17) | Reflects the impact on earnings per share due to the increase in Exelon’s average diluted common shares outstanding as a result of the merger. |
(18) | Represents the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date. |
(19) | Represents the non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013. |
(20) | Reflects a decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations. |
(21) | For Generation, reflects estimated liabilities pursuant to the Midwest Generation bankruptcy. |
10
EXELON CORPORATION (a)
Reconciliation of Adjusted (non-GAAP) Operating
Earnings to GAAP Earnings (in millions)
Twelve Months Ended December 31, 2012 and 2011
Exelon Earnings per Diluted Share | Generation | ComEd | PECO | BGE | Other (b) | Exelon | ||||||||||||||||||||||
2011 GAAP Earnings (Loss) | $ | 3.75 | $ | 1,771 | $ | 416 | $ | 385 | $ | — | $ | (77 | ) | $ | 2,495 | |||||||||||||
2011 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments: | ||||||||||||||||||||||||||||
Mark-to-Market Impact of Economic Hedging Activities | 0.27 | 174 | — | — | — | — | 174 | |||||||||||||||||||||
Unrealized Losses Related to NDT Fund Investments (1) | — | 1 | — | — | — | — | 1 | |||||||||||||||||||||
Plant Retirements and Divestitures (2) | 0.05 | 33 | — | — | — | — | 33 | |||||||||||||||||||||
Asset Retirement Obligation (3) | 0.02 | 18 | — | (2 | ) | — | — | 16 | ||||||||||||||||||||
Recovery of Costs Pursuant to the 2011 Distribution Rate Case Order (4) | (0.03 | ) | — | (17 | ) | — | — | — | (17 | ) | ||||||||||||||||||
Constellation Merger and Integration Costs (5) | 0.07 | 8 | — | 1 | — | 37 | 46 | |||||||||||||||||||||
Other Acquisition Costs | 0.01 | 5 | — | — | — | — | 5 | |||||||||||||||||||||
Wolf Hollow Acquisition (6) | (0.03 | ) | (23 | ) | — | — | — | — | (23 | ) | ||||||||||||||||||
Non-Cash Remeasurement of Deferred Income Taxes (7) | 0.05 | 15 | 4 | — | — | 14 | 33 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2011 Adjusted (non-GAAP) Operating Earnings (Loss) Year Over Year Effects on Earnings: | 4.16 | 2,002 | 403 | 384 | — | (26 | ) | 2,763 | ||||||||||||||||||||
Generation Energy Margins, Excluding Mark-to-Market: | ||||||||||||||||||||||||||||
Nuclear Volume | — | — | — | — | — | — | — | |||||||||||||||||||||
Nuclear Fuel Costs (8) | (0.07 | ) | (56 | ) | — | — | — | — | (56 | ) | ||||||||||||||||||
Capacity Pricing (9) | (0.13 | ) | (105 | ) | — | — | — | — | (105 | ) | ||||||||||||||||||
Market and Portfolio Conditions (10) | 0.71 | 581 | — | — | — | — | 581 | |||||||||||||||||||||
Transmission Upgrades (11) | — | 53 | — | — | — | (53 | ) | — | ||||||||||||||||||||
ComEd, PECO and BGE Margins: | ||||||||||||||||||||||||||||
Weather | (0.03 | ) | — | 1 | (23 | ) | — | (c) | — | (22 | ) | |||||||||||||||||
Load | (0.02 | ) | — | (2 | ) | (16 | ) | — | (c) | — | (18 | ) | ||||||||||||||||
Other Energy Delivery (12) | 0.95 | — | 81 | 6 | 691 | — | 778 | |||||||||||||||||||||
Discrete Impacts of the 2011 Distribution Rate Case Order (13) | (0.03 | ) | — | (21 | ) | — | — | — | (21 | ) | ||||||||||||||||||
Operating and Maintenance Expense: | ||||||||||||||||||||||||||||
Labor, Contracting and Materials (14) | (0.79 | ) | (439 | ) | (56 | ) | 21 | (175 | ) | — | (649 | ) | ||||||||||||||||
Planned Nuclear Refueling Outages (15) | 0.03 | 27 | — | — | — | — | 27 | |||||||||||||||||||||
Pension and Non-Pension Postretirement Benefits (16) | (0.13 | ) | (34 | ) | (24 | ) | (9 | ) | (19 | ) | (21 | ) | (107 | ) | ||||||||||||||
Other Operating and Maintenance (17) | (0.38 | ) | (224 | ) | 9 | (9 | ) | (141 | ) | 45 | (320 | ) | ||||||||||||||||
Depreciation and Amortization Expense (18) | (0.43 | ) | (150 | ) | (34 | ) | (11 | ) | (143 | ) | (15 | ) | (353 | ) | ||||||||||||||
2011 Nuclear Decommissioning Trust Fund Special Transfer (19) | (0.06 | ) | (46 | ) | — | — | — | — | (46 | ) | ||||||||||||||||||
Equity in Earnings of Unconsolidated Affiliates (20) | 0.05 | 38 | — | — | — | — | 38 | |||||||||||||||||||||
Income Taxes (21) | 0.06 | 8 | (3 | ) | 9 | 1 | 36 | 51 | ||||||||||||||||||||
Interest Expense, Net (22) | (0.14 | ) | (88 | ) | 25 | 7 | (61 | ) | 2 | (115 | ) | |||||||||||||||||
Other (23) | (0.12 | ) | (19 | ) | 2 | 28 | (107 | ) | — | (96 | ) | |||||||||||||||||
Share Differential (24) | (0.78 | ) | — | — | — | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2012 Adjusted (non-GAAP) Operating Earnings (Loss) 2012 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments: | 2.85 | 1,548 | 381 | 387 | 46 | (32 | ) | 2,330 | ||||||||||||||||||||
Mark-to-Market Impact of Economic Hedging Activities | 0.38 | 312 | — | — | — | (2 | ) | 310 | ||||||||||||||||||||
Unrealized Gains Related to NDT Fund Investments (1) | 0.07 | 56 | — | — | — | — | 56 | |||||||||||||||||||||
Plant Retirements and Divestitures (2) | (0.29 | ) | (236 | ) | — | — | — | — | (236 | ) | ||||||||||||||||||
Asset Retirement Obligation (3) | — | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||||||
Constellation Merger and Integration Costs (5) | (0.31 | ) | (167 | ) | (2 | ) | (10 | ) | (5 | ) | (73 | ) | (257 | ) | ||||||||||||||
Non-Cash Remeasurement of Deferred Income Taxes (7) | 0.14 | 4 | — | — | — | 113 | 117 | |||||||||||||||||||||
Maryland Commitments (25) | (0.28 | ) | (22 | ) | — | — | (83 | ) | (122 | ) | (227 | ) | ||||||||||||||||
Amortization of Commodity Contract Intangibles (26) | (0.93 | ) | (758 | ) | — | — | — | — | (758 | ) | ||||||||||||||||||
FERC Settlement (27) | (0.21 | ) | (172 | ) | — | — | — | — | (172 | ) | ||||||||||||||||||
Amortization of the Fair Value of Certain Debt (28) | 0.01 | 9 | — | — | — | — | 9 | |||||||||||||||||||||
Other Acquisition Costs | — | (3 | ) | — | — | — | — | (3 | ) | |||||||||||||||||||
Midwest Generation Bankruptcy Charges (29) | (0.01 | ) | (8 | ) | — | — | — | — | (8 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2012 GAAP Earnings (Loss) | $ | 1.42 | $ | 562 | $ | 379 | $ | 377 | $ | (42 | ) | $ | (116 | ) | $ | 1,160 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | For the twelve months ended December 31, 2012, includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed. Therefore, the results of operations from 2012 and 2011 are not comparable for Generation, BGE, Other and Exelon. The explanations below identify any other significant or unusual items affecting the results of operations. |
(b) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
(c) | As approved by the Maryland PSC, BGE records a monthly adjustment to rates for residential and the majority of its commercial and industrial customers to eliminate the effect of abnormal weather and usage patterns per customer on distribution volumes. |
(1) | Reflects the impact of unrealized losses in 2011 and unrealized gains in 2012 on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements. |
(2) | For 2012, primarily reflects the impact associated with the sale of three generating stations associated with certain of the regulatory approvals required for the merger. For 2012 and 2011, also reflects incremental accelerated depreciation associated with the retirement of certain fossil generating units and compensation for operating two of the units past their planned retirement date under a FERC-approved reliability-must-run rate schedule. |
(3) | For 2011 and 2012, primarily reflects an increase in Generation’s decommissioning obligation for spent nuclear fuel at retired nuclear units. For 2012, also reflects a decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations. |
(4) | Reflects one-time benefits pursuant to the ComEd 2011 electric distribution rate case order for the recovery of previously incurred costs related to the 2009 restructuring plan and for the passage of Federal health care legislation in 2010. |
(5) | Reflects certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives. |
(6) | Primarily reflects a non-cash bargain purchase gain (negative goodwill) in 2011 in connection with the acquisition of Wolf Hollow, net of acquisition costs. |
(7) | Reflects the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of the merger in 2012 and as a result of revised estimates of state apportionments in 2011. |
(8) | Primarily reflects the impact of higher nuclear fuel prices during the amortization period, excluding CENG. |
(9) | Primarily reflects the impact of decreased capacity prices related to the RPM for the PJM market, partially offset by the addition of Constellation’s financial results in 2012. |
(10) | Primarily reflects the addition of Constellation’s financial results in 2012, partially offset by the impact of decreased realized market prices for the sale of energy in the Mid-Atlantic and Midwest regions. |
(11) | For Generation, reflects intercompany expense in 2011 and PJM bill credits in 2012 related to upgrades in transmission assets owned by ComEd, which are reflected as assets at Exelon Corporate. |
(12) | For ComEd, primarily reflects recovery of increased costs and capital investment, net of lower allowed return on equity, pursuant to the formula rate under EIMA, and recovery of increased costs and capital investment pursuant to the FERC approved transmission formula rate. |
(13) | Primarily reflects one-time net benefits pursuant to the 2011 ComEd electric distribution rate case order to reestablish previously expensed plant balances and to recognize the estimated recovery of funds for working capital related to the procurement of energy. |
(14) | Primarily reflects the addition of Constellation and BGE’s financial results in 2012 and the impacts of increased wages and other benefits and increased contracting expenses (exclusive of planned nuclear refueling outages and incremental storm costs). At ComEd, primarily reflects increased contracting expenses on new projects related to EIMA. At PECO, primarily reflects a decrease in contracting expenses. |
(15) | Primarily reflects the impact of decreased planned nuclear refueling outage days in 2012, excluding Salem and CENG. |
(16) | The increase in pension and OPEB costs primarily reflects the impact of lower actuarially assumed discount rates and expected return on assets for 2012 as compared to 2011. |
(17) | Primarily reflects the addition of Constellation and BGE’s financial results in 2012 and the impact of higher storm costs in the PECO and BGE service territories, partially offset at ComEd by a 2011 one-time contribution pursuant to EIMA. |
(18) | Primarily reflects the addition of Constellation and BGE’s financial results in 2012, increased depreciation expense across the operating companies for ongoing capital expenditures and the non-cash amortization of intangible assets at Generation primarily related to the trade name and retail relationships recorded at fair value at the merger date. |
(19) | Reflects one-time interest and tax benefits in 2011 associated with a change in the timing of the deduction for the transfer of cash or investments from nonqualified nuclear decommissioning trust funds to qualified decommissioning trust funds pursuant to the Energy Policy Act of 2005 and related Treasury Regulations. |
(20) | Primarily reflects equity in earnings in CENG, partially offset by the non-cash amortization of the fair value basis difference recorded at the merger date. |
(21) | At Generation, primarily reflects a decrease in state income taxes and an increase in investment tax credits, partially offset by a 2012 reduction in manufacturing deduction benefits. At PECO, primarily reflects a benefit for the gas property repairs deduction. |
(22) | Primarily reflects the addition of Constellation and BGE’s financial results in 2012. In addition, reflects the impact of higher interest expense at Generation and BGE due to higher outstanding debt during 2012, partially offset by the impact of lower interest expense at ComEd and PECO due to lower outstanding debt during 2012 and lower interest rates on long-term debt. For ComEd, also reflects lower interest expense related to the 1999-2001 IRS settlement. |
(23) | For Generation, primarily reflects the addition of Constellation’s financial results, partially offset by realized NDT fund gains related to changes to the investment strategy and favorable market conditions in 2012. For PECO, primarily reflects decreased gross receipts tax (completely offset by decreased PECO margins) and reduced sales and use tax. |
(24) | Reflects the impact on earnings per share due to the increase in Exelon’s average diluted common shares outstanding as a result of the merger. |
(25) | Reflects costs incurred as part of the Maryland order approving the merger transaction. |
(26) | Represents the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date. |
(27) | Reflects costs incurred as part of a March 2012 settlement with the FERC to resolve a dispute related to Constellation’s prior period hedging and risk management transactions. |
(28) | Represents the non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013. |
(29) | For Generation, reflects estimated liabilities pursuant to the Midwest Generation bankruptcy. |
11
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
Generation | ||||||||||||||||||||||||
Three Months Ended December 31, 2012 | Three Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (b) | Adjustments | Adjusted Non-GAAP | GAAP (b) | Adjustments | Adjusted Non-GAAP | |||||||||||||||||||
Operating revenues | $ | 3,928 | $ | 123 | (c),(d),(e) | $ | 4,051 | $ | 2,528 | $ | (24 | ) (c) | $ | 2,504 | ||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 2,043 | 66 | (c),(d),(e) | 2,109 | 794 | 73 | (c),(d) | 867 | ||||||||||||||||
Operating and maintenance | 1,272 | (111 | ) (c),(f),(g),(h) | 1,161 | 842 | (18 | ) (c),(f) | 824 | ||||||||||||||||
Depreciation, amortization, accretion and depletion | 204 | (3 | ) (c) | 201 | 154 | (22 | ) (c) | 132 | ||||||||||||||||
Taxes other than income | 97 | (3 | ) (c) | 94 | 65 | — | 65 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 3,616 | (51 | ) | 3,565 | 1,855 | 33 | 1,888 | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | (22 | ) | 40 | (e) | 18 | (1 | ) | — | (1 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 290 | 214 | 504 | 672 | (57 | ) | 615 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (78 | ) | (5 | ) (i) | (83 | ) | (43 | ) | — | (43 | ) | |||||||||||||
Other, net | 54 | (20 | ) (c),(f),(j) | 34 | 135 | (114 | ) (j) | 21 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (24 | ) | (25 | ) | (49 | ) | 92 | (114 | ) | (22 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 266 | 189 | 455 | 764 | (171 | ) | 593 | |||||||||||||||||
Income taxes | 127 |
|
43 | (c),(d),(e), (f),(g),(h), (i),(j),(k) | 170 | 318 |
| (84 | (c),(d),(f), ) (j),(k) | 234 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | 139 | 146 | 285 | 446 | (87 | ) | 359 | |||||||||||||||||
Net loss attributable to noncontrolling interests | 2 | — | 2 | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income on common stock | $ | 137 | $ | 146 | $ | 283 | $ | 446 | $ | (87 | ) | $ | 359 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Twelve Months Ended December 31, 2012 (a) | Twelve Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (b) | Adjustments | Adjusted Non-GAAP | GAAP (b) | Adjustments | Adjusted Non-GAAP | |||||||||||||||||||
Operating revenues | $ | 14,437 | $ | 1,065 | (c),(d),(e) | $ | 15,502 | $ | 10,447 | $ | (66 | ) (c),(o) | $ | 10,381 | ||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 7,061 | 607 | (c),(d),(e),(f) | 7,668 | 3,589 | (292 | ) (c),(d) | 3,297 | ||||||||||||||||
Operating and maintenance | 5,028 |
| (889 | (c),(e),(f),(g), ) (h),(l),(m),(n) | 4,139 | 3,148 |
| (77 | (c),(f),(g), ) (l),(o) | 3,071 | ||||||||||||||
Depreciation, amortization, accretion and depletion | 768 | (47 | ) (c),(f) | 721 | 570 | (87 | ) (c) | 483 | ||||||||||||||||
Taxes other than income | 369 | (11 | ) (c) | 358 | 264 | (1 | ) (d) | 263 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 13,226 | (340 | ) | 12,886 | 7,571 | (457 | ) | 7,114 | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | (91 | ) | 150 | (e),(f) | 59 | (1 | ) | — | (1) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 1,120 | 1,555 | 2,675 | 2,875 | 391 | 3,266 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (301 | ) | (16 | ) (i) | (317 | ) | (170 | ) | — | (170 | ) | |||||||||||||
Other, net | 239 | (94 | ) (c),(f),(j) | 145 | 122 | (21 | ) (j),(o) | 101 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (62 | ) | (110 | ) | (172 | ) | (48 | ) | (21 | ) | (69 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 1,058 | 1,445 | 2,503 | 2,827 | 370 | 3,197 | ||||||||||||||||||
(c),(d),(e),(f), | (c),(d),(f), | |||||||||||||||||||||||
(g),(h),(i),(j), | (g),(j),(k), | |||||||||||||||||||||||
Income taxes | 500 | 459 | (k),(l),(m),(n) | 959 | 1,056 | 139 | (l),(o) | 1,195 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | 558 | 986 | 1,544 | 1,771 | 231 | 2,002 | ||||||||||||||||||
Net income attributable to noncontrolling interests | (4 | ) | — | (4 | ) | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income on common stock | $ | 562 | $ | 986 | $ | 1,548 | $ | 1,771 | $ | 231 | $ | 2,002 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes financial results for Constellation beginning on March 12, 2012, the date the merger was completed. |
(b) | Results reported in accordance with GAAP. |
(c) | Adjustment to exclude costs associated with the retirement of fossil generating units, the impacts of the FERC approved reliability-must-run rate schedule and the impact associated with the sale in the fourth quarter of 2012 of three generating stations associated with certain of the regulatory approvals required for the merger. |
(d) | Adjustment to exclude the mark-to-market impact of Generation’s economic hedging activities. |
(e) | Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date. |
(f) | Adjustment to exclude certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives. |
(g) | Adjustment to exclude the increase in Generation’s decommissioning obligation for spent nuclear fuel at retired nuclear units in 2011 and 2012, and a decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations in 2012. |
(h) | Adjustment to exclude estimated liabilities pursuant to the Midwest Generation bankruptcy. |
(i) | Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013. |
(j) | Adjustment to exclude the unrealized gains in 2011 for the three months ended, unrealized losses in 2011 for the twelve months ended and unrealized gains in 2012 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes. |
(k) | Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of the merger for 2012 and as a result of revised estimates of state apportionments for 2011. |
(l) | Adjustment to exclude certain costs associated with various acquisitions. |
(m) | Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction. |
(n) | Adjustment to exclude costs associated with the March 2012 settlement with the FERC. |
(o) | Adjustment to exclude the non-cash bargain purchase gain (negative goodwill) associated with the acquisition of Wolf Hollow, net of acquisition costs. |
12
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
ComEd | ||||||||||||||||||||||||
Three Months Ended December 31, 2012 | Three Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (a) | Adjustments | Adjusted Non- GAAP | GAAP (a) | Adjustments | Adjusted Non- GAAP | |||||||||||||||||||
Operating revenues | $ | 1,289 | $ | — | $ | 1,289 | $ | 1,362 | $ | — | $ | 1,362 | ||||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power | 421 | — | 421 | 599 | — | 599 | ||||||||||||||||||
Operating and maintenance | 345 | (3 | )(b) | 342 | 258 | — | 258 | |||||||||||||||||
Depreciation and amortization | 152 | — | 152 | 149 | — | 149 | ||||||||||||||||||
Taxes other than income | 71 | — | 71 | 71 | — | 71 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 989 | (3 | ) | 986 | 1,077 | — | 1,077 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 300 | 3 | 303 | 285 | — | 285 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (77 | ) | — | (77 | ) | (87 | ) | — | (87 | ) | ||||||||||||||
Other, net | 27 | — | 27 | 4 | — | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (50 | ) | — | (50 | ) | (83 | ) | — | (83 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 250 | 3 | 253 | 202 | — | 202 | ||||||||||||||||||
Income taxes | 90 | 1 | (b) | 91 | 81 | — | 81 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | $ | 160 | $ | 2 | $ | 162 | $ | 121 | $ | — | $ | 121 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Twelve Months Ended December 31, 2012 | Twelve Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (a) | Adjustments | Adjusted Non- GAAP | GAAP (a) | Adjustments | Adjusted Non- GAAP | |||||||||||||||||||
Operating revenues | $ | 5,443 | $ | — | $ | 5,443 | $ | 6,056 | $ | — | $ | 6,056 | ||||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power | 2,307 | — | 2,307 | 3,035 | — | 3,035 | ||||||||||||||||||
Operating and maintenance | 1,345 | (5 | )(b) | 1,340 | 1,189 | 13 | (c) | 1,202 | ||||||||||||||||
Depreciation and amortization | 610 | — | 610 | 554 | — | 554 | ||||||||||||||||||
Taxes other than income | 295 | — | 295 | 296 | — | 296 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 4,557 | (5 | ) | 4,552 | 5,074 | 13 | 5,087 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 886 | 5 | 891 | 982 | (13 | ) | 969 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (307 | ) | — | (307 | ) | (345 | ) | — | (345 | ) | ||||||||||||||
Other, net | 39 | — | 39 | 29 | — | 29 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (268 | ) | — | (268 | ) | (316 | ) | — | (316 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 618 | 5 | 623 | 666 | (13 | ) | 653 | |||||||||||||||||
Income taxes | 239 | 3 | (b) | 242 | 250 | — | (c),(d) | 250 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | $ | 379 | $ | 2 | $ | 381 | $ | 416 | $ | (13 | ) | $ | 403 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Results reported in accordance with GAAP. |
(b) | Adjustment to exclude certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives. |
(c) | Adjustment to exclude one-time benefits for the recovery of previously incurred costs related to the 2009 restructuring plan and for the passage of Federal health care legislation in 2010. |
(d) | Adjustment to exclude a one-time, non-cash charge to remeasure deferred taxes at higher corporate tax rates pursuant to the Illinois tax rate change legislation. |
13
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
PECO | ||||||||||||||||||||||||
Three Months Ended December 31, 2012 | Three Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (a) | Adjustments | Adjusted Non- GAAP | GAAP (a) | Adjustments | Adjusted Non- GAAP | |||||||||||||||||||
Operating revenues | $ | 790 | $ | — | $ | 790 | $ | 778 | $ | — | $ | 778 | ||||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 342 | — | 342 | 358 | — | 358 | ||||||||||||||||||
Operating and maintenance | 235 | (4 | )(b) | 231 | 196 | (1 | )(b) | 195 | ||||||||||||||||
Depreciation and amortization | 56 | — | 56 | 53 | — | 53 | ||||||||||||||||||
Taxes other than income | 40 | — | 40 | 40 | — | 40 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 673 | (4 | ) | 669 | 647 | (1 | ) | 646 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 117 | 4 | 121 | 131 | 1 | 132 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (30 | ) | — | (30 | ) | (32 | ) | — | (32 | ) | ||||||||||||||
Other, net | 2 | — | 2 | 2 | — | 2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (28 | ) | — | (28 | ) | (30 | ) | — | (30 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 89 | 4 | 93 | 101 | 1 | 102 | ||||||||||||||||||
Income taxes | 9 | 2 | (b) | 11 | 27 | — | (b) | 27 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | 80 | 2 | 82 | 74 | 1 | 75 | ||||||||||||||||||
Preferred security dividends | 1 | — | 1 | 1 | — | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income on common stock | $ | 79 | $ | 2 | $ | 81 | $ | 73 | $ | 1 | $ | 74 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Twelve Months Ended December 31, 2012 | Twelve Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (a) | Adjustments | Adjusted Non- GAAP | GAAP (a) | Adjustments | Adjusted Non- GAAP | |||||||||||||||||||
Operating revenues | $ | 3,186 | $ | — | $ | 3,186 | $ | 3,720 | $ | — | $ | 3,720 | ||||||||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | 1,375 | — | 1,375 | 1,864 | — | 1,864 | ||||||||||||||||||
Operating and maintenance | 809 | (17 | )(b) | 792 | 794 | 1 | (b),(c) | 795 | ||||||||||||||||
Depreciation and amortization | 217 | — | 217 | 202 | — | 202 | ||||||||||||||||||
Taxes other than income | 162 | — | 162 | 205 | — | 205 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 2,563 | (17 | ) | 2,546 | 3,065 | 1 | 3,066 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income | 623 | 17 | 640 | 655 | (1 | ) | 654 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (123 | ) | — | (123 | ) | (134 | ) | — | (134 | ) | ||||||||||||||
Other, net | 8 | — | 8 | 14 | — | 14 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (115 | ) | — | (115 | ) | (120 | ) | — | (120 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income taxes | 508 | 17 | 525 | 535 | (1 | ) | 534 | |||||||||||||||||
Income taxes | 127 | 7 | (b) | 134 | 146 | — | (b),(c) | 146 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | 381 | 10 | 391 | 389 | (1 | ) | 388 | |||||||||||||||||
Preferred security dividends | 4 | — | 4 | 4 | — | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income on common stock | $ | 377 | $ | 10 | $ | 387 | $ | 385 | $ | (1 | ) | $ | 384 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Results reported in accordance with GAAP. |
(b) | Adjustment to exclude certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives |
(c) | Adjustment to exclude a decrease in PECO’s 2011 asset retirement obligation. |
14
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
BGE | ||||||||||||
Three Months Ended December 31, 2012 | ||||||||||||
GAAP (a) | Adjustments | Adjusted Non-GAAP | ||||||||||
Operating revenues | $ | 703 | $ | — | $ | 703 | ||||||
Operating expenses | ||||||||||||
Purchased power and fuel | 326 | — | 326 | |||||||||
Operating and maintenance | 171 | (4 | )(b) | 167 | ||||||||
Depreciation and amortization | 80 | — | 80 | |||||||||
Taxes other than income | 65 | — | 65 | |||||||||
|
|
|
|
|
| |||||||
Total operating expenses | 642 | (4 | ) | 638 | ||||||||
|
|
|
|
|
| |||||||
Operating income | 61 | 4 | 65 | |||||||||
|
|
|
|
|
| |||||||
Other income and deductions | ||||||||||||
Interest expense | (34 | ) | — | (34 | ) | |||||||
Other, net | 5 | — | 5 | |||||||||
|
|
|
|
|
| |||||||
Total other income and deductions | (29 | ) | — | (29 | ) | |||||||
|
|
|
|
|
| |||||||
Income before income taxes | 32 | 4 | 36 | |||||||||
Income taxes | 14 | 1 | (b) | 15 | ||||||||
|
|
|
|
|
| |||||||
Net income | 18 | 3 | 21 | |||||||||
Preference stock dividends | 3 | — | 3 | |||||||||
|
|
|
|
|
| |||||||
Net income on common stock | $ | 15 | $ | 3 | $ | 18 | ||||||
|
|
|
|
|
| |||||||
March 12, 2012 through December 31, 2012 | ||||||||||||
GAAP (a) | Adjustments | Adjusted Non-GAAP | ||||||||||
Operating revenues | $ | 2,091 | $ | 113 | (c) | $ | 2,204 | |||||
Operating expenses | ||||||||||||
Purchased power and fuel | 1,052 | — | 1,052 | |||||||||
Operating and maintenance | 596 | (37 | )(b),(c) | 559 | ||||||||
Depreciation and amortization | 238 | — | 238 | |||||||||
Taxes other than income | 167 | 2 | (c) | 169 | ||||||||
|
|
|
|
|
| |||||||
Total operating expenses | 2,053 | (35 | ) | 2,018 | ||||||||
|
|
|
|
|
| |||||||
Operating income | 38 | 148 | 186 | |||||||||
|
|
|
|
|
| |||||||
Other income and deductions | ||||||||||||
Interest expense | (111 | ) | — | (111 | ) | |||||||
Other, net | 19 | — | 19 | |||||||||
|
|
|
|
|
| |||||||
Total other income anddeductions | (92 | ) | — | (92 | ) | |||||||
|
|
|
|
|
| |||||||
Income (loss) before income taxes | (54 | ) | 148 | 94 | ||||||||
Income taxes | (23 | ) | 60 | (b),(c) | 37 | |||||||
|
|
|
|
|
| |||||||
Net income (loss) | (31 | ) | 88 | 57 | ||||||||
Preference stock dividends | 11 | — | 11 | |||||||||
|
|
|
|
|
| |||||||
Net income (loss) on common stock | $ | (42 | ) | $ | 88 | $ | 46 | |||||
|
|
|
|
|
|
(a) | Results reported in accordance with GAAP. |
(b) | Adjustment to exclude certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives. |
(c) | Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction. |
15
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
Other (a) | ||||||||||||||||||||||||
Three Months Ended December 31, 2012 (b) | Three Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (c) | Adjustments | Adjusted Non- GAAP | GAAP (c) | Adjustments | Adjusted Non- GAAP | |||||||||||||||||||
Operating revenues | $ | (426 | ) | $ | 37 | (d) | $ | (389 | ) | $ | (310 | ) | $ | — | $ | (310 | ) | |||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | (373 | ) | — | (373 | ) | (320 | ) | — | (320 | ) | ||||||||||||||
Operating and maintenance | (11 | ) | (8 | )(e) | (19 | ) | 26 | (24 | )(e) | 2 | ||||||||||||||
Depreciation and amortization | 13 | — | 13 | 4 | — | 4 | ||||||||||||||||||
Taxes other than income | 9 | — | 9 | 7 | — | 7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | (362 | ) | (8 | ) | (370 | ) | (283 | ) | (24 | ) | (307 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating loss | (64 | ) | 45 | (19 | ) | (27 | ) | 24 | (3 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (12 | ) | — | (12 | ) | (19 | ) | — | (19 | ) | ||||||||||||||
Other, net | 5 | — | 5 | 9 | — | 9 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (7 | ) | — | (7 | ) | (10 | ) | — | (10 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Loss before income taxes | (71 | ) | 45 | (26 | ) | (37 | ) | 24 | (13 | ) | ||||||||||||||
Income taxes | (58 | ) | 29 | (d),(e),(f) | (29 | ) | (3 | ) | — | (e),(f) | (3 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) | $ | (13 | ) | $ | 16 | $ | 3 | $ | (34 | ) | $ | 24 | $ | (10 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Twelve Months Ended December 31, 2012 (b) | Twelve Months Ended December 31, 2011 | |||||||||||||||||||||||
GAAP (c) | Adjustments | Adjusted Non- GAAP | GAAP (c) | Adjustments | Adjusted Non- GAAP | |||||||||||||||||||
Operating revenues | $ | (1,668 | ) | $ | 7 | (d) | $ | (1,661 | ) | $ | (1,160 | ) | $ | — | $ | (1,160 | ) | |||||||
Operating expenses | ||||||||||||||||||||||||
Purchased power and fuel | (1,638 | ) | — | (1,638 | ) | (1,221 | ) | — | (1,221 | ) | ||||||||||||||
Operating and maintenance | 183 | (234 | )(e),(g) | (51 | ) | 53 | (61 | )(e) | (8 | ) | ||||||||||||||
Depreciation and amortization | 48 | — | 48 | 21 | — | 21 | ||||||||||||||||||
Taxes other than income | 26 | — | 26 | 20 | — | 20 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | (1,381 | ) | (234 | ) | (1,615 | ) | (1,127 | ) | (61 | ) | (1,188 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income (loss) | (287 | ) | 241 | (46 | ) | (33 | ) | 61 | 28 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Other income and deductions | ||||||||||||||||||||||||
Interest expense | (86 | ) | 3 | (e) | (83 | ) | (77 | ) | — | (77 | ) | |||||||||||||
Other, net | 41 | — | 41 | 38 | — | 38 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total other income and deductions | (45 | ) | 3 | (42 | ) | (39 | ) | — | (39 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Loss before income taxes | (332 | ) | 244 | (88 | ) | (72 | ) | 61 | (11 | ) | ||||||||||||||
Income taxes | (216 | ) | 160 | (d),(e),(f),(g) | (56 | ) | 5 | 10 | (e),(f) | 15 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net loss | $ | (116 | ) | $ | 84 | $ | (32 | ) | $ | (77 | ) | $ | 51 | $ | (26 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
(b) | Includes financial results for Constellation and BGE, beginning on March 12, 2012, the date the merger was completed. |
(c) | Results reported in accordance with GAAP. |
(d) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities. |
(e) | Adjustment to exclude certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives. |
(f) | Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of the merger for 2012 and as a result of revised estimates of state apportionments for 2011. |
(g) | Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction. |
16
EXELON CORPORATION
Exelon Generation Statistics
Three Months Ended | ||||||||||||||||||||
Dec. 31, 2012 (a) | Sep. 30, 2012 (a) | Jun. 30, 2012 (a) | Mar. 31, 2012 | Dec. 31, 2011 | ||||||||||||||||
Supply (in GWhs) | ||||||||||||||||||||
Nuclear Generation (b) | ||||||||||||||||||||
Mid-Atlantic | 11,547 | 11,449 | 12,277 | 12,064 | 11,587 | |||||||||||||||
Midwest | 23,335 | 23,132 | 22,860 | 23,198 | 23,306 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Nuclear Generation | 34,882 | 34,581 | 35,137 | 35,262 | 34,893 | |||||||||||||||
Fossil and Renewables (b) | ||||||||||||||||||||
Mid-Atlantic (b)(d) | 2,154 | 2,547 | 2,316 | 1,791 | 1,637 | |||||||||||||||
Midwest | 300 | 171 | 228 | 272 | 188 | |||||||||||||||
New England | 2,368 | 3,953 | 2,755 | 889 | — | |||||||||||||||
New York | — | — | — | — | — | |||||||||||||||
ERCOT (e) | 755 | 2,410 | 2,177 | 840 | 457 | |||||||||||||||
Other (f) | 1,358 | 1,813 | 1,923 | 819 | 394 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Fossil and Renewables | 6,935 | 10,894 | 9,399 | 4,611 | 2,676 | |||||||||||||||
Purchased Power | ||||||||||||||||||||
Mid-Atlantic (c) | 4,332 | 6,811 | 7,111 | 2,577 | 739 | |||||||||||||||
Midwest | 2,661 | 3,035 | 1,558 | 2,552 | 1,143 | |||||||||||||||
New England | 2,304 | 1,961 | 3,905 | 1,100 | — | |||||||||||||||
New York (c) | 3,678 | 4,026 | 2,818 | 935 | — | |||||||||||||||
ERCOT (e) | 6,043 | 7,741 | 6,686 | 2,832 | 1,150 | |||||||||||||||
Other (f) | 4,172 | 5,372 | 6,012 | 1,769 | 482 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Purchased Power | 23,190 | 28,946 | 28,090 | 11,765 | 3,514 | |||||||||||||||
Total Supply/Sales by Region (h) | ||||||||||||||||||||
Mid-Atlantic (g) | 18,033 | 20,807 | 21,704 | 16,432 | 13,963 | |||||||||||||||
Midwest (g) | 26,296 | 26,338 | 24,646 | 26,022 | 24,637 | |||||||||||||||
New England | 4,672 | 5,914 | 6,660 | 1,989 | — | |||||||||||||||
New York | 3,678 | 4,026 | 2,818 | 935 | — | |||||||||||||||
ERCOT | 6,798 | 10,151 | 8,863 | 3,672 | 1,607 | |||||||||||||||
Other (f) | 5,530 | 7,185 | 7,935 | 2,588 | 876 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Supply/Sales by Region | 65,007 | 74,421 | 72,626 | 51,638 | 41,083 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Three Months Ended | ||||||||||||||||||||
Dec. 31, 2012 (a) | Sep. 30, 2012 (a) | Jun. 30, 2012 (a) | Mar. 31, 2012 | Dec. 30, 2011 | ||||||||||||||||
Average Margin ($/MWh) (i) (j) | ||||||||||||||||||||
Mid-Atlantic (k) | $ | 48.24 | $ | 43.64 | $ | 40.68 | $ | 46.86 | $ | 56.08 | ||||||||||
Midwest (k) | 26.09 | 27.68 | 31.00 | 31.40 | 34.18 | |||||||||||||||
New England | 3.64 | 13.70 | 9.01 | 19.61 | n.m. | |||||||||||||||
New York | 4.35 | 3.23 | 13.84 | 8.56 | n.m. | |||||||||||||||
ERCOT | 13.39 | 15.66 | 13.43 | 9.26 | (6.02 | ) | ||||||||||||||
Other (f) | 7.96 | 5.85 | 4.28 | 5.41 | (4.13 | ) | ||||||||||||||
Average Margin - Overall Portfolio | $ | 26.52 | $ | 25.96 | $ | 26.15 | $ | 32.57 | $ | 39.31 | ||||||||||
Around-the-clock Market Prices ($/MWh)(l) | ||||||||||||||||||||
PJM West Hub | $ | 35.94 | $ | 38.13 | $ | 30.40 | $ | 31.10 | $ | 35.07 | ||||||||||
NiHub | 28.37 | 34.29 | 26.02 | 27.13 | 25.97 | |||||||||||||||
New England Mass Hub ATC Spark Spread | 3.07 | 12.69 | 7.77 | 0.80 | 6.71 | |||||||||||||||
NYPP Zone A | 34.70 | 34.56 | 27.87 | 27.18 | 32.03 | |||||||||||||||
ERCOT North Spark Spread | (0.27 | ) | 3.60 | 6.01 | 3.46 | 1.11 | ||||||||||||||
Three Months Ended | ||||||||||||||||||||
Dec. 31, 2012 (a) | Sep. 30, 2012 (a) | Jun. 30, 2012 (a) | Mar. 31, 2012 | Dec. 30, 2011 | ||||||||||||||||
Outage Days (m) | ||||||||||||||||||||
Refueling | 113 | 43 | 51 | 67 | 103 | |||||||||||||||
Non-refueling | 1 | 40 | 16 | 16 | 11 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Outage Days | 114 | 83 | 67 | 83 | 114 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Includes results for Constellation beginning on March 12, 2012, the date the merger was completed. |
(b) | Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and does not include ownership through equity method investments (e.g. CENG). |
(c) | Purchased power includes physical volumes of 3,255 GWhs, 3,126 GWhs, 3,225 GWhs and 319 GWhs in the Mid-Atlantic and 2,814 GWhs, 2,997 GWhs, 2,817 GWhs and 722 GWhs in New York as a result of the PPA with CENG for the three months ended December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, respectively. |
(d) | Excludes generation under the reliability-must-run rate schedule and generation of Brandon Shores, H.A. Wagner, and C.P. Crane, the generating facilities divested in Q4 2102 as a result of the Exelon and Constellation merger. |
(e) | Generation from Wolf Hollow is included in purchased power for the period ending June 30, 2011 and through the acquisition date of August 24, 2011, and included within Fossil and Renewables subsequent to the acquisition date. |
(f) | Other Regions includes South, West and Canada, which are not considered individually significant. |
(g) | Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region. |
(h) | Total sales do not include physical proprietary trading volumes of 2,977 GWhs, 4,352 GWhs, 3,873 GWhs, 1,757 GWhs, and 1,235 GWhs for the three months ended December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012, and December 31, 2011, respectively. |
(i) | Excludes Generation’s other business activities not allocated to a region, including retail and wholesale gas, upstream natural gas, proprietary trading, energy efficiency, energy management and demand response, and the design, construction and operation of renewable energy facilities. Also excludes Generation’s compensation under the reliability-must-run rate schedule, the financial results of Brandon Shores, H.A. Wagner, and C.P. Crane, the generating facilities divested in Q4 2012 as a result of the merger, amortization of certain intangible assets relating to commodity contracts recorded at fair value as a result of the Exelon and Constellation merger and other miscellaneous revenues not allocated to a region. |
(j) | Excludes the mark-to-market impact of Generation’s economic hedging activities. |
(k) | Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd and settlements of the ComEd swap in the Midwest region. |
(l) | Represents the average for the quarter. |
(m) | Outage days exclude Salem and CENG. |
17
EXELON CORPORATION
Exelon Generation Statistics
Twelve Months Ended December 31, 2012 and 2011
December 31, 2012 (a) | December 31, 2011 | |||||||
Supply (in GWhs) | ||||||||
Nuclear Generation (b) | ||||||||
Mid-Atlantic | 47,337 | 47,287 | ||||||
Midwest | 92,525 | 92,010 | ||||||
|
|
|
| |||||
Total Nuclear Generation | 139,862 | 139,297 | ||||||
Fossil and Renewables (b) | ||||||||
Mid-Atlantic (b)(d) | 8,808 | 7,572 | ||||||
Midwest | 971 | 596 | ||||||
New England | 9,965 | 8 | ||||||
ERCOT (e) | 6,182 | 2,030 | ||||||
Other (f) | 5,913 | 1,432 | ||||||
|
|
|
| |||||
Total Fossil and Renewables | 31,839 | 11,638 | ||||||
Purchased Power | ||||||||
Mid-Atlantic (c) | 20,830 | 2,898 | ||||||
Midwest | 9,805 | 5,970 | ||||||
New England | 9,273 | — | ||||||
New York (c) | 11,457 | — | ||||||
ERCOT (e) | 23,302 | 7,537 | ||||||
Other (f) | 17,327 | 2,503 | ||||||
|
|
|
| |||||
Total Purchased Power | 91,994 | 18,908 | ||||||
Total Supply/Sales by Region (h) | ||||||||
Mid-Atlantic (g) | 76,975 | 57,757 | ||||||
Midwest (g) | 103,301 | 98,576 | ||||||
New England | 19,238 | 8 | ||||||
New York | 11,457 | — | ||||||
ERCOT | 29,484 | 9,567 | ||||||
Other (f) | 23,240 | 3,935 | ||||||
|
|
|
| |||||
Total Supply/Sales by Region | 263,695 | 169,843 | ||||||
|
|
|
| |||||
December 31, 2012 (a) | December 31, 2011 | |||||||
Average Margin ($/MWh) (i) (j) | ||||||||
Mid-Atlantic (k) | $ | 44.60 | $ | 58.00 | ||||
Midwest (k) | 29.02 | 35.99 | ||||||
New England | 10.19 | n.m. | ||||||
New York | 6.63 | n.m. | ||||||
ERCOT | 13.74 | 8.78 | ||||||
Other (f) | 5.64 | (3.56 | ) | |||||
Average Margin - Overall Portfolio | $ | 27.45 | $ | 41.07 | ||||
Around-the-clock Market Prices ($/MWh) (l) | ||||||||
PJM West Hub | $ | 33.91 | $ | 43.56 | ||||
NiHub | 28.97 | 33.07 | ||||||
NEPOOL Mass Hub | 6.06 | 8.71 | ||||||
NYPP Zone A | 31.02 | 36.98 | ||||||
ERCOT North Spark Spread | 3.23 | 11.88 |
(a) | Includes results for Constellation beginning on March 12, 2012, the date the merger was completed. |
(b) | Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and does not include ownership through equity method investments (e.g. CENG). |
(c) | Purchased power includes physical volumes of 9,925 GWhs in the Mid-Atlantic and 9,350 GWhs in New York as a result of the PPA with CENG for the year ended December 31, 2012. |
(d) | Excludes generation under the reliability-must-run rate schedule and generation of Brandon Shores, H.A. Wagner, and C.P. Crane, the generating facilities divested in Q4 2012 as a result of the Exelon and Constellation merger. |
(e) | Generation from Wolf Hollow is included in purchased power for the period ending June 30, 2011 and through the acquisition date of August 24, 2011, and included within Fossil and Renewables subsequent to the acquisition date. |
(f) | Other Regions includes South, West and Canada, which are not considered individually significant. |
(g) | Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region. |
(h) | Total sales do not include physical proprietary trading volumes of 12,958 GWhs and 5,742 GWhs for the year ended December 31, 2012 and 2011, respectively. |
(i) | Excludes Generation’s other business activities not allocated to a region, including retail and wholesale gas, upstream natural gas, proprietary trading, energy efficiency, energy management and demand response, and the design, construction and operation of renewable energy facilities. Also excludes Generation’s compensation under the reliability-must-run rate schedule, the financial results of Brandon Shores, H.A. Wagner, and C.P. Crane, the generating facilities divested in Q4 2012 as a result of the merger, amortization of certain intangible assets relating to commodity contracts recorded at fair value as a result of the Exelon and Constellation merger and other miscellaneous revenues not allocated to a region. |
(j) | Excludes the mark-to-market impact of Generation’s economic hedging activities. |
(k) | Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd and settlements of the ComEd swap in the Midwest region. |
(l) | Represents the average for the quarter. |
18
EXELON CORPORATION
ComEd Statistics
Three Months Ended December 31, 2012 and 2011 | ||||||||||||||||||||||||||||
Electric Deliveries (in GWhs) | Revenue (in millions) | |||||||||||||||||||||||||||
Weather- Normal | ||||||||||||||||||||||||||||
2012 | 2011 | % Change | % Change | 2012 | 2011 | % Change | ||||||||||||||||||||||
Retail Deliveries and Sales (a) | ||||||||||||||||||||||||||||
Residential | 6,183 | 6,166 | 0.3 | % | (1.0 | )% | $ | 665 | $ | 764 | (13.0 | )% | ||||||||||||||||
Small Commercial & Industrial | 7,792 | 7,632 | 2.1 | % | 1.8 | % | 342 | 340 | 0.6 | % | ||||||||||||||||||
Large Commercial & Industrial | 6,595 | 6,721 | (1.9 | )% | (1.6 | )% | 99 | 95 | 4.2 | % | ||||||||||||||||||
Public Authorities & Electric Railroads | 340 | 316 | 7.6 | % | 7.0 | % | 13 | 12 | 8.3 | % | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Retail | 20,910 | 20,835 | 0.4 | % | (0.1 | )% | 1,119 | 1,211 | (7.6 | )% | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Other Revenue (b) | 170 | 151 | 12.6 | % | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Electric Revenue | $ | 1,289 | $ | 1,362 | (5.4 | )% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Purchased Power | $ | 421 | $ | 599 | (29.7 | )% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||
Heating and Cooling Degree-Days | 2012 | 2011 | Normal | From 2011 | From Normal | |||||||||||||||||||||||
Heating Degree-Days | 2,030 | 1,832 | 2,293 | 10.8 | % | (11.5 | )% | |||||||||||||||||||||
Cooling Degree-Days | 3 | 14 | 11 | (78.6 | )% | (72.7 | )% | |||||||||||||||||||||
Twelve Months Ended December 31, 2012 and 2011 | ||||||||||||||||||||||||||||
Electric Deliveries (in GWhs) | Revenue (in millions) | |||||||||||||||||||||||||||
2012 | 2011 | % Change | Weather- Normal % Change | 2012 | 2011 | % Change | ||||||||||||||||||||||
Retail Deliveries and Sales (a) | ||||||||||||||||||||||||||||
Residential | 28,528 | 28,273 | 0.9 | % | (0.6 | )% | $ | 3,037 | $ | 3,510 | (13.5 | )% | ||||||||||||||||
Small Commercial & Industrial | 32,534 | 32,281 | 0.8 | % | 0.2 | % | 1,339 | 1,517 | (11.7 | )% | ||||||||||||||||||
Large Commercial & Industrial | 27,643 | 27,732 | (0.3 | )% | (0.3 | )% | 395 | 383 | 3.1 | % | ||||||||||||||||||
Public Authorities & Electric Railroads | 1,272 | 1,235 | 3.0 | % | 4.2 | % | 44 | 50 | (12.0 | )% | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Retail | 89,977 | 89,521 | 0.5 | % | (0.1 | )% | 4,815 | 5,460 | (11.8 | )% | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Other Revenue (b) | 628 | 596 | 5.4 | % | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Electric Revenue | $ | 5,443 | $ | 6,056 | (10.1 | )% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Purchased Power | $ | 2,307 | $ | 3,035 | (24.0 | )% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||
Heating and Cooling Degree-Days | 2012 | 2011 | Normal | From 2011 | From Normal | |||||||||||||||||||||||
Heating Degree-Days | 5,065 | 6,134 | 6,341 | (17.4 | )% | (20.1 | )% | |||||||||||||||||||||
Cooling Degree-Days | 1,324 | 1,036 | 842 | 27.8 | % | 57.2 | % | |||||||||||||||||||||
Number of Electric Customers | 2012 | 2011 | ||||||||||||||||||||||||||
Residential | 3,455,546 | 3,448,481 | ||||||||||||||||||||||||||
Small Commercial & Industrial | 365,357 | 365,824 | ||||||||||||||||||||||||||
Large Commercial & Industrial | 1,980 | 2,032 | ||||||||||||||||||||||||||
Public Authorities & Electric Railroads | 4,812 | 4,797 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total | 3,827,695 | 3,821,134 | ||||||||||||||||||||||||||
|
|
|
|
(a) | Reflects delivery volumes and revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenue also reflects the cost of energy and transmission. |
(b) | Other revenue primarily includes transmission revenue from PJM. Other items include late payment charges and mutual assistance program revenues. |
19
EXELON CORPORATION
PECO Statistics
Three Months Ended December 31, 2012 and 2011 | ||||||||||||||||||||||||||||
Electric and Gas Deliveries | Revenue (in millions) | |||||||||||||||||||||||||||
2012 | 2011 | % Change | Weather- Normal % Change | 2012 | 2011 | % Change | ||||||||||||||||||||||
Electric (in GWhs) | ||||||||||||||||||||||||||||
Retail Deliveries and Sales (a) | ||||||||||||||||||||||||||||
Residential | 3,079 | 2,937 | 4.8 | % | 0.7 | % | $ | 395 | $ | 392 | 0.8 | % | ||||||||||||||||
Small Commercial & Industrial | 1,908 | 1,884 | 1.3 | % | (0.5 | )% | 105 | 114 | (7.9 | )% | ||||||||||||||||||
Large Commercial & Industrial | 3,708 | 3,665 | 1.2 | % | 1.4 | % | 53 | 47 | 12.8 | % | ||||||||||||||||||
Public Authorities & Electric Railroads | 229 | 235 | (2.6 | )% | (2.6 | )% | 7 | 9 | (22.2 | )% | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Retail | 8,924 | 8,721 | 2.3 | % | 0.6 | % | 560 | 562 | (0.4 | )% | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Other Revenue (b) | 54 | 61 | (11.5 | )% | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Electric Revenue | 614 | 623 | (1.4 | )% | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Gas (in mmcfs) | ||||||||||||||||||||||||||||
Retail Deliveries and Sales | ||||||||||||||||||||||||||||
Retail Sales (c) | 17,466 | 15,257 | 14.5 | % | (1.3 | )% | 165 | 147 | 12.2 | % | ||||||||||||||||||
Transportation and Other | 7,290 | 6,776 | 7.6 | % | 5.7 | % | 11 | 8 | 37.5 | % | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Gas | 24,756 | 22,033 | 12.4 | % | 0.6 | % | 176 | 155 | 13.5 | % | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Electric and Gas Revenues | $ | 790 | $ | 778 | 1.5 | % | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Purchased Power and Fuel | $ | 342 | $ | 358 | (4.5 | )% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||
Heating and Cooling Degree-Days | 2012 | 2011 | Normal | From 2011 | From Normal | |||||||||||||||||||||||
Heating Degree-Days | 1,482 | 1,302 | 1,629 | 13.8 | % | (9.0 | )% | |||||||||||||||||||||
Cooling Degree-Days | 31 | 14 | 19 | 121.4 | % | 63.2 | % |
Twelve Months Ended December 31, 2012 and 2011 | ||||||||||||||||||||||||||||
Electric and Gas Deliveries | Revenue (in millions) | |||||||||||||||||||||||||||
2012 | 2011 | % Change | Weather- Normal % Change | 2012 | 2011 | % Change | ||||||||||||||||||||||
Electric (in GWhs) | ||||||||||||||||||||||||||||
Retail Deliveries and Sales (a) | ||||||||||||||||||||||||||||
Residential | 13,233 | 13,687 | (3.3 | )% | (1.7 | )% | $ | 1,689 | $ | 1,934 | (12.7 | )% | ||||||||||||||||
Small Commercial & Industrial | 8,063 | 8,321 | (3.1 | )% | (2.3 | )% | 462 | 585 | (21.0 | )% | ||||||||||||||||||
Large Commercial & Industrial | 15,253 | 15,677 | (2.7 | )% | (2.7 | )% | 232 | 308 | (24.7 | )% | ||||||||||||||||||
Public Authorities & Electric Railroads | 943 | 945 | (0.2 | )% | (0.2 | )% | 31 | 38 | (18.4 | )% | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Retail | 37,492 | 38,630 | (2.9 | )% | (2.2 | )% | 2,414 | 2,865 | (15.7 | )% | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Other Revenue (b) | 226 | 244 | (7.4 | )% | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Electric Revenue | 2,640 | 3,109 | (15.1 | )% | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Gas (in mmcfs) | ||||||||||||||||||||||||||||
Retail Deliveries and Sales | ||||||||||||||||||||||||||||
Retail Sales (c) | 49,767 | 54,239 | (8.2 | )% | (0.1 | )% | 509 | 576 | (11.6 | )% | ||||||||||||||||||
Transportation and Other | 26,687 | 28,204 | (5.4 | )% | (4.8 | )% | 37 | 35 | 5.7 | % | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Gas | 76,454 | 82,443 | (7.3 | )% | (1.6 | )% | 546 | 611 | (10.6 | )% | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Electric and Gas Revenues | $ | 3,186 | $ | 3,720 | (14.4 | )% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Purchased Power and Fuel | $ | 1,375 | $ | 1,864 | (26.2 | )% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||
Heating and Cooling Degree-Days | 2012 | 2011 | Normal | From 2011 | From Normal | |||||||||||||||||||||||
Heating Degree-Days | 3,747 | 4,157 | 4,603 | (9.9 | )% | (18.6 | )% | |||||||||||||||||||||
Cooling Degree-Days | 1,603 | 1,617 | 1,301 | (0.9 | )% | 23.2 | % |
Number of Electric Customers | 2012 | 2011 | Number of Gas Customers | 2012 | 2011 | |||||||||||||
Residential | 1,417,773 | 1,415,681 | Residential | 454,502 | 451,382 | |||||||||||||
Small Commercial & Industrial | 148,803 | 148,570 | Commercial & Industrial | 41,836 | 41,373 | |||||||||||||
|
|
|
| |||||||||||||||
Large Commercial & Industrial | 3,111 | 3,110 | Total Retail | 496,338 | 492,755 | |||||||||||||
Public Authorities & Electric Railroads | 9,660 | 9,689 | Transportation | 903 | 879 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 1,579,347 | 1,577,050 | Total | 497,241 | 493,634 | |||||||||||||
|
|
|
|
|
|
|
|
(a) | Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, revenue also reflects the cost of energy and transmission. |
(b) | Other revenue includes transmission revenue from PJM and wholesale electric revenues. |
(c) | Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas. |
20
EXELON CORPORATION
BGE Statistics
Three Months Ended December 31, 2012
Electric and Gas Deliveries | Revenue (in millions) | |||||||
Electric (in GWhs) | ||||||||
Retail Deliveries and Sales (a) | ||||||||
Residential | 3,026 | $ | 314 | |||||
Small Commercial & Industrial | 3,686 | 136 | ||||||
Large Commercial & Industrial | 365 | 9 | ||||||
Public Authorities & Electric Railroads | 80 | 7 | ||||||
|
|
|
| |||||
Total Retail | 7,157 | 466 | ||||||
|
|
|
| |||||
Other Revenue (b) | 62 | |||||||
|
| |||||||
Total Electric Revenue | 528 | |||||||
|
| |||||||
Gas (in mmcfs) | ||||||||
Retail Deliveries and Sales (c) | ||||||||
Retail Sales | 26,333 | 160 | ||||||
Transportation and Other (d) | 3,145 | 15 | ||||||
|
|
|
| |||||
Total Gas | 29,478 | 175 | ||||||
|
|
|
| |||||
Total Electric and Gas Revenues | $ | 703 | ||||||
|
| |||||||
Purchased Power and Fuel | $ | 326 | ||||||
|
| |||||||
Heating and Cooling Degree-Days | 2012 | |||||||
Heating Degree-Days | 1,616 | |||||||
Cooling Degree-Days | 25 |
March 12, 2012 through December 31, 2012
Electric and Gas Deliveries | Revenue (in millions) | |||||||
Electric (in GWhs) | ||||||||
Retail Deliveries and Sales (a) | ||||||||
Residential | 10,133 | $ | 996 | |||||
Small Commercial & Industrial | 12,322 | 463 | ||||||
Large Commercial & Industrial | 2,307 | 50 | ||||||
Public Authorities & Electric Railroads | 200 | 25 | ||||||
|
|
|
| |||||
Total Retail | 24,962 | 1,534 | ||||||
|
|
|
| |||||
Other Revenue (b) | 200 | |||||||
|
| |||||||
Total Electric Revenue | 1,734 | |||||||
|
| |||||||
Gas (in mmcfs) | ||||||||
Retail Deliveries and Sales (c) | ||||||||
Retail Sales | 57,882 | 313 | ||||||
Transportation and Other (d) | 12,220 | 44 | ||||||
|
|
|
| |||||
Total Gas | 70,102 | 357 | ||||||
|
|
|
| |||||
Total Electric and Gas Revenues | $ | 2,091 | ||||||
|
| |||||||
Purchased Power and Fuel | $ | 1,052 | ||||||
|
| |||||||
Heating and Cooling Degree-Days | 2012 | |||||||
Heating Degree-Days | 3,804 | |||||||
Cooling Degree-Days | 1,012 |
As of December 31, 2012
Number of Electric Customers | 2012 | Number of Gas Customers | 2012 | |||||||
Residential | 1,116,233 | Residential | 610,827 | |||||||
Small Commercial & Industrial | 119,122 | Commercial & Industrial | 44,228 | |||||||
|
| |||||||||
Large Commercial & Industrial | 5,452 | Total Retail | 655,055 | |||||||
Public Authorities & Electric Railroads | 319 | Transportation | — | |||||||
|
|
|
| |||||||
Total | 1,241,126 | Total | 655,055 | |||||||
|
|
|
|
(a) | Reflects delivery volumes and revenues from customers purchasing electricity directly from BGE and customers electing to receive electric generation service from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from BGE, revenue also reflects the cost of energy and transmission. |
(b) | Other revenue includes wholesale transmission revenue and late payment charges. |
(c) | Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas. |
(d) | Transportation and other gas revenue includes off-system revenue of 3,145 mmcfs ($14 million) for the three months ended December 31, 2012 and off-system revenue of 12,220 mmcfs ($39 million) from March 12, 2012 through December 31, 2012. |
21