Baltimore Gas & Electric 8-K Exelon Announces Fourth Quarter and Full Year 2012

Earnings Conference Call

4   Quarter 2012

February 7

,  2013

th

th

Exhibit 99.2

Cautionary Statements Regarding

Forward-Looking Information

1

2012 4Q Earnings Release Slides

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

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

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

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

LLC (Registrants) include those factors discussed herein, as well as the items discussed in (1)  Exelon’s 2011

Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of

Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data:

Note 18; (2) Constellation Energy Group’s 2011 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b)

ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8.

Financial

Statements

and

Supplementary

Data:

Note

12;

(3)

the

Registrants’

Third

Quarter

2012

Quarterly

Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information,

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I,

Financial Information, ITEM 1. Financial Statements: Note 16; and (4) other factors discussed in filings with the

SEC

by

the

Registrants.

Readers

are

cautioned

not

to

place

undue

reliance

on

these

forward-looking

statements,

which apply only as of the date of this presentation. None of the Registrants undertakes any obligation to

publicly release any revision to its forward-looking statements to reflect events or circumstances after the date

of this presentation.

2012 4Q Earnings Release Slides

•

Realized

$170M

of

O&M

synergies

and

on

track

to

achieve

$550M

in

O&M

synergies starting in 2014

•

Closed on Maryland asset divestitures

related to merger commitments in 4Q

2012

•

ICC re-hearing in October granted

recovery on pension asset; ComEd

appeal ongoing for other disallowed

items

•

Worked with PJM and stakeholders to

propose MOPR modifications

•

Rate case progressing at BGE

•

Exemplary storm restoration efforts at

PECO and BGE in response to

Hurricane Sandy

•

2012 nuclear capacity factor of

92.7%

•

Q4 2012 operating EPS of $0.64 per

share

(1)

•

2012 operating EPS of $2.85 per

share

(1)

in line with expectations

•

Challenging power market conditions

2012 4Q Earnings Release Slides

2

2012 In Review

2013 Expectations:

•

Expect

to

deliver

full-year

2013

operating

earnings

within

guidance

range

of

$2.35

-

$2.65/share

(1)

•

Expect

1Q

2013

operating

earnings

within

guidance

range

of

$0.60

-

$0.70/share

(1)

•

Strengthen

credit

metrics

and

balance

sheet

•

Complete

remaining

integration

activities,

primarily

IT

related

Regulatory

Process

Financial

Summary

Merger

Execution

Operating

Excellence

(1)

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

Exelon’s Revised Dividend

•

Continue to believe in $3-$6/MWh

upside in PJM but timing of upside is

difficult to predict

•

Expected heat rate upside from coal

retirements not yet reflected in forward

prices

2012 4Q Earnings Release Slides

3

Power market upside has not yet materialized

Sizing dividend to align with business mix

•

Continue to pay a healthy, sustainable

dividend

•

Provide balance sheet strength to remain

investment-grade through stressed

commodity cycles

•

Provide capacity to invest in growth

•

Provide flexibility to hedging to better

align with market liquidity

Sustainable dividend of $1.24/share on an annualized basis

$0.31

Starting in 2Q 2013

1Q 2013

$0.525

Dividend rate change beginning in 2Q 2013

Dividend per

share payable

on March 8,

2013 to

holders as of

February 19,

2013

Quarterly

dividend

per share

rate

beginning

2Q 2013

(1)

(1)

Dividend declaration is subject to Board of Directors approval.

$44.00

$42.00

$40.00

$38.00

$36.00

$34.00

$32.00

$30.00

2/1/2013

1/1/2013

12/1/2012

11/1/2012

10/1/2012

2015 PJM-W

2015 NiHub

$32.41

$32.66

$39.87

$41.28

Presence across the entire energy value chain

Unique Combination of Scale, Scope and Flexibility to Invest

Across The Value Chain with Metrics Oriented Operational Model

Operational

Excellence

Regulatory

Advocacy

Disciplined Growth

& Investment

Financial

Discipline

Leverage platform to create value through core competencies

2012 4Q Earnings Release Slides

4

Upstream Gas

Downstream Gas

(Pipelines and

Storage)

Wolf Hollow

Navasota

Boston Gen

Nuclear Uprates

AVSR1

~750 MW of John

Deere Wind

Greater than 500

MW of organic build

Smart Grid

Chicago West

Loop Transmission

MX Energy

StarTex

Demand

Response

Energy Efficiency

Rooftop solar

Available cash to be opportunistically invested across the value

chain in

sustainable growth

Track record of successful investment

Fuels

Conventional

Generation

Renewable

Generation

Electric &

Gas Utilities

Retail

Beyond The

Meter

Sizing Exelon’s Dividend to Fit the Business Model

Financial Priorities

#1: Remain

investment grade

•

Maintain key credit metrics above target ranges under both market and

stress conditions to maintain investment grade ratings

•

Shareholder value of maintaining investment grade:

•

Increases ability to participate in commercial business opportunities

•

Lowers collateral requirements

•

Reliable and cost efficient access to the capital markets

•

Increases business and financial flexibility

#2: Creating value for

shareholders

(less)

(less)

equals

Cash from Operations

Base CapEx / Nuclear Fuel

Dividend

Available Cash and Balance Sheet Capacity

Use remaining cash flow and capacity to invest in

growth and return value to shareholders

5

2012 4Q Earnings Release Slides

Dividend sized to satisfy key financial priorities under a range

of market outcomes

2012 4Q Earnings Release Slides

6

Dividend Policy

Enables

Exelon

and

its

operating

companies

to

maintain

investment

grade

credit

ratings

Is

sustainable

through

all

points

in

the

commodity

cycle,

particularly

the

stress

cases

Is

supported

and

funded

by

cash

flows

from

both

the

regulated

utilities

and

unregulated

business

Provides

room

to

grow

the

company

through

investments

in

value-enhancing

growth

opportunities

Provides

opportunities

to

grow

the

dividend

over

time,

supported

largely

by

investments

and

associated

growth

in

the

earnings

power

of

the

regulated

utilities

(subject

to

Board

discretion)

Allows

for

a

competitive

value

proposition

that,

coupled

with

earnings

growth,

delivers

compelling

shareholder returns over time   

(1)

Free cash flow defined as Cash from Operations less Capex and Dividend.

2012 4Q Earnings Release Slides

Stress Scenario Considerations

Dividend Sizing Objectives

•

Constant $3/mmbtu natural gas

o

Power prices at or below those experienced

during August 2012

•

Commercial and new business risks

•

Other one-time significant financial or

operational risks

•

Utilities: Long-term payout target of 65-70%,

which is in-line with regulated utility peers

•

ExGen:

o

Credit metrics supportive of mid to high BBB

rating

o

Free Cash Flow positive

(1)

2013 Operating Earnings Guidance

Key Year-over-Year Drivers

•

2012 Stub Earnings: $0.12

•

Lower ExGen RNF primarily due to

prices, offset by non-power revenue,

capacity revenue and growth projects:

$(0.27)

•

Higher ComEd RNF primarily from DST

revenues due to formula rate: $0.05

•

Higher BGE RNF: $0.06

•

Higher O&M primarily at ExGen driven by

inflation, pension, and non-power cost of

sales, offset by synergies: $(0.10)

•

Higher depreciation primarily at ExGen

due to new projects placed in service:

$(0.08)

•

Share dilution

(3)

: $(0.13)

7

2012 4Q Earnings Release Slides

PECO

BGE

ExGen

ComEd

PECO

BGE

2013 Guidance

$2.35 -

$2.65

(2)

$1.40 -

$1.60

$0.35 -

$0.45

$0.35 -

$0.45

$0.15 -

$0.25

HoldCo

ExGen

ComEd

2012 Actual

$2.85

(1)

1.89

$0.47

$0.47

$0.06

(1)

2012 results include Constellation Energy and BGE earnings for March 12 – December 31. Based on expected 2012 average outstanding shares of 819M.Refer to

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

(2)

2013 earnings guidance based on expected average outstanding shares of 860M. Earnings guidance for OpCos may not add up to consolidated EPS guidance.

(3)

Shares Outstanding (diluted) are 819M in 2012 and 860M in 2013. 2013 represents full-year of shares outstanding resulting from March 2012 merger with

Constellation.

8

Exelon Generation: Gross Margin Update

December 31, 2012

September 30, 2012

Gross Margin Category ($M)

(1) (2)

2013

2014

2015

2013

2014

2015

Open Gross Margin

(3)

(including South, West, Canada hedged gross margin)

$5,550

$5,900

$6,050

$5,750

$6,050

$6,200

Mark-to-Market of Hedges

(3,4)

$1,650

$650

$300

$1,350

$500

$250

Power New Business / To Go

$400

$650

$850

$500

$750

$950

Non-Power Margins Executed

$200

$100

$50

$150

$100

$50

Non-Power New Business / To Go

$400

$500

$550

$450

$500

$550

Total Gross Margin

$8,200

$7,800

$7,800

$8,200

$7,900

$8,000

Key Highlights of 4Q 2012

•

Forward

power

markets

experienced

further

downward

pressure

during

the

4

quarter

–

Forward

power

prices

still

do

not

reflect

the

upside

that

we

are

forecasting

–

Continue

to

optimize

our

hedging

of

the

portfolio

by

falling

behind

ratable

in

the

Midwest

and

utilizing

cross-commodity and option hedges

•

Power New Business To-Go has been lowered by a combination of executing on targets and

further reductions to our retail load volumes and margins, the result of heightened competition

and low market volatility

2012 4Q Earnings Release Slides

1)

Gross margin rounded to nearest $50M.

2)

Gross margin does not include revenue related to decommissioning, gross receipts tax,

Exelon Nuclear Partners and entities consolidated solely as a result of the application of

FIN 46R.

3)

Includes CENG Joint Venture.

4)

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

th

9

2013 Cash Flow Summary

•

Expect Cash from Operations of ~$6.0B in 2013

–

Includes $550M for pension/OPEB contribution

•

CapEx in line with estimates provided at 2012 EEI Conference

–

Higher nuclear fuel CapEx of $75M in 2013 related to discounted buying

opportunity accelerated from 2014

–

ExGen CapEx includes ~$350M of Fukushima-

related costs for 2013-2017.

Does not include estimate of $15 -

20 million per unit for filtered vents at

eleven mark 1 and 2 units, if required.

•

Financing plan for utilities comprised of debt refinancing

•

ExGen financing plan includes retirement of $450M hybrid security, DOE

loan draws for AVSR1 and project financing for existing wind assets

2012 4Q Earnings Release Slides

10

Exelon Generation Disclosures

December 31, 2012

2012 4Q Earnings Release Slides

11

Portfolio Management Strategy

Protect Balance Sheet

Ensure Earnings Stability

Create Value

Exercising Market Views

Purely ratable

Actual hedge %

Market views on timing, product

allocation and regional spreads

reflected in actual hedge %

High End of Profit

Low End of Profit

% Hedged

Open Generation

with LT Contracts

Portfolio Management &

Optimization

Portfolio Management Over Time

Align Hedging & Financials

Establishing Minimum Hedge Targets

2012 4Q Earnings Release Slides

Strategic Policy Alignment

•Aligns hedging program with

financial policies and financial

outlook

•Establish minimum hedge targets

to meet financial objectives of the

company (dividend, credit rating)

•Hedge enough commodity risk to

meet future cash requirements

under a stress scenario

Three-Year Ratable Hedging

•Ensure stability in near-term cash

flows and earnings

•Disciplined approach to hedging

•Tenor aligns with customer

preferences and market liquidity

•Multiple channels to market that

allow us to maximize margins

•Large open position in outer years

to benefit from price upside

Bull / Bear Program

Ability to exercise fundamental

market views to create value within

the ratable framework

•Modified timing of hedges versus

purely ratable

•Cross-commodity hedging (heat

rate positions, options, etc.)

•Delivery locations, regional and

zonal spread relationships

Credit Rating

Capital &

Operating

Expenditure

Dividend

Capital

Structure

•

12

Components of Gross Margin Categories

Margins move from new business to MtM of hedges over

the course of the year as sales are executed

Margins move from “Non power new business”

to

“Non power executed”

over the course of the year

Gross margin linked to power production and sales

Gross margin from

other business activities

2012 4Q Earnings Release Slides

Open Gross

Margin

•Generation Gross

Margin at current

market prices,

including capacity

& ancillary

revenues, nuclear

fuel amortization

and fossils fuels

expense

•Exploration and

Production

•PPA Costs &

Revenues

•Provided at a

consolidated level

for all regions

(includes hedged

gross margin for

South, West &

Canada

(1)

)

MtM of

Hedges

(2)

•MtM

of power,

capacity and

ancillary hedges,

including cross

commodity, retail

and wholesale load

transactions

•Provided directly at

a consolidated

level for five major

regions. Provided

indirectly for each

of the five major

regions via EREP,

reference price,

hedge %, expected

generation

“Power”

New

Business

•Retail, Wholesale

planned electric

sales

•Portfolio

Management new

business

•Mid marketing new

business

“Non Power”

Executed

•Retail, Wholesale 

executed gas sales

•Load Response

•Energy Efficiency

•BGE Home

•Distributed Solar

“Non Power”

New Business

•Retail, Wholesale

planned gas sales

•Load Response

•Energy Efficiency

•BGE Home

•Distributed Solar

•Portfolio

Management /

origination fuels

new business

•Proprietary

trading

(3)

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

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

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

13

ExGen Disclosures 

Gross Margin Category ($M)

(1,2)

2013

2014

2015

Open Gross Margin

(including South, West & Canada hedged GM)

(3)

$5,550

$5,900

$6,050

Mark to Market of Hedges

(3,4)

$1,650

$650

$300

Power New Business / To Go

$400

$650

$850

Non-Power Margins Executed

$200

$100

$50

Non-Power New Business / To Go

$400

$500

$550

Total Gross Margin

$8,200

$7,800

$7,800

2012 4Q Earnings Release Slides

(1)

Gross margin does not include revenue related to decommissioning, gross receipt

tax, Exelon Nuclear Partners and entities consolidated solely as a result of the

application of FIN 46R.

(2)

Gross margin rounded to nearest $50M.

(3)

Includes CENG Joint Venture.

(4)

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

(5)

Based on December 31, 2012 market conditions.

Reference Prices

(5)

2013

2014

2015

Henry Hub Natural Gas ($/MMbtu)

$3.54

$4.03

$4.23

Midwest: NiHub ATC prices ($/MWh)

$30.12

$30.94

$31.87

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

$36.88

$38.00

$39.17

ERCOT-N ATC Spark Spread ($/MWh)

HSC Gas, 7.2HR, $2.50 VOM

$6.80

$7.82

$8.05

New York: NY Zone A ($/MWh)

$34.22

$34.96

$35.66

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

ALQN Gas, 7.5HR, $0.50 VOM

$4.61

$3.46

$3.18

14

ExGen Disclosures

Generation and Hedges

2013

2014

2015

Exp. Gen (GWh)

(1)

218,000

211,100

207,300

Midwest

97,500

97,400

97,000

Mid-Atlantic

(2)

74,900

72,300

70,600

ERCOT

17,400

16,600

16,600

New York

(2)

14,000

11,000

9,300

New England

14,200

13,800

13,800

% of Expected Generation Hedged

(3)

94-97%

62-65%

27-30%

Midwest

92-95%

61-64%

25-28%

Mid-Atlantic

(2)

97-100%

66-69%

33-36%

ERCOT

90-93%

67-70%

36-39%

New York

(2)

92-95%

57-60%

23-26%

New England

92-95%

53-56%

12-15%

Effective Realized Energy Price ($/MWh)

(4)

Midwest

$38.50

$35.50

$35.00

Mid-Atlantic

(2)

$48.00

$46.00

$48.50

ERCOT

(5)

$10.00

$6.50

$5.50

New York

(2)

$35.00

$35.00

$47.50

New England

(5)

$7.00

$4.50

$3.50

2012 4Q Earnings Release Slides

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

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

assumes 12 refueling outages in 2013 and 14 refueling outages in 2014 and 2015 at Exelon-operated nuclear plants ,Salem  and CENG.  Expected generation assumes capacity factors of 

93.5%, 93.8%, and 93.3% in 2013, 2014 and 2015 at Exelon-operated nuclear plants excluding Salem and CENG. These estimates of expected generation in 2013, 2014 and 2015 do not

represent guidance or a forecast of future results as Exelon has not completed its planning or optimization processes for those years. (2) Includes CENG Joint Venture. (3) Percent of expected

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

expected value on options. (4) Effective realized energy price is representative of an all-in hedged price, on a per MWh basis, at which expected generation has been hedged.  It is developed by

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

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

prices used to calculate open gross margin in order to determine the mark-to-market value of Exelon Generation's energy hedges. (5) Spark spreads shown for ERCOT and New England.

15

ExGen Hedged Gross Margin Sensitivities

Gross Margin Sensitivities (With Existing Hedges) 

(1, 2)

2013

2014

2015

Henry Hub Natural Gas ($/Mmbtu)

$10

$305

$590

$(15)

$(230)

$(520)

NiHub ATC Energy Price

$30

$245

$410

$(30)

$(240)

$(410)

PJM-W ATC Energy Price

$15

$130

$260

$0

$(125)

$(250)

NYPP Zone A ATC Energy Price

$5

$25

$35

$(5)

$(25)

$(35)

Nuclear Capacity Factor

(3)

+/-

$40

+/-

$45

+/-

$45

2012 4Q Earnings Release Slides

+ $1/Mmbtu

+ $5/MWh

-

$5/MWh

+ $5/MWh

-

$5/MWh

+ $5/MWh

-

$5/MWh

+/-

1%

-

$1/Mmbtu

2012 4Q Earnings Release Slides

(1) Based on December 31, 2012 market conditions and hedged position. Gas price sensitivities are based on an assumed gas-power relationship derived from an

internal model that is updated periodically. Power prices sensitivities are derived by adjusting the power price assumption while keeping all other prices inputs constant.

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

margin impact calculated when correlations between the various assumptions are also considered.  (2) Sensitivities based on commodity exposure which includes open

generation and all committed transactions.  (3) Includes CENG Joint Venture.

16

Exelon Generation Hedged Gross Margin Upside/Risk

2015

$9,700

2014

$8,650

2013

$8,450

2012 4Q Earnings Release Slides

2012 4Q Earnings Release Slides

Note: Due to a clerical error, the top end of the 2015 Exelon Generation Hedge Gross Margin shown in the graph on slide 20 of the 3rd Quarter 2012 Earnings Conference Call presentation

dated November 1, 2012 should have been $10,350M, and is comparable to the $9,700M value in the chart above.  No other values or estimates in the 3rd Quarter 2012 presentation were

impacted as a result of this error.

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

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

modeling changes. These ranges of approximate gross margin in 2014 and 2015 do not represent earnings guidance or a forecast of future results as Exelon has not completed its planning or

optimization processes for those years. The price distributions that generate this range are calibrated to market quotes for power, fuel, load following products, and options as of December 31,

2012 (2) Gross Margin Upside/Risk based on commodity exposure which includes open generation and all committed transactions.

$7,050

$6,000

$6,500

$7,000

$7,500

$8,000

$8,500

$9,000

$9,500

$10,000

$7,900

$6,300

17

Illustrative Example of Modeling Exelon Generation             

2014 Gross Margin

Row

Item

Midwest

Mid-

Atlantic

ERCOT

New

England

New York

South,

West &

Canada

(A)

Start with fleet-wide open gross margin 

$5.9 billion

(B)

Expected Generation (TWh)

97.4

72.3

16.6

13.8

11.0

(C)

Hedge % (assuming mid-point of range)

62.5%

67.5%

68.5%

54.5%

58.5%

(D=B*C)

Hedged Volume (TWh)

60.9

48.8

11.4

7.5

6.4

(E)

Effective Realized Energy Price ($/MWh)

$35.50

$46.00

$6.50

$4.50

$35.00

(F)

Reference Price ($/MWh)

$30.94

$38.00

$7.82

$3.46

$34.96

(G=E-F)

Difference ($/MWh)

$4.56

$8.00

($1.32)

$1.04

$0.04

(H=D*G)

Mark-to-market value of hedges  ($ million)  

$280 million

$390 million

($15) million

$10 million

$0 million

(I=A+H)

Hedged Gross Margin ($ million)

$6,550 million

(J)

Power New Business / To Go ($ million)

$650 million

(K)

Non-Power Margins Executed ($ million)

$100 million

(L)

Non-

Power New Business / To Go ($ million)

$500 million

(N=I+J+K+L)

Total Gross Margin

$7,800 million

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

2012 4Q Earnings Release Slides

2012 4Q Earnings Release Slides

(1)

18

Additional Disclosures

December 31, 2012

2012 4Q Earnings Release Slides

2012 4Q Earnings Release Slides

Operating O&M Forecast

•

2013 O&M forecast of $6.9B

–

Includes merger synergies of $355M

–

Excludes costs to achieve which are considered non-operating

•

Expect O&M CAGR of ~0.5% for 2013-2015

$375

2013E

$6,900

(2)

-$75

$4,425

$1,200

$700

$650

2012 Actuals

$6,775

(1) (2)

-$50

$4,050

$1,150

$700

$550

(in $M)

ExGen

ComEd

ComEd

PECO

PECO

BGE

Corp

~0.5% CAGR for 2013-2015

ExGen

BGE

Stub O&M

19

Key Year-over-Year Drivers

•

Merger synergies:

$185M

•

PECO and BGE Storm

Costs:     $80M

•

Inflation:     $150M

•

Pension/OPEB:     $25M

•

ExGen Non-Power Costs,

offset in RNF:     $70M

•

Other ExGen O&M:     $55M

•

Other Utilities O&M, including

BGE Reliability and ComEd

EIMA:     $90M

2012 4Q Earnings Release Slides

(1)

O&M for 2012 includes CEG and BGE costs from merger close date.

(2)

O&M for utilities excludes regulatory O&M that are P&L neutral. ExGen O&M excludes P&L neutral decommissioning  costs and the impact from 

O&M related to entities consolidated solely as a result of the application of FIN 46R.

Capital Expenditure Expectations

275

225

25

100

100

100

50

25

75

100

950

975

175

2013

2,850

1,025

1,000

575

2015

2,500

1,000

975

225

2014

2,275

2012

(1)

3,700

950

1,150

650

600

Base Capex

(3)

Nuclear Fuel

(2)

MD Commitments

Wind

Solar

Upstream Gas

Nuclear Uprates

325

2014

2,575

1,450

525

225

375

2013

2,650

1,425

625

200

2015

2,750

1,550

650

225

400

2012

(1)

2,200

1,425

375

200

200

Electric Distribution

Electric Transmission

Gas Delivery

Smart Grid/Smart Meter

(in $M)

(in $M)

20

2012 4Q Earnings Release Slides

Exelon Utilities

Exelon Generation

(1)

2012 CapEx includes CEG and BGE from merger close date.

(2)

Nuclear fuel is at ownership and includes Salem.

(3)

ExGen base capex includes $350 million of Fukushima response costs for 2013-2017.  Does not include estimate of $15-20 million per unit, at eleven 

Mark 1 and 2 units, cost for filtered vents, if required.

2013 Projected Sources and Uses of Cash

(1)

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

(2)

Cash Flow from Operations primarily includes net cash flows provided by operating activities and net cash flows used in investing activities other than

capital expenditures. 

(3)

Dividends are subject to declaration by the Board of Directors.

(4)

Excludes PECO’s $210 million Accounts Receivable (A/R) Agreement with Bank of Tokyo. PECO’s A/R Agreement was extended in accordance with its

terms through August 30, 2013.

(5)

“Other”

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

(6)

Includes cash flow activity from Holding Company, eliminations, and other corporate entities.

($ in millions)

2012 4Q Earnings Release Slides

21

Beginning Cash Balance

(1)

$1,575

Cash Flow from Operations

(2)

550

1,225

625

3,600

5,950

CapEx (excluding other items below):

(550)

(1,300)

(400)

(1,025)

(3,325)

Nuclear Fuel

n/a

n/a

n/a

(1,000)

(1,000)

Dividend

(3)

(1,250)

Nuclear Uprates

n/a

n/a

n/a

(225)

(225)

Wind

n/a

n/a

n/a

--

0

Solar

n/a

n/a

n/a

(575)

(575)

Upstream

n/a

n/a

n/a

(25)

(25)

Utility Smart Grid/Smart Meter

(125)

(100)

(175)

n/a

(400)

Net Financing (excluding Dividend):

Debt Issuances

(4)

350

250

250

--

850

Debt Retirements

(400)

(250)

(300)

(450)

(1,400)

Project Finance/Federal Financing Bank

Loan

n/a

n/a

n/a

1,000

1,000

Other

(5)

75

275

--

--

400

Ending Cash Balance

(1)

$1,575

(6)

ExGen Operating EPS Bridge 2012 to 2013

($0.39) Lower Generation RNF primarily due to

prices as well as lower retail unit margins, offset by

growth projects

$0.06 Non-power revenue

$0.05 Capacity revenue

$0.11 Primarily ITC and PTC tax credits

($0.03) 2012 decommissioning realized gains due

to rebalancing

($0.08) Share Dilution

$1.96

$1.89

$0.07

2013

$1.40-$1.60

Other

($0.01)

Interest

$0.00

Depreciation &

Amortization

($0.08)

O&M

($0.10)

RNF

($0.27)

2012

Stub

22

2012 4Q Earnings Release Slides

Note: Drivers add up to mid-point of 2013 EPS range.

RNF = Revenue Net Fuel

(1) Financials exclude P&L neutral items (including decommissioning  costs, gross receipts tax and entities consolidated solely as a result of the application of FIN 46R).

(2) Shares Outstanding (diluted) are 819M in 2012 and 860M in 2013. 2013 represents full-year of shares outstanding resulting from March 2012 merger with Constellation.

($0.07) Inflation

($0.05) Higher cost of sales related to non-power revenue

($0.02) Pension and OPEB

($0.05) Other

$0.09   Synergies

($0.08) Primarily new wind projects, portions of AVSR

and other assets in service

2013

Other

Depreciation &

Amortization

O&M

(1)

($0.03)

RNF

$0.05

2012

ComEd Operating EPS Bridge 2012 to 2013

$0.07    DST Revenue primarily 

due to formula rate

($0.02)  Weather

($0.02)  Depreciation Expense

($0.02)  Share Dilution

(2)

$0.35

-

$0.45

Interest

($0.02)   EIMA O&M

($0.02)   Inflation

$0.02    Synergies

23

2012 4Q Earnings Release Slides

$0.47

Note: Drivers add up to mid-point of 2013 EPS range.

RNF = Revenue Net Fuel

(1) Financials exclude regulatory items that are P&L neutral.

(2) Shares Outstanding (diluted) are 819M in 2012 and 860M in 2013. 2013 represents full-year of shares outstanding resulting from March 2012 merger with Constellation.

($0.01) Effective Tax Rate Change

($0.02)

($0.05)

($0.02)

$0.47

2013

$0.35 -

$0.45

Other

($0.09)

Interest

$0.01

O&M

$0.01

RNF

$0.00

2012

PECO Operating EPS Bridge 2012 to 2013

$0.02   Weather

($0.01)  Load Growth/Customer mix

($0.01)  Transmission

$0.01 Storm

$0.01 Synergies

($0.01) Inflation

($0.03)  Electric and Gas Tax Repairs

($0.02)  Share Dilution

(2)

($0.01)  Taxes Other Than Income in 2012

($0.01)  Other Effective Tax Rate Change

24

2012 4Q Earnings Release Slides

Note: Drivers add up to mid-point of 2013 EPS range.

RNF = Revenue Net Fuel

(1) Financials exclude regulatory items that are P&L neutral.

(2)

Shares

Outstanding

(diluted)

are

819M

in

2012

and

860M

in

2013.

2013

represents

full-year

of

shares

outstanding

resulting

from

March

2012

merger

with

Constellation.

2012 4Q Earnings Release Slides

Depreciation &

Amortization

0.01

O&M

0.02

RNF

0.06

2012

$0.11

$0.06

Stub: $0.05

2013

$0.15-

$0.25

Other

0.00

BGE Operating EPS Bridge 2012 to 2013

($0.01) PSC Mandated Reliability Spend

($0.01) Inflation

$0.04  Storm

$0.01  Synergies

($0.01) Share Dilution

(2)

$0.01 Other including  tax rate

changes

$0.06 Higher RNF

25

2012 4Q Earnings Release Slides

2012 4Q Earnings Release Slides

Note: Drivers add up to mid-point of 2013 EPS range.

RNF = Revenue Net Fuel

(1) Financials exclude regulatory items that are P&L neutral.

(2)

Shares

Outstanding

(diluted)

are

819M

in

2012

and

860M

in

2013.

2013

represents

full-year

of

shares

outstanding

resulting

from

March

2012

merger

with

Constellation.

ComEd Load Trends

4Q13

3Q13

2Q13

1Q13

4Q12

3Q12

2Q12

1Q12

Gross Metro Product

Residential

Large C&I

All Customer Classes

Notes: C&I = Commercial & Industrial. ComEd load activity impacts net income to the extent that it does not result in an ROE outside of the collar, which ensures that the earned

ROE is within 0.5% of the allowed ROE.

Weather-Normalized Electric Load Year-over-Year

Key Economic Indicators

Weather-Normalized Electric Load

(1)

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

Security (December 2012)

(2)

Source: Global Insight (November 2012)

(3)

Not adjusted for leap year

Chicago

U.S.

Unemployment rate

(1)

8.9%

2012 annualized growth in

gross domestic/metro product

(2)

1.8%

26

2012 4Q Earnings Release Slides

4Q12

2012

(3)

2013E

(3)

Average Customer Growth

0.3%

0.3%

0.4%

Average Use-Per-Customer

(1.3)%

(0.9)%

(1.7)%

Total Residential

(1.0)%

(0.6)%

(1.2)%

Small C&I

1.8%

0.2%

(0.5)%

Large C&I

(1.6)%

(0.3)%

1.6%

All Customer Classes

(0.1)%

(0.1)%

(0.0)%

-3%

-2%

-1%

0%

1%

2%

3%

2.1%

7.8%

27

PECO Load Trends

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4Q13

3Q13

2Q13

1Q13

4Q12

3Q12

2Q12

1Q12

Gross Metro Product

Residential

Large C&I

All Customer Classes

Note: C&I = Commercial & Industrial.

Weather-Normalized Electric Load Year-over-Year

Key Economic Indicators

Weather-Normalized Electric Load

(1)

Source:

U.S.

Dept.

of

Labor

(December

2012)

-

US

US

Dept

of

Labor

prelim.

data

(October

2012)

-

Philadelphia

(2)

Source: Global Insight (November 2012)

(3)

4Q12 LCI does not include 64 GWh for a change in prior period

estimates.

(4)

Not adjusted for leap year

Philadelphia

U.S.

Unemployment rate

(1)

8.0%

2012 annualized growth in

gross domestic/metro product

(2)

1.9%                    2.1%

2012 4Q Earnings Release Slides

4Q12

(3)

2012

(4)

2013E

(4)

Average Customer Growth

0.2%

0.3%

0.2%

Average Use-Per-Customer

0.5%

(2.0)%

(0.7)%

Total Residential

0.7%

(1.7)%

(0.5)%

Small C&I

(0.5)%

(2.3)%

(1.3)%

Large C&I

(0.3)%

(2.7)%

(0.1)%

All Customer Classes

(0.1)%

(2.2)%

(0.5)%

7.8%

28

BGE Load Trends

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4Q13

3Q13

2Q13

1Q13

4Q12

3Q12

2Q12

1Q12

Gross Metro Product

Residential

Large C&I

All Customer Classes

Weather-Normalized Electric Load Year-over-Year

Key Economic Indicators

Weather-Normalized Electric Load

(1)

Source:

U.S.

Dept.

of

Labor

(December

2012)

-

US

US

Dept

of

Labor

prelim.

data

(November

2012)

-

Baltimore

(2)

Source:

Global

Insight

(November

2012)

(3)

Not

adjusted

for

leap

year

Baltimore

U.S.

Unemployment rate

(1)

6.8%

2012 annualized growth in

gross domestic/metro product

(2)

1.4%                    2.1%

2012 4Q Earnings Release Slides

4Q12

2012

(3)

2013E

(3)

Average Customer Growth

0.0%

0.0%

0.6%

Average Use-Per-Customer

(1.9)%

(3.4)%

(2.3)%

Total Residential

(1.9)%

(3.4)%

(1.7)%

Small C&I

(0.6)%

(3.0)%

(1.1)%

Large C&I

2.1%

1.5%

1.2%

All Customer Classes

(3.3)%

(2.2)%

(1.7)%

7.8%

Note: C&I = Commercial & Industrial.   2012 quarterly and full year data is adjusted for timing of PJM settlements. Impact of RG Steel is only reflected in “All Customer Classes” and

not in “Large C&I” amounts. 

29

Additional 2013 ExGen and CENG Modeling

P&L Item

2013 Estimate

ExGen

Model

Inputs

(1)

O&M

$4,425M

Taxes Other Than Income (TOTI)

$300M

Depreciation & Amortization

(4)

$825M

Interest Expense

$375M

CENG

Model

Inputs

(at

ownership)

(5)

Gross Margin

Included in ExGen Disclosures

O&M / TOTI

$400M-$450M

Depreciation & Amortization / Accretion

$100M-$150M

2012 4Q Earnings Release Slides

2012 4Q Earnings Release Slides

(1)

ExGen amounts  for O&M, TOTI and Depreciation & Amortization exclude the impacts of CENG. CENG impact is reflected in “Equity earnings of unconsolidated affiliates”

in the Income Statement.

(2)

ExGen O&M excludes P&L neutral decommissioning costs and the impact from O&M related to entities consolidated solely as a result of the application of FIN 46R.

(3)

TOTI excludes gross receipts tax for retail.

(4)

ExGen Depreciation & Amortization excludes the impact of P&L neutral decommissioning.

(5)

CENG has not concluded its financial planning process for 2013. The CENG model inputs are intended to support ExGen’s guidance range and do not represent CENG’s

final estimates.

(3)

(2)

2013 Key Assumptions

Utility Statistics

2013 Estimate

Electric Delivery Growth (%)

(3)

ComEd

(0.0)%

PECO

(0.5)%

BGE

(1.7)%

Effective Tax Rate -

Operating (%)

2013 Estimate

ComEd

40.0%

PECO

31.0%

BGE

38.7%

ExGen

33.4%

Exelon

34.4%

30

(1)

Excludes Salem and CENG.

(2)

Reflects forward market prices as of December 31, 2012.

(3)

Weather-normalized load growth.

(4)

O&M rounded to the nearest $25M.

(5)

ExGen O&M excludes P&L neutral decommissioning  costs and the impact from O&M related to entities consolidated solely as a result of the application of FIN 46R.

.

Generation Statistics

2013 Estimate

(2)

Nuclear Capacity Factor (%)

(1)

93.5%

Total Expected Generation(GWh)

218,000

Henry Hub Natural Gas ($/MMbtu)

$3.54

Midwest: NiHub ATC Price

$30.12

Mid-Atlantic: PJM-W ATC Price

$36.88

ERCOT-N ATC Spark Spread

$6.80

New York: NY Zone A ATC Price

$34.22

New England: Mass Hub Spark Spread

$4.61

2013 O&M

(4)

Reconciliation (in $M)

ExGen

ComEd

PECO

BGE

Other

Exelon

GAAP O&M

$4,550

$1,400

$825

$650

$(75)

$7,350

Decommissioning and FIN 46R O&M

(5)

$(50)

-

-

-

-

$(50)

Regulatory O&M

-

$(200)

$(125)

-

-

$(325)

Merger/Integration costs

$(75)

-

-

-

-

$(75)

Operating O&M (as shown on slide 19)

$4,425

$1,200

$700

$650

$(75)

$6,900

2012 4Q Earnings Release Slides

2012 4Q Earnings Release Slides

Sufficient Liquidity

(1)

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

(2)

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

facility

draws.

The

amount

of

commercial

paper

outstanding

does

not

reduce

the

available

capacity

under

the

credit

agreements.

($ in Millions)

Available Capacity Under Bank Facilities as of January 30, 2013

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

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

31

2012 4Q Earnings Release Slides

Aggregate Bank Commitments

(1)

600

1,000

600

5,675

8,375

Outstanding Facility Draws

–

–

–

–

Outstanding Letters of Credit

(1)

(1,729)

(1,732)

Available Capacity Under Facilities

(2)

600

1,000

599

3,946

6,643

Outstanding Commercial Paper

Available Capacity Less Outstanding

Commercial Paper

600

1,000

599

3,946

6,643

–

–

–

–

–

–

–

–

ComEd Operating EPS Contribution

Key

Drivers

–

4Q12

vs.

4Q11

(1)

Share differential: $(0.04)

Impact of the 2011 allowed recovery of certain

storm costs pursuant to EIMA

(2):

: $(0.04)

Lower distribution revenue primarily due to

lower allowed ROE

(3):

$(0.02)

Lower income tax: $0.01

Lower interest expense primarily due to the

settlement of the 1999-2001 income tax

returns: $0.02

Other impacts of EIMA, primarily related to the

2012 ICC rehearing order for the allowed

recovery of pension asset costs: $0.07

4Q12

Heating Degree-Days

1,832       2,030       2,293

Cooling Degree-Days              14

3            11       

4Q11

Full Year

4Q

2012

2011

32

2012 4Q Earnings Release Slides

2012 4Q Earnings Release Slides

(1)

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

(2)

The Energy Infrastructure Modernization Act.

(3)

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

rate base and capital structure. 

$0.61

$0.18

$0.47

$0.19

Normal

Actual

Actual

PECO Operating EPS Contribution

Key

Drivers

–

4Q12

vs.

4Q11

(1)

Increased storm costs: $(0.04)

Share differential: $(0.02)

Weather: $0.02

Lower income tax primarily due to gas

distribution tax repairs deduction: $0.02

4Q12

Heating Degree-Days      1,302         1,482        1,629

Cooling Degree-Days           14 

31             19         

4Q11

33

2012 4Q Earnings Release Slides

Full Year

4Q

2012

2011

2012 4Q Earnings Release Slides

(1)

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

$0.58

$0.11

$0.47

$0.09

Normal

Actual

Actual

4Q GAAP EPS Reconciliation

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

2012 4Q Earnings Release Slides

34

Three Months Ended December 31, 2012

ExGen

ComEd

PECO

BGE

Other

Exelon

2012 Adjusted (non-GAAP) Operating Earnings Per Share

$0.33

$0.19

$0.09

$0.02

$0.00

$0.64

Mark-to-market impact of economic hedging activities

0.17

-

-

-

(0.03)

0.14

Plant retirements and divestitures

(0.05)

-

-

-

-

(0.05)

Asset retirement obligation

0.01

-

-

-

-

0.01

Constellation merger and integration costs

(0.04)

(0.00)

(0.00)

(0.00)

(0.00)

(0.05)

Amortization of commodity contract intangibles

(0.24)

-

-

-

-

(0.24)

Non-cash remeasurement of deferred income taxes

(0.01)

-

-

-

0.01

0.00

Midwest Generation bankruptcy charges

(0.01)

-

-

-

-

(0.01)

4Q 2012 GAAP Earnings (Loss) Per Share

$0.16

$0.19

$0.09

$0.02

$(0.02)

$0.44

Three Months Ended December 31, 2011

ExGen

ComEd

PECO

Other

Exelon

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

$0.54

$0.18

$0.11

$(0.02)

$0.82

Mark-to-market impact of economic hedging activities

0.07

-

-

-

0.07

Unrealized gains related to nuclear decommissioning trust funds

0.07

-

-

-

0.07

Plant retirements and divestitures

(0.01)

-

-

-

(0.01)

Constellation merger and integration costs

(0.01)

-

(0.00)

(0.02)

(0.03)

Non-cash remeasurement of deferred income taxes

0.01

-

-

(0.02)

(0.01)

4Q 2011 GAAP Earnings (Loss) Per Share

$0.67

$0.18

$0.11

$(0.05)

$0.91

Full Year GAAP EPS Reconciliation

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

2012 4Q Earnings Release Slides

35

Twelve Months Ended December 31, 2012

ExGen

ComEd

PECO

BGE

Other

Exelon

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

$1.89

$0.47

$0.47

$0.06

$(0.04)

$2.85

Mark-to-market impact of economic hedging activities

0.38

-

-

-

0.00

0.38

Unrealized gains related to nuclear decommissioning trust funds

0.07

-

-

-

-

0.07

Plant retirements and divestitures

(0.29)

-

-

-

-

(0.29)

Constellation merger and integration costs

(0.20)

(0.00)

(0.01)

(0.01)

(0.09)

(0.31)

Maryland commitments

(0.03)

-

-

(0.10)

(0.15)

(0.28)

Amortization of commodity contract intangibles

(0.93)

-

-

-

-

(0.93)

FERC settlement

(0.21)

-

-

-

-

(0.21)

Reassessment of state deferred income taxes

0.00

-

-

-

0.14

0.14

Amortization of the fair value of certain debt

0.01

-

-

-

-

0.01

Midwest Generation bankruptcy charges

(0.01)

-

-

-

(0.01)

FY 2012 GAAP Earnings (Loss) Per Share

$0.69

$0.46

$0.46

$(0.05)

$(0.14)

$1.42

Twelve Months Ended December 31, 2011

ExGen

ComEd

PECO

Other

Exelon

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

$3.01

$0.61

$0.58

$(0.05)

$4.16

Mark-to-market impact of economic hedging activities

(0.27)

-

-

-

(0.27)

Plant retirements and divestitures

(0.05)

-

-

-

(0.05)

Asset retirement obligation

(0.03)

-

0.00

-

(0.02)

Constellation merger and integration costs

(0.01)

-

(0.00)

(0.06)

(0.07)

Other acquisitions costs

(0.01)

-

-

-

(0.01)

Wolf Hollow acquisition

0.03

-

-

-

0.03

Recovery of costs pursuant to the 2011 distribution rate case order

-

0.03

-

-

0.03

Non-cash remeasurement of deferred income taxes

0.01

-

-

(0.02)

(0.01)

Non-cash charge resulting from Illinois tax rate change legislation

(0.03)

(0.01)

-

(0.00)

(0.04)

FY 2011 GAAP Earnings (Loss) Per Share

$2.66

$0.63

$0.58

$(0.12)

$3.75

GAAP to Operating Adjustments

•

Exelon’s 2013 adjusted (non-GAAP) operating earnings outlook excludes the earnings effects of the

following:

–

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

–

Significant changes to GAAP

2012 4Q Earnings Release Slides

36