EXELON [LOGO]
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News Release
From: Exelon Corporation FOR IMMEDIATE RELEASE
Corporate Communications ---------------------
P.O. Box 805379 Chicago, IL 60680-5379 October 30, 2002
Contact: Linda Marsicano, Media Relations
312.394.3099
Linda Byus, CFA, Investor Relations
312.394.7696
Exelon Reports Third Quarter Earnings
of $1.70 Per Diluted Share
Chicago (October 30, 2002) - Exelon Corporation (NYSE: EXC) today reported
consolidated earnings of $551 million, or $1.70 per share (diluted), for the
third quarter of 2002. There were no unusual earnings items in the quarter.
Earnings in the third quarter of 2001 were $1.16 per share and included three
unusual items that lowered earnings by $0.16 per share. Excluding those items,
third quarter 2001 earnings from operations were $1.32 per share. Earnings for
the third quarter 2002 were up 29% over earnings from operations in third
quarter 2001.
Improved operating results were due to increased weather-related kWh deliveries,
lower interest expense, lower income taxes and higher interest income in the
quarter compared with third quarter 2001. The Cost Management Initiative
achieved $82 million of sustainable savings in the third quarter 2002 and $186
million year-to-date, which was partially offset by an increase in operating and
maintenance expense related to the acquisition of two generating plants in
April. The estimated net impact of favorable weather is $0.17 per share in the
third quarter compared with the prior year and $0.16 per share relative to the
normal weather that was incorporated in Exelon's guidance. The cessation of
goodwill amortization contributed $0.11 per share for the quarter relative to
the third quarter of 2001.
"Our integrated asset portfolio and commitment to world-class performance
enabled us to achieve a very solid third quarter," said John W. Rowe, Exelon
Chairman and CEO. "Our Cost Management Initiative is producing results this
year, and more importantly, this drive for improved efficiency and productivity
has become an integral part of our operating culture, which will support
earnings in the future. With three strong quarters on the books, we have revised
our earnings guidance for 2002 to $4.65 to $4.80 per share. Based on the current
outlook, we believe we are in a position to earn $4.70 to $5.00 per share in
2003."
2002 and 2003 Earnings Outlook
Exelon's 2002 earnings outlook has been updated to incorporate year-to-date
events including year-to-date operating results and our expectations for the
balance of the year.
Exelon's guidance for consolidated 2002 earnings from operations, excluding
unusual items, is a range of $4.65 to $4.80 per diluted share based on the
assumption of normal weather in the fourth quarter. Earnings from operations
exclude the second quarter gain from the sale of the AT&T Wireless investment
and first quarter goodwill impairment and severance costs. Initial guidance for
2003 earnings from operations is a range of $4.70 to $5.00 per share, based on
the assumption of normal weather, and excludes any potential asset sales. The
guidance for 2003 earnings includes the impact of higher pension expense and the
impact of the adoption of FAS 143.
Third Quarter Highlights
o Exelon Generation's nuclear fleet, excluding AmerGen, produced 29,817 GWhs
for the third quarter of 2002, compared with 28,456 GWhs output for the
third quarter of 2001. The fleet, including AmerGen, achieved a capacity
factor of 93.9% for the third quarter of 2002, compared with 93.0% for the
third quarter 2001. Exelon Generation's nuclear group did not have any
outages scheduled during July and August and began two outages in
September. The outage schedule was similar to third quarter 2001. During a
planned refueling outage at Byron 2 (a pressurized water reactor) in late
September, an NRC-required inspection of the reactor vessel head was
completed and the head was found to be acceptable. The inspection was
required to ensure there is no head degradation as a result of boron
corrosion, similar to damage previously found at the Davis Besse reactor.
o Exelon Generation's fossil operations continued their strong performance in
the third quarter with 99.2% on-time delivery and 94.1% dispatch
availability.
o Exelon Generation's power marketing organization, PowerTeam, continued to
face the challenge of depressed wholesale power prices. Market sales
margins were negatively impacted by average market sales prices that were
$7.05/MWh lower than the prior year. Excluding the benefit associated with
the Texas plant acquisition, average market prices realized for the three
months ended September 30, 2002 were $9.79/MWh lower than the same 2001
period. Those plants contributed $58 million of margin during the quarter.
The effect of the lower sales prices was partially offset by lower average
supply costs and increased market sales volumes.
o On September 24, Exelon Generation received FERC approval to purchase Sithe
New England Holdings, a subsidiary of Sithe Energies, Inc., representing
about 4,470 MWs of generation. The purchase will be in exchange for a $543
million note, plus the assumption of approximately $1.15 billion of project
debt. If closing conditions are satisfied, the transaction could close in
November 2002.
o On October 2, 2002, Exelon Generation notified Midwest Generation (Midwest)
of the exercise of its termination options under the existing Collins and
Peaking Purchase Power Agreements. Exelon Generation released 1,727 MWs of
capacity and will retain the output of 1,778 MWs of Collins and peaking
unit capacity in 2003. On July 1, Exelon exercised its call option on 1,265
MWs of coal capacity. For the contract year 2003, Exelon has contracted for
4,739 MWs of capacity from Midwest, which includes 1,696 MWs of non-option
coal capacity. By exercising the Midwest contract options and restructuring
the 2003 supply portfolio, the expected capacity savings in 2003 compared
with 2002 are approximately $130 million.
o On October 10, 2002, the results of the audit of ComEd's 2000 test year
expenditures that was required as part of its Delivery Services Rate Case
were released to the public. The audit recommended a $106 million net rate
base reduction, a $141 million reduction in operating expenses and a $153
million reduction in ComEd's delivery services revenue requirement relative
to the April 1 interim rate order. The potential revenue impact of the
order is not expected to be material, because the reduction in the delivery
services revenue requirement is likely to be largely offset by increases in
the competitive transition charges paid by customers who choose a new
supplier. ComEd intends to contest the audit findings. However, depending
on the final Illinois Commerce Commission decision, ComEd's estimated
potential write-off could be up to approximately $100 million (pre-tax). In
the third quarter 2002, ComEd recorded a $12 million (pre-tax), or $0.02
per share, non-cash charge representing the minimum probable write-off
exposure resulting from the audit findings.
BUSINESS UNIT RESULTS
Exelon Corporation's consolidated net income for the third quarter of 2002 was
$551 million compared with net income of $376 million in the third quarter of
2001.
Exelon Energy Delivery consists of the retail electricity transmission and
distribution operations of ComEd and PECO and the natural gas distribution
business of PECO. Energy Delivery's net income in the third quarter of 2002 was
$370 million compared with net income of $280 million in the third quarter of
2001, primarily due to increased weather-related kWh sales and cost savings in
2002.
Cooling degree days in the ComEd service territory were up 26% relative to last
year and 24% above normal. In the PECO service territory, cooling degree days
were up 20% compared with 2001 and 27% above normal. Total retail KWh deliveries
rose 4.4% for ComEd, with an 8.6% increase in deliveries to the
weather-sensitive residential customer class. PECO's retail KWh deliveries
increased 9.9% overall. Energy Delivery's total revenues for the third quarter
of 2002 of $3,162 million were up 6% from $2,970 million in 2001, offset by a
$100 million net increase in fuel and purchased power. Operating and maintenance
expense decreased $14 million reflecting lower maintenance expenditures and the
absence of a 2001 severance accrual at PECO, partially offset by an increase in
the reserve for environmental liabilities. The absence of the amortization of
goodwill and lower interest expense contributed to the increase in Energy
Delivery's operating results. The impact of the warmer summer weather increased
Energy Delivery's third quarter 2002 earnings per share (diluted) by
approximately $0.14 relative to 2001 and $0.16 relative to the normal weather
that was incorporated in our earnings guidance.
Exelon Generation consists of Exelon's electric generation operations and power
marketing and trading functions. Generation's third quarter 2002 net income of
$163 million was up from third quarter 2001 net income of $140 million. The
increase is due to weather-related increased margins from sales to affiliates,
and lower average supply costs. The margin gains from sales to affiliates were
offset by lower margins on market sales and a decrease in trading margin. Energy
sales for the third quarter of 2002 totaled 57,173 GWhs, exclusive of trading
volumes, compared with 52,511 GWhs in 2001. Generation's third quarter 2002
revenue of $2,213 million includes a net trading portfolio loss of $12 million
compared with third quarter 2001 revenue of $2,191 million, which includes a net
trading portfolio gain of $5 million. Revenues, excluding the trading portfolio,
increased 1.8% from the third quarter of 2001, reflecting the increased revenue
from the two plants in Texas acquired in 2002 partially offset by lower market
prices for energy.
The average realized price excluding trading activity in the third quarter of
2002 was $38.69 per MWh compared with $41.13 per MWh in 2001. The average
realized price reflects a lower proportion (60% in 2002 vs. 62% in 2001) of
Generation's total sales being to Exelon Energy Delivery, as well as the impact
of lower market prices during the third quarter of 2002 as compared with the
third quarter of 2001. Revenue net fuel increased $2 million to $683 million for
the third quarter of 2002 as compared with the third quarter of 2001 as a result
of the factors noted above. The third quarter 2002 revenue net fuel includes
mark-to-market gains of $1 million from non-trading activities. Operating and
maintenance expenses increased $27 million reflecting the addition of the plants
acquired from TXU, which were partially offset by savings generated by Exelon's
Cost Management Initiative efforts. The $11 million increase in depreciation and
amortization for the third quarter of 2002 as compared with the third quarter of
2001 is related to the plants acquired from TXU and other higher plant balances.
Interest expense of $23 million was $18 million lower for the third quarter of
2002 as compared with the third quarter of 2001 primarily due to lower interest
rates on borrowings. Higher earnings from unconsolidated affiliates of $27
million relate principally to mark-to-market gains on a tolling arrangement at
Sithe and a cancellation of turbine orders and better station performance and
station uprates at AmerGen.
Exelon Enterprises consists of Exelon's competitive retail energy sales, Energy
Solutions and infrastructure services, venture capital investments and related
businesses. Enterprises reported third quarter 2002 net income of $15 million.
Third quarter 2001 results were a loss of $33 million. Enterprises achieved a
$15 million operating earnings improvement compared with 2001 primarily as a
result of increased revenues and margins in infrastructure services, Exelon's
Cost Management Initiative savings and the cessation of goodwill amortization.
Enterprises third quarter 2001 results included a $36 million pre-tax writedown
of its investment in Corvis, a telecommunications equipment manufacturer. The
improved third quarter 2002 results were due to the absence of the 2001 Corvis
writedown and 2001 losses related to Enterprises' AT&T Wireless investment,
which was sold in the second quarter of 2002, and $10 million (pre-tax) of
earnings from an unconsolidated communications joint venture related to its
recovery of trade receivables previously considered uncollectible.
Conference call information: Exelon has scheduled a conference call for 11 AM ET
(10 AM CT) on October 30. The call-in number in the U.S. is 800/370-0869 and the
international call-in number is 973/582-2720. No password is required. Media
representatives are invited to participate on a listen-only basis. The call will
be web-cast and archived on Exelon's web site: www.exeloncorp.com. (Please
select the Investor Relations page.)
Telephone replays will be available through November 15. The U.S. call-in number
is 877/519-4471 and the international call-in number is 973/341-3080. The
confirmation code is 3524786.
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This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary materially
from the expectations contained herein. The forward-looking statements herein
include statements about future financial and operating results of Exelon.
Economic, business, competitive and/or regulatory factors affecting Exelon's
businesses generally could cause actual results to differ materially from those
described herein. For a discussion of the factors that could cause actual
results to differ materially, please see Exelon's filings with the Securities
and Exchange Commission,
particularly those factors discussed in "Management's Discussion and Analysis of
Financial Condition and Results of Operations - Outlook" in Exelon's 2001 Annual
Report and "Risk Factors" in Exelon Generation Company's Registration Statement
on Form S-4, file number 333-85496. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date of
this press release. Exelon does not undertake any obligation to publicly release
any revisions to these forward-looking statements to reflect events or
circumstances after the date of this press release.
###
Exelon Corporation is one of the nation's largest electric utilities
with approximately 5 million customers and more than $15 billion in annual
revenues. The company has one of the industry's largest portfolios of
electricity generation capacity, with a nationwide reach and strong positions in
the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5
million customers in Illinois and Pennsylvania and gas to more than 440,000
customers in the Philadelphia area. Exelon is headquartered in Chicago and
trades on the NYSE under the ticker EXC.
EXELON CORPORATION
Consolidated Statements of Income
(unaudited)
(in millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2002 2001 2002 2001
-------- -------- -------- --------
Operating Revenues $ 4,370 $ 4,185 $ 11,245 $ 11,625
Operating Expenses
Purchased Power 1,337 1,275 2,763 2,682
Fuel 373 356 1,233 1,455
Operating and Maintenance 1,114 1,101 3,252 3,293
Depreciation and Amortization 345 369 1,012 1,109
Taxes Other Than Income 201 172 568 493
-------- -------- -------- --------
Total Operating Expenses 3,370 3,273 8,828 9,032
-------- -------- -------- --------
Operating Income 1,000 912 2,417 2,593
Other Income and Deductions
Interest Expense (249) (283) (739) (864)
Distributions on Preferred Securities of Subsidiaries (11) (11) (34) (34)
Equity in Earnings of Unconsolidated Affiliates, net 92 52 114 77
Other, net 16 (51) 239 48
-------- -------- -------- --------
Total Other Income and Deductions (152) (293) (420) (773)
-------- -------- -------- --------
Income Before Income Taxes and Cumulative Effect
of Changes in Acounting Principles 848 619 1,997 1,820
Income Taxes 297 243 724 742
-------- -------- -------- --------
Income Before Cumulative Effect of Changes in
Accounting Principles 551 376 1,273 1,078
Cumulative Effect of Changes in Accounting
Principles, Net of Income Taxes - - (230) 12
-------- -------- -------- --------
Net Income $ 551 $ 376 $ 1,043 $ 1,090
======== ======== ======== ========
Average Common Shares Outstanding
Basic: 323 321 322 320
Diluted: 324 323 324 323
Earnings per Average Common Share:
Basic:
Income before Cumulative Effect of Changes in Accounting Principles $ 1.71 $ 1.17 $ 3.95 $ 3.36
Cumulative Effect of Changes in Accounting Principles - - (0.71) 0.04
-------- -------- -------- --------
Net Income $ 1.71 $ 1.17 $ 3.24 $ 3.40
======== ======== ======== ========
Diluted:
Income before Cumulative Effect of Changes in Accounting Principles $ 1.70 $ 1.16 $ 3.93 $ 3.33
Cumulative Effect of Changes in Accounting Principles - - (0.71) 0.04
-------- -------- -------- --------
Net Income $ 1.70 $ 1.16 $ 3.22 $ 3.37
======== ======== ======== ========
Unusual Items included in Diluted Earnings per
Common Share Gains/(Losses):
Transition loss on implementation of FAS 141 and 142 $ - $ - $ (0.71) $ -
Gain on Sale of AT&T Wireless - - 0.36 -
Employee severance costs - (0.06) (0.04) (0.06)
Litigation reserves - (0.03) - (0.03)
CTC prepayment - - - 0.02
Wholesale rate settlement - - - 0.01
Gains and losses on investments - (0.07) - (0.02)
Implementation of FAS 133 - - - 0.04
Settlement of Transition Bond Swap - - - 0.01
-------- -------- -------- --------
Total Unusual Items $ - $ (0.16) $ (0.39) $ (0.03)
======== ======== ======== ========
EXELON CORPORATION
Earnings Per Diluted Share Reconciliation
Third Quarter 2002 vs. Third Quarter 2001
2001 Earnings per Diluted Share $1.16
Unusual Items included in 2001 Earnings:
Loss on Investment (1) 0.07
Employee Severance Cost (2) 0.06
Litigation reserves 0.03
-----
2001 Earnings Excluding Unusual Items 1.32
Year Over Year Effects on Earnings:
Lower Energy Margins - Excluding Weather (3) (0.04)
Higher Energy Margins - Weather Impact (4) 0.17
Cessation of Goodwill Amortization 0.11
Lower Interest Expense (5) 0.06
Higher Interest Income (6) 0.07
Higher Earnings of Unconsolidated Subsidiaries (7) 0.07
Higher Operating and Maintenance Expense (O&M) (8) (0.05)
Higher Nuclear Outage Operating and Maintenance Costs (9) (0.02)
Higher InfraSource and Energy Services Business Activity 0.02
Higher Taxes Other Than Income (10) (0.02)
Higher Depreciation and Amortization Expense (11) (0.02)
Increased Reserve for Environmental Liabilities (0.03)
Litigation Reserve - ComEd Liberty Audit (0.02)
Lower Effective Income Tax Rate (12) 0.07
Other 0.01
-----
2002 Earnings per Diluted Share $1.70
=====
(1) Impairment Writedown of Enterprises telecommunications investment.
(2) Relates to additional PECO positions identified to be eliminated in 2001 as
a result of the 2000 merger of PECO and Unicom.
(3) Primarily reflects higher PJM ancillary costs, lower margins on energy
trading activity and rate reductions at EED offset by higher sales in 2002
compared to 2001. ComEd's 5% residential customer rate reflects a reduction
of $0.08 per share.
(4) Primarily related to warmer summer weather in the third quarter of 2002
compared to 2001. Additionally, because retail electricity sales were up
due to weather, the Power Team sold less electricity at wholesale prices.
(5) Reflects lower debt outstanding and lower interest rates due to refinancing
at Energy Delivery and a lower rate on Generation's spent nuclear fuel
obligation.
(6) Primarily reflects higher investment income from nuclear decommissioning
trust funds in 2002.
(7) Reflects higher earnings at Sithe, AmerGen and a communications joint
venture relating to its recovery of trade receivables previously considered
uncollectible.
(8) Higher O&M's, excluding litigation and environmental reserves, outage
costs, employee severance and InfraSource and Energy Services O&M's,
primarily relate to increased Generation O&M's reflecting higher
administrative costs and the acquisition of two generating stations in
April 2002, partially offset by lower maintenance expenditures at EED.
(9) Relates to two nuclear refueling outages in 2002 as compared to one and a
half refueling outages in 2001.
(10) Primarily reflects higher property taxes.
(11) Depreciation and amortization expense, excluding goodwill amortization, was
higher primarily related to the effect of increased CTC amortization at
PECO and increased depreciation related to higher depreciable plant
partially offset by lower depreciation rates at ComEd.
(12) Primarily relates to reduced state income taxes.
EXELON CORPORATION
Earnings Per Diluted Share Reconciliation
Nine Months Ended September 30, 2002 vs. Nine Months Ended September 30, 2001
2001 Earnings per Diluted Share $3.37
Unusual Items included in 2001 Earnings:
Cumulative Effect of Adopting SFAS 133 (0.04)
Employee Severance Cost (1) 0.06
Litigation reserves 0.03
Net Loss on Investments (2) 0.02
CTC Prepayment (0.02)
Wholesale Rate Settlement (0.01)
Settlement of Transition Bond Swap (0.01)
-----
2001 Earnings Excluding Unusual Items 3.40
Year Over Year Effects on Earnings:
Lower Energy Margins - Excluding Weather (3) (0.47)
Higher Energy Margins - Weather Impact (4) 0.14
Higher Nuclear Outage Operating and Maintenance Costs (5) (0.12)
Investment and Asset Write-Downs (6) (0.08)
Cessation of Goodwill Amortization 0.35
Higher Operating and Maintenance Expense (O&M) (7) (0.02)
Lower Interest Expense (8) 0.23
Higher Interest Income (9) 0.08
Higher Taxes Other Than Income (10) (0.04)
Litigation Reserve - ComEd Liberty Audit (0.02)
Higher Depreciation and Amortization Expense (11) (0.03)
Increased Reserve for Environmental Liabilities (0.03)
Higher Equity in Earnings of Unconsolidated Affiliates (12) 0.07
Lower Effective Income Tax Rate (13) 0.16
Other (0.01)
-----
2002 Earnings Before Cumulative Effect of Adopting SFAS 142,
the Gain on the AT&T Sale and Severance 3.61
Cumulative Effect of Adopting SFAS 142 (0.71)
Gain on the Sale of AT&T Wireless 0.36
Severance (14) (0.04)
-----
2002 Earnings per Diluted Share $3.22
=====
(1) Relates to additional PECO positions identified to be eliminated in 2001 as
a result of the 2000 merger of PECO and Unicom.
(2) Impairment writedown of an Enterprise telecommunications investment,
partially offset by realized gains on distributions on Enterprises
investments.
(3) Primarily reflects lower market prices for energy, PJM ancillary costs,
margins on energy trading activity and rate reductions at EED, partially
offset by a stronger economy in Chicago in 2002 compared to 2001. ComEd's
5% residential customer rate reflects a reduction of $0.18 per share.
(4) Primarily related to warmer summer weather in Chicago and Philadelphia in
2002 compared to 2001, partially offset by warmer winter weather in Chicago
and Philadelphia.
(5) Relates to seven nuclear refueling outages in 2002 as compared to three and
a half refueling outages in 2001.
(6) Reflects $38 million of investment write-downs and $4 million of net asset
write-downs at Enterprises.
(7) Higher O&M's, excluding litigation and environmental reserves, outage
costs, severance costs and lower InfraSource and Exelon Services activity,
primarily relate to increased Generation O&M's related to higher
administrative costs, increased bad debt reserves and the acquisition of
two generating stations in April 2002 and increased PECO expenditures
related to the deployment of automated meter reading technology, partially
offset by lower maintenance expenditures at EED and Exelon's Cost
Management Initiative savings. The earnings effect of lower lnfraSource and
Exelon Services O&M's is offset by lower InfraSource and Exelon Services
revenue.
(8) Reflects lower debt outstanding and lower interest rates due to refinancing
at Energy Delivery and a lower rate on Generation's spent nuclear fuel
obligation.
(9) Primarily reflects higher investment income from nuclear decommissioning
trust funds in 2002.
(10) Primarily reflects higher property and other taxes.
(11) Depreciation and amortization expense, excluding goodwill amortization, was
higher primarily related to increased CTC amortization at PECO, higher
amortization of capitalized software at Enterprises and increased
depreciation related to higher depreciable plant, partially offset by the
effect of the extension of the estimated service lives of the generating
stations in 2001 and lower depreciation rates at ComEd.
(12) Reflects higher earnings at Sithe, AmerGen and a communications joint
venture relating to its recovery of trade receivables previously considered
uncollectible.
(13) Primarily relates to reduced state income taxes.
(14) Executive severance costs partially offset by favorable adjustments to
previous severance estimates. A portion of the executive severance is not
tax deductible. As a result, the after-tax impact on earnings is $0.04 per
share.
EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)
Three Months Ended September 30, 2002
---------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
-------- ---------- ----------- --------- ------------
Operating Revenues $ 3,162 $ 2,213 $ 509 $(1,514) $ 4,370
Operating Expenses
Purchased Power 1,485 1,257 73 (1,478) 1,337
Fuel 40 273 60 - 373
Operating and Maintenance 407 391 349 (33) 1,114
Depreciation and Amortization 256 68 11 10 345
Taxes Other Than Income 162 37 1 1 201
------- ------- ------- ------- -------
Total Operating Expenses 2,350 2,026 494 (1,500) 3,370
------- ------- ------- ------- -------
Operating Income 812 187 15 (14) 1,000
Other Income and Deductions
Interest Expense (215) (23) (3) (8) (249)
Distributions on Preferred Securities of Subsidiaries (11) - - - (11)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net - 87 8 (3) 92
Other, net 5 14 - (3) 16
------- ------- ------- ------- -------
Total Other Income and Deductions (221) 78 5 (14) (152)
------- ------- ------- ------- -------
Income Before Income Taxes 591 265 20 (28) 848
Income Taxes 221 102 5 (31) 297
------- ------- ------- ------- -------
Net Income $ 370 $ 163 $ 15 $ 3 $ 551
======= ======= ======= ======= =======
Three Months Ended September 30, 2001
--------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
-------- ---------- ----------- --------- ------------
Operating Revenues $ 2,970 $ 2,191 $ 529 $(1,505) $ 4,185
Operating Expenses
Purchased Power 1,374 1,268 88 (1,455) 1,275
Fuel 51 242 63 - 356
Operating and Maintenance 421 364 361 (45) 1,101
Depreciation and Amortization 293 57 16 3 369
Taxes Other Than Income 133 36 1 2 172
------- ------- ------- ------- -------
Total Operating Expenses 2,272 1,967 529 (1,495) 3,273
------- ------- ------- ------- -------
Operating Income 698 224 - (10) 912
Other Income and Deductions
Interest Expense (253) (41) (9) 20 (283)
Distributions on Preferred Securities of Subsidiaries (11) - - - (11)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net - 60 (8) - 52
Other, net 46 (25) (34) (38) (51)
------- ------- ------- ------- -------
Total Other Income and Deductions (218) (6) (51) (18) (293)
------- ------- ------- ------- -------
Income Before Income Taxes 480 218 (51) (28) 619
Income Taxes 200 78 (18) (17) 243
------- ------- ------- ------- -------
Net Income $ 280 $ 140 $ (33) $ (11) $ 376
======= ======= ======= ======= =======
EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)
Nine Months Ended September 30, 2002
-----------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
-------- ---------- ----------- --------- ------------
Operating Revenues $ 7,973 $ 5,233 $ 1,475 $ (3,436) $ 11,245
Operating Expenses
Purchased Power 3,331 2,581 181 (3,330) 2,763
Fuel 228 706 294 5 1,233
Operating and Maintenance 1,131 1,234 983 (96) 3,252
Depreciation and Amortization 745 197 46 24 1,012
Taxes Other Than Income 430 126 6 6 568
-------- -------- -------- -------- --------
Total Operating Expenses 5,865 4,844 1,510 (3,391) 8,828
-------- -------- -------- -------- --------
Operating Income 2,108 389 (35) (45) 2,417
Other Income and Deductions
Interest Expense (654) (51) (11) (23) (739)
Distributions on Preferred Securities of Subsidiaries (34) - - - (34)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net - 119 3 (8) 114
Other, net 35 54 158 (8) 239
-------- -------- -------- -------- --------
Total Other Income and Deductions (653) 122 150 (39) (420)
-------- -------- -------- -------- --------
Income Before Income Taxes and Cumulative Effect
of Change in Acounting Principle 1,455 511 115 (84) 1,997
Income Taxes 547 198 46 (67) 724
-------- -------- -------- -------- --------
Income Before Cumulative Effect of Change in
Accounting Principle 908 313 69 (17) 1,273
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes - 13 (243) - (230)
-------- -------- -------- -------- --------
Net Income $ 908 $ 326 $ (174) $ (17) $ 1,043
======== ======== ======== ======== ========
Nine Months Ended September 30, 2001
-----------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
-------- ---------- ----------- --------- ------------
Operating Revenues $ 7,903 $ 5,403 $ 1,742 $ (3,423) $ 11,625
Operating Expenses
Purchased Power 3,167 2,589 244 (3,318) 2,682
Fuel 335 691 429 - 1,455
Operating and Maintenance 1,145 1,173 1,066 (91) 3,293
Depreciation and Amortization 828 224 47 10 1,109
Taxes Other Than Income 358 121 8 6 493
-------- -------- -------- -------- --------
Total Operating Expenses 5,833 4,798 1,794 (3,393) 9,032
-------- -------- -------- -------- --------
Operating Income 2,070 605 (52) (30) 2,593
Other Income and Deductions
Interest Expense (759) (100) (31) 26 (864)
Distributions on Preferred Securities of Subsidiaries (34) - - - (34)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net - 99 (22) - 77
Other, net 117 (7) 4 (66) 48
-------- -------- -------- -------- --------
Total Other Income and Deductions (676) (8) (49) (40) (773)
-------- -------- -------- -------- --------
Income Before Income Taxes and Cumulative Effect
of Change in Acounting Principle 1,394 597 (101) (70) 1,820
Income Taxes 584 228 (38) (32) 742
-------- -------- -------- -------- --------
Income Before Cumulative Effect of Change in
Accounting Principle 810 369 (63) (38) 1,078
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes - 12 - - 12
-------- -------- -------- -------- --------
Net Income $ 810 $ 381 $ (63) $ (38) $ 1,090
======== ======== ======== ======== ========
EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)
Energy Delivery
-------------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------- ----------------------------------
2002 2001 Variance 2002 2001 Variance
---- ---- -------- ---- ---- --------
Operating Revenues $ 3,162 $ 2,970 $ 192 $ 7,973 $ 7,903 $ 70
Operating Expenses
Purchased Power 1,485 1,374 111 3,331 3,167 164
Fuel 40 51 (11) 228 335 (107)
Operating and Maintenance 407 421 (14) 1,131 1,145 (14)
Depreciation and Amortization 256 293 (37) 745 828 (83)
Taxes Other Than Income 162 133 29 430 358 72
------- ------- ------- ------- ------- -------
Total Operating Expenses 2,350 2,272 78 5,865 5,833 32
------- ------- ------- ------- ------- -------
Operating Income 812 698 114 2,108 2,070 38
Other Income and Deductions
Interest Expense (215) (253) 38 (654) (759) 105
Distributions on Preferred Securities of Subsidiaries (11) (11) - (34) (34) -
Other, net 5 46 (41) 35 117 (82)
------- ------- ------- ------- ------- -------
Total Other Income and Deductions (221) (218) (3) (653) (676) 23
------- ------- ------- ------- ------- -------
Income Before Income Taxes 591 480 111 1,455 1,394 61
Income Taxes 221 200 21 547 584 (37)
------- ------- ------- ------- ------- -------
Net Income $ 370 $ 280 $ 90 $ 908 $ 810 $ 98
======= ======= ======= ======= ======= =======
Generation
-----------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------- ---------------------------------
2002 2001 Variance 2002 2001 Variance
---- ---- -------- ---- ---- --------
Operating Revenues $ 2,213 $ 2,191 $ 22 $ 5,233 $ 5,403 $ (170)
Operating Expenses
Purchased Power 1,257 1,268 (11) 2,581 2,589 (8)
Fuel 273 242 31 706 691 15
Operating and Maintenance 391 364 27 1,234 1,173 61
Depreciation and Amortization 68 57 11 197 224 (27)
Taxes Other Than Income 37 36 1 126 121 5
------- ------- ------- ------- ------- -------
Total Operating Expenses 2,026 1,967 59 4,844 4,798 46
------- ------- ------- ------- ------- -------
Operating Income 187 224 (37) 389 605 (216)
Other Income and Deductions
Interest Expense (23) (41) 18 (51) (100) 49
Equity in Earnings of Unconsolidated Affiliates, net 87 60 27 119 99 20
Other, net 14 (25) 39 54 (7) 61
------- ------- ------- ------- ------- -------
Total Other Income and Deductions 78 (6) 84 122 (8) 130
------- ------- ------- ------- ------- -------
Income Before Income Taxes and Cumulative Effect
of Changes in Acounting Principles 265 218 47 511 597 (86)
Income Taxes 102 78 24 198 228 (30)
------- ------- ------- ------- ------- -------
Income Before Cumulative Effect of Changes in
Accounting Principles 163 140 23 313 369 (56)
Cumulative Effect of Changes in Accounting
Principles, Net of Income Taxes - - - 13 12 1
------- ------- ------- ------- ------- -------
Net Income $ 163 $ 140 $ 23 $ 326 $ 381 $ (55)
======= ======= ======= ======= ======= =======
EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)
Enterprises
-------------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------- ----------------------------------
2002 2001 Variance 2002 2001 Variance
------- ------- -------- ------- ------- --------
Operating Revenues $ 509 $ 529 $ (20) $ 1,475 $ 1,742 $ (267)
Operating Expenses
Purchased Power 73 88 (15) 181 244 (63)
Fuel 60 63 (3) 294 429 (135)
Operating and Maintenance 349 361 (12) 983 1,066 (83)
Depreciation and Amortization 11 16 (5) 46 47 (1)
Taxes Other Than Income 1 1 - 6 8 (2)
------- ------- ------- ------- ------- -------
Total Operating Expenses 494 529 (35) 1,510 1,794 (284)
------- ------- ------- ------- ------- -------
Operating Income 15 - 15 (35) (52) 17
Other Income and Deductions
Interest Expense (3) (9) 6 (11) (31) 20
Equity in Earnings (Losses) of
Unconsolidated Affiliates, net 8 (8) 16 3 (22) 25
Other, net - (34) 34 158 4 154
------- ------- ------- ------- ------- -------
Total Other Income and Deductions 5 (51) 56 150 (49) 199
------- ------- ------- ------- ------- -------
Income Before Income Taxes and Cumulative
Effect of Change in Acounting Principle 20 (51) 71 115 (101) 216
Income Taxes 5 (18) 23 46 (38) 84
------- ------- ------- ------- ------- -------
Income Before Cumulative Effect of
Change in Accounting Principle 15 (33) 48 69 (63) 132
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes - - - (243) - (243)
------- ------- ------- ------- ------- -------
Net Income $ 15 $ (33) $ 48 $ (174) $ (63) $ (111)
======= ======= ======= ======= ======= =======
Corporate and Eliminations
-------------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------- ----------------------------------
2002 2001 Variance 2002 2001 Variance
------- ------- -------- ------- ------- --------
Operating Revenues $(1,514) $(1,505) $ (9) $(3,436) $(3,423) $ (13)
Operating Expenses
Purchased Power (1,478) (1,455) (23) (3,330) (3,318) (12)
Fuel - - - 5 - 5
Operating and Maintenance (33) (45) 12 (96) (91) (5)
Depreciation and Amortization 10 3 7 24 10 14
Taxes Other Than Income 1 2 (1) 6 6 -
------- ------- ------- ------- ------- -------
Total Operating Expenses (1,500) (1,495) (5) (3,391) (3,393) 2
------- ------- ------- ------- ------- -------
Operating Income (14) (10) (4) (45) (30) (15)
Other Income and Deductions
Interest Expense (8) 20 (28) (23) 26 (49)
Equity in Earnings (Losses) of
Unconsolidated Affiliates, net (3) - (3) (8) - (8)
Other, net (3) (38) 35 (8) (66) 58
------- ------- ------- ------- ------- -------
Total Other Income and Deductions (14) (18) 4 (39) (40) 1
------- ------- ------- ------- ------- -------
Income Before Income Taxes (28) (28) - (84) (70) (14)
Income Taxes (31) (17) (14) (67) (32) (35)
------- ------- ------- ------- ------- -------
Net Income $ 3 $ (11) $ 14 $ (17) $ (38) $ 21
======= ======= ======= ======= ======= =======
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)
September 30, December 31,
2002 2001
-------- --------
Current Assets
Cash and Cash Equivalents $ 461 $ 485
Restricted Cash 291 372
Accounts Receivable, net
Customers 2,007 1,687
Other 210 428
Receivable from Unconsolidated Affiliate 40 44
Inventories - Fossil Fuel 189 222
Inventories - Materials and Supplies 312 249
Deferred Income Taxes 101 23
Other 300 272
-------- --------
Total Current Assets 3,911 3,782
-------- --------
Property Plant and Equipment, net 14,926 13,781
Deferred Debits and Other Assets
Regulatory Assets 6,111 6,423
Nuclear Decommissioning Trust Funds 2,997 3,165
Investments 1,665 1,623
Goodwill, net 4,964 5,335
Other 662 708
-------- --------
Total Deferred Debits and Other Assets 16,399 17,254
-------- --------
Total Assets $ 35,236 $ 34,817
======== ========
Liabilities and Shareholders' Equity
Current Liabilities
Notes Payable $ 788 $ 360
Long-Term Debt Due within One Year 1,501 1,406
Accounts Payable 1,304 964
Accrued Expenses 942 1,182
Other 495 505
-------- --------
Total Current Liabilities 5,030 4,417
-------- --------
Long-Term Debt 11,904 12,879
Deferred Credits and Other Liabilities
Deferred Income Taxes 4,506 4,388
Unamortized Investment Tax Credits 305 316
Nuclear Decommissioning Liability for Retired Plants 1,389 1,353
Pension Obligation 315 334
Non-Pension Postretirement Benefits Obligation 893 847
Spent Nuclear Fuel Obligation 854 843
Other 859 694
-------- --------
Total Deferred Credits and Other Liabilities 9,121 8,775
-------- --------
Minority Interest of Consolidated Subsidiaries 75 31
Preferred Securities of Subsidiaries 595 613
Shareholders' Equity
Common Stock 6,995 6,930
Deferred Compensation (1) (2)
Retained Earnings 1,830 1,200
Accumulated Other Comprehensive Income (313) (26)
-------- --------
Total Shareholders' Equity 8,511 8,102
-------- --------
Total Liabilities and Shareholders' Equity $ 35,236 $ 34,817
======== ========
EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2002 2001 2002 2001
------- ------- ------- -------
Cash Flows From Operating Activities
Net Income $ 551 $ 376 $ 1,043 $ 1,090
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization, including nuclear fuel 436 542 1,284 1,481
Cumulative Effect of a Changes in Accounting Principles (net of income taxes) - - 230 (12)
Provision for Uncollectible Accounts 40 35 107 95
Deferred Income Taxes 303 (108) 293 (101)
Deferred Energy Costs 1 14 50 21
Equity in (Earnings) Losses of Unconsolidated Affiliates, net (92) (52) (114) (77)
Net Realized Losses on Nuclear Decommissioning Trust Funds 11 66 32 90
Net Gain on the Sale of Investments, (net of income taxes) - - (199) -
Other Operating Activities 47 2 162 (76)
Changes in Working Capital:
Accounts Receivable (61) (231) (320) (163)
Inventories 11 53 (31) 41
Accounts Payable, Accrued Expenses, & Other Current Liabilities (348) 292 (6) 572
Changes in Receivables and Payables to Unconsolidated Affiliates, net 34 - 46 -
Other Current Assets 30 15 24 (4)
------- ------- ------- -------
Net Cash Flows Provided by Operating Activities 963 1,004 2,601 2,957
------- ------- ------- -------
Cash Flows From Investing Activities
Capital Expenditures (506) (415) (1,534) (1,352)
Acquisition of Generating Plants - - (443) -
Enterprises Acquisitions, net of cash acquired - - - (39)
Proceeds from Nuclear Decommissioning Trust Funds 295 456 1,184 1,077
Investment in Nuclear Decommissioning Trust Funds (387) (473) (1,330) (1,128)
Note Receivable from Unconsolidated Affliate 33 - (42) -
Proceeds from the Sale of Investments 2 - 287 -
Other Investing Activities 34 (155) 81 (143)
------- ------- ------- -------
Net Cash Flows Used in Investing Activities (529) (587) (1,797) (1,585)
------- ------- ------- -------
Cash Flows From Financing Activities
Issuance of Long-Term Debt 255 68 956 2,126
Retirement of Long-Term Debt (1,249) (280) (1,946) (1,433)
Change in Short-Term Debt 318 (8) 428 (957)
Redemption of Preferred Securities of Subsidiaries (18) (18) (18) (18)
Dividends on Common Stock (140) (136) (420) (448)
Change in Restricted Cash 107 141 81 125
Proceeds from Employee Stock Plans 4 1 64 52
Contribution from Minority Interest of Consolidated Subsidiary 43 - 43 -
Other Financing Activities (6) 32 (16) 32
------- ------- ------- -------
Net Cash Flows Used in Financing Activities (686) (200) (828) (521)
------- ------- ------- -------
Change In Cash and Cash Equivalents (252) 217 (24) 851
Cash and Cash Equivalents at Beginning of Period 713 1,160 485 526
------- ------- ------- -------
Cash and Cash Equivalents at End of Period $ 461 $ 1,377 $ 461 $ 1,377
======= ======= ======= =======
EXELON CORPORATION
Electric Sales Statistics
Three Months Ended September 30,
----------------------------------------
(in GWhs) 2002 2001 % Change
- --------------------------------------------------- -------- ------- --------
Supply
- ------
Nuclear, excluding AmerGen 29,817 28,456 4.8%
Purchased power - Generation (1) 23,425 20,505 14.2%
Fossil, excluding Sithe and Hydro 3,931 3,550 10.7%
-------- -------
Power Team Supply 57,173 52,511 8.9%
Purchased power - Other 304 775 (60.8%)
-------- -------
Total electric supply available for sale 57,477 53,286 7.9%
Less: Line loss and company use 2,697 2,447 10.2%
-------- -------
Total Energy Sales 54,780 50,839 7.8%
======== =======
Energy Sales
- ------------
Retail Sales (2) 37,498 36,063 4.0%
Power Team Market Sales (1) 21,177 17,781 19.1%
Interchange sales and sales to other utilities 997 870 14.6%
-------- -------
59,672 54,714 9.1%
Less: Distribution Only Sales 4,892 3,875 26.2%
-------- -------
Total Energy Sales 54,780 50,839 7.8%
======== =======
Nine Months Ended September 30,
----------------------------------------
(in GWhs) 2002 2001 % Change
- --------------------------------------------------- -------- ------- --------
Supply
- ------
Nuclear, excluding AmerGen 86,127 87,397 (1.5%)
Purchased power - Generation (1) 59,496 52,459 13.4%
Fossil, excluding Sithe and Hydro 10,112 8,976 12.7%
-------- -------
Power Team Supply 155,735 148,832 4.6%
Purchased power - Other 403 1,168 (65.5%)
-------- -------
Total electric supply available for sale 156,138 150,000 4.1%
Less: Line loss and company use 6,875 8,420 (18.3%)
-------- -------
Total Energy Sales 149,263 141,580 5.4%
======== =======
Energy Sales
- ------------
Retail Sales (2) 97,917 97,916 0.0%
Power Team Market Sales (1) 61,089 53,787 13.6%
Interchange sales and sales to other utilities 2,221 2,129 4.3%
-------- -------
161,227 153,832 4.8%
Less: Distribution Only Sales 11,964 12,252 (2.4%)
-------- -------
Total Energy Sales 149,263 141,580 5.4%
======== =======
<FN>
(1) Purchased power and market sales do not include trading volume of 28,455 GWhs and 1,832
GWhs for the three months ended September 30, 2002 and 2001, respectively, and 51,260
GWhs and 2,286 GWhs for the nine months ended September 30, 2002 and 2001, respectively.
(2) Includes Exelon Energy sales of 1,678 GWh and 2,253 GWh for the three months ended
September 30, 2002 and 2001, respectively and 3,839 GWh and 5,370 GWh for the nine months
ended September 30, 2002 and 2001, respectively.
</FN>
EXELON CORPORATION
Energy Delivery Sales Statistics
For the Three Months Ended September 30,
ComEd PECO
------------------------------------------ -----------------------------------------
Electric Deliveries (MWh) 2002 2001 % Change 2002 2001 % Change
- ------------------------- ---- ---- -------- ---- ---- --------
Bundled Deliveries (a)
Residential 9,121,136 8,397,985 8.6% 3,421,874 2,175,185 57.3%
Small Commercial & Industrial 6,028,973 6,308,108 (4.4%) 2,066,002 1,989,929 3.8%
Large Commercial & Industrial 2,072,986 2,505,688 (17.3%) 4,006,396 3,835,039 4.5%
Public Authorities & Electric Railroads 1,611,422 2,105,490 (23.5%) 224,023 193,358 15.9%
--------------------------- ---------------------------
18,834,517 19,317,271 (2.5%) 9,718,295 8,193,511 18.6%
--------------------------- ---------------------------
Unbundled Deliveries (b)
Alternative Energy Suppliers
- ----------------------------
Residential (c) n/a 371,077 989,476 (62.5%)
Small Commercial & Industrial 1,640,625 898,218 82.7% 153,978 99,376 54.9%
Large Commercial & Industrial 2,192,045 1,548,185 41.6% 235,527 248,317 (5.2%)
Public Authorities & Electric Railroads 298,641 91,014 228.1% 40 753 (94.7%)
--------------------------- ---------------------------
4,131,311 2,537,417 62.8% 760,622 1,337,922 (43.1%)
--------------------------- ---------------------------
PPO (ComEd Only)
- ----------------
Small Commercial & Industrial 782,168 826,717 (5.4%)
Large Commercial & Industrial 1,248,975 1,447,428 (13.7%)
Public Authorities & Electric Railroads 344,562 150,187 129.4%
---------------------------
2,375,705 2,424,332 (2.0%)
---------------------------
Total Unbundled Deliveries 6,507,016 4,961,749 31.1% 760,622 1,337,922 (43.1%)
--------------------------- ---------------------------
Total Retail Deliveries 25,341,533 24,279,020 4.4% 10,478,917 9,531,433 9.9%
=========================== ===========================
Gas Deliveries (mmcf) (PECO only) 11,347 10,525 7.8%
- --------------------------------- ===========================
Revenue (in millions)
- ---------------------
Bundled Revenue (a)
Residential $ 839,757 $ 816,048 2.9% $ 477,794 $ 304,202 57.1%
Small Commercial & Industrial 506,676 530,571 (4.5%) 251,238 236,580 6.2%
Large Commercial & Industrial 106,074 125,790 (15.7%) 295,834 282,161 4.8%
Public Authorities & Electric Railroads 103,641 119,135 (13.0%) 21,399 18,809 13.8%
--------------------------- ---------------------------
1,556,148 1,591,544 (2.2%) 1,046,265 841,752 24.3%
--------------------------- ---------------------------
Unbundled Revenue (b)
Alternative Energy Suppliers
- ----------------------------
Residential (c) n/a 32,454 81,218 (60.0%)
Small Commercial & Industrial 51,134 10,195 n.m. 8,551 5,326 60.6%
Large Commercial & Industrial 60,070 11,883 n.m. 6,472 6,632 (2.4%)
Public Authorities & Electric Railroads 10,401 1,116 n.m. 5 105 (95.2%)
--------------------------- ---------------------------
121,605 23,194 n.m. 47,482 93,281 (49.1%)
--------------------------- ---------------------------
PPO (ComEd Only)
- ----------------
Small Commercial & Industrial 56,959 76,832 (25.9%)
Large Commercial & Industrial 74,152 120,122 (38.3%)
Public Authorities & Electric Railroads 18,636 13,325 39.9%
---------------------------
149,747 210,279 (28.8%)
---------------------------
Total Unbundled Revenue 271,352 233,473 16.2% 47,482 93,281 (49.1%)
--------------------------- ---------------------------
Total Retail Electric Revenue 1,827,500 1,825,017 0.1% 1,093,747 935,033 17.0%
Wholesale and Miscellaneous Revenue 110,174 93,068 18.4% 63,305 39,961 58.4%
Gas Revenue n/a n/a 67,022 75,277 (11.0%)
--------------------------- ---------------------------
Total Revenues $ 1,937,674 $ 1,918,085 1.0% $ 1,224,074 $ 1,050,271 16.5%
=========================== ===========================
Heating and Cooling Degree Days 2002 2001 Normal 2002 2001 Normal
- ------------------------------- ---- ---- ------ ---- ---- ------
Cooling Degree Days 776 615 625 1,144 956 900
Heating Degree Days 58 133 120 4 50 44
<FN>
(a) Bundled service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy
and the delivery cost of the transmission and distribution of the energy. PECO's tariffed rates also include a CTC charge.
(b) Unbundled service reflects customers electing to receive electric generation service under the ComEd PPO option or an
alternative energy supplier. Revenue from customers choosing the ComEd PPO option includes an energy charge at market rates,
transmission and distribution charge and a CTC charge. Revenue from customers choosing an alternative energy supplier includes
a distribution charge and a CTC charge. Transmission charges received from alternative energy suppliers are included in
wholesale and miscellaneous revenue.
(c) On May 1, 2002, all ComEd residential customers became eligible to choose their supplier of electricity, however, as of
September 30, 2002, no alternative electric supplier has sought approval from the Illinois Commerce Commission (ICC) and no
electric utilities have chosen to enter the ComEd residential market for the supply of electricity.
n/a - not applicable
n.m. - not meaningful
</FN>
EXELON CORPORATION
Energy Delivery Sales Statistics
For the Nine Months Ended September 30,
ComEd PECO
------------------------------------------ -----------------------------------------
Electric Deliveries (MWh) 2002 2001 % Change 2002 2001 % Change
- ------------------------- ---- ---- -------- ---- ---- --------
Bundled Deliveries (a)
Residential 21,392,199 19,936,277 7.3% 7,592,023 6,306,982 20.4%
Small Commercial & Industrial 17,078,126 17,985,876 (5.0%) 5,704,274 4,302,665 32.6%
Large Commercial & Industrial 6,151,385 8,143,730 (24.5%) 11,284,853 9,537,883 18.3%
Public Authorities & Electric Railroads 5,096,960 6,006,752 (15.1%) 617,469 567,779 8.8%
--------------------------- ---------------------------
49,718,670 52,072,635 (4.5%) 25,198,619 20,715,309 21.6%
--------------------------- ---------------------------
Unbundled Deliveries (b)
Alternative Energy Suppliers
- ----------------------------
Residential (c) n/a 1,719,499 2,364,825 (27.3%)
Small Commercial & Industrial 3,822,001 2,005,229 90.6% 252,980 1,515,912 (83.3%)
Large Commercial & Industrial 5,199,858 3,962,179 31.2% 351,224 2,169,255 (83.8%)
Public Authorities & Electric Railroads 617,867 227,333 171.8% 123 7,232 (98.3%)
--------------------------- ---------------------------
9,639,726 6,194,741 55.6% 2,323,826 6,057,224 (61.6%)
--------------------------- ---------------------------
PPO (ComEd Only)
- ----------------
Small Commercial & Industrial 2,383,925 2,448,205 (2.6%)
Large Commercial & Industrial 3,951,983 4,323,782 (8.6%)
Public Authorities & Electric Railroads 861,088 733,965 17.3%
---------------------------
7,196,996 7,505,952 (4.1%)
---------------------------
Total Unbundled Deliveries 16,836,722 13,700,693 22.9% 2,323,826 6,057,224 (61.6%)
--------------------------- ---------------------------
Total Retail Deliveries 66,555,392 65,773,328 1.2% 27,522,445 26,772,533 2.8%
=========================== ===========================
Gas Deliveries (mmcf) (PECO only) 56,990 58,537 (2.6%)
- --------------------------------- ===========================
Revenue (in thousands)
- ----------------------
Bundled Revenue (a)
Residential $ 1,880,984 $ 1,851,857 1.6% $ 999,344 $ 806,871 23.9%
Small Commercial & Industrial 1,342,847 1,410,465 (4.8%) 664,103 500,051 32.8%
Large Commercial & Industrial 323,845 405,765 (20.2%) 828,301 688,856 20.2%
Public Authorities & Electric Railroads 296,941 335,171 (11.4%) 58,475 53,170 10.0%
--------------------------- ---------------------------
3,844,617 4,003,258 (4.0%) 2,550,223 2,048,948 24.5%
--------------------------- ---------------------------
Unbundled Revenue (b)
Alternative Energy Suppliers
- ----------------------------
Residential (c) n/a 128,614 184,039 (30.1%)
Small Commercial & Industrial 93,770 36,212 158.9% 13,348 73,483 (81.8%)
Large Commercial & Industrial 101,553 59,752 70.0% 9,744 61,223 (84.1%)
Public Authorities & Electric Railroads 17,596 3,076 472.0% 16 973 (98.4%)
--------------------------- ---------------------------
212,919 99,040 115.0% 151,722 319,718 (52.5%)
--------------------------- ---------------------------
PPO (ComEd Only)
- ----------------
Small Commercial & Industrial 155,023 167,292 (7.3%)
Large Commercial & Industrial 214,337 266,658 (19.6%)
Public Authorities & Electric Railroads 47,745 43,987 8.5%
---------------------------
417,105 477,937 (12.7%)
---------------------------
Total Unbundled Revenue 630,024 576,977 9.2% 151,722 319,718 (52.5%)
--------------------------- ---------------------------
Total Retail Electric Revenue 4,474,641 4,580,235 (2.3%) 2,701,945 2,368,666 14.1%
Wholesale Electric Revenue 259,425 314,318 (17.5%) 177,090 156,375 13.2%
Gas Revenue n/a n/a 359,943 482,372 (25.4%)
--------------------------- ---------------------------
Total Revenues $ 4,734,066 $ 4,894,553 (3.3%) $ 3,238,978 $ 3,007,413 7.7%
=========================== ===========================
Heating and Cooling Degree Days 2002 2001 Normal 2002 2001 Normal
- ------------------------------- ---- ---- ------ ---- ---- ------
Cooling Degree Days 1,077 848 852 1,560 1,366 1,206
Heating Degree Days 3,778 4,081 4,148 2,489 2,967 3,332
<FN>
(a) Bundled service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy
and the delivery cost of the transmission and distribution of the energy. PECO's tariffed rates also include a CTC charge.
(b) Unbundled service reflects customers electing to receive electric generation service under the ComEd PPO option or an
alternative energy supplier. Revenue from customers choosing the ComEd PPO option includes an energy charge at market rates,
transmission and distribution charge and a CTC charge. Revenue from customers choosing an alternative energy supplier includes
a distribution charge and a CTC charge. Transmission charges received from alternative energy suppliers are included in
wholesale and miscellaneous revenue.
(c) On May 1, 2002, all ComEd residential customers became eligible to choose their supplier of electricity, however, as of
September 30, 2002, no alternative electric supplier has sought approval from the Illinois Commerce Commission (ICC) and no
electric utilities have chosen to enter the ComEd residential market for the supply of electricity.
n/a - not applicable
</FN>
EXELON CORPORATION
Exelon Generation Power Marketing Statistics
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ---------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
GWh Sales
Energy Delivery 34,535 32,692 90,579 90,001
Exelon Energy 1,461 2,038 4,067 5,044
Market Sales 21,177 17,781 61,089 53,787
----------- ----------- ----------- -----------
Total Sales (1) 57,173 52,511 155,735 148,832
=========== =========== =========== ===========
Average Margin ($/MWh)
Average Realized Revenue
Energy Delivery $ 40.18 $ 40.01 $ 34.33 $ 33.37
Exelon Energy 49.71 46.67 46.75 42.28
Market Sales 35.50 42.55 31.55 39.95
Total Sales - without trading 38.69 41.13 33.56 36.05
Average Purchase Power and Fuel Cost - without trading $ 26.66 $ 28.70 $ 21.04 $ 21.72
Average Margin - without trading $ 12.04 $ 12.43 $ 12.52 $ 14.18
Around-the-clock Market Prices ($/MWh)
PJM $ 34.50 $ 40.50 $ 27.00 $ 34.50
MAIN 27.00 25.00 24.00 27.50
- -----------------------------------------------------------------------------
October 2002 Earnings Guidance
PJM - October through December 2002 $ 26.50
MAIN - October through December 2002 20.50
- -----------------------------------------------------------------------------
<FN>
(1) Total sales do not include trading volume of 26,455 GWhs and 1,832 GWhs for the three months ended September 30, 2002
and 2001, respectively, and 51,260 GWhs and 2,286 GWhs for the nine months ended September 30, 2002 and 2001,
respectively.
</FN>