Exhibit 99
[EXELON LOGO]
________________________________________________________________________________
News Release
From: Exelon Corporation FOR IMMEDIATE RELEASE
Corporate Communications ---------------------
P.O. Box 805379 July 29, 2003
Chicago, IL 60680-5379
Contact: Linda Marsicano, Media Relations
312.394.3099
Linda Byus, CFA, Investor Relations
312.394.7696
Exelon Announces Second Quarter Earnings;
Common Dividend Increased by 8.7%
Chicago (July 29, 2003) - Exelon Corporation (NYSE: EXC) today announced
operating earnings for the second quarter of 2003 of $402 million, or $1.23 per
share (diluted), compared with operating earnings of $369 million, or $1.14 per
share (diluted), for the same period in 2002. The 8% improvement in
year-over-year operating earnings was due primarily to increased market sales
and favorable mark-to-market adjustments at Generation, lower interest expense,
and lower depreciation and amortization expense, which more than offset
weather-related decreases in retail kWh deliveries and lower energy margins at
Energy Delivery.
Reported second quarter 2003 consolidated earnings prepared in accordance with
accounting principles generally accepted in the United States (GAAP) were $372
million, or $1.14 per share (diluted). Reported results for the second quarter
include a $30 million, or $0.09 per share, goodwill impairment charge (after
taxes) related to the agreement to sell Exelon Enterprises' InfraSource
business. Reported earnings in the second quarter of 2002 were $485 million, or
$1.50 per share (diluted), which included a $116 million, or $0.36 per share,
after-tax gain related to Exelon Enterprises' sale of its 49% interest in AT&T
Wireless PCS of Philadelphia.
Today, the Exelon Board of Directors approved Exelon Generation's orderly
transition out of the ownership of Exelon Boston Generating (EBG). For a period
of time, Exelon expects to continue to provide administrative and operational
services to EBG in its operation of the projects. Exelon informed the lenders
that it will not provide additional funding to the projects beyond its existing
contractual obligations.
"Today we announce three major events, two that are most pleasant and one that
was not pleasant, but all three are part of our commitment to delivering value
to our investors," said John W. Rowe, Exelon Chairman and CEO. "The enjoyable
announcements are that we produced quarterly operating earnings of $1.23 per
share and increased our dividend by
$0.16 per share annually. The unpleasant event is our decision to wind up our
investment in Exelon Boston Generating. Our increased operating earnings reflect
the strength of our core businesses and our constant efforts to improve these
businesses. The dividend increase reflects both that underlying strength and the
fact that recent changes in the federal income tax laws make dividends a more
efficient way to distribute value to our shareholders. Our Exelon Boston
Generating decision illustrates that when investments do not work out as
planned, we will not make it worse by throwing good money after bad."
Common Dividend Increase
The Exelon Board of Directors declared a dividend of $0.50 per share on Exelon's
common stock, payable September 10, 2003, to shareholders of record at 5:00 p.m.
EDT on August 15, 2003. The increase of $0.16 per share annually, approximately
8.7%, will result in an annual dividend rate of $2.00 per share or $0.50 per
share quarterly. Payment of future dividends is subject to approval and
declaration by the Board.
2003 Earnings Guidance
Exelon's full year operating earnings are expected to be toward the top of a
range of $4.80 to $5.00 per share. The earnings guidance is based on the
assumption of normal weather for the second half of 2003 and excludes the first
quarter $0.34 per share gain from the cumulative effect for the change in
accounting principle (SFAS 143), the net $0.05 per share charge related to the
March 3 ComEd settlement agreement and the $0.40 per share impairment of our
Sithe Energies investment. Our operating earnings guidance also excludes the
second quarter $0.09 per share loss related to the sale of our InfraSource
business. Operating earnings guidance excludes any potential impairment related
to Exelon Boston Generating. Third quarter operating earnings are expected to
represent about 30% of full year operating earnings.
SECOND QUARTER HIGHLIGHTS
o Nuclear Operations Exelon Generation's nuclear fleet, excluding
AmerGen, produced 29,619 GWhs for the second quarter of 2003, compared
with 28,776 GWhs (reflects reallocation) output for the second quarter
of 2002. The fleet, including AmerGen, achieved a capacity factor of
94.0% for the second quarter of 2003, compared with 92.1% for the
second quarter of 2002. Exelon Generation's nuclear group completed
one planned refueling outage during the second quarter of 2003
compared with two in the second quarter of 2002. Additionally, there
was one refueling outage in 2002 at a co-owned plant not operated by
Exelon. Operating expenses associated with the two fewer planned
refueling outages were approximately $30 million lower in the second
quarter of 2003 compared with the prior year.
o InfraSource Sale On June 18, Exelon Enterprises, parent company of
InfraSource, Inc., announced that it had entered into an agreement to
sell the electric construction and services, underground and telecom
businesses of InfraSource to GFI Energy Ventures LLC and Oaktree
Capital Management LLC. The sale is anticipated to result in net cash
proceeds of $211 million and a $30 million subordinated note maturing
with interest in 2011. The net book value of the assets being sold
approximated $280 million at the time of the agreement to sell. After
valuing the note, recognition of transaction costs and minority
interest, Exelon recorded a $30
2
million, or $0.09 per share, goodwill impairment charge (after taxes)
in the second quarter related to the agreement to sell InfraSource.
Closing of the transaction is subject to the satisfaction of a number
of conditions, including regulatory approvals from the state utility
commissions in Pennsylvania, Delaware, New Jersey, Virginia and
Washington, DC, and other conditions, the satisfaction of which cannot
be assured. If all closing conditions are satisfied, the transaction
is expected to close in the third or fourth quarter of 2003.o
o Sithe Energies, Inc. Investment On May 29, 2003, Exelon Fossil
Holdings, Inc., a wholly owned subsidiary of Exelon Generation, issued
an irrevocable call notice for the 35.2% interest in Sithe Energies,
Inc. (Sithe) owned by Apollo Energy, LLC and the 14.9% interest owned
by subsidiaries of Marubeni Corporation. The total call price will be
based on the terms of the existing Put and Call Agreement among the
parties, which we estimate will be approximately $650 million. The
transfer of ownership requires various regulatory approvals, including
FERC, the state regulatory commission in New Jersey, and expiration of
the Hart Scott Rodino waiting period.
o Exelon Boston Generating Exelon Boston Generating's Mystic 9
generating plant began commercial operation on June 10, 2003. Mystic 9
is an 807-MW gas-fired combined cycle plant with an estimated 7,000
[BTU/kWh] heat rate located in Everett, MA (greater Boston area). The
Mystic 8 plant began commercial operation in April 2003. Construction
of Fore River is substantially complete and the unit is currently
undergoing testing.
o Summer Readiness ComEd successfully completed its plans to improve the
performance of the transmission and distribution system to meet the
peak summertime demand. In 2003, ComEd has completed 278 projects to
improve the electric system across its northern Illinois service
territory. As a result of this and other ongoing initiatives, both
ComEd and PECO have reached all-time high levels of customer
satisfaction.
o March 3 Settlement Agreement The Illinois Commerce Commission denied
petitions for rehearing on the ComEd March 3 Agreement, allowing the
agreement to become effective in May. Customers representing an
additional 4,500 GWhs annually, or 8% of ComEd's commercial and
industrial load, elected to obtain energy from alternate suppliers
during the election period that ended July 14. About one-half of these
customers had previously received service under ComEd's market-based
purchased power option.
o ComEd Refinancing On April 7, 2003, ComEd closed on the sale of $395
million of first mortgage bonds maturing in 2015 with a coupon of
4.70%. The purpose of the issue was to refund debt with an average
interest rate of about 8.2%. On May 8, ComEd issued $40 million in
tax-exempt, pollution control variable rate bonds maturing on May 15,
2017. The bonds replace securities that had a 5.875% rate.
Year-to-date, ComEd has completed $1.3 billion of securities offerings
as part of its ongoing refinancing program, which will reduce interest
and dividend requirements by $35 million on an annualized basis.
o PECO Energy Refinancing On April 28, 2003, PECO Energy closed on the
sale of $450 million of first mortgage bonds. The securities carry a
3.5% coupon and will mature in 2008. Proceeds were used to fund
maturing debt with an average interest
3
rate of about 6.5%. On June 24, 2003, PECO closed on the sale of $100
million of 30-year trust preferred securities. The securities carry a
coupon of 5.75% and will mature in June 2033. The yield on the
offering is 5.793%. The purpose of the issue was to refund existing
PECO 8% trust preferred securities and $7.48 preferred stock.
Year-to-date, PECO Energy has completed $550 million of securities
offerings as part of its ongoing refinancing program, which will
result in annualized savings of $15 million.
BUSINESS UNIT RESULTS
Exelon Corporation's consolidated net income for the second quarter of 2003 was
$372 million compared with net income of $485 million in the second quarter of
2002. Operating earnings were $402 million in the second quarter of 2003
compared with operating earnings of $369 million in the second quarter of 2002.
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 second quarter of 2003 was
$291 million compared with net income of $322 million in the second quarter of
2002. The decrease in net income was primarily due to decreased sales to
residential and small commercial and industrial customers, including
weather-related electric sales, higher average costs for purchased power and
fuel, and the negative impacts of customer choice primarily in the ComEd service
territory. Partially offsetting these items were lower interest costs, lower
depreciation rates at ComEd and lower taxes other than income related to refunds
and tax settlements at both PECO and ComEd.
Cooling degree-days for the second quarter of 2003 in the ComEd service
territory were down 63% relative to the same period in 2002 and 49% below
normal. In the PECO service territory, cooling degree-days were down 40%
compared with 2002 and 21% below normal. Retail GWh deliveries decreased 5.4%
for ComEd, with an 11.9% decrease in deliveries to the residential customer
class reflecting fewer cooling degree-days. PECO's retail GWh deliveries
decreased 3.1% overall, including a 7.9% decrease in total deliveries to
residential customers. Energy Delivery's second quarter 2003 revenues were
$2,322 million, down 6% from $2,476 million in 2002. Energy Delivery's second
quarter 2003 fuel and purchased power expense was $986 million, down 2% from
$1,011 million in 2002. The impact of the cooler weather decreased Energy
Delivery's second quarter 2003 earnings by approximately $0.12 per share
relative to 2002 and $0.06 per share 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. Second quarter 2003 reported net income of $142
million exceeded 2002 net income of $84 million by $58 million. Net income for
the latest quarter includes a $32 million (before tax) unrealized mark-to-market
gain from non-trading activities driven by higher forward fuel prices relative
to our position as compared with the end of the first quarter 2003.
Generation's second quarter 2003 revenue was $1,886 million, compared with
second quarter 2002 revenue of $1,559 million. The revenue increase reflects
higher energy market sales volumes, higher power prices and the 2002
acquisitions of the New England plants and two Texas plants. Energy sales
volumes, exclusive of trading volumes, totaled 54,318 GWhs in the second quarter
of 2003 compared with 50,238 GWhs in second quarter 2002.
4
Operating and maintenance expenses were up for the quarter as $19 million of
additional expenses resulting from the acquisitions of the New England and Texas
plants, higher pension and postretirement benefit expense and the effects of
certain new accounting treatments under FAS 143, were partially offset by lower
expenses from fewer planned nuclear outages and lower bad debt and other
operating expenses. The net impact of FAS 143 was neutral in the second quarter
of 2003 versus a net expense impact in the second quarter 2002.
Generation's revenue net fuel increased by $80 million in second quarter 2003
over second quarter 2002 excluding the mark-to-market impact in both years. The
improvement includes $31 million of incremental margin contribution from the New
England and Texas plants acquired during and after the second quarter of 2002.
The increase was driven by higher wholesale power prices in all regions in which
Power Team operates, a higher average power price to ComEd and higher nuclear
generation, offset partially by higher supply costs, including fuel and
purchased power. The average realized price excluding trading activity in the
second quarter of 2003 was $33.83 per MWh compared with $31.50 per MWh in 2002.
Higher market prices, driven by higher market gas and oil prices, were partially
offset by our hedged position during the quarter. Higher gas prices resulted in
higher supply costs, including purchased power and fuel costs. Trading margins
were neutral for the quarter compared with a $16 million loss in the second
quarter of 2002.
Depreciation expense was $19 million lower in the second quarter 2003 versus
2002 due to the impact of FAS 143, partially offset by additional depreciation
for the acquired New England and Texas plants and new capital additions.
Exelon Enterprises consists of Exelon's competitive retail energy sales, energy
and infrastructure services, venture capital investments and related businesses.
Enterprises' second quarter 2003 net loss was $61 million, which includes the
$30 million goodwill impairment (after taxes) related to the agreement to sell
certain InfraSource business segments and $23 million loss (after taxes) related
to the impairment of certain Enterprises' venture capital investments.
Enterprises had second quarter 2002 net income of $83 million, which included
the $116 million after-tax gain on the sale of the AT&T Wireless investment.
Absent that gain, Enterprises $33 million loss included $22 million of
investment impairments (after taxes) and $2 million of other net asset
impairments (after taxes) in the second quarter of 2002.
Conference call information: Exelon has scheduled a conference call for 11 AM ET
(10 AM CT) on July 30, 2003. The call-in number in the U.S. is 877/407-4094 and
the international call-in number is 201-689-8037. 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 until August 15. The U.S. call-in number for
replays is 877/660-6853 and the international call-in number is 201/612-7415.
The account number is 4094 and the conference call number is 70578.
Operating Earnings
Operating earnings (pro forma), which generally exclude non-operational items as
well as one-time charges or credits that are not normally associated with our
ongoing operations,
5
are provided as a complement to results provided in
accordance with GAAP. Management uses such pro forma measures internally to
evaluate the company's performance and manage its operations. A reconciliation
of GAAP to operating earnings is included in the attachments to this release.
================================================================================
Except for the historical information contained herein, certain of the matters
discussed in this news release are 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 a registrant
include those factors discussed herein as well as the items discussed in Exelon
Corporation's 2002 Annual Report on Form10-K in (a) ITEM 7. Management's
Discussion and Analysis of Financial Condition and Results of
Operations--Business Outlook and the Challenges in Managing Our Business for
each of Exelon, ComEd, PECO and Generation and (b) ITEM 8. Financial Statements
and Supplementary Data: Exelon--Note 19, ComEd--Note 16, PECO--Note 18 and
Generation--Note 13, and (c) other factors discussed in filings with the
Securities and Exchange Commission (SEC) by Exelon Corporation, Commonwealth
Edison Company, PECO Energy Company and Exelon Generation Company, LLC
(Registrants). Readers are cautioned not to place undue reliance on these
forward-looking statements, which apply only as of the date of this press
release. None of the Registrants undertakes any obligation to publicly release
any revision to its forward-looking statements to reflect events or
circumstances after the date of this press release.
###
Exelon Corporation is one of the nation's largest electric utilities with
approximately 5 million customers and $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 450,000
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 June 30, 2003 Three Months Ended June 30, 2002
------------------------------------------ --------------------------------------
Pro Forma Pro Forma
GAAP (a) Adjustments Pro Forma GAAP (a) Adjustments Pro Forma
--------- ----------- ---------- ---------- ------------ ----------
Operating revenues $ 3,721 $ - $ 3,721 $ 3,519 $ - $ 3,519
Operating expenses
Purchased power 856 - 856 759 - 759
Fuel 531 - 531 364 - 364
Operating and maintenance 1,100 (48) (b) 1,052 1,070 - 1,070
Depreciation and amortization 275 - 275 332 - 332
Taxes other than income 159 - 159 181 - 181
--------- ----------- ---------- ---------- ------------ ----------
Total operating expenses 2,921 (48) 2,873 2,706 - 2,706
--------- ----------- ---------- ---------- ------------ ----------
Operating income 800 48 848 813 - 813
Other income and deductions
Interest expense (220) - (220) (241) - (241)
Distributions on preferred securities
of subsidiaries (10) - (10) (11) - (11)
Equity in earnings of unconsolidated
affiliates 15 - 15 9 - 9
Other, net 9 - 9 194 (198) (c) (4)
--------- ----------- ---------- ---------- ------------ ----------
Total other income and deductions (206) - (206) (49) (198) (247)
--------- ----------- ---------- ---------- ------------ ----------
Income before income taxes 594 48 642 764 (198) 566
Income taxes 222 18 240 279 (82) 197
--------- ----------- ---------- ---------- ------------ ----------
Net income $ 372 $ 30 $ 402 $ 485 $ (116) $ 369
========= =========== ========== ========== ============ ==========
Earnings per average common share
Basic $ 1.14 $ 0.09 $ 1.23 $ 1.50 $ (0.36) $ 1.14
Diluted $ 1.14 $ 0.09 $ 1.23 $ 1.50 $ (0.36) $ 1.14
Average common shares outstanding
Basic 325 322
Diluted 327 324
Effect of pro forma adjustments on earnings per
average diluted common share recorded in
accordance with GAAP:
Impairment of Exelon Enterprises' InfraSource goodwill $ (0.09) $ -
Gain on sale of investment in AT&T Wireless - 0.36
--------- ---------
Total pro forma adjustments $ (0.09) $ 0.36
========= ========
<FN>
(a) Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b) Pro forma adjustment for the impairment of Exelon Enterprises' InfraSource goodwill.
(c) Pro forma adjustment for the sale of investment in AT&T Wireless.
</FN>
1
EXELON CORPORATION
Consolidated Statements of Income
(unaudited)
(in millions, except per share data)
Six Months Ended June 30, 2003 Six Months Ended June 30, 2002
------------------------------ ------------------------------
Pro Forma Pro Forma
GAAP (a) Adjustments Pro Forma GAAP (a) Adjustments Pro Forma
-------- ----------- --------- ------- ----------- ---------
Operating revenues $ 7,795 $ - $ 7,795 $ 6,876 $ - $ 6,876
Operating expenses
Purchased power 1,763 - 1,763 1,427 - 1,427
Fuel 1,356 - 1,356 860 - 860
Operating and maintenance 2,212 (89)(b),(d) 2,123 2,137 (10)(f) 2,127
Depreciation and amortization 549 - 549 667 - 667
Taxes other than income 358 - 358 367 - 367
------- ------ ------- ------- ------ -------
Total operating expenses 6,238 (89) 6,149 5,458 (10) 5,448
------- ------ ------- ------- ------ -------
Operating income 1,557 89 1,646 1,418 10 1,428
Other income and deductions
Interest expense (443) - (443) (490) - (490)
Distributions on preferred securities
of subsidiaries (22) - (22) (23) - (23)
Equity in earnings of unconsolidated
affiliates 33 - 33 22 - 22
Other, net (134) 187 (b),(c) 53 222 (198)(g) 24
------- ------ ------- ------- ------ -------
Total other income and deductions (566) 187 (379) (269) (198) (467)
------- ------ ------- ------- ------ -------
Income before income taxes and cumulative
effect of changes in accounting principles 991 276 1,267 1,149 (188) 961
Income taxes 370 99 469 427 (84) 343
------- ------ ------- ------- ------ -------
Income before cumulative effect of changes
in accounting principles 621 177 798 722 (104) 618
Cumulative effect of changes in accounting
principles, net of income taxes 112 (112)(e) - (230) 230 (h) -
------- ------ ------- ------- ------ -------
Net income $ 733 $ 65 $ 798 $ 492 $ 126 $ 618
======= ====== ======= ======= ====== =======
Earnings per average common share
Basic:
Income before cumulative effect of
changes in accounting principles $ 1.92 $ 0.54 $ 2.46 $ 2.24 $(0.32) $ 1.92
Cumulative effect of changes in
in accounting principles 0.34 (0.34) - (0.71) 0.71 -
------- ------ ------- ------- ------ -------
Net income $ 2.26 $ 0.20 $ 2.46 $ 1.53 $ 0.39 $ 1.92
======= ====== ======= ======= ====== =======
Diluted:
Income before cumulative effect of
changes in accounting principles $ 1.90 $ 0.54 $ 2.44 $ 2.23 $(0.32) $ 1.91
Cumulative effect of changes in
in accounting principles 0.34 (0.34) - (0.71) 0.71 -
------- ------ ------- ------- ------ -------
Net income $ 2.24 $ 0.20 $ 2.44 $ 1.52 $ 0.39 $ 1.91
======= ====== ======= ======= ====== =======
Average common shares outstanding
Basic 324 322
Diluted 327 324
Effect of pro forma adjustments on earnings per
average diluted common share recorded in
accordance with GAAP:
March 3 ComEd Settlement Agreement $ (0.05) $ -
Impairment of Exelon's investment in
Sithe Energies, Inc. (0.40) -
Impairment of Exelon Enterprises'
InfraSource goodwill (0.09) -
Cumulative effect of adopting SFAS No. 143 0.34 -
Employee severance costs - (0.04)
Gain on sale of investment in AT&T Wireless - 0.36
Cumulative effect of adopting SFAS No. 141
and SFAS No. 142 - (0.71)
------- -------
Total pro forma adjustments $ (0.20) $ (0.39)
======= =======
<FN>
(a) Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b) Pro forma adjustment for the March 3 ComEd Settlement Agreement.
(c) Pro forma adjustment for the impairment of Exelon's investment in Sithe Energies, Inc.
(d) Pro forma adjustment for the impairment of Exelon Enterprises' InfraSource goodwill.
(e) Pro forma adjustment for the cumulative effect of adopting SFAS No. 143.
(f) Pro forma adjustment for severance costs of $10 million pre-tax primarily related to executive severance. Not all of the
severance expense was tax deductible.
(g) Pro forma adjustment for the sale of investment in AT&T Wireless.
(h) Pro forma adjustment for the cumulative effect of adopting SFAS No. 141 and SFAS No. 142 reflecting the impairment of Exelon
Enterprises' goodwill and the benefit of AmerGen's negative goodwill.
</FN>
2
EXELON CORPORATION
Earnings Per Diluted Share Reconciliation
Three Months Ended June 30, 2003 vs. Three Months Ended June 30, 2002
2002 Earnings per Diluted Share $ 1.50
2002 Pro Forma Adjustments:
Gain on the Sale of Investment in AT&T Wireless (1) (0.36)
------
2002 Pro Forma Earnings 1.14
Year Over Year Effects on Earnings:
Lower Energy Margins - Weather Impact (2) (0.12)
Higher Energy Margins - Other (3) 0.12
Lower Interest Expense (4) 0.04
Lower Taxes Other Than Income (5) 0.04
Increase in Effective Tax Rate (6) (0.03)
Higher Investment Income (7) 0.02
Lower Depreciation and Amortization Expense (8) 0.02
------
2003 Pro Forma Earnings 1.23
2003 Pro Forma Adjustments:
Impairment of InfraSource Goodwill (9) (0.09)
------
2003 Earnings per Diluted Share $ 1.14
======
(1) Gain on Exelon Enterprises' sale of its 49% interest in AT&T Wireless PCS
of Philadelphia.
(2) Primarily related to cooler spring weather in 2003 versus 2002. Cooling
degree-days in the ComEd and PECO service territories were 63% and 40%
lower, respectively, in the second quarter of 2003 as compared to the same
period in the prior year.
(3) Reflects increased market sales and favorable mark-to-market activity at
Generation partially offset by decreased revenue primarily at ComEd due to
customer choice.
(4) Reflects refinancing of existing debt at lower interest rates, partially
offset by debt incurred related to acquisitions during 2002.
(5) Taxes Other Than Income was lower due to a favorable agreement reached by
PECO in 2003 related to sale and use tax.
(6) The effective tax rate increased from 36.5% in the second quarter of 2002
to 37.4% in the second quarter of 2003.
(7) Primarily reflects write-downs of communication and energy-related
investments at Enterprises in 2002 and higher investment income related to
nuclear decommissioning trust funds in 2003, partially offset by an
impairment of communication and energy-related investments of Enterprises
in 2003.
(8) Depreciation and amortization expense, excluding SFAS No. 143, decreased
primarily due to lower depreciation rates and lower recoverable transition
cost amortization at ComEd, partially offset by increased depreciation
related to higher depreciable plant balances, reflecting Generation's plant
acquisitions in 2002, and higher CTC amortization at PECO.
(9) Reflects an impairment of goodwill related to InfraSource, Inc. The net
assets of certain businesses of InfraSource, Inc. were classified as held
for sale during the second quarter of 2003.
3
EXELON CORPORATION
Earnings Per Diluted Share Reconciliation
Six Months Ended June 30, 2003 vs. Six Months Ended June 30, 2002
2002 Earnings per Diluted Share $ 1.52
2002 Pro Forma Adjustments:
Cumulative Effect of Adopting SFAS No. 142 0.71
Gain on the Sale of Investment in AT&T Wireless (1) (0.36)
Severance (2) 0.04
------
2002 Pro Forma Earnings 1.91
Year Over Year Effects on Earnings:
Higher Energy Margins - Rate Changes (3) 0.14
Higher Energy Margins - Weather Impact (4) 0.02
Higher Energy Margins - Other (5) 0.18
Lower Interest Expense (6) 0.09
Higher Investment Income (7) 0.07
Lower Depreciation and Amortization Expense (8) 0.05
Other (0.02)
------
2003 Pro Forma Earnings 2.44
2003 Pro Forma Adjustments:
Impairment of Investment in Sithe Energies, Inc. (9) (0.40)
Cumulative Effect of Adopting SFAS No. 143 0.34
Impairment of InfraSource Goodwill (10) (0.09)
March 3 ComEd Settlement Agreement (11) (0.05)
------
2003 Earnings per Diluted Share $ 2.24
======
(1) Gain on Exelon Enterprises' sale of its 49% interest in AT&T Wireless PCS
of Philadelphia.
(2) Executive severance partially offset by favorable adjustments to previous
severance estimates. A portion of the executive severance was not tax
deductible. As a result, the after-tax impact on earnings was $0.04 per
share.
(3) Reflects increased CTC collections by ComEd due to an increase in customer
shopping and changes in the wholesale market price of electricity, net of
increased mitigation factors. The decrease in wholesale prices also
resulted in a decrease in revenue from ComEd's PPO customers.
(4) Primarily related to colder winter weather in 2003 as compared to 2002,
partially offset by cooler spring weather in 2003 as compared to 2002.
Heating degree-days in the ComEd and PECO service territories were 13% and
34% higher, respectively, during the first six months of 2003 as compared
to the same period in 2002. Cooling degree-days in the ComEd and PECO
service territories were 63% and 40% lower, respectively, during the first
six months of 2003 as compared to the same period in 2002.
(5) Reflects increased market sales at Generation partially offset by decreased
revenue primarily at ComEd due to customer choice.
(6) Reflects refinancing of existing debt at lower interest rates, partially
offset by debt incurred related to acquisitions during 2002.
(7) Primarily reflects write-downs of communication and energy-related
investments at Enterprises in 2002 and higher investment income related to
nuclear decommissioning trust funds in 2003, partially offset by an
impairment of communication and energy-related investments of Enterprises
in 2003.
(8) Depreciation and amortization expense, excluding SFAS No. 143, was lower
primarily due to lower depreciation rates and lower recoverable transition
cost amortization at ComEd, partially offset by increased depreciation
related to higher depreciable plant balances, reflecting Generation's plant
acquisitions in 2002, and higher CTC amortization at PECO.
(9) Impairment of the investment held by Generation in Sithe Energies, Inc.
recorded in the first quarter of 2003.
(10) Reflects an impairment of goodwill related to InfraSource, Inc. The net
assets of certain businesses of InfraSource, Inc. were classified as held
for sale during the second quarter of 2003.
(11) Agreement reached by ComEd and various Illinois suppliers, customers, and
governmental parties regarding several matters affecting ComEd's rates for
electric service during the first quarter of 2003.
4
EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)
Three Months Ended June 30, 2003
--------------------------------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
-------- ---------- ----------- --------- ------------
Operating revenues $ 2,322 $ 1,886 $ 443 $ (930) $ 3,721
Operating expenses
Purchased power 919 800 49 (912) 856
Fuel 67 348 117 (1) 531
Operating and maintenance 342 451 322 (15) 1,100
Depreciation and amortization 213 46 10 6 275
Taxes other than income 115 40 2 2 159
------- ------- ----- ------ -------
Total operating expenses 1,656 1,685 500 (920) 2,921
------- ------- ----- ------ -------
Operating income (loss) 666 201 (57) (10) 800
Other income and deductions
Interest expense (189) (20) (3) (8) (220)
Distributions on preferred securities
of subsidiaries (10) - - - (10)
Equity in earnings (losses) of
unconsolidated affiliates - 18 (1) (2) 15
Other, net 14 34 (34) (5) 9
------- ------- ----- ------ -------
Total other income and deductions (185) 32 (38) (15) (206)
------- ------- ----- ------ -------
Income (loss) before income taxes 481 233 (95) (25) 594
Income taxes 190 91 (34) (25) 222
------- ------- ----- ------ -------
Net income (loss) $ 291 $ 142 $ (61) $ - $ 372
======= ======= ===== ====== =======
Three Months Ended June 30, 2002
--------------------------------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
-------- ---------- ----------- --------- ------------
Operating revenues $ 2,476 $ 1,559 $ 476 $ (992) $ 3,519
Operating expenses
Purchased power 958 705 56 (960) 759
Fuel 53 224 82 5 364
Operating and maintenance 351 411 334 (26) 1,070
Depreciation and amortization 242 65 17 8 332
Taxes other than income 136 41 2 2 181
------- ------- ----- ------ -------
Total operating expenses 1,740 1,446 491 (971) 2,706
------- ------- ----- ------ -------
Operating income (loss) 736 113 (15) (21) 813
Other income and deductions
Interest expense (218) (11) (3) (9) (241)
Distributions on preferred securities
of subsidiaries (11) - - - (11)
Equity in earnings (losses) of
unconsolidated affiliates - 9 2 (2) 9
Other, net 15 24 158 (3) 194
------- ------- ----- ------ -------
Total other income and deductions (214) 22 157 (14) (49)
------- ------- ----- ------ -------
Income (loss) before income taxes 522 135 142 (35) 764
Income taxes 200 51 59 (31) 279
------- ------- ----- ------ -------
Net income (loss) $ 322 $ 84 $ 83 $ (4) $ 485
======= ======= ===== ====== =======
5
EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)
Six Months Ended June 30, 2003
--------------------------------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
-------- ---------- ----------- --------- ------------
Operating revenues $ 4,964 $ 3,765 $ 1,022 $ (1,956) $ 7,795
Operating expenses
Purchased power 1,918 1,642 113 (1,910) 1,763
Fuel 257 706 392 1 1,356
Operating and maintenance 744 943 575 (50) 2,212
Depreciation and amortization 427 91 20 11 549
Taxes other than income 258 88 6 6 358
------- ------- ------- -------- -------
Total operating expenses 3,604 3,470 1,106 (1,942) 6,238
------- ------- ------- -------- -------
Operating income (loss) 1,360 295 (84) (14) 1,557
Other income and deductions
Interest expense (383) (38) (5) (17) (443)
Distributions on preferred securities
of subsidiaries (22) - - - (22)
Equity in earnings (losses) of
unconsolidated affiliates - 37 1 (5) 33
Other, net 43 (134) (37) (6) (134)
------- ------- ------- -------- -------
Total other income and deductions (362) (135) (41) (28) (566)
------- ------- ------- -------- -------
Income (loss) before income taxes and
cumulative effect of change in
accounting principle 998 160 (125) (42) 991
Income taxes 382 71 (47) (36) 370
------- ------- ------- -------- -------
Income (loss) before cumulative effect of
change in accounting principle 616 89 (78) (6) 621
Cumulative effect of change in accounting
principle, net of income taxes 5 108 (1) - 112
------- ------- ------- -------- -------
Net income (loss) $ 621 $ 197 $ (79) $ (6) $ 733
======= ======= ======= ======== =======
Six Months Ended June 30, 2002
--------------------------------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
-------- ---------- ----------- --------- ------------
Operating revenues $ 4,811 $ 3,020 $ 966 $ (1,921) $ 6,876
Operating expenses
Purchased power 1,846 1,323 108 (1,850) 1,427
Fuel 188 433 234 5 860
Operating and maintenance 724 844 634 (65) 2,137
Depreciation and amortization 489 128 35 15 667
Taxes other than income 268 90 5 4 367
------- ------- ------- -------- -------
Total operating expenses 3,515 2,818 1,016 (1,891) 5,458
------- ------- ------- -------- -------
Operating income (loss) 1,296 202 (50) (30) 1,418
Other income and deductions
Interest expense (439) (28) (8) (15) (490)
Distributions on preferred securities
of subsidiaries (23) - - - (23)
Equity in earnings (losses) of
unconsolidated affiliates - 32 (5) (5) 22
Other, net 30 40 158 (6) 222
------- ------- ------- -------- -------
Total other income and deductions (432) 44 145 (26) (269)
------- ------- ------- -------- -------
Income (loss) before income taxes and
cumulative effect of change in
accounting principle 864 246 95 (56) 1,149
Income taxes 326 96 40 (35) 427
------- ------- ------- -------- -------
Income (loss) before cumulative effect of
change in accounting principle 538 150 55 (21) 722
Cumulative effect of change in accounting
principle, net of income taxes - 13 (243) - (230)
------- ------- ------- -------- -------
Net income (loss) $ 538 $ 163 $ (188) $ (21) $ 492
======= ======= ======= ======== =======
6
EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)
Energy Delivery
------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
----------------------------------- ------------------------------------
2003 2002 Variance 2003 2002 Variance
--------- ---------- ------------ --------- ---------- ------------
Operating revenues $ 2,322 $ 2,476 $ (154) $ 4,964 $ 4,811 $ 153
Operating expenses
Purchased power 919 958 (39) 1,918 1,846 72
Fuel 67 53 14 257 188 69
Operating and maintenance 342 351 (9) 744 724 20
Depreciation and amortization 213 242 (29) 427 489 (62)
Taxes other than income 115 136 (21) 258 268 (10)
------- ------- ------ ------- ------- -----
Total operating expenses 1,656 1,740 (84) 3,604 3,515 89
------- ------- ------ ------- ------- -----
Operating income 666 736 (70) 1,360 1,296 64
Other income and deductions
Interest expense (189) (218) 29 (383) (439) 56
Distributions on preferred securities
of subsidiaries (10) (11) 1 (22) (23) 1
Other, net 14 15 (1) 43 30 13
------- ------- ------ ------- ------- -----
Total other income and deductions (185) (214) 29 (362) (432) 70
------- ------- ------ ------- ------- -----
Income before income taxes and cumulative effect
of change in accounting principle 481 522 (41) 998 864 134
Income taxes 190 200 (10) 382 326 56
------- ------- ------ ------- ------- -----
Income before cumulative effect of change in
accounting principle 291 322 (31) 616 538 78
Cumulative effect of change in accounting
principle, net of income taxes - - - 5 - 5
------- ------- ------ ------- ------- -----
Net income $ 291 $ 322 $ (31) $ 621 $ 538 $ 83
======= ======= ====== ======= ======= =====
Generation
------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
----------------------------------- ------------------------------------
2003 2002 Variance 2003 2002 Variance
--------- ---------- ------------ --------- ---------- ------------
Operating revenues $ 1,886 $ 1,559 $ 327 $ 3,765 $ 3,020 $ 745
Operating expenses
Purchased power 800 705 95 1,642 1,323 319
Fuel 348 224 124 706 433 273
Operating and maintenance 451 411 40 943 844 99
Depreciation and amortization 46 65 (19) 91 128 (37)
Taxes other than income 40 41 (1) 88 90 (2)
------- ------- ------ ------- ------- -----
Total operating expenses 1,685 1,446 239 3,470 2,818 652
------- ------- ------ ------- ------- -----
Operating income 201 113 88 295 202 93
Other income and deductions
Interest expense (20) (11) (9) (38) (28) (10)
Equity in earnings of unconsolidated affiliates 18 9 9 37 32 5
Other, net 34 24 10 (134) 40 (174)
------- ------- ------ ------- ------- -----
Total other income and deductions 32 22 10 (135) 44 (179)
------- ------- ------ ------- ------- -----
Income before income taxes and cumulative effect
of changes in accounting principles 233 135 98 160 246 (86)
Income taxes 91 51 40 71 96 (25)
------- ------- ------ ------- ------- -----
Income before cumulative effect of changes in
accounting principles 142 84 58 89 150 (61)
Cumulative effect of changes in accounting
principles, net of income taxes - - - 108 13 95
------- ------- ------ ------- ------- -----
Net income $ 142 $ 84 $ 58 $ 197 $ 163 $ 34
======= ======= ====== ======= ======= =====
7
EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)
Enterprises
----------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
--------------------------------- --------------------------------------
2003 2002 Variance 2003 2002 Variance
------- -------- ------------ -------- -------- ----------
Operating revenues $ 443 $ 476 $ (33) $ 1,022 $ 966 $ 56
Operating expenses
Purchased power 49 56 (7) 113 108 5
Fuel 117 82 35 392 234 158
Operating and maintenance 322 334 (12) 575 634 (59)
Depreciation and amortization 10 17 (7) 20 35 (15)
Taxes other than income 2 2 - 6 5 1
----- ---- ------ ----- ------ -----
Total operating expenses 500 491 9 1,106 1,016 90
----- ---- ------ ----- ------ -----
Operating income (loss) (57) (15) (42) (84) (50) (34)
Other income and deductions
Interest expense (3) (3) - (5) (8) 3
Equity in earnings (losses) of
unconsolidated affiliates (1) 2 (3) 1 (5) 6
Other, net (34) 158 (192) (37) 158 (195)
----- ---- ------ ----- ------ -----
Total other income and deductions (38) 157 (195) (41) 145 (186)
----- ---- ------ ----- ------ -----
Income (loss) before income taxes and cumulative
effect of changes in accounting principles (95) 142 (237) (125) 95 (220)
Income taxes (34) 59 (93) (47) 40 (87)
----- ---- ------ ----- ------ -----
Income (loss) before cumulative effect of
changes in accounting principles (61) 83 (144) (78) 55 (133)
Cumulative effect of changes in accounting
principles, net of income taxes - - - (1) (243) 242
----- ---- ------ ----- ------ -----
Net income (loss) $ (61) $ 83 $ (144) $ (79) $ (188) $ 109
===== ==== ====== ===== ====== =====
Corporate and Eliminations
----------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
--------------------------------- --------------------------------------
2003 2002 Variance 2003 2002 Variance
------- -------- ------------ -------- -------- ----------
Operating revenues $(930) $ (992) $ 62 $ (1,956) $ (1,921) $ (35)
Operating expenses
Purchased power (912) (960) 48 (1,910) (1,850) (60)
Fuel (1) 5 (6) 1 5 (4)
Operating and maintenance (15) (26) 11 (50) (65) 15
Depreciation and amortization 6 8 (2) 11 15 (4)
Taxes other than income 2 2 - 6 4 2
----- ---- ------ ----- ------ -----
Total operating expenses (920) (971) 51 (1,942) (1,891) (51)
----- ---- ------ ----- ------ -----
Operating income (loss) (10) (21) 11 (14) (30) 16
Other income and deductions
Interest expense (8) (9) 1 (17) (15) (2)
Equity in earnings (losses) of
unconsolidated affiliates (2) (2) - (5) (5) -
Other, net (5) (3) (2) (6) (6) -
----- ---- ------ ----- ------ -----
Total other income and deductions (15) (14) (1) (28) (26) (2)
----- ---- ------ ----- ------ -----
Income (loss) before income taxes (25) (35) 10 (42) (56) 14
Income taxes (25) (31) 6 (36) (35) (1)
----- ---- ------ ----- ------ -----
Net income (loss) $ - $ (4) $ 4 $ (6) $ (21) $ 15
===== ==== ====== ===== ====== =====
8
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)
June 30, December 31,
2003 2002
--------- --------------
Current assets
Cash and cash equivalents $ 464 $ 469
Restricted cash 425 396
Accounts receivable, net
Customers 1,903 2,076
Other 246 284
Receivable from unconsolidated affiliate -- 39
Inventories - fossil fuel 172 175
Inventories - materials and supplies 309 306
Other 579 380
Assets held for sale 352 --
-------- --------
Total current assets 4,450 4,125
-------- --------
Property, plant and equipment, net 20,323 17,126
Deferred debits and other assets
Regulatory assets 5,414 5,993
Nuclear decommissioning trust funds 3,316 3,053
Investments 1,189 1,403
Goodwill 4,735 4,992
Other 861 793
-------- --------
Total deferred debits and other assets 15,515 16,234
-------- --------
Total assets $ 40,288 $ 37,485
======== ========
Liabilities and shareholders' equity
Current liabilities
Notes payable $ 581 $ 681
Notes payable to unconsolidated affiliate 326 534
Long-term debt due within one year 2,391 1,402
Accounts payable 1,762 1,607
Accrued expenses 1,205 1,354
Other 283 296
Liabilities held for sale 81 --
-------- --------
Total current liabilities 6,629 5,874
-------- --------
Long-term debt 12,480 13,127
Mandatorily redeemable preferred securities 100 --
Deferred credits and other liabilities
Deferred income taxes 3,973 3,702
Unamortized investment tax credits 295 301
Nuclear decommissioning liability for retired plants -- 1,395
Asset retirement obligation 2,444 --
Pension obligation 1,747 1,959
Non-pension postretirement benefits obligation 943 877
Spent nuclear fuel obligation 863 858
Regulatory liabilities 810 --
Other 1,037 978
-------- --------
Total deferred credits and other liabilities 12,112 10,070
-------- --------
Minority interest of consolidated subsidiaries 79 77
Preferred securities of subsidiaries 510 595
Shareholders' equity
Common stock 7,169 7,059
Deferred compensation -- (1)
Retained earnings 2,475 2,042
Accumulated other comprehensive income (loss) (1,266) (1,358)
-------- --------
Total shareholders' equity 8,378 7,742
-------- --------
Total liabilities and shareholders' equity $ 40,288 $ 37,485
======== ========
9
EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Six Months Ended
June 30,
------------------------------
2003 2002
----------- ----------
Cash flows from operating activities
Net income $ 733 $ 492
Adjustments to reconcile net income to net cash flows
provided by operating activities:
Depreciation, amortization and accretion, including nuclear fuel 846 848
Cumulative effect of changes in accounting principles (net of income taxes) (112) 230
Gain on sale of investments - (199)
Provision for uncollectible accounts 43 67
Deferred income taxes (100) (10)
Equity in earnings of unconsolidated affiliates (33) (22)
Impairment of investments 238 38
Impairment of goodwill and long-lived assets 53 -
Net realized (gains) losses on nuclear decommissioning trust funds (12) 21
Other operating activities 12 40
Changes in assets and liabilities:
Accounts receivable 66 (281)
Inventories (16) (3)
Accounts payable, accrued expenses and other current liabilities (62) 364
Changes in payables and receivables from unconsolidated affiliates 19 12
Other current assets (214) (143)
Deferred energy costs (24) 49
Pension and non-pension postretirement benefits obligations (146) 10
Other noncurrent assets and liabilities 1 125
------- -------
Net cash flows provided by operating activities 1,292 1,638
------- -------
Cash flows from investing activities
Capital expenditures (1,019) (1,028)
Proceeds from liquidated damages 86 -
Proceeds from nuclear decommissioning trust funds 1,262 889
Investment in nuclear decommissioning trust funds (1,368) (943)
Note receivable from unconsolidated affiliate 35 (75)
Proceeds from sale of investments 6 285
Acquisition of generating plants - (443)
Other investing activities 11 47
------- -------
Net cash flows used in investing activities (987) (1,268)
------- -------
Cash flows from financing activities
Issuance of long-term debt 1,813 701
Retirement of long-term debt (1,479) (697)
Change in short-term debt (100) 110
Issuance of preferred securities of subsidiaries 300 -
Retirement of preferred securities of subsidiaries (300) -
Dividends paid on common stock (285) (280)
Payment on acquisition note payable to Sithe Energies, Inc. (210) -
Proceeds from employee stock plans 91 60
Change in restricted cash (29) (26)
Other financing activities (85) (10)
------- -------
Net cash flows used in financing activities (284) (142)
------- -------
Increase in cash and cash equivalents 21 228
Cash and cash equivalents at beginning of period 469 485
------- -------
Cash and cash equivalents including cash classified as held for sale 490 713
Cash classified as held for sale on the consolidated balance sheet (26) -
------- -------
Cash and cash equivalents at end of period $ 464 $ 713
======= =======
10
EXELON CORPORATION
Electric Sales Statistics
Three Months Ended June 30,
----------------------------------
(in GWhs) 2003 2002 % Change
- ------------------------------------------------------- ------------ ----------- ------------
Supply
- ------
Nuclear, excluding AmerGen 29,619 28,776 2.9%
Purchased Power - Generation (a) 19,344 17,978 7.6%
Fossil, excluding Sithe Energies, and Hydro (b) 5,355 3,484 53.7%
--------- ---------
Power Team Supply 54,318 50,238 (c) 8.1%
Purchased Power - Other 234 157 49.0%
--------- ---------
Total Electric Supply Available for Sale 54,552 50,395 8.2%
Less: Line Loss and Company Use (1,655) (2,175) (23.9%)
--------- ---------
Total Supply 52,897 48,220 9.7%
========= =========
Energy Sales
- ------------
Retail Sales (d) 29,198 30,670 (4.8%)
Power Team Market Sales (a) 27,449 20,589 33.3%
Interchange Sales and Sales to Other Utilities 575 514 11.9%
--------- ---------
57,222 51,773 10.5%
Less: Distribution Only Sales (4,325) (3,553) 21.7%
--------- ---------
Total Energy Sales 52,897 48,220 9.7%
========= =========
Six Months Ended June 30,
----------------------------------
(in GWhs) 2003 2002 % Change
- ------------------------------------------------------- ------------ ----------- ------------
Supply
- ------
Nuclear, excluding AmerGen 58,949 56,309 4.7%
Purchased Power - Generation (a) 39,373 36,071 9.2%
Fossil, excluding Sithe Energies, and Hydro (b) 10,405 6,182 68.3%
--------- ---------
Power Team Supply 108,727 98,562 (c) 10.3%
Purchased Power - Other 428 325 31.7%
--------- ---------
Total Electric Supply Available for Sale 109,155 98,887 10.4%
Less: Line Loss and Company Use (3,677) (4,208) (12.6%)
--------- ---------
Total Supply 105,478 94,679 11.4%
========= =========
Energy Sales
- ------------
Retail Sales (d) 61,405 60,584 1.4%
Power Team Market Sales (a) 51,264 39,913 28.4%
Interchange Sales and Sales to Other Utilities 1,272 1,254 1.4%
--------- ---------
113,941 101,751 12.0%
Less: Distribution Only Sales (8,463) (7,072) 19.7%
--------- ---------
Total Energy Sales 105,478 94,679 11.4%
========= =========
<FN>
(a) Purchased power and market sales do not include trading volume of 7,919 GWhs and 8,566 GWhs for the three months
ended June 30, 2003 and 2002, respectively and 17,446 GWhs and 22,805 GWhs for the six months ended June 30, 2003
and 2002, respectively.
(b) Includes supply from the acquisition of Exelon New England in November 2002 and plants acquired from TXU in April
2002.
(c) Certain reallocations have been made.
(d) Includes Exelon Energy sales of 1,175 GWhs and 1,221 GWhs for the three months ended June 30, 2003 and 2002,
respectively, and 2,437 GWhs and 2,326 GWhs for the six months ended June 30, 2003 and 2002, respectively.
</FN>
11
EXELON CORPORATION
Energy Delivery Sales Statistics
For the Three Months Ended June 30,
ComEd PECO
------------------------------------ ---------------------------------------
Electric Deliveries (GWh) 2003 2002 % Change 2003 2002 % Change
- ------------------------- ------------------------------------ ---------------------------------------
Bundled Deliveries (a)
Residential 5,163 5,862 (11.9%) 2,274 2,115 7.5%
Small Commercial & Industrial 5,114 5,600 (8.7%) 1,532 1,881 (18.6%)
Large Commercial & Industrial 1,683 2,122 (20.7%) 3,695 3,927 (5.9%)
Public Authorities & Electric Railroads 1,333 1,685 (20.9%) 222 200 11.0%
--------- --------- ------- -------
Total Bundled Deliveries 13,293 15,269 (12.9%) 7,723 8,123 (4.9%)
--------- --------- ------- -------
Unbundled Deliveries (b)
Alternative Energy Suppliers
- ----------------------------
Residential (c) (c) 186 557 (66.6%)
Small Commercial & Industrial 1,257 1,177 6.8% 323 2 n.m.
Large Commercial & Industrial 2,128 1,622 31.2% 192 13 n.m.
Public Authorities & Electric Railroads 247 181 36.5% - -
--------- --------- ------- -------
3,632 2,980 21.9% 701 572 22.6%
--------- --------- ------- -------
PPO (ComEd Only)
- ----------------
Small Commercial & Industrial 869 839 3.6%
Large Commercial & Industrial 1,318 1,392 (5.3%)
Public Authorities & Electric Railroads 531 274 93.8%
--------- ---------
2,718 2,505 8.5%
--------- --------- ------- -------
Total Unbundled Deliveries 6,350 5,485 15.8% 701 572 22.6%
--------- --------- ------- -------
Total Retail Deliveries 19,643 20,754 (5.4%) 8,424 8,695 (3.1%)
========= ========= ======= =======
Gas Deliveries (mmcf) (PECO only) 15,001 14,286 5.0%
- --------------------------------- ======= =======
Revenue (in millions)
- ---------------------
Bundled Electric Revenue (a)
Residential $ 471.7 $ 523.4 (9.9%) $ 296.8 $ 278.1 6.7%
Small Commercial & Industrial 404.9 445.1 (9.0%) 180.2 224.2 (19.6%)
Large Commercial & Industrial 84.2 115.7 (27.2%) 267.1 288.1 (7.3%)
Public Authorities & Electric Railroads 81.0 101.6 (20.3%) 20.5 18.9 8.5%
--------- --------- ------- -------
Total Bundled Electric Revenue 1,041.8 1,185.8 (12.1%) 764.6 809.3 (5.5%)
--------- --------- ------- -------
Unbundled Electric Revenue (b)
Alternative Energy Suppliers
- ----------------------------
Residential (c) (c) 14.0 42.0 (66.7%)
Small Commercial & Industrial 31.9 30.2 5.6% 16.8 0.1 n.m.
Large Commercial & Industrial 43.2 31.8 35.8% 5.1 0.4 n.m.
Public Authorities & Electric Railroads 7.4 5.4 37.0% - -
--------- --------- ------- -------
82.5 67.4 22.4% 35.9 42.5 (15.5%)
--------- --------- ------- -------
PPO (ComEd Only)
- ----------------
Small Commercial & Industrial 59.0 55.0 7.3%
Large Commercial & Industrial 72.3 76.1 (5.0%)
Public Authorities & Electric Railroads 28.1 16.4 71.3%
--------- ---------
159.4 147.5 8.1%
--------- --------- ------- -------
Total Unbundled Electric Revenue 241.9 214.9 12.6% 35.9 42.5 (15.5%)
--------- --------- ------- -------
Total Retail Electric Revenue 1,283.7 1,400.7 (8.4%) 800.5 851.8 (6.0%)
Wholesale Electric Revenue 21.6 26.6 (18.8%) 2.8 3.4 (17.6%)
Other Revenue 55.5 53.6 3.5% 47.8 55.6 (14.0%)
Gas Revenue (PECO only) n/a n/a 109.9 84.3 30.4%
--------- --------- ------- -------
Total Revenues $ 1,360.8 $ 1,480.9 (8.1%) $ 961.0 $ 995.1 (3.4%)
========= ========= ======= =======
Heating and Cooling Degree-Days 2003 2002 Normal 2003 2002 Normal
- ------------------------------- ------------------------------------ ---------------------------------------
Heating Degree-Days 848 855 794 584 422 489
Cooling Degree-Days 111 301 216 250 416 316
<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 from 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 were eligible to choose their supplier of electricity; however,
as of June 30, 2003, no alternative electric supplier has sought approval from the Illinois Commerce Commission
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>
12
EXELON CORPORATION
Energy Delivery Sales Statistics
For the Six Months Ended June 30,
ComEd PECO
------------------------------------ ---------------------------------------
Electric Deliveries (GWh) 2003 2002 % Change 2003 2002 % Change
- ------------------------- ------------------------------------ ---------------------------------------
Bundled Deliveries (a)
Residential 12,049 12,271 (1.8%) 5,389 4,171 29.2%
Small Commercial & Industrial 10,741 11,049 (2.8%) 3,312 3,638 (9.0%)
Large Commercial & Industrial 3,167 4,078 (22.3%) 7,177 7,278 (1.4%)
Public Authorities & Electric Railroads 2,749 3,486 (21.1%) 475 393 20.9%
---------- ---------- ---------- ----------
Total Bundled Deliveries 28,706 30,884 (7.1%) 16,353 15,480 5.6%
---------- ---------- ---------- ----------
Unbundled Deliveries (b)
Alternative Energy Suppliers
- ----------------------------
Residential (c) (c) 450 1,348 (66.6%)
Small Commercial & Industrial 2,606 2,181 19.5% 525 99 n.m.
Large Commercial & Industrial 3,960 3,008 31.6% 402 116 n.m.
Public Authorities & Electric Railroads 529 319 65.8% - -
---------- ---------- ---------- ----------
7,095 5,508 28.8% 1,377 1,563 (11.9%)
---------- ---------- ---------- ----------
PPO (ComEd Only)
- ----------------
Small Commercial & Industrial 1,662 1,602 3.7%
Large Commercial & Industrial 2,750 2,703 1.7%
Public Authorities & Electric Railroads 1,069 517 106.8%
---------- ----------
5,481 4,822 13.7%
---------- ---------- ---------- ----------
Total Unbundled Deliveries 12,576 10,330 21.7% 1,377 1,563 (11.9%)
---------- ---------- ---------- ----------
Total Retail Deliveries 41,282 41,214 0.2% 17,730 17,043 4.0%
========== ========== ========== ==========
Gas Deliveries (mmcf) (PECO only) 54,627 45,643 19.7%
- --------------------------------- ========== ==========
Revenue (in millions)
- ---------------------
Bundled Electric Revenue (a)
Residential $ 1,017.3 $ 1,041.2 (2.3%) $ 655.4 $ 521.5 25.7%
Small Commercial & Industrial 802.1 836.2 (4.1%) 374.3 412.9 (9.3%)
Large Commercial & Industrial 158.4 217.8 (27.3%) 533.5 532.5 0.2%
Public Authorities & Electric Railroads 164.9 193.3 (14.7%) 42.4 37.1 14.3%
---------- ---------- ---------- ----------
Total Bundled Electric Revenue 2,142.7 2,288.5 (6.4%) 1,605.6 1,504.0 6.8%
---------- ---------- ---------- ----------
Unbundled Electric Revenue (b)
Alternative Energy Suppliers
- ----------------------------
Residential (c) (c) 31.5 96.1 (67.2%)
Small Commercial & Industrial 72.6 42.6 70.4% 26.6 4.8 n.m.
Large Commercial & Industrial 91.6 41.5 120.7% 10.9 3.3 n.m.
Public Authorities & Electric Railroads 16.7 7.2 131.9% - -
---------- ---------- ---------- ----------
180.9 91.3 98.1% 69.0 104.2 (33.8%)
---------- ---------- ---------- ----------
PPO (ComEd Only)
- ----------------
Small Commercial & Industrial 108.4 98.0 10.6%
Large Commercial & Industrial 144.1 140.2 2.8%
Public Authorities & Electric Railroads 55.4 29.1 90.4%
---------- ----------
307.9 267.3 15.2%
---------- ---------- ---------- ----------
Total Unbundled Electric Revenue 488.8 358.6 36.3% 69.0 104.2 (33.8%)
---------- ---------- ---------- ----------
Total Retail Electric Revenue 2,631.5 2,647.1 (0.6%) 1,674.6 1,608.2 4.1%
Wholesale Electric Revenue 50.5 50.3 0.4% 5.5 7.0 (21.4%)
Other Revenue 103.3 99.0 4.3% 99.3 106.8 (7.0%)
Gas Revenue (PECO only) n/a n/a 399.1 292.9 36.3%
---------- ---------- ---------- ----------
Total Revenues $ 2,785.3 $ 2,796.4 (0.4%) $ 2,178.5 $ 2,014.9 8.1%
========== ========== ========== ==========
Heating and Cooling Degree-Days 2003 2002 Normal 2003 2002 Normal
- ------------------------------- ------------------------------------ ---------------------------------------
Heating Degree-Days 4,214 3,720 4,060 3,336 2,491 3,040
Cooling Degree-Days 111 301 217 250 416 316
<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 from 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 were eligible to choose their supplier of electricity; however, as of June
30, 2003, no alternative electric supplier has sought approval from the Illinois Commerce Commission 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>
13
EXELON CORPORATION
Exelon Generation Power Marketing Statistics
Three Months Ended June 30, Six Months Ended June 30,
----------------------------- -----------------------------
2003 2002 2003 2002
---------- ------------ ------------ ---------
GWh Sales
Energy Delivery and Exelon Energy 26,869 29,649 57,463 58,649
Market Sales 27,449 20,589 51,264 39,913
------ ------ ------- ------
Total Sales (a) 54,318 50,238 108,727 98,562
====== ====== ======= ======
Average Margin ($/MWh)
Average Realized Revenue
Energy Delivery and Exelon Energy $ 32.67 $ 32.06 $ 32.06 $ 31.35
Market Sales 34.98 30.69 35.94 29.44
Total Sales - without trading 33.83 31.50 33.89 30.58
Average Purchased Power and Fuel Cost - without trading $ 20.71 $ 18.79 $ 20.58 $ 17.78
Average Margin - without trading $ 13.12 $ 12.71 $ 13.31 $ 12.80
Around-the-clock Market Prices ($/MWh)
PJM $ 33.25 $ 25.50 $ 41.09 $ 23.50
MAIN 24.06 24.00 30.48 22.50
- -------------------------------------------------------------------------------
2003 Earnings Guidance - July through December
Around-the-clock Market Prices ($/MWh)
PJM $ 40.50
MAIN 29.00
NEPOOL 54.00
Gas Prices ($/Mmbtu)
Henry Hub $ 6.00
- --------------------------------------------------------------------------------
<FN>
(a) Total sales do not include trading volume of 7,919 GWhs and 8,566 GWhs for the three months ended June 30, 2003 and 2002,
respectively, and 17,446 GWhs and 22,805 GWhs for the six months ended June 30, 2003 and 2002, respectively. Additionally,
total sales include supply from the acquisition of Exelon New England in November 2002 and plants acquired from TXU in April
2002.
</FN>
14