Table of Contents

EXHIBIT 99.1

 

Contact:		Stacie Frank		FOR IMMEDIATE RELEASE
		Investor Relations
		312-394-3094
		Judy Rader
		Corporate Communications
		312-394-7417

Exelon Announces Second Quarter Results;

Raises Guidance Range for Full Year 2010 Earnings

CHICAGO (July 22, 2010) – Exelon Corporation (NYSE: EXC) announced second quarter 2010 consolidated earnings as follows:

 

		Second Quarter
		2010			2009
Adjusted (non-GAAP) Operating Results:
Net Income ($ millions)		$	656		$	683
Diluted Earnings per Share		$	0.99		$	1.03
GAAP Results:
Net Income ($ millions)		$	445		$	657
Diluted Earnings per Share		$	0.67		$	0.99

Chairman and CEO John W. Rowe said, “All three of our companies delivered sound financial and operating performance. As a result, our second quarter earnings results again exceeded our guidance range of $0.80 to $0.90 per share. Exelon Generation achieved a nuclear capacity factor of nearly 95 percent in the second quarter, and ComEd and PECO delivered strong performance amidst severe storms and record hot weather.” Because of favorable first half results, Rowe announced that Exelon has raised its 2010 earnings guidance range from $3.70 to $4.00 per share to $3.80 to $4.10 per share.

Rowe added, “Going forward, we are optimistic about Exelon’s prospects as we evaluate the coming effects of EPA regulation, act on our views of the power market recovery and pursue disciplined organic growth across our regulated and unregulated businesses.”

Second Quarter Operating Results

As shown in the table above, Exelon’s adjusted (non-GAAP) operating earnings decreased to $0.99 per share in the second quarter of 2010 from $1.03 per share in the second quarter of 2009, primarily due to:

 

•

Lower energy gross margins at Exelon Generation Company, LLC (Generation) largely reflecting unfavorable market and portfolio conditions and increased nuclear fuel costs;

 

1

---

Table of Contents

•

Increased depreciation and amortization expense primarily related to the higher scheduled competitive transition charge (CTC) amortization expense at PECO Energy Company (PECO) and increased depreciation expense across the operating companies due to ongoing capital expenditures; and

 

•

Higher storm costs at Commonwealth Edison Company (ComEd) and PECO.

Lower second quarter 2010 earnings were partially offset by:

 

•

The effects of favorable weather conditions in the ComEd and PECO service territories; and

 

•

Decreased interest expense at PECO and Exelon Corporate related to lower outstanding debt.

Adjusted (non-GAAP) operating earnings for the second quarter of 2010 do not include the following items (after tax) that were included in reported GAAP earnings:

 

		(in millions)				(per diluted share)
Mark-to-market losses primarily from Generation’s economic hedging activities		$	(75	)		$	(0.11	)
Non-cash remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and related to CTCs received by PECO		$	(65	)		$	(0.10	)
Unrealized losses related to nuclear decommissioning trust (NDT) fund investments to the extent not offset by contractual accounting		$	(53	)		$	(0.08	)
Costs associated with the retirement of certain Generation fossil generating units		$	(12	)		$	(0.02	)
Costs associated with the 2007 Illinois electric rate settlement agreement		$	(4	)		$	(0.01	)
Costs associated with ComEd’s 2007 settlement agreement with the City of Chicago		$	(2	)			—

Adjusted (non-GAAP) operating earnings for the second quarter of 2009 did not include the following items (after tax) that were included in reported GAAP earnings:

 

		(in millions)				(per diluted share)
Mark-to-market losses primarily from Generation’s economic hedging activities		$	(106	)		$	(0.16	)
Non-cash remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and a reassessment of state deferred tax rates		$	66			$	0.10
Unrealized gains related to NDT fund investments to the extent not offset by contractual accounting		$	64			$	0.10
Charge for severance costs as a result of headcount reductions as part of Exelon’s cost savings program announced in June 2009		$	(24	)		$	(0.04	)
Costs associated with the 2007 Illinois electric rate settlement agreement		$	(20	)		$	(0.03	)
External costs related to Exelon’s previously proposed acquisition of NRG Energy, Inc.		$	(6	)		$	(0.01	)

 

2

---

Table of Contents

2010 Earnings Outlook

Exelon raised its guidance range for 2010 adjusted (non-GAAP) operating earnings from $3.70 to $4.00 per share to $3.80 to $4.10 per share. Operating earnings guidance is based on the assumption of normal weather for the balance of the year.

The outlook for 2010 adjusted (non-GAAP) operating earnings for Exelon and its subsidiaries excludes the following items:

 

•

Mark-to-market adjustments from economic hedging activities

 

•

Unrealized gains and losses from NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements

 

•

Significant impairments of assets, including goodwill

 

•

Changes in decommissioning obligation estimates

 

•

Costs associated with the 2007 Illinois electric rate settlement agreement

 

•

Costs associated with ComEd’s 2007 settlement with the City of Chicago

 

•

Costs associated with the retirement of fossil generating units

 

•

Non-cash charge resulting from the passage of Federal health care legislation

 

•

Non-cash remeasurement of income tax uncertainties

 

•

Other unusual items

 

•

Significant future changes to GAAP

Proposed Clean Air Transport Rule

On July 6, 2010, the U.S. Environmental Protection Agency (EPA) published the proposed Clean Air Transport Rule (CATR) as the replacement to the Clean Air Interstate Rule (CAIR) that had been remanded by the U.S. Court of Appeals for the District of Columbia Circuit in 2008. The proposed CATR is one of a number of significant regulations that the EPA expects to issue that will impose more stringent requirements relating to air, water and waste controls on electric generating units. Due to its low carbon generation portfolio, Exelon will not be as significantly affected by these regulations, which would therefore result in a comparative advantage for Exelon relative to electric generators that are more reliant on fossil-fuel plants. After a period of public comments and hearings, a final CATR is expected by mid-2011. Under the proposal, the first phase of nitrogen oxide and sulfur dioxide (SO₂) emissions reductions under the CATR will commence in 2012, with further reductions of SO₂ emissions proposed to become effective in 2014.

Second Quarter and Recent Highlights

 

•

Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station, produced 35,035 gigawatt-hours (GWh) in the second quarter of 2010, compared with 34,995 GWh in the second quarter of 2009. The Exelon-operated nuclear plants achieved a 94.8 percent capacity factor for the second quarter of 2010 compared with 93.9 percent for the second quarter of 2009. The Exelon-operated nuclear plants completed three scheduled refueling outages in the second quarter of 2010, the same number of scheduled refueling outages completed in the second quarter of 2009. During the second quarter of 2010, Byron Unit 2 achieved a 541-day continuous run prior to its refueling outage – a station record. The number of refueling outage days totaled 44 in the second quarter of 2010 versus 57 days in

 

3

---

Table of Contents

the second quarter of 2009. The number of non-refueling outage days at the Exelon-operated plants totaled 15 days in the second quarter of 2010 compared with 21 days in the second quarter of 2009.

 

•

Fossil and Hydro Operations: The equivalent demand forced outage rate for Generation’s fossil fleet was 3.8 percent in the second quarter of 2010, compared with 3.0 percent in the second quarter of 2009. The change was largely due to higher forced outages at the Eddystone Generating Station. The equivalent availability factor for the hydroelectric facilities was 98.1 percent in the second quarter of 2010, compared with 98.8 percent in the second quarter of 2009, largely due to a major overhaul at Conowingo Generating Station in 2010.

 

•

Hedging Update: Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. Expected generation represents the amount of energy estimated to be generated or purchased through owned or contracted-for capacity. The proportion of expected generation hedged as of June 30, 2010 is 96 to 99 percent for 2010, 86 to 89 percent for 2011 and 57 to 60 percent for 2012. The primary objectives of Exelon’s hedging program are to manage market risks and protect the value of its generation and its investment grade balance sheet while preserving its ability to participate in improving long-term market fundamentals.

 

•

Fossil Plant Retirements Update: On May 10, 2010, PJM Interconnection, LLC (PJM) informed Exelon Power that transmission system upgrades, necessary to allow two aging fossil-fuel generating units to retire, can be completed sooner than its original analysis indicated. PJM has determined that Cromby Generating Station Unit 2 and Eddystone Generating Station Unit 2 are needed to remain in operation until December 31, 2011 and December 31, 2012, respectively, to support transmission system reliability. Previously, PJM indicated that it needed Cromby Unit 2 to remain in operation through May 31, 2012, and Eddystone Unit 2 through December 31, 2013. While it originally announced on December 2, 2009 that the units would retire for economic reasons, Exelon Power agreed to extend their operation through the timeframe defined by PJM for system reliability reasons. On June 10, 2010, Exelon filed a reliability-must-run rate schedule with the Federal Energy Regulatory Commission (FERC) to compensate for the costs of maintaining and operating the units beyond May 31, 2011, plus a reasonable return on investment. A FERC decision is expected in the fourth quarter of 2010. Also as originally announced in December 2009, two additional fossil-fuel generating units, Cromby Unit 1 and Eddystone Unit 1, will retire effective May 31, 2011.

 

•

ComEd Electric Delivery Rate Case: On June 30, 2010, ComEd filed a rate increase request with the Illinois Commerce Commission (ICC) to allow the utility to continue modernizing its electric delivery system and recover the cost of substantial investments made since the last rate filing in 2007. The requested revenue increase of $396 million would raise the average $86 residential monthly bill by approximately 7 percent or less than $6 per month. The ICC will determine any increase in rates after an 11-month proceeding with input from all stakeholders. If approved, the new rates would not take effect until June 2011.

 

4

---

Table of Contents

•

PECO Energy Procurement: On June 23, 2010, PECO announced the results of the third of four planned electricity purchases under its Default Service Provider program to serve residential customers that have not chosen a competitive electric generation supplier beginning January 1, 2011. At that time, the prices PECO and its customers pay for electricity will be based on competitive electric market pricing, after having been capped for more than 10 years.

The latest purchases in May 2010 resulted in an energy price of 7.95 cents per kilowatt hour (kWh) for PECO’s residential customers. PECO’s third procurement also included electricity purchases for the small and medium customer class. When combined with 2009 purchases, the May purchases result in a price of 8.91 cents per kWh for residential customers, 8.66 cents per kWh for small commercial customers, and 8.63 cents per kWh for medium commercial customers. PECO will complete the remaining purchases in September 2010. The results of all four purchases will determine the exact price PECO’s customers will pay for electricity beginning January 1, 2011.

For the large commercial and industrial class, PECO conducted one procurement in May 2010 for full requirements fixed price products at an average winning wholesale bid price of $77.55 per kWh and will conduct one procurement in September 2010 for full requirements spot price products.

OPERATING COMPANY RESULTS

Generation consists of owned and contracted electric generating facilities, wholesale energy marketing operations and competitive retail sales operations.

Second quarter 2010 net income was $382 million compared with $512 million in the second quarter of 2009. Second quarter 2010 net income included (all after tax) mark-to-market losses of $75 million from economic hedging activities before the elimination of intercompany transactions, a gain of $70 million related to the non-cash remeasurement of income tax uncertainties, unrealized losses of $53 million related to NDT fund investments, costs of $12 million associated with the retirement of certain fossil generating units and a charge of $4 million for costs associated with the 2007 Illinois electric rate settlement. Second quarter 2009 net income included (all after tax) mark-to-market losses of $106 million from economic hedging activities before the elimination of intercompany transactions, unrealized gains of $64 million related to NDT fund investments, the benefit from a reassessment of state deferred income taxes of $38 million, a charge of $18 million for the costs associated with the 2007 Illinois electric rate settlement and a charge of $9 million for the costs incurred for severance. Excluding the effects of these items, Generation’s net income in the second quarter of 2010 decreased $87 million compared with the same quarter last year primarily due to:

 

•

Lower energy gross margins, largely due to unfavorable market and portfolio conditions, lower pricing from PECO under the power purchase agreement, and higher nuclear fuel costs; and

 

•

Higher operating and maintenance expense, primarily reflecting the effect of inflation.

Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $36.87 per MWh in the second quarter of 2010 compared with $38.96 per MWh in the second quarter of 2009.

 

5

---

Table of Contents

ComEd consists of the electricity transmission and distribution operations in northern Illinois.

ComEd recorded net income of $9 million in the second quarter of 2010, compared with net income of $116 million in the second quarter of 2009. Second quarter net income in 2010 included an after-tax charge of $106 million related to the non-cash remeasurement of income tax uncertainties and after-tax costs of $2 million for the City of Chicago settlement agreement. Second quarter 2009 net income included (all after tax) the benefit from the non-cash remeasurement of income tax uncertainties of $40 million, a charge of $11 million for the costs incurred for severance, and $2 million for the costs associated with the Illinois electric rate settlement. Excluding the effects of these items, ComEd’s net income in the second quarter of 2010 was up $28 million from the same quarter last year reflecting:

 

•

The effects of favorable weather conditions;

 

•

Load growth; and

 

•

Projected refunds related to Illinois electric distribution taxes.

The increase in net income was partially offset by:

 

•

Higher storm costs.

In the second quarter of 2010, cooling degree-days in the ComEd service territory were up 76.3 percent relative to the same period in 2009 and were 39.3 percent above normal. ComEd’s total retail electric deliveries increased by 4.9 percent quarter over quarter, with gains in deliveries across all customer classes, primarily driven by the effects of favorable weather conditions.

Weather-normalized retail electric deliveries increased by 1.8 percent from the second quarter of 2009, primarily reflecting customer growth and increased average use per customer. For ComEd, weather had a favorable after-tax effect of $10 million on second quarter 2010 earnings relative to 2009 and a favorable after-tax effect of $5 million relative to normal weather that is incorporated in Exelon’s earnings guidance.

PECO consists of the electricity transmission and distribution operations and the retail natural gas distribution business in southeastern Pennsylvania.

PECO’s net income in the second quarter of 2010 was $75 million, up from $71 million in the second quarter of 2009. Second quarter 2010 net income included an after-tax interest expense charge of $22 million related to the non-cash remeasurement of income tax uncertainties. Second quarter 2009 net income included an after-tax charge of $3 million for the costs incurred for severance. Excluding the effects of these items, PECO’s net income in the second quarter of 2010 was up $23 million from the same quarter last year reflecting:

 

•

Increased CTC revenue to ensure full recovery of stranded costs during 2010, the final year of the transition period, due to lower than expected sales volume in 2009, which resulted in lower energy prices under the power purchase agreement with Generation;

 

•

The effects of favorable weather conditions; and

 

•

Lower interest expense on long-term debt.

The increase in net income was partially offset by:

 

•

Higher CTC amortization, which was in accordance with PECO’s 1998 Restructuring Settlement with the PAPUC; and

 

6

---

Table of Contents

•

Increased storm costs.

In the second quarter of 2010, cooling degree-days in the PECO service territory were up 66.5 percent from 2009 and were 76.5 percent above normal. Total retail electric deliveries were up 7.3 percent from last year, reflecting an increase in deliveries across all customer classes, primarily driven by the effects of favorable weather conditions. On the retail gas side, deliveries in the second quarter of 2010 were down 16.3 percent from the second quarter of 2009, largely reflecting heating degree-days that were 27.8 percent below last year and 34.7 percent below normal.

Weather-normalized retail electric deliveries decreased by 0.7 percent from the second quarter of 2009, primarily reflecting decreased residential and small commercial and industrial deliveries. For PECO, reflecting electric and gas deliveries, weather had a favorable after-tax effect of $22 million on second quarter 2010 earnings relative to 2009 and a favorable after-tax effect of $17 million relative to normal weather that is incorporated in Exelon’s earnings guidance.

Adjusted (non-GAAP) Operating Earnings

Adjusted (non-GAAP) operating earnings, which generally exclude significant one-time charges or credits that are not normally associated with ongoing operations, mark-to-market adjustments from economic hedging activities and unrealized gains and losses from NDT fund investments, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-GAAP) operating earnings measures internally to evaluate the company’s performance and manage its operations. Reconciliation of GAAP to adjusted (non-GAAP) operating earnings for historical periods is attached. Additional earnings release attachments, which include the reconciliations on pages 7 and 8, are posted on Exelon’s Web site: www.exeloncorp.com and have been furnished to the Securities and Exchange Commission on Form 8-K on July 22, 2010.

Conference call information: Exelon has scheduled a conference call for 11:00 AM ET (10:00 AM CT) on July 22, 2010. The call-in number in the U.S. and Canada is 800-690-3108, and the international call-in number is 973-935-8753. If requested, the conference ID number is 85980766. 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 Investors page.)

Telephone replays will be available until August 5. The U.S. and Canada call-in number for replays is 800-642-1687, and the international call-in number is 706-645-9291. The conference ID number is 85980766.

 

 

Forward Looking Statements

This press release includes 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 these forward-looking statements include those discussed herein as well as those discussed in (1) Exelon’s 2009 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 18; (2) Exelon’s

 

7

---

Table of Contents

Second Quarter 2010 Quarterly Report on Form 10-Q (to be filed on July 22, 2010) in (a) Part II, Other Information, ITEM 1A. Risk Factors, (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 12 and (3) 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 (Companies). 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 Companies 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 more than $17 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 5.4 million customers in northern Illinois and southeastern Pennsylvania and natural gas to approximately 486,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.

 

8

---

Table of Contents

Earnings Release Attachments

Table of Contents

 

Consolidating Statements of Operations - Three Months Ended June 30, 2010 and 2009		1
Consolidating Statements of Operations - Six Months Ended June 30, 2010 and 2009		2
Business Segment Comparative Statements of Operations - Generation and ComEd - Three and Six Months Ended June 30, 2010 and 2009		3
Business Segment Comparative Statements of Operations - PECO and Other - Three and Six Months Ended June 30, 2010 and 2009		4
Consolidated Balance Sheets - June 30, 2010 and December 31, 2009		5
Consolidated Statements of Cash Flows - Six Months Ended June 30, 2010 and 2009		6
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Three Months Ended June 30, 2010 and 2009		7
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Six Months Ended June 30, 2010 and 2009		8
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended June 30, 2010 and 2009		9
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Six Months Ended June 30, 2010 and 2009		10
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Generation - Three and Six Months Ended June 30, 2010 and 2009		11
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - ComEd - Three and Six Months Ended June 30, 2010 and 2009		12
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - PECO - Three and Six Months Ended June 30, 2010 and 2009		13
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Other - Three and Six Months Ended June 30, 2010 and 2009		14
Exelon Generation Statistics - Three Months Ended June 30, 2010, March 31, 2010,  December 31, 2009, September 30, 2009 and June 30, 2009		15
Exelon Generation Statistics - Six Months Ended June 30, 2010 and 2009		16
ComEd Statistics - Three and Six Months Ended June 30, 2010 and 2009		17
PECO Statistics - Three and Six Months Ended June 30, 2010 and 2009		18

---

Table of Contents

EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)

 

		Three Months Ended June 30, 2010
		Generation				ComEd				PECO				Other				Exelon Consolidated
Operating revenues		$	2,353			$	1,499			$	1,269			$	(723	)		$	4,398
Operating expenses
Purchased power			549				771				535				(721	)			1,134
Fuel			350				—				44				(1	)			393
Operating and maintenance			691				276				150				(3	)			1,114
Operating and maintenance for regulatory required programs (a)			—				21				13				—				34
Depreciation and amortization			115				131				268				5				519
Taxes other than income			61				44				77				4				186
Total operating expenses			1,766				1,243				1,087				(716	)			3,380
Operating income (loss)			587				256				182				(7	)			1,018
Other income and deductions
Interest expense			(37	)			(134	)			(77	)			(27	)			(275	)
Other, net			(133	)			8				(1	)			4				(122	)
Total other income and deductions			(170	)			(126	)			(78	)			(23	)			(397	)
Income (loss) before income taxes			417				130				104				(30	)			621
Income taxes			35				121				29				(9	)			176
Net income (loss)		$	382			$	9			$	75			$	(21	)		$	445
		Three Months Ended June 30, 2009
		Generation				ComEd				PECO				Other				Exelon Consolidated
Operating revenues		$	2,378			$	1,389			$	1,204			$	(830	)		$	4,141
Operating expenses
Purchased power			485				715				547				(826	)			921
Fuel			406				—				55				(1	)			460
Operating and maintenance			689				270				149				3				1,111
Operating and maintenance for regulatory required programs (a)			—				14				—				—				14
Depreciation and amortization			72				124				230				13				439
Taxes other than income			50				57				69				4				180
Total operating expenses			1,702				1,180				1,050				(807	)			3,125
Operating income (loss)			676				209				154				(23	)			1,016
Other income and deductions
Interest expense			(24	)			(75	)			(49	)			(32	)			(180	)
Loss in equity method investments			—				—				(6	)			—				(6	)
Other, net			215				55				3				(16	)			257
Total other income and deductions			191				(20	)			(52	)			(48	)			71
Income (loss) before income taxes			867				189				102				(71	)			1,087
Income taxes			355				73				31				(29	)			430
Net income (loss)		$	512			$	116			$	71			$	(42	)		$	657

 

(a)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues.

 

1

---

Table of Contents

EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)

 

		Six Months Ended June 30, 2010
		Generation				ComEd				PECO				Other				Exelon Consolidated
Operating revenues		$	4,773			$	2,914			$	2,724			$	(1,552	)		$	8,859
Operating expenses
Purchased power			757				1,524				1,059				(1,548	)			1,792
Fuel			740				—				255				(1	)			994
Operating and maintenance			1,432				435				331				(23	)			2,175
Operating and maintenance for regulatory required programs (a)			—				40				21				—				61
Depreciation and amortization			223				261				533				16				1,033
Taxes other than income			118				107				150				8				383
Total operating expenses			3,270				2,367				2,349				(1,548	)			6,438
Operating income (loss)			1,503				547				375				(4	)			2,421
Other income and deductions
Interest expense			(72	)			(218	)			(122	)			(47	)			(459	)
Other, net			(54	)			11				4				10				(29	)
Total other income and deductions			(126	)			(207	)			(118	)			(37	)			(488	)
Income (loss) before income taxes			1,377				340				257				(41	)			1,933
Income taxes			434				215				81				9				739
Net income (loss)		$	943			$	125			$	176			$	(50	)		$	1,194
		Six Months Ended June 30, 2009
		Generation				ComEd				PECO				Other				Exelon Consolidated
Operating revenues		$	4,979			$	2,942			$	2,718			$	(1,776	)		$	8,863
Operating expenses
Purchased power			660				1,598				1,116				(1,770	)			1,604
Fuel			915				—				321				—				1,236
Operating and maintenance			1,617				522				327				6				2,472
Operating and maintenance for regulatory required programs (a)			—				25				—				—				25
Depreciation and amortization			149				246				455				25				875
Taxes other than income			100				136				135				9				380
Total operating expenses			3,441				2,527				2,354				(1,730	)			6,592
Operating income (loss)			1,538				415				364				(46	)			2,271
Other income and deductions
Interest expense			(52	)			(159	)			(99	)			(57	)			(367	)
Loss in equity method investments			(1	)			—				(12	)			(1	)			(14	)
Other, net			133				87				6				(7	)			219
Total other income and deductions			80				(72	)			(105	)			(65	)			(162	)
Income (loss) before income taxes			1,618				343				259				(111	)			2,109
Income taxes			577				113				76				(26	)			740
Net income (loss)		$	1,041			$	230			$	183			$	(85	)		$	1,369

 

(a)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues.

 

2

---

Table of Contents

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

		Generation
		Three Months Ended June 30,												Six Months Ended June 30,
		2010				2009				Variance				2010				2009				Variance
Operating revenues		$	2,353			$	2,378			$	(25	)		$	4,773			$	4,979			$	(206	)
Operating expenses
Purchased power			549				485				64				757				660				97
Fuel			350				406				(56	)			740				915				(175	)
Operating and maintenance			691				689				2				1,432				1,617				(185	)
Depreciation and amortization			115				72				43				223				149				74
Taxes other than income			61				50				11				118				100				18
Total operating expenses			1,766				1,702				64				3,270				3,441				(171	)
Operating income			587				676				(89	)			1,503				1,538				(35	)
Other income and deductions
Interest expense			(37	)			(24	)			(13	)			(72	)			(52	)			(20	)
Loss in equity method investments			—				—				—				—				(1	)			1
Other, net			(133	)			215				(348	)			(54	)			133				(187	)
Total other income and deductions			(170	)			191				(361	)			(126	)			80				(206	)
Income before income taxes			417				867				(450	)			1,377				1,618				(241	)
Income taxes			35				355				(320	)			434				577				(143	)
Net income		$	382			$	512			$	(130	)		$	943			$	1,041			$	(98	)
		ComEd
		Three Months Ended June 30,												Six Months Ended June 30,
		2010				2009				Variance				2010				2009				Variance
Operating revenues		$	1,499			$	1,389			$	110			$	2,914			$	2,942			$	(28	)
Operating expenses
Purchased power			771				715				56				1,524				1,598				(74	)
Operating and maintenance			276				270				6				435				522				(87	)
Operating and maintenance for regulatory required programs (a)			21				14				7				40				25				15
Depreciation and amortization			131				124				7				261				246				15
Taxes other than income			44				57				(13	)			107				136				(29	)
Total operating expenses			1,243				1,180				63				2,367				2,527				(160	)
Operating income			256				209				47				547				415				132
Other income and deductions
Interest expense			(134	)			(75	)			(59	)			(218	)			(159	)			(59	)
Other, net			8				55				(47	)			11				87				(76	)
Total other income and deductions			(126	)			(20	)			(106	)			(207	)			(72	)			(135	)
Income before income taxes			130				189				(59	)			340				343				(3	)
Income taxes			121				73				48				215				113				102
Net income		$	9			$	116			$	(107	)		$	125			$	230			$	(105	)

 

(a)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues.

 

3

---

Table of Contents

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

		PECO
		Three Months Ended June 30,												Six Months Ended June 30,
		2010				2009				Variance				2010				2009				Variance
Operating revenues		$	1,269			$	1,204			$	65			$	2,724			$	2,718			$	6
Operating expenses
Purchased power			535				547				(12	)			1,059				1,116				(57	)
Fuel			44				55				(11	)			255				321				(66	)
Operating and maintenance			150				149				1				331				327				4
Operating and maintenance for regulatory required programs (a)			13				—				13				21				—				21
Depreciation and amortization			268				230				38				533				455				78
Taxes other than income			77				69				8				150				135				15
Total operating expenses			1,087				1,050				37				2,349				2,354				(5	)
Operating income			182				154				28				375				364				11
Other income and deductions
Interest expense			(77	)			(49	)			(28	)			(122	)			(99	)			(23	)
Loss in equity method investments			—				(6	)			6				—				(12	)			12
Other, net			(1	)			3				(4	)			4				6				(2	)
Total other income and deductions			(78	)			(52	)			(26	)			(118	)			(105	)			(13	)
Income before income taxes			104				102				2				257				259				(2	)
Income taxes			29				31				(2	)			81				76				5
Net income		$	75			$	71			$	4			$	176			$	183			$	(7	)

 

(a)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues.

 

		Other (b)
		Three Months Ended June 30,												Six Months Ended June 30,
		2010				2009				Variance				2010				2009				Variance
Operating revenues		$	(723	)		$	(830	)		$	107			$	(1,552	)		$	(1,776	)		$	224
Operating expenses
Purchased power			(721	)			(826	)			105				(1,548	)			(1,770	)			222
Fuel			(1	)			(1	)			—				(1	)			—				(1	)
Operating and maintenance			(3	)			3				(6	)			(23	)			6				(29	)
Depreciation and amortization			5				13				(8	)			16				25				(9	)
Taxes other than income			4				4				—				8				9				(1	)
Total operating expenses			(716	)			(807	)			91				(1,548	)			(1,730	)			182
Operating loss			(7	)			(23	)			16				(4	)			(46	)			42
Other income and deductions
Interest expense			(27	)			(32	)			5				(47	)			(57	)			10
Loss in equity method investments			—				—				—				—				(1	)			1
Other, net			4				(16	)			20				10				(7	)			17
Total other income and deductions			(23	)			(48	)			25				(37	)			(65	)			28
Loss before income taxes			(30	)			(71	)			41				(41	)			(111	)			70
Income taxes			(9	)			(29	)			20				9				(26	)			35
Net loss		$	(21	)		$	(42	)		$	21			$	(50	)		$	(85	)		$	35

 

(b)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

 

4

---

Table of Contents

EXELON CORPORATION

Consolidated Balance Sheets

(unaudited)

(in millions)

 

		June 30, 2010				December 31, 2009
Assets
Current assets
Cash and cash equivalents		$	1,168			$	2,010
Restricted cash and investments			33				40
Restricted cash and cash equivalents of variable interest entity			426				—
Accounts receivable, net
Customer			1,886				1,563
Other			451				486
Mark-to-market derivative assets			418				376
Inventories, net
Fossil fuel			174				198
Materials and supplies			585				559
Other			459				209
Total current assets			5,600				5,441
Property, plant and equipment, net			28,030				27,341
Deferred debits and other assets
Regulatory assets			4,380				4,872
Nuclear decommissioning trust (NDT) funds			6,498				6,669
Investments			723				724
Goodwill			2,625				2,625
Mark-to-market derivative assets			627				649
Other			690				859
Total deferred debits and other assets			15,543				16,398
Total assets		$	49,173			$	49,180
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings		$	289			$	155
Short-term notes payable-accounts receivable agreement			225				—
Long-term debt due within one year			215				639
Long-term debt of variable interest entity due within one year			404				—
Long-term debt to PECO Energy Transition Trust due within one year			—				415
Accounts payable			1,181				1,345
Accrued expenses			1,098				923
Deferred income taxes			114				152
Mark-to-market derivative liabilities			54				198
Other			450				411
Total current liabilities			4,030				4,238
Long-term debt			10,811				10,995
Long-term debt to financing trusts			390				390
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits			5,474				5,750
Asset retirement obligations			3,527				3,434
Pension obligations			3,527				3,625
Non-pension postretirement benefits obligations			2,278				2,180
Spent nuclear fuel obligation			1,018				1,017
Regulatory liabilities			3,344				3,492
Mark-to-market derivative liabilities			8				23
Other			1,493				1,309
Total deferred credits and other liabilities			20,669				20,830
Total liabilities			35,900				36,453
Preferred securities of subsidiary			87				87
Shareholders’ equity
Common stock			8,960				8,923
Treasury stock, at cost			(2,327	)			(2,328	)
Retained earnings			8,631				8,134
Accumulated other comprehensive loss, net			(2,078	)			(2,089	)
Total shareholders’ equity			13,186				12,640
Total liabilities and shareholders’ equity		$	49,173			$	49,180

 

5

---

Table of Contents

EXELON CORPORATION

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

 

		Six Months Ended June 30,
		2010				2009
Cash flows from operating activities
Net income		$	1,194			$	1,369
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization and accretion, including nuclear fuel amortization			1,455				1,253
Impairment of long-lived assets			—				223
Deferred income taxes and amortization of investment tax credits			(373	)			149
Net fair value changes related to derivatives			(123	)			28
Net realized and unrealized (gains) losses on NDT fund investments			59				(43	)
Other non-cash operating activities			278				411
Changes in assets and liabilities:
Accounts receivable			(229	)			286
Inventories			1				75
Accounts payable, accrued expenses and other current liabilities			(239	)			(469	)
Option premiums paid, net			(15	)			(39	)
Counterparty collateral (posted) received, net			(172	)			246
Income taxes			661				(177	)
Pension and non-pension postretirement benefit contributions			(119	)			(68	)
Other assets and liabilities			(9	)			(197	)
Net cash flows provided by operating activities			2,369				3,047
Cash flows from investing activities
Capital expenditures			(1,584	)			(1,444	)
Proceeds from NDT fund sales			12,528				10,150
Investment in NDT funds			(12,626	)			(10,279	)
Change in restricted cash			(6	)			31
Other investing activities			30				(4	)
Net cash flows used in investing activities			(1,658	)			(1,546	)
Cash flows from financing activities
Changes in short-term debt			134				(166	)
Issuance of long-term debt			—				485
Retirement of long-term debt			(615	)			(255	)
Retirement of long-term debt of variable interest entity			(402	)			—
Retirement of long-term debt to financing affiliates			—				(330	)
Dividends paid on common stock			(694	)			(692	)
Proceeds from employee stock plans			22				19
Other financing activities			2				5
Net cash flows used in financing activities			(1,553	)			(934	)
Increase (decrease) in cash and cash equivalents			(842	)			567
Cash and cash equivalents at beginning of period			2,010				1,271
Cash and cash equivalents at end of period		$	1,168			$	1,838

 

6

---

Table of Contents

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations

(unaudited)

(in millions, except per share data)

 

		Three Months Ended June 30, 2010												Three Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	4,398			$	10	(c),(d)		$	4,408			$	4,141			$	32	(c)		$	4,173
Operating expenses
Purchased power			1,134				(150	)(e)			984				921				(161	)(e)			760
Fuel			393				26	(e)			419				460				(13	)(e)			447
Operating and maintenance			1,114				—				1,114				1,111				(54	)(c),(i),(j)			1,057
Operating and maintenance for regulatory required programs (b)			34				—				34				14				—				14
Depreciation and amortization			519				(19	)(f)			500				439				—				439
Taxes other than income			186				—				186				180				—				180
Total operating expenses			3,380				(143	)			3,237				3,125				(228	)			2,897
Operating income			1,018				153				1,171				1,016				260				1,276
Other income and deductions
Interest expense			(275	)			103	(g)			(172	)			(180	)			9	(g)			(171	)
Loss in equity method investments			—				—				—				(6	)			—				(6	)
Other, net			(122	)			159	(g),(h)			37				257				(252	)(g),(h)			5
Total other income and deductions			(397	)			262				(135	)			71				(243	)			(172	)
Income before income taxes			621				415				1,036				1,087				17				1,104
Income taxes			176				204	(c),(d),(e),(f),(g),(h)			380				430				(9	)(c),(e),(g),(h),(i),(j)			421
Net income		$	445			$	211			$	656			$	657			$	26			$	683
Effective tax rate			28.3	%							36.7	%			39.6	%							38.1	%
Earnings per average common share
Basic		$	0.67			$	0.32			$	0.99			$	1.00			$	0.04			$	1.04
Diluted		$	0.67			$	0.32			$	0.99			$	0.99			$	0.04			$	1.03
Average common shares outstanding
Basic			661								661				659								659
Diluted			662								662				661								661
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
2007 Illinois electric rate settlement (c)						$	0.01											$	0.03
City of Chicago settlement (d)							—												—
Mark-to-market impact of economic hedging activities (e)							0.11												0.16
Retirement of fossil generating units (f)							0.02												—
Non-cash income tax matters and state taxes (g)							0.10												(0.10	)
Unrealized gains and losses related to NDT fund investments (h)							0.08												(0.10	)
NRG acquisition costs (i)							—												0.01
2009 restructuring charges (j)							—												0.04
Total adjustments						$	0.32											$	0.04

 

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).

(b)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues.

(c)	Adjustment to exclude the impact of the 2007 Illinois electric rate settlement.

(d)	Adjustment to exclude the costs associated with ComEd’s 2007 settlement agreement with the City of Chicago.

(e)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities.

(f)	Adjustment to exclude costs associated with the planned retirement of fossil generating units.

(g)	Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties and a 2009 change in state deferred income taxes.

(h)	Adjustment to exclude the unrealized losses in 2010 and unrealized gains in 2009 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes.

(i)	Adjustment to exclude external costs associated with Exelon’s proposed acquisition of NRG Energy, Inc. (NRG), which was terminated in July 2009.

(j)	Adjustment to exclude 2009 restructuring charges.

 

7

---

Table of Contents

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations

(unaudited)

(in millions, except per share data)

 

		Six Months Ended June 30, 2010												Six Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	8,859			$	13	(c),(d)		$	8,872			$	8,863			$	65	(c)		$	8,928
Operating expenses
Purchased power			1,792				35	(e)			1,827				1,604				40	(e)			1,644
Fuel			994				75	(e)			1,069				1,236				(28	)(e)			1,208
Operating and maintenance			2,175				2	(f)			2,177				2,472				(291	)(c),(j),(k),(l)			2,181
Operating and maintenance for regulatory required programs (b)			61				—				61				25				—				25
Depreciation and amortization			1,033				(35	)(f)			998				875				—				875
Taxes other than income			383				—				383				380				—				380
Total operating expenses			6,438				77				6,515				6,592				(279	)			6,313
Operating income			2,421				(64	)			2,357				2,271				344				2,615
Other income and deductions
Interest expense			(459	)			103	(g)			(356	)			(367	)			9	(g)			(358	)
Loss in equity method investments			—				—				—				(14	)			—				(14	)
Other, net			(29	)			101	(g),(h)			72				219				(156	)(g),(h)			63
Total other income and deductions			(488	)			204				(284	)			(162	)			(147	)			(309	)
Income before income taxes			1,933				140				2,073				2,109				197				2,306
Income taxes			739				15	(c),(d),(e),(f),(g),(h),(i)			754				740				87	(c),(e),(g),(h),(j),(k),(l)			827
Net income		$	1,194			$	125			$	1,319			$	1,369			$	110			$	1,479
Effective tax rate			38.2	%							36.4	%			35.1	%							35.9	%
Earnings per average common share
Basic		$	1.81			$	0.19			$	2.00			$	2.08			$	0.17			$	2.25
Diluted		$	1.80			$	0.19			$	1.99			$	2.07			$	0.17			$	2.24
Average common shares outstanding
Basic			661								661				659								659
Diluted			662								662				661								661
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
2007 Illinois electric rate settlement (c)						$	0.01											$	0.06
City of Chicago settlement (d)							—												—
Mark-to-market impact of economic hedging activities (e)							(0.10	)											(0.01	)
Retirement of fossil generating units (f)							0.03												—
Non-cash income tax matters and state taxes (g)							0.10												(0.10	)
Unrealized gains and losses related to NDT fund investments (h)							0.05												(0.05	)
Non-cash charge resulting from health care legislation (i)							0.10												—
NRG acquisition costs (j)							—												0.03
Impairment of certain generating assets (k)							—												0.20
2009 restructuring charges (l)							—												0.04
Total adjustments						$	0.19											$	0.17

 

(a)	Results reported in accordance with GAAP.

(b)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues.

(c)	Adjustment to exclude the impact of the 2007 Illinois electric rate settlement.

(d)	Adjustment to exclude the costs associated with ComEd’s 2007 settlement agreement with the City of Chicago.

(e)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities.

(f)	Adjustment to exclude costs associated with the planned retirement of fossil generating units.

(g)	Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties and a 2009 change in state deferred income taxes.

(h)	Adjustment to exclude the unrealized losses in 2010 and unrealized gains in 2009 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes.

(i)	Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D.

(j)	Adjustment to exclude external costs associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009.

(k)	Adjustment to exclude the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009.

(l)	Adjustment to exclude 2009 restructuring charges.

 

8

---

Table of Contents

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Three Months Ended June 30, 2010 and 2009

 

		Exelon Earnings per Diluted Share				Generation				ComEd				PECO				Other				Exelon
2009 GAAP Earnings (Loss)		$	0.99			$	512			$	116			$	71			$	(42	)		$	657
2009 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
2007 Illinois Electric Rate Settlement			0.03				18				2				—				—				20
Mark-to-Market Impact of Economic Hedging Activities			0.16				106				—				—				—				106
Unrealized Gains Related to NDT Fund Investments (1)			(0.10	)			(64	)			—				—				—				(64	)
NRG Acquisition Costs (2)			0.01				—				—				—				6				6
2009 Restructuring Charges (3)			0.04				9				11				3				1				24
Non-Cash Remeasurement of Income Tax Uncertainties and Reassessment of State Deferred Income Taxes (4)			(0.10	)			(38	)			(40	)			—				12				(66	)
2009 Adjusted (non-GAAP) Operating Earnings (Loss)			1.03				543				89				74				(23	)			683
Year Over Year Effects on Earnings:
Generation Energy Margins, Excluding Mark-to-Market:
Nuclear Output (5)			(0.01	)			(5	)			—				—				—				(5	)
Nuclear Fuel Costs (6)			(0.03	)			(18	)			—				—				—				(18	)
Market and Portfolio Conditions (7)			(0.01	)			(9	)			—				—				—				(9	)
ComEd and PECO Margins:
Weather			0.05				—				10				22				—				32
Load (8)			—				—				3				(1	)			—				2
Other Energy Delivery			—				—				4				(7	)			—				(3	)
Competitive Transition Charge (CTC) Recoveries (9)			—				(35	)			—				37				(2	)			—
Operating and Maintenance Expense:
Bad Debt (10)			0.01				1				1				5				—				7
Labor, Contracting and Materials (11)			(0.02	)			(12	)			2				(2	)			—				(12	)
Planned Nuclear Refueling Outages (12)			0.01				4				—				—				—				4
Other Operating and Maintenance (13)			(0.03	)			—				(8	)			(7	)			(6	)			(21	)
Pension and Non-Pension Postretirement Benefits (14)			—				(3	)			—				—				—				(3	)
Depreciation and Amortization Expense (15)			(0.02	)			(15	)			(3	)			(1	)			7				(12	)
Scheduled CTC Amortization Expense (16)			(0.04	)			—				—				(25	)			—				(25	)
Income Taxes (17)			0.02				14				(1	)			(1	)			2				14
Interest Expense (18)			0.02				(9	)			5				10				6				12
Other (19)			0.01				—				15				(7	)			2				10
2010 Adjusted (non-GAAP) Operating Earnings (Loss)			0.99				456				117				97				(14	)			656
2010 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
2007 Illinois Electric Rate Settlement			(0.01	)			(4	)			—				—				—				(4	)
Mark-to-Market Impact of Economic Hedging Activities			(0.11	)			(75	)			—				—				—				(75	)
Unrealized Losses Related to NDT Fund Investments (1)			(0.08	)			(53	)			—				—				—				(53	)
City of Chicago Settlement with ComEd			—				—				(2	)			—				—				(2	)
Retirement of Fossil Generating Units (20)			(0.02	)			(12	)			—				—				—				(12	)
Non-Cash Remeasurement of Income Tax Uncertainties (4)			(0.10	)			70				(106	)			(22	)			(7	)			(65	)
2010 GAAP Earnings (Loss)		$	0.67			$	382			$	9			$	75			$	(21	)		$	445

 

(1)	Reflects the impact of unrealized gains in 2009 and unrealized losses in 2010 on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(2)	Reflects external costs incurred associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009.

(3)	Reflects severance expense associated with the elimination of management and staff positions pursuant to Exelon’s ongoing cost savings program.

(4)

For 2009, reflects the impacts of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and a change in state deferred tax rates resulting from a reassessment of anticipated apportionment of Exelon’s income. For 2010, reflects the impact of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and related to CTCs received by PECO.

(5)	Primarily reflects the impact of increased planned nuclear outage days in the Mid-Atlantic region in 2010, including Salem.

(6)	Reflects the impact of higher nuclear fuel prices.

(7)	Reflects the impact of a decrease in realized market prices for the sale of energy, partially offset by favorable Reliability Pricing Model (RPM) capacity pricing.

(8)	Reflects the weather-normalized impact of increased electric deliveries of 1.8% at ComEd and decreased electric deliveries of 0.7% at PECO.

(9)	Reflects increased CTC revenues at PECO resulting in lower energy prices paid to Generation under the PPA, which expires December 31, 2010. Generation and PECO’s marginal tax rate differences are reflected at Exelon Corporate.

(10)	Primarily reflects decreased customer account charge-offs at PECO as a result of improved accounts receivable aging.

(11)	Primarily reflects the impact of inflation related to labor, contracting and materials expense (exclusive of planned nuclear refueling outages and incremental storm costs as disclosed in numbers 12 and 13 below), partially offset by Exelon’s ongoing cost savings program.

(12)	Primarily reflects the impact of decreased planned nuclear outage days in 2010, excluding Salem.

(13)	Primarily reflects increased storm costs in the ComEd and PECO service territories and increased nuclear refueling outage costs related to Generation’s ownership in Salem, partially offset by reduced stock-based compensation costs across the operating companies.

(14)	Primarily reflects the impact of a decrease in the assumed discount rate used in 2010 to calculate the pension and other postretirement benefit obligations.

(15)	Primarily reflects increased depreciation expense across the operating companies due to ongoing capital expenditures and the impact of a first quarter 2010 depreciation study at Generation.

(16)	Reflects increased scheduled amortization expense of CTCs at PECO, which will be fully amortized at the end of the transition period on December 31, 2010.

(17)	Primarily reflects an increase in Generation’s tax benefits associated with manufacturing deduction rate increases.

(18)	Primarily reflects lower interest expense at PECO and Exelon Corporate due to lower outstanding debt, partially offset by increased interest expense at Generation due to higher outstanding debt.

(19)	Primarily reflects projected refunds related to Illinois electric distribution taxes at ComEd.

(20)	Primarily reflects accelerated depreciation expense associated with the planned retirement of four fossil generating units.

 

9

---

Table of Contents

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Six Months Ended June 30, 2010 and 2009

 

		Exelon Earnings per Diluted Share				Generation				ComEd				PECO				Other				Exelon
2009 GAAP Earnings (Loss)		$	2.07			$	1,041			$	230			$	183			$	(85	)		$	1,369
2009 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
2007 Illinois Electric Rate Settlement			0.06				39				2				—				—				41
Mark-to-Market Impact of Economic Hedging Activities			(0.01	)			(7	)			—				—				—				(7	)
Unrealized Gains Related to NDT Fund Investments (1)			(0.05	)			(32	)			—				—				—				(32	)
NRG Acquisition Costs (2)			0.03				—				—				—				15				15
Impairment of Certain Generating Assets (3)			0.20				135				—				—				—				135
2009 Restructuring Charges (4)			0.04				9				11				3				1				24
Non-Cash Remeasurement of Income Tax Uncertainties and Reassessment of State Deferred Income Taxes (5)			(0.10	)			(38	)			(40	)			—				12				(66	)
2009 Adjusted (non-GAAP) Operating Earnings (Loss)			2.24				1,147				203				186				(57	)			1,479
Year Over Year Effects on Earnings:
Generation Energy Margins, Excluding Mark-to-Market:
Nuclear Output (6)			(0.05	)			(33	)			—				—				—				(33	)
Nuclear Fuel Costs (7)			(0.05	)			(35	)			—				—				—				(35	)
Market and Portfolio Conditions (8)			(0.07	)			(44	)			—				—				—				(44	)
ComEd and PECO Margins:
Weather			0.03				—				7				16				—				23
Load (9)			0.01				—				3				1				—				4
Other Energy Delivery			(0.02	)			—				(2	)			(13	)			—				(15	)
Competitive Transition Charge (CTC) Recoveries (10)			—				(64	)			—				70				(6	)			—
Operating and Maintenance Expense:
Bad Debt (11)			0.02				(1	)			3				12				—				14
Recovery of Prior Year Bad Debt Expense at ComEd (12)			0.06				—				36				—				—				36
Labor, Contracting and Materials (13)			0.01				(4	)			15				(1	)			—				10
Planned Nuclear Refueling Outages (14)			(0.04	)			(28	)			—				—				—				(28	)
Other Operating and Maintenance (15)			(0.02	)			7				(1	)			(15	)			(5	)			(14	)
Pension and Non-Pension Postretirement Benefits (16)			(0.01	)			(9	)			—				—				—				(9	)
Depreciation and Amortization Expense (17)			(0.05	)			(25	)			(8	)			(4	)			7				(30	)
Scheduled CTC Amortization Expense (18)			(0.08	)			—				—				(50	)			—				(50	)
Benefit From Illinois Tax Ruling (19)			(0.06	)			(9	)			(36	)			—				2				(43	)
Income Taxes (20)			0.02				—				(4	)			(1	)			21				16
Interest Expense (21)			0.02				(16	)			6				17				9				16
Other (22)			0.03				5				24				(10	)			3				22
2010 Adjusted (non-GAAP) Operating Earnings (Loss)			1.99				891				246				208				(26	)			1,319
2010 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
2007 Illinois Electric Rate Settlement			(0.01	)			(6	)			(1	)			—				—				(7	)
Mark-to-Market Impact of Economic Hedging Activities			0.10				67				—				—				—				67
Unrealized Losses Related to NDT Fund Investments (1)			(0.05	)			(33	)			—				—				—				(33	)
City of Chicago Settlement with ComEd			—				—				(2	)			—				—				(2	)
Retirement of Fossil Generating Units (23)			(0.03	)			(20	)			—				—				—				(20	)
Non-Cash Charge Resulting From Health Care Legislation (24)			(0.10	)			(26	)			(12	)			(10	)			(17	)			(65	)
Non-Cash Remeasurement of Income Tax Uncertainties (5)			(0.10	)			70				(106	)			(22	)			(7	)			(65	)
2010 GAAP Earnings (Loss)		$	1.80			$	943			$	125			$	176			$	(50	)		$	1,194

 

(1)	Reflects the impact of unrealized gains in 2009 and unrealized losses in 2010 on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(2)	Reflects external costs incurred associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009.

(3)	Reflects the impact of the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009.

(4)	Reflects severance expense associated with the elimination of management and staff positions pursuant to Exelon’s ongoing cost savings program.

(5)

For 2009, reflects the impacts of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating units and a reassessment of anticipated apportionment of Exelon’s income. For 2010, reflects the impact of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and related to CTCs received by PECO.

(6)	Primarily reflects the impact of increased planned nuclear outage days in 2010, including Salem, partially due to steam generator replacement at Three Mile Island.

(7)	Reflects the impact of higher nuclear fuel prices.

(8)	Reflects the impact of a decrease in realized market prices for the sale of energy, partially offset by favorable RPM capacity pricing.

(9)	Reflects the weather-normalized impact of increased electric deliveries of 0.5% at ComEd and increased gas deliveries of 2.2% at PECO.

(10)	Reflects increased CTC revenues at PECO resulting in lower energy prices paid to Generation under the PPA, which expires on December 31, 2010. Generation and PECO’s marginal tax rate differences are reflected at Exelon Corporate.

(11)	Primarily reflects decreased customer account charge-offs at PECO as a result of improved accounts receivable aging.

(12)	Reflects a credit for the recovery of 2008 and 2009 bad debt expense pursuant to the Illinois Commerce Commission’s February 2010 approval of a bad debt rider, partially offset by a contribution mandated by Illinois legislation.

(13)	Primarily reflects the impact of Exelon’s ongoing cost savings program, partially offset by inflation related to labor, contracting and materials expense (exclusive of planned nuclear refueling outages and incremental storm costs as disclosed in numbers 14 and 15 below).

(14)	Primarily reflects the impact of increased planned nuclear outage days in 2010, excluding Salem, partially due to steam generator replacement at Three Mile Island.

(15)

Primarily reflects increased storm costs in the ComEd and PECO service territories and increased nuclear refueling outage costs related to Generation’s ownership interest in Salem, partially offset by reduced stock-based compensation costs across the operating companies and the impact of Exelon’s ongoing cost savings program.

(16)	Primarily reflects the impact of a decrease in the assumed discount rate used in 2010 to calculate the pension and other postretirement benefit obligations.

(17)	Primarily reflects increased depreciation expense across the operating companies due to ongoing capital expenditures and the impact of a first quarter 2010 depreciation study at Generation.

(18)	Reflects increased scheduled amortization expense of CTCs at PECO, which will be fully amortized at the end of the transition period on December 31, 2010.

(19)	Reflects the impact of benefits associated with a February 2009 Illinois Supreme Court decision granting Illinois investment tax credits to Exelon recognized in the first quarter of 2009, which were subsequently reversed in the third quarter of 2009.

(20)	Primarily reflects an increase in Generation’s tax benefits associated with manufacturing deduction rate increases, partially offset by the 2009 impact of tax planning opportunities.

(21)	Primarily reflects lower interest expense at PECO and Exelon Corporate due to lower outstanding debt, partially offset by higher interest expense at Generation due to higher outstanding debt.

(22)	Primarily reflects projected refunds related to Illinois electric distribution taxes at ComEd and realized gains associated with NDT funds at Generation as a result of favorable market conditions in 2010, partially offset by increased taxes other than income at Generation and PECO.

(23)	Primarily reflects accelerated depreciation expense associated with the planned retirement of four fossil generating units.

(24)	Reflects a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D.

 

10

---

Table of Contents

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)

 

		Generation
		Three Months Ended June 30, 2010												Three Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	2,353			$	7	(b)		$	2,360			$	2,378			$	30	(b)		$	2,408
Operating expenses
Purchased power			549				(150	)(c)			399				485				(161	)(c)			324
Fuel			350				26	(c)			376				406				(13	)(c)			393
Operating and maintenance			691				—				691				689				(15	)(g)			674
Depreciation and amortization			115				(19	)(d)			96				72				—				72
Taxes other than income			61				—				61				50				—				50
Total operating expenses			1,766				(143	)			1,623				1,702				(189	)			1,513
Operating income			587				150				737				676				219				895
Other income and deductions
Interest expense			(37	)			—				(37	)			(24	)			—				(24	)
Other, net			(133	)			157	(e)			24				215				(202	)(e),(h)			13
Total other income and deductions			(170	)			157				(13	)			191				(202	)			(11	)
Income before income taxes			417				307				724				867				17				884
Income taxes			35				233	(b),(c),(d),(e),(f)			268				355				(14	)(b),(c),(e),(g),(h)			341
Net income		$	382			$	74			$	456			$	512			$	31			$	543
		Six Months Ended June 30, 2010												Six Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	4,773			$	9	(b)		$	4,782			$	4,979			$	63	(b)		$	5,042
Operating expenses
Purchased power			757				35	(c)			792				660				40	(c)			700
Fuel			740				74	(c)			814				915				(28	)(c)			887
Operating and maintenance			1,432				(2	)(d),(i)			1,430				1,617				(238	)(g),(j)			1,379
Depreciation and amortization			223				(35	)(d)			188				149				—				149
Taxes other than income			118				—				118				100				—				100
Total operating expenses			3,270				72				3,342				3,441				(226	)			3,215
Operating income			1,503				(63	)			1,440				1,538				289				1,827
Other income and deductions
Interest expense			(72	)			—				(72	)			(52	)			—				(52	)
Loss in equity method investments			—				—				—				(1	)			—				(1	)
Other, net			(54	)			99	(e)			45				133				(106	)(e),(h)			27
Total other income and deductions			(126	)			99				(27	)			80				(106	)			(26	)
Income before income taxes			1,377				36				1,413				1,618				183				1,801
Income taxes			434				88	(b),(c),(d),(e),(f),(i)			522				577				77	(b),(c),(e),(g),(h),(j)			654
Net income		$	943			$	(52	)		$	891			$	1,041			$	106			$	1,147

 

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude the impact of the 2007 Illinois electric rate settlement.

(c)	Adjustment to exclude the mark-to-market impact of Generation’s economic hedging activities.

(d)	Adjustment to exclude costs associated with the planned retirement of fossil generating units.

(e)	Adjustment to exclude the unrealized losses in 2010 and unrealized gains in 2009 associated with Generation’s NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(f)	Adjustment to exclude a 2010 remeasurement of income tax uncertainties.

(g)	Adjustment to exclude 2009 restructuring charges.

(h)	Adjustment to exclude a change in state deferred income taxes.

(i)	Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D.

(j)	Adjustment to exclude the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009.

 

11

---

Table of Contents

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)

 

		ComEd
		Three Months Ended June 30, 2010												Three Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	1,499			$	3	(c)		$	1,502			$	1,389			$	2	(e)		$	1,391
Operating expenses
Purchased power			771				—				771				715				—				715
Operating and maintenance			276				—				276				270				(20	)(e),(f)			250
Operating and maintenance for regulatory required programs (b)			21				—				21				14				—				14
Depreciation and amortization			131				—				131				124				—				124
Taxes other than income			44				—				44				57				—				57
Total operating expenses			1,243				—				1,243				1,180				(20	)			1,160
Operating income			256				3				259				209				22				231
Other income and deductions
Interest expense			(134	)			59	(d)			(75	)			(75	)			(6	)(d)			(81	)
Other, net			8				—				8				55				(60	)(d)			(5	)
Total other income and deductions			(126	)			59				(67	)			(20	)			(66	)			(86	)
Income before income taxes			130				62				192				189				(44	)			145
Income taxes			121				(46	)(c),(d)			75				73				(17	)(d),(e),(f)			56
Net income		$	9			$	108			$	117			$	116			$	(27	)		$	89
		Six Months Ended June 30, 2010												Six Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	2,914			$	4	(c),(e)		$	2,918			$	2,942			$	2	(e)		$	2,944
Operating expenses
Purchased power			1,524				—				1,524				1,598				—				1,598
Operating and maintenance			435				(3	)(g)			432				522				(20	)(e),(f)			502
Operating and maintenance for regulatory required programs (b)			40				—				40				25				—				25
Depreciation and amortization			261				—				261				246				—				246
Taxes other than income			107				—				107				136				—				136
Total operating expenses			2,367				(3	)			2,364				2,527				(20	)			2,507
Operating income			547				7				554				415				22				437
Other income and deductions
Interest expense			(218	)			59	(d)			(159	)			(159	)			(6	)(d)			(165	)
Other, net			11				—				11				87				(60	)(d)			27
Total other income and deductions			(207	)			59				(148	)			(72	)			(66	)			(138	)
Income before income taxes			340				66				406				343				(44	)			299
Income taxes			215				(55	)(c),(d),(e),(g)			160				113				(17	)(d),(e),(f)			96
Net income		$	125			$	121			$	246			$	230			$	(27	)		$	203

 

(a)	Results reported in accordance with GAAP.

(b)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues.

(c)	Adjustment to exclude the costs associated with ComEd’s 2007 settlement agreement with the City of Chicago.

(d)	Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties.

(e)	Adjustment to exclude the impact of the 2007 Illinois electric rate settlement.

(f)	Adjustment to exclude 2009 structuring charges.

(g)	Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D.

 

12

---

Table of Contents

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)

 

		PECO
		Three Months Ended June 30, 2010												Three Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	1,269			$	—			$	1,269			$	1,204			$	—			$	1,204
Operating expenses
Purchased power			535				—				535				547				—				547
Fuel			44				—				44				55				—				55
Operating and maintenance			150				—				150				149				(5	)(d)			144
Operating and maintenance for regulatory required programs (b)			13				—				13				—				—				—
Depreciation and amortization			268				—				268				230				—				230
Taxes other than income			77				—				77				69				—				69
Total operating expenses			1,087				—				1,087				1,050				(5	)			1,045
Operating income			182				—				182				154				5				159
Other income and deductions
Interest expense			(77	)			36	(c)			(41	)			(49	)			—				(49	)
Loss in equity method investments			—				—				—				(6	)			—				(6	)
Other, net			(1	)			2	(c)			1				3				—				3
Total other income and deductions			(78	)			38				(40	)			(52	)			—				(52	)
Income before income taxes			104				38				142				102				5				107
Income taxes			29				16	(c)			45				31				2	(d)			33
Net income		$	75			$	22			$	97			$	71			$	3			$	74
		Six Months Ended June 30, 2010												Six Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	2,724			$	—			$	2,724			$	2,718			$	—			$	2,718
Operating expenses
Purchased power			1,059				—				1,059				1,116				—				1,116
Fuel			255				—				255				321				—				321
Operating and maintenance			331				(2	)(e)			329				327				(5	)(d)			322
Operating and maintenance for regulatory required programs (b)			21				—				21				—				—				—
Depreciation and amortization			533				—				533				455				—				455
Taxes other than income			150				—				150				135				—				135
Total operating expenses			2,349				(2	)			2,347				2,354				(5	)			2,349
Operating income			375				2				377				364				5				369
Other income and deductions
Interest expense			(122	)			36	(c)			(86	)			(99	)			—				(99	)
Loss in equity method investments			—				—				—				(12	)			—				(12	)
Other, net			4				2	(c)			6				6				—				6
Total other income and deductions			(118	)			38				(80	)			(105	)			—				(105	)
Income before income taxes			257				40				297				259				5				264
Income taxes			81				8	(c),(e)			89				76				2	(d)			78
Net income		$	176			$	32			$	208			$	183			$	3			$	186

 

(a)	Results reported in accordance with GAAP.

(b)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues.

(c)	Adjustment to exclude a 2010 remeasurement of income tax uncertainties.

(d)	Adjustment to exclude 2009 restructuring charges.

(e)	Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D.

 

13

---

Table of Contents

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)

 

		Other
		Three Months Ended June 30, 2010												Three Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	(723	)		$	—			$	(723	)		$	(830	)		$	—			$	(830	)
Operating expenses
Purchased power			(721	)			—				(721	)			(826	)			—				(826	)
Fuel			(1	)			—				(1	)			(1	)			—				(1	)
Operating and maintenance			(3	)			—				(3	)			3				(14	)(c),(d)			(11	)
Depreciation and amortization			5				—				5				13				—				13
Taxes other than income			4				—				4				4				—				4
Total operating expenses			(716	)			—				(716	)			(807	)			(14	)			(821	)
Operating loss			(7	)			—				(7	)			(23	)			14				(9	)
Other income and deductions
Interest expense			(27	)			8	(b)			(19	)			(32	)			15	(b)			(17	)
Other, net			4				—				4				(16	)			10	(b)			(6	)
Total other income and deductions			(23	)			8				(15	)			(48	)			25				(23	)
Loss before income taxes			(30	)			8				(22	)			(71	)			39				(32	)
Income taxes			(9	)			1	(b)			(8	)			(29	)			20	(b),(c),(d)			(9	)
Net loss		$	(21	)		$	7			$	(14	)		$	(42	)		$	19			$	(23	)
		Six Months Ended June 30, 2010												Six Months Ended June 30, 2009
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	(1,552	)		$	—			$	(1,552	)		$	(1,776	)		$	—			$	(1,776	)
Operating expenses
Purchased power			(1,548	)			—				(1,548	)			(1,770	)			—				(1,770	)
Fuel			(1	)			—				(1	)			—				—				—
Operating and maintenance			(23	)			8	(e)			(15	)			6				(28	)(c),(d)			(22	)
Depreciation and amortization			16				—				16				25				—				25
Taxes other than income			8				—				8				9				—				9
Total operating expenses			(1,548	)			8				(1,540	)			(1,730	)			(28	)			(1,758	)
Operating loss			(4	)			(8	)			(12	)			(46	)			28				(18	)
Other income and deductions
Interest expense			(47	)			8	(b)			(39	)			(57	)			15	(b)			(42	)
Loss in equity method investments			—				—				—				(1	)			—				(1	)
Other, net			10				—				10				(7	)			10	(b)			3
Total other income and deductions			(37	)			8				(29	)			(65	)			25				(40	)
Loss before income taxes			(41	)			—				(41	)			(111	)			53				(58	)
Income taxes			9				(24	)(b),(e)			(15	)			(26	)			25	(b),(c),(d)			(1	)
Net loss		$	(50	)		$	24			$	(26	)		$	(85	)		$	28			$	(57	)

 

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties and a 2009 change in state deferred income taxes.

(c)	Adjustment to exclude external costs associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009.

(d)	Adjustment to exclude 2009 restructuring charges.

(e)	Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D.

 

14

---

Table of Contents

EXELON CORPORATION

Exelon Generation Statistics

 

		Three Months Ended
		Jun. 30, 2010				Mar. 31, 2010				Dec. 31, 2009				Sept. 30, 2009				Jun. 30, 2009
Supply (in GWhs)
Nuclear Generation
Mid-Atlantic (a)			11,691				11,776				11,137				12,349				12,276
Midwest			23,344				22,333				22,472				23,335				22,719
Total Nuclear Generation			35,035				34,109				33,609				35,684				34,995
Fossil and Hydro Generation
Mid-Atlantic (b)			2,175				2,564				1,986				2,044				2,279
Midwest			7				—				—				—				3
South			310				119				48				645				419
Total Fossil and Hydro Generation			2,492				2,683				2,034				2,689				2,701
Purchased Power
Mid-Atlantic			414				463				342				531				372
Midwest			1,568				1,914				1,991				1,923				1,673
South			2,695				2,701				2,851				4,215				3,231
Total Purchased Power			4,677				5,078				5,184				6,669				5,276
Total Supply by Region
Mid-Atlantic			14,280				14,803				13,465				14,924				14,927
Midwest			24,919				24,247				24,463				25,258				24,395
South			3,005				2,820				2,899				4,860				3,650
			42,204				41,870				40,827				45,042				42,972
		Three Months Ended
		Jun. 30, 2010				Mar. 31, 2010				Dec. 31, 2009				Sept. 30, 2009				Jun. 30, 2009
Electric Sales (in GWhs)
ComEd (e)			1,895				3,428				3,439				3,639				4,215
PECO			10,044				10,228				9,588				10,809				9,277
Market and Retail (e)			30,265				28,214				27,800				30,594				29,480
Total Electric Sales (c)(d)			42,204				41,870				40,827				45,042				42,972
Average Margin ($/MWh) (f)
Mid-Atlantic		$	40.83			$	41.41			$	43.15			$	41.47			$	45.76
Midwest			40.78				41.00				41.98				40.94				41.73
South			(14.31	)			(16.67	)			(14.49	)			(3.50	)			(6.85	)
Average Margin - Overall Portfolio		$	36.87			$	37.26			$	38.36			$	36.32			$	38.96
Around-the-clock Market Prices ($/MWh) (g)
PJM West Hub		$	43.21			$	44.54			$	37.31			$	33.20			$	33.70
NiHub			32.35				34.47				29.61				25.69				26.11
Henry Hub			4.30				5.15				4.25				3.15				3.69

 

(a)	Includes Generation’s proportionate share of the output of its nuclear generating plants, including Salem.

(b)	Includes New England generation.

(c)	Excludes retail gas activity, trading portfolio and other operating revenue.

(d)	Total sales do not include trading volume of 889 GWhs, 920 GWhs, 1,599 GWhs, 1,645 GWhs and 2,003 GWhs for the three months ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively.

(e)

ComEd line item represents sales under the 2006 ComEd Auction. Settlements of the ComEd swap and sales under the Request for Proposal (RFP) have been excluded from ComEd and included in Market and Retail sales. In addition, renewable energy credit sales to affiliates have been included within Market and Retail sales.

(f)	Excludes the mark-to-market impact of Generation’s economic hedging activities.

(g)	Represents the average for the quarter. Henry Hub prices denominated in $/mmbtu.

 

15

---

Table of Contents

EXELON CORPORATION

Exelon Generation Statistics

Six Months Ended June 30, 2010 and 2009

 

		June 30, 2010				June 30, 2009
Supply (in GWhs)
Nuclear Generation
Mid-Atlantic (a)			23,467				24,380
Midwest			45,677				45,997
Total Nuclear Generation			69,144				70,377
Fossil and Hydro Generation
Mid-Atlantic (b)			4,739				4,908
Midwest			7				4
South			429				554
Total Fossil and Hydro Generation			5,175				5,466
Purchased Power
Mid-Atlantic			877				873
Midwest			3,482				3,825
South			5,396				6,655
Total Purchased Power			9,755				11,353
Total Supply by Region
Mid-Atlantic			29,083				30,161
Midwest			49,166				49,826
South			5,825				7,209
			84,074				87,196
		June 30, 2010				June 30, 2009
Electric Sales (in GWhs)
ComEd (e)			5,323				9,752
PECO			20,272				19,500
Market and Retail (e)			58,479				57,944
Total Electric Sales (c)(d)			84,074				87,196
Average Margin ($/MWh) (f)
Mid-Atlantic		$	41.14			$	45.65
Midwest			40.88				41.95
South			(15.62	)			(8.04	)
Average Margin - Overall Portfolio		$	37.06			$	39.09
Around-the-clock Market Prices ($/MWh) (g)
PJM West Hub		$	43.87			$	41.40
NiHub			33.40				30.07
Henry Hub			4.73				4.13

 

(a)	Includes Generation’s proportionate share of the output of its nuclear generating plants, including Salem.

(b)	Includes New England generation.

(c)	Excludes retail gas activity, trading portfolio and other operating revenue.

(d)	Total sales do not include trading volume of 1,808 GWhs and 4,334 GWhs for the six months ended June 30, 2010 and 2009, respectively.

(e)	ComEd line item represents sales under the 2006 ComEd Auction. Settlements of the ComEd swap and sales under the RFP have been excluded from ComEd and included in Market and Retail sales. In addition, renewable energy credit sales to affiliates have been included within Market and Retail sales.

(f)	Excludes the mark-to-market impact of Generation’s economic hedging activities.

(g)	Represents the average for the six months ended June 30, 2010 and 2009, respectively. Henry Hub prices denominated in $/mmbtu.

 

16

---

Table of Contents

EXELON CORPORATION

ComEd Statistics

Three Months Ended June 30, 2010 and 2009

 

		Electric Deliveries (in GWhs)										Revenue (in millions)
		2010		2009		% Change			Weather-Normal % Change			2010				2009			% Change
Retail Deliveries and Sales (a)
Residential		6,474		6,032		7.3	%		1.6	%		$	829			$	731		13.4	%
Small Commercial & Industrial		7,935		7,739		2.5	%		(0.1	)%			415				411		1.0	%
Large Commercial & Industrial		6,825		6,468		5.5	%		4.3	%			100				93		7.5	%
Public Authorities & Electric Railroads		277		275		0.7	%		1.0	%			16				14		14.3	%
Total Retail		21,511		20,514		4.9	%		1.8	%			1,360				1,249		8.9	%
Other Revenue (b)													139				140		(0.7	)%
Total Electric Revenue												$	1,499			$	1,389		7.9	%
Purchased Power												$	771			$	715		7.8	%
Heating and Cooling Degree-Days									% Change
		2010		2009		Normal			From 2009			From Normal
Heating Degree-Days		519		768		766			(32.4	)%			(32.2	)%
Cooling Degree-Days		312		177		224			76.3	%			39.3	%

Six Months Ended June 30, 2010 and 2009

 

		Electric Deliveries (in GWhs)										Revenue (in millions)
		2010		2009		% Change			Weather-Normal % Change			2010				2009			% Change
Retail Deliveries and Sales (a)
Residential		13,417		13,095		2.5	%		0.8	%		$	1,606			$	1,577		1.8	%
Small Commercial & Industrial		15,864		15,889		(0.2	)%		(0.9	)%			804				860		(6.5	)%
Large Commercial & Industrial		13,488		13,242		1.9	%		1.6	%			197				192		2.6	%
Public Authorities & Electric Railroads		645		621		3.9	%		5.5	%			33				29		13.8	%
Total Retail		43,414		42,847		1.3	%		0.5	%			2,640				2,658		(0.7	)%
Other Revenue (b)													274				284		(3.5	)%
Total Electric Revenue												$	2,914			$	2,942		(1.0	)%
Purchased Power												$	1,524			$	1,598		(4.6	)%
Heating and Cooling Degree-Days									% Change
		2010		2009		Normal			From 2009			From Normal
Heating Degree-Days		3,629		4,088		3,974			(11.2	)%			(8.7	)%
Cooling Degree-Days		312		177		224			76.3	%			39.3	%
Number of Electric Customers		2010		2009
Residential		3,432,466		3,423,387
Small Commercial & Industrial		361,326		358,897
Large Commercial & Industrial		1,982		2,033
Public Authorities & Electric Railroads		5,072		5,034
Total		3,800,846		3,789,351

 

(a)

Reflects delivery volumes and revenues from customers purchasing electricity directly from ComEd and customers electing to receive electric generation services from a competitive electric generation supplier. All customers are assessed charges for delivery. For customers purchasing electricity from ComEd, revenue also reflects the cost of energy.

(b)	Other revenue primarily includes transmission revenue from PJM Interconnection, LLC (PJM). Other items include late payment charges and mutual assistance program revenues.

 

17

---

Table of Contents

EXELON CORPORATION

PECO Statistics

Three Months Ended June 30, 2010 and 2009

 

		Electric and Gas Deliveries										Revenue (in millions)
		2010		2009		% Change			Weather- Normal % Change			2010				2009			% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		3,118		2,764		12.8	%		(2.3	)%		$	489			$	416		17.5	%
Small Commercial & Industrial		2,027		2,013		0.7	%		(5.1	)%			271				260		4.2	%
Large Commercial & Industrial		4,156		3,878		7.2	%		2.6	%			337				338		(0.3	)%
Public Authorities & Electric Railroads		225		222		1.4	%		1.2	%			24				22		9.1	%
Total Retail		9,526		8,877		7.3	%		(0.7	)%			1,121				1,036		8.2	%
Other Revenue (b)													59				67		(11.9	)%
Total Electric Revenue													1,180				1,103		7.0	%
Gas (in mmcfs)
Retail Sales		5,973		7,136		(16.3	)%		1.6	%			81				95		(14.7	)%
Transportation and Other		6,540		6,105		7.1	%		(3.0	)%			8				6		33.3	%
Total Gas		12,513		13,241		(5.5	)%		(0.5	)%			89				101		(11.9	)%
Total Electric and Gas Revenues												$	1,269			$	1,204		5.4	%
Purchased Power												$	535			$	547		(2.2	)%
Fuel													44				55		(20.0	)%
Total Purchased Power and Fuel												$	579			$	602		(3.8	)%
Heating and Cooling Degree-Days									% Change
		2010		2009		Normal			From 2009			From Normal
Heating Degree-Days		299		414		458			(27.8	%)			(34.7	%)
Cooling Degree-Days		586		352		332			66.5	%			76.5	%

Six Months Ended June 30, 2010 and 2009

 

		Electric and Gas Deliveries										Revenue (in millions)
		2010		2009		% Change			Weather- Normal % Change			2010				2009			% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential		6,645		6,299		5.5	%		(0.0	)%		$	962			$	882		9.1	%
Small Commercial & Industrial		4,177		4,209		(0.8	)%		(2.9	)%			519				510		1.8	%
Large Commercial & Industrial		7,950		7,669		3.7	%		1.4	%			661				657		0.6	%
Public Authorities & Electric Railroads		471		469		0.4	%		0.4	%			47				45		4.4	%
Total Retail		19,243		18,646		3.2	%		(0.1	)%			2,189				2,094		4.5	%
Other Revenue (b)													120				135		(11.1	)%
Total Electric Revenue													2,309				2,229		3.6	%
Gas (in mmcfs)
Retail Sales		33,557		35,750		(6.1	)%		1.4	%			399				475		(16.0	)%
Transportation and Other		15,157		13,983		8.4	%		4.1	%			16				14		14.3	%
Total Gas		48,714		49,733		(2.0	)%		2.2	%			415				489		(15.1	)%
Total Electric and Gas Revenues												$	2,724			$	2,718		0.2	%
Purchased Power												$	1,059			$	1,116		(5.1	)%
Fuel													255				321		(20.6	)%
Total Purchased Power and Fuel												$	1,314			$	1,437		(8.6	)%
Heating and Cooling Degree-Days									% Change
		2010		2009		Normal			From 2009			From Normal
Heating Degree-Days		2,710		2,948		2,968			(8.1	%)			(8.7	%)
Cooling Degree-Days		586		352		332			66.5	%			76.5	%
Number of Electric Customers		2010		2009		Number of Gas Customers						2010				2009
Residential		1,406,014		1,402,515		Residential							446,236				443,872
Small Commercial & Industrial		156,423		155,970		Commercial & Industrial							40,944				41,008
Large Commercial & Industrial		3,093		3,089		Total Retail							487,180				484,880
Public Authorities & Electric Railroads		1,081		1,085		Transportation							805				755
Total		1,566,611		1,562,659		Total							487,985				485,635

 

(a)

Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers electing to receive electric generation service from a competitive electric generation supplier. All customers are assessed charges for transmission, distribution and a CTC. For customers purchasing electricity from PECO, revenue also reflects the cost of energy.

(b)	Other revenue includes transmission revenue from PJM, wholesale revenue and other wholesale energy sales.

 

18