Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE - EXELON GENERATION CO LLC | dex991.htm |
| 8-K - FORM 8-K - EXELON GENERATION CO LLC | d8k.htm |
 Exelon and
Constellation Energy Announce Merger April 28, 2011
Creating a Clean, Competitive Future
EXHIBIT 99.2 |
 Cautionary
Statements Regarding Forward-Looking Information
1
Except for the historical information contained herein, certain of the matters discussed in this
communication constitute “forward-looking statements” within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private
Securities Litigation Reform Act of 1995. Words such as “may,” “will,”
“anticipate,” “estimate,” “expect,” “project,”
“intend,” “plan,” “believe,” “target,” “forecast,” and words and terms of
similar substance used in connection with any discussion of future plans, actions, or events identify
forward-looking statements. These forward-looking statements include, but are not
limited to, statements regarding benefits of the proposed merger, integration plans and
expected synergies, the expected timing of completion of the transaction, anticipated future
financial and operating performance and results, including estimates for growth. These statements
are based on the current expectations of management of Exelon Corporation (Exelon) and Constellation
Energy Group, Inc. (Constellation), as applicable. There are a number of risks and
uncertainties that could cause actual results to differ materially from the forward-looking
statements included in this communication. For example, (1) the companies may be unable to
obtain shareholder approvals required for the merger; (2) the companies may be unable to obtain
regulatory approvals required for the merger, or required regulatory approvals may delay the merger
or result in the imposition of conditions that could have a material adverse effect on the combined
company or cause the companies to abandon the merger; (3) conditions to the closing of the
merger may not be satisfied; (4) an unsolicited offer of another company to acquire assets or
capital stock of Exelon or Constellation could interfere with the merger; (5) problems may
arise in successfully integrating the businesses of the companies, which may result in the
combined company not operating as effectively and efficiently as expected; (6) the combined company may be
unable to achieve cost-cutting synergies or it may take longer than expected to achieve those
synergies; (7) the merger may involve unexpected costs, unexpected liabilities or unexpected
delays, or the effects of purchase accounting may be different from the companies’
expectations; (8) the credit ratings of the combined company or its subsidiaries may be
different from what the companies expect; (9) the businesses of the companies may suffer as a
result of uncertainty surrounding the merger; |
 2
Cautionary Statements Regarding Forward-Looking
Information (Continued)
(10) the companies may not realize the values expected to be obtained for properties expected or
required to be divested; (11) the industry may be subject to future regulatory or legislative
actions that could adversely affect the companies; and (12) the companies may be adversely
affected by other economic, business, and/or competitive factors. Other unknown or
unpredictable factors could also have material adverse effects on future results, performance
or achievements of the combined company. Discussions of some of these other important factors and
assumptions are contained in Exelon’s and Constellation’s respective filings with the
Securities and Exchange Commission (SEC), and available at the SEC’s website at
www.sec.gov, including: (1) Exelon’s 2010 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 Quarterly Report on Form 10-Q for the quarterly period ended March
31, 2011 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) Constellation’s 2010 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b)
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 12. These risks,
as well as other risks associated with the proposed merger, will be more fully discussed in the
joint proxy statement/prospectus that will be included in the Registration Statement on Form S-4
that Exelon will file with the SEC in connection with the proposed merger. In light of these
risks, uncertainties, assumptions and factors, the forward-looking events discussed in this
communication may not occur. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this communication. Neither
Exelon nor Constellation undertake any obligation to publicly release any revision to its
forward-looking statements to reflect events or circumstances after the date of this
communication. |
 Additional
Information and Where to Find it 3
This communication does not constitute an offer to sell or the solicitation of an offer to buy any
securities, or a solicitation of any vote or approval, nor shall there be any sale of
securities in any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such jurisdiction. Exelon intends to
file with the SEC a registration statement on Form S-4 that will include a joint proxy
statement/prospectus and other relevant documents to be mailed by Exelon and Constellation to
their respective security holders in connection with the proposed merger of Exelon and
Constellation. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION about Exelon, Constellation and the proposed merger.
Investors and security holders will be able to obtain these materials (when they are available) and
other documents filed with the SEC free of charge at the SEC's website, www.sec.gov. In
addition, a copy of the joint proxy statement/prospectus (when it becomes available) may be
obtained free of charge from Exelon Corporation, Investor Relations, 10 South Dearborn Street,
P.O. Box 805398, Chicago, Illinois 60680-5398, or from Constellation Energy Group, Inc.,
Investor Relations, 100 Constellation Way, Suite 600C, Baltimore, MD 21202. Investors and security
holders may also read and copy any reports, statements and other information filed by Exelon, or
Constellation, with the SEC, at the SEC public reference room at 100 F Street, N.E.,
Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit the
SEC’s website for further information on its public reference room.
Participants in the Merger Solicitation Exelon, Constellation, and their respective directors, executive officers and certain other members of
management and employees may be deemed to be participants in the solicitation of proxies in
respect of the proposed transaction. Information regarding Exelon’s directors and
executive officers is available in its proxy statement filed with the SEC by Exelon on March
24, 2011 in connection with its 2011 annual meeting of shareholders, and information regarding
Constellation’s directors and executive officers is available in its proxy statement filed with
the SEC by Constellation on April 15, 2011 in connection with its 2011 annual meeting of
shareholders. Other information regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security holdings or otherwise, will be
contained in the joint proxy statement/prospectus and other relevant materials to be filed with the
SEC when they become available.
|
 Agenda
Transaction Overview and
Exelon Strategic Rationale
John Rowe
Exelon Chairman and CEO
Constellation Strategic Rationale
and Execution Timeline
Mayo Shattuck
Constellation Chairman,
President and CEO
Combined Company Profile
and Financial Summary
Chris Crane
Exelon President and COO
Q&A Session
4 |
 Exelon’s
Consistent View on M&A •
“When we look, we look first at the financial returns; second at how we can do it
consistent with maintaining our investment grade rating; third, whether it diversifies
our own risks; and we're just very bloody careful, like we have been for a very long
time.”
–
Exelon Third Quarter 2010 Earnings Conference call
•
“We remain very value-driven. We always look. We stay oriented toward cleaner
fleets, rather than less clean fleets. But we believe that this is an industry where you
need consolidation, but to make it make sense for investors, it has to be earnings
accretive in relatively early time periods, and it has to be consistent with our need to
maintain investment grade credit ratings.”
–
Exelon Second Quarter 2010 Earnings
Conference call
•
“We place a very high value on who we are and what we have. And we don't want to
give up too much of our upside…just to buy us a little more safety over the next year
or two. So with us, it's all about numbers.”
–
John Rowe, June 2010 Bernstein
Strategic Decisions Conference
5 |
 Creating Value
Through a Strategic Merger •
Delivers financial benefits to both sets of shareholders
•
Increases scale and scope of the business across the value chain
•
Matches the industry’s premier clean merchant generating fleet with the
leading retail and wholesale customer platform
•
Diversifies the generation portfolio
•
Continued upside to power market recovery
•
Maintains a strong regulated earnings profile with large urban utilities
Combining Exelon’s generation fleet and Constellation’s customer-facing
businesses creates a strong platform for growth and delivers benefits to
investors and customers
6 |
 •
$7 billion
•
$11
billion
•
11,430 (Total)
•
1,921(Nuclear)
•
1.2 mil. (MD)
•
0.7 mil. (MD)
•
38 states & D.C.
(5)
•
~106 TWh/yr
•
15% Generation
•
50% Utility
•
35% NewEnergy
Combination Will Result in Enhanced Scale,
Scope, Flexibility and Financial Strength
(1) Market Value as of 4/27/11. Enterprise Value represents Market Value plus
Net Debt as of 3/31/11 for Exelon and 12/31/10 for Constellation.
(2) Data as of 12/31/10. Constellation data includes 2,950 MW for Boston
Generation assets and excludes 550 MW for Quail Run. (3) Net of market
mitigation assumed to be 2,648 MW. (4) Represents
2011
booked
electric
sales.
Exelon
load
includes
ComEd
swap.
(5) Competitive and wholesale business also active in Alberta and Ontario,
Canada. (6) Exelon
EBITDA
estimates
per
equity
research.
Constellation
EBITDA
estimates
per
company
guidance.
Market Value and
Enterprise
Value
(1)
Pro forma
Standalone
Owned
Generation
(in MW)
(2)
Regulated
Utilities
Competitive
Retail &
Wholesale
(4)
Business
Mix
(6)
•
$27 billion
•
$41 billion
•
25,619 (Total)
•
17,047(Nuclear)
Electric customers
•
5.4 mil. (IL, PA)
Gas customers
•
0.5 mil. (PA)
•
4 states
•
~59
TWh/yr
2012E EBITDA
•
51% Generation
•
49% Utilities
•
$34 billion
•
$52 billion
•
38 states & D.C.
(5)
•
~165
TWh energy sales
•
Expect >50% pro forma EBITDA
from competitive business
•
34,401 (Total)
(3)
•
18,968 (Nuclear)
•
6.6 million electric & gas customers
in IL, PA and MD
7 |
 Transaction
Overview •
100%
stock
–
0.930
shares
of
EXC
for
each
share
of
CEG
•
Upfront
transaction
premium
of
18.1%
(1)
•
$2.10 per share Exelon dividend maintained
•
Expect to close in early 1Q 2012
•
Exelon and Constellation shareholder approvals in 3Q 2011
•
Regulatory approvals including FERC, DOJ, MD, NY, TX
•
Executive Chairman: Mayo Shattuck
•
President and CEO: Chris Crane
•
Board of Directors: 16 total (12 from Exelon, 4 from Constellation)
•
Exelon Corporation
•
78% Exelon shareholders
•
22% Constellation shareholders
•
Corporate headquarters: Chicago, IL
•
Constellation headquarters: Baltimore, MD
•
No change to utilities’
headquarters
•
Significant employee presence maintained in IL, PA and MD
Company Name
Consideration
Pro Forma
Ownership
Headquarters
Governance
Approvals &
Timing
(1) Based on the 30-day average Exelon and Constellation closing stock
prices as of April 27, 2011. 8 |
 Exelon
Transaction Rationale •
Increases
geographic
diversity
of
generation,
load
and
customers
in
competitive
markets
This transaction meets all of our M&A criteria and can be executed
Shared
Commitment to
Competitive
Markets
Enhances
Scalable Growth
Platform
Creates
Shareholder
Value
•
Expands a valuable channel to market our generation
•
Enhances margins in the competitive portfolio
•
Diversifies portfolio across the value chain
•
EPS break-even in 2012 and accretive by +5% in 2013
•
Maintains strong credit profile and financial discipline
•
Maintains earnings upside to future environmental regulations and power market
recovery
•
Adds stability to earnings and cash flow
9
•
Adds mix of clean generation to the portfolio
Clean
Generation Fleet |
 Constellation
Transaction Rationale •
Upfront
premium
of
18.1%
(1)
•
Dividend accretion of 103% post-closing
•
Enhances upside to power market recovery and synergies
The transaction creates financial and strategic value that is consistent with
Constellation’s existing strategy
Creates
Shareholder
Value
•
Creates balance sheet capacity to pursue growth opportunities
throughout the competitive portfolio
•
Reduces cost of capital
Balance Sheet
Strength
Complementary
Portfolios
•
Advances
strategy of matching load with physical generation in key
competitive markets
•
Lowers collateral costs of competitive businesses
10
(1) Based on the 30-day average Exelon and Constellation closing stock
prices as of April 27, 2011. |
 This
Combination Is Good for Maryland •
Maintains employee presence and platform for growth in Maryland
–
Exelon’s Power Team will be combined with Constellation’s wholesale and
retail business
under
the
Constellation
brand
and
will
be
headquartered
in
Baltimore
–
Constellation and Exelon’s renewable energy business headquartered in
Baltimore –
BGE maintains independent operations headquartered in Baltimore
–
No involuntary merger-related job reductions at BGE for two years after
close •
Supports Maryland’s economic development and clean energy infrastructure
–
$10 million to spur development of electric vehicle infrastructure
–
$4 million to support EmPower Maryland Energy Efficiency Act
–
25 MWs of renewable energy development in Maryland
–
Charitable contributions maintained for at least 10 years
•
Provides direct benefits to BGE customers
–
$5 million provided for Maryland’s
Electric Universal Service Program (EUSP)
–
Over $110 million to BGE residential customers from $100 one-time rate
credit We will bring direct benefits to the State of Maryland, the City
of Baltimore and
BGE customers. Total investment in excess of $250 million.
11 |
 Transaction
Timetable 2Q 2011
3Q 2011
4Q 2011
1Q 2012
Merger
Announcement
Make Regulatory
Filings
Mail Proxy
Materials
Exelon and
Constellation
Shareholder
Meetings
Secure Regulatory Approvals (including FERC, DOJ, Maryland, NRC,
New York and Texas)
Transaction Close
Divestiture
Process
12 |
 Combined
Company Profile |
 Scale, Scope
and Flexibility Across the Value Chain Upstream
Downstream
Reserves (gas)
266 bcf
Owned Generating
Capacity
34 GWs
(1)
Electric
Transmission
7,350 miles
Electric & Gas Dist.
6.6 million customers
Retail &
Wholesale Volumes
(2)
(Electric & Gas)
~165 TWh, 405 bcf
13
Note: Data as of 12/31/10 unless stated otherwise.
(1) Generation
capacity
net
of
market
mitigation
assumed
to
be
2,648
MW
consisting
of
Brandon
Shores
(1,273
MW),
H.A.
Wagner
(976
MW)
and
CP Crane (399 MW).
(2) Electric
load
includes
all
booked
2011E
competitive
retail
sales,
wholesale
sales,
and
sales
to
load
serving
entities
including
ComEd
swap.
Gas
load
includes
all
booked
and
forecasted
2011E
competitive
retail
sales. |
 Exelon
Constellation
MISO (TWh)
PJM (TWh)
South
(1)
(TWh)
ISO-NE & NY ISO
(2)
(TWh)
West (TWh)
Load
Generation
Exelon
Constellation
Exelon
Constellation
Exelon
Constellation
Exelon
Constellation
Load
Generation
Generation
Load
Load
Generation
Load
Generation
6.3
9.1
101.5
179.1
27.8
23.2
27.1
13.9
2.4
0.8
Portfolio Matches Generation with Load in
Key Competitive Markets
The combination establishes an industry-leading platform with regional
diversification of the generation fleet
(1)
Represents load and generation in ERCOT, SERC and SPP.
(2)
Constellation load includes ~0.7TWh of load served in Ontario
Note: Data for Exelon and Constellation represents expected generation and load for 2011 as of
12/31/10. Exelon load includes ComEd
Swap, load sold through affiliates, fixed and indexed load sales and load sold through POLR auctions.
Constellation load includes load sold through affiliates, fixed and indexed load sales and load
sold through POLR auctions. 14
2.4
0.4
0.4
4.8
27.1
9.1
31.8
42.8
147.3
58.7
5.8
0.5
9.1
23.2
27.8 |
 A Clean
Generation Profile Creates Long-Term Value in Competitive Markets
(1) Net of market mitigation assumed to be 2,648 MW.
(2)
Constellation generation includes Boston Generation acquisition (2,950 MW of natural gas) and excludes
Quail Run (~550 MW of natural gas). Constellation nuclear reflects 50.01% interest in
Constellation Energy Nuclear Group LLC. Exelon Standalone
Total Generation: 25,619 MW
Constellation Standalone
(2)
Total Generation: 11,430 MW
Pro forma Company (Net of Mitigation)
(1)
Total Generation: 34,401 MW
15
Combined company remains the premier low-cost generator
Coal
24%
Nuclear
17%
Gas
52%
Wind/Solar/Other
2%
Hydro
3%
Oil
3%
Coal
6%
Oil
8%
Gas
11%
Hydro
6%
Wind/Solar/Other
3%
Nuclear
67%
Nuclear
55%
Coal
6%
Oil
7%
Gas
24%
Hydro
6%
Wind/Solar/
Other
2% |
 Expertise in
Operating Regulated Utilities in Large Metropolitan Areas
•
3.8 million electric customers
•
Service Territory: 11,300 square miles
•
Peak Load
(1)
: 23,613 MW
•
2011
Rate
Base
(2)
:
$9.3
billion
•
1.6 million electric customers
•
0.5 million gas customers
•
Service Territory: 2,100 square miles
•
Peak
Load
(1)
:
8,932
MW
•
2011
Rate
Base
(2)
:
$5.0
billion
•
1.2 million electric customers
•
0.7 million gas customers
•
Service Territory: 2,300 square miles
•
Peak
Load
(1)
:
7,198
MW
•
2011 Rate Base
(2)
: $3.9 billion
(1)
Peak load represents all-time peak load.
(2)
Estimated rate base as of end of year.
16 |
 Financial
Summary |
 Transaction
Economics Are Attractive for Both Companies
•
EPS break-even in 2012 and accretive by +5% in 2013
•
Free cash flow accretive beginning in 2012
•
Run-rate synergies of ~$260 million
–
Total costs to achieve of ~$500 million
–
Synergies primarily from corporate consolidation and power
marketing platform integration
•
Lower consolidated liquidity requirements, resulting in cost savings
•
Investment-grade ratings and credit metrics
17 |
 Balanced
EBITDA Contribution from Competitive and Regulated Businesses
2012E Exelon Standalone
2012E Constellation Standalone
Source: Exelon EBITDA estimates per equity research. Constellation EBITDA estimates per
company guidance. Pro forma EBITDA contribution reflects EBITDA before asset divestitures.
2012E Pro forma Company
Competitive Businesses
51%
Regulated Utilities
49%
18
Generation
15%
BGE
50%
NewEnergy
35%
Exelon Generation
51%
PECO
17%
ComEd
32% |
 Summary
Highlights 19
•
Delivers immediate financial benefits to both sets of shareholders
•
Increases scale and scope of the business across the value chain
•
Matches the industry’s premier clean merchant generating fleet with the
leading retail and wholesale customer platform
•
Diversifies the generation portfolio
•
Continued upside to commodity price recovery
•
Maintains a strong regulated earnings profile with large urban utilities
|
 Q&A |
 Appendix |
 Benefits to
Constellation Shareholders •
Upfront premium and pro forma ownership in a large growing company
•
Dividend uplift based on current Exelon dividend
The dividend remains a core part of the company’s value return
proposition Note:
Ongoing
dividends
are
subject
to
quarterly
declarations
by
the
Board
of
Directors.
Per Share
EXC Current Annual dividend
$2.10
Transaction Exchange Ratio
0.930
= Implied CEG Exchange Ratio-Adjusted Dividend
$1.95
Current CEG Annual Dividend
$0.96
Dividend Uplift to CEG Shareholders
103%
20 |
 225
400
520
119
20
20
550
550
867
825
552
260
415
516
1,340
550
500
800
702
600
550
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2012
2013
2014
2015
2016
2017
2018
2019
2020
(in $M)
Constellation Regulated
Constellation Unregulated
Exelon Regulated
Exelon Unregulated
Ample Liquidity and Manageable
Debt Maturities
Sources of Liquidity
Debt
Maturity
Profile
(2012-2020)
(2)
•
Exelon & Constellation (excluding utilities)
currently have $10.3 billion of liquidity
•
Additional $2.2 billion of utility liquidity
•
Matching retail load and generation
reduces liquidity requirements for
combined company
•
$6.3B -
$7.3 billion
(1)
of liquidity provides
ample cushion
Pro
Forma
21
(in $B)
(1)
Based on preliminary analysis.
(2)
Debt
maturity
schedule
as
of
12/31/10,
except
for
make
whole
of
Constellation
Energy
2012
notes
in
January,
2011.
$6.1
$6.3 - $7.3
$3 - $4
$4.2
Existing liquidity
(ex-utilities)
Reduction in
existing liquidity
Pro forma liquidity
Exelon
Constellation
(1)
~75% of 2012 –
2016 debt
maturities consist of
regulated utility debt
Pro forma |
 Debt Structure
at Closing BGE
•
BGE will exist as a separate subsidiary under Exelon with its current
structure
•
BGE will continue as an SEC registrant and will continue to issue debt
Constellation Energy Group, Inc.
•
Constellation (excluding BGE) will be a wholly-owned subsidiary of Exelon
Generation
•
Constellation will remain a separate SEC registrant
•
All future debt for Exelon Generation and Constellation is expected to be
issued at Exelon Generation
22 |
 16%
34%
41%
9%
RTO
EMAAC
MAAC
SWMAAC
8%
15%
15%
63%
EMAAC
MAAC
RTO
SWMAAC
42%
7%
51%
RTO
MAAC
EMAAC
Increased Regional Diversity in PJM:
Capacity
Eligible
for
2014/15
RPM
Auction
(1)
2014/15
RPM
auction
results
will
be
announced
on
May
13
th
,
2011
Pro forma Company
(2)
4,390 MW
2,535 MW
9,230 MW
11,345 MW
Exelon Standalone
Constellation Standalone
(1)
All generation values are approximate and not inclusive of wholesale transactions; all capacity values
are in installed capacity terms (summer ratings) located in the areas and adjusted for
mid-year PPA roll-offs. (2)
Net of market mitigation assumed to be 2,648 MW.
8,700 MW
10,300 MW
1,500 MW
1,035 MW
4,390 MW
23
1,045 MW
530 MW |
 Combining
Constellation’s leading competitive businesses and Exelon’s clean
generation… Captures value across a range
of market conditions
Directly links consumers of
electricity and generation
assets
Spreads credit risk across
more parties
Adds asset optimization
opportunities
Generation
Load
Optimizes cost structure by
reducing
3
rd
party
transactions
Reduces working capital
requirements and liquidity
needs
…Creates a platform for future growth and optimization of earnings and
cash flows
24 |
 (1)
Source: KEMA report as of February 2011.
A Leader in the U.S. Commercial and
Industrial Retailer Landscape
Opportunities for Continued Growth
•
Increased customer shopping creates
opportunities for capturing market share
•
Vehicle to offer value-added products and
innovative customer solutions
•
Constellation remains the top supplier in
the C&I market
•
Exelon Energy has become a top 10
supplier in the C&I market
Top 15 Non-Residential Retailers based on
Estimated Annualized Sales (TWh)
(1)
25
0
20
40
60
80
100
120
2009
2010
2011E
Exelon
Constellation
Electric Volumes
MWh-Millions |
 7.3
2.0
6.7
6.7
1.9
1.9
Distribution
Transmission
(1)
Data as of 12/31/10. Peak load represents all-time peak load, which occurred on
August 3, 2006. (2)
ComEd does not plan to move forward with these Smart Grid/Meter investments unless
appropriate cost recovery mechanisms are in place. (3)
Includes transmission growth projects.
(4)
Rate base as of end of year.
Commonwealth Edison Company
2009
2010
2011E
$8.6
$8.6
$9.3
$950
$1,025
$950
$1,050
Service Territory
Capital Expenditure Plan (in $M)
Regulatory Update
(2)
(3)
Key Data
(1)
Total # of Customers: 3.8M
Area: 11,300 square miles
Peak Load: 23,613 MW
26
Distribution Rate Case
•
ALJ Proposed Order of $152M vs. ComEd request of $343M
•
Final ICC decision expected by 5/31/11
•
IL House Bill 14 (Formula Rate legislation) under review
Transmission Rate Case
•
Rate adjustments filed annually with FERC under formula rate
•
Next scheduled rate adjustment in June 2011
Rate
Base
Growth
(4)
(in
$B)
2011E
2012E
2013E
2010
650
625
675
700
100
100
50
50
325
225
275
200
Base CapEx
Smart Grid/Meter
New Business |
 475
325
50
50
50
75
375
325
50
25
75
50
Base CapEx
Smart Grid/Meter
New Business
Rate
Base
Growth
(4)
(in
$B)
PECO Energy Company
2009
2010
2011E
$550
$450
$425
$500
$5.6
$4.9
$5.0
Service Territory
Capital Expenditure Plan (in $M)
(1)
Data as of 12/31/10. Peak load represents all-time peak load, which occurred on
August 3, 2006. (2)
Rate base as of end of year.
Key Data
(1)
Total # of Customers:
1.6M (Electric); 0.5M (Gas)
Area: 2,100 square miles
Peak Load: 8,932 MW
27
2011E
2012E
2013E
2010
Regulatory Update
Electric Distribution Rate Case
•
Rate case filed on 3/31/10
–
Original request of $316M; ROE request of 11.75%
–
Final revenue increase of $225M per Dec. 2010 settlement
Gas Delivery Rate Case
•
Rate case filed on 3/31/10
–
Original request of $44M; ROE request of 11.75%
–
Final revenue increase of $20M per Dec. 2010 settlement
3.0
3.2
3.3
1.1
1.1
1.1
0.6
0.6
0.6
0.9
Electric Distribution
Electric Transmission
CTC
Gas |
 2.4
2.4
2.6
0.5
0.5
0.6
0.8
0.8
0.9
Electric Distribution
Electric Transmission
Gas
570
562
584
628
196
2
4
70
47
35
39
44
Base CapEx
AMI
New Business
BGE
Service Territory
Capital Expenditure Plan (in $M)
$601
$633
$678
$868
2010
2011E
2009
$3.7
$3.8
$3.9
Key Data
(1)
Total # of Customers:
1.2M (Electric); 0.7M (Gas)
Area: 2,300 square miles
Peak Load: 7,198 MW
(1)
Data as of 12/31/10. Peak load represents all-time peak load, which occurred on
August 3, 2006. (2)
Amounts shown net of DOE grant dollars.
(3)
Rate base as of end of year.
28
2011E
2012E
2013E
2010
Regulatory Update
Electric Distribution Rate Case
•
Rate case filed on 5/7/10
–
Original request of $47M; ROE range request of 10.65% to 12.65%
–
Final revenue increase of $31M with an ROE of 9.86%
Gas Delivery Rate Case
•
Rate case filed on 5/7/10
–
Original request of $30M; ROE range request of 10.65% to 12.65%
–
Final revenue increase of $10M with an ROE of 9.56%
Rate
Base
Growth
(3)
(in
$B)
(2) |