EX-99.1 2 d477195dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

LOGO

 

Contact:   

Ravi Ganti

Investor Relations

312-394-2348

 

Paul Adams

Corporate Communications

410-470-4167

      FOR IMMEDIATE RELEASE

EXELON ANNOUNCES FOURTH QUARTER AND FULL YEAR 2012

RESULTS; INTRODUCES 2013 GUIDANCE; DECLARES FIRST QUARTER

DIVIDEND AND SETS REVISED DIVIDEND POLICY

CHICAGO (Feb. 7, 2013) — Exelon Corporation (NYSE: EXC) announced fourth quarter and full year 2012 consolidated earnings as follows:

Exelon Consolidated Earnings (unaudited)

 

     Full Year      Fourth Quarter  
     2012      2011      2012      2011  

Adjusted (non-GAAP) Operating Results:

           

Net Income ($ millions)

   $ 2,330       $ 2,763       $ 547       $ 544   

Diluted Earnings per Share

   $ 2.85       $ 4.16       $ 0.64       $ 0.82   
  

 

 

    

 

 

    

 

 

    

 

 

 

GAAP Results:

           

Net Income ($ millions)

   $ 1,160       $ 2,495       $ 378       $ 606   

Diluted Earnings per Share

   $ 1.42       $ 3.75       $ 0.44       $ 0.91   
  

 

 

    

 

 

    

 

 

    

 

 

 

“Exelon had another strong year of operational performance and closed on a very successful, transformational merger that gives us a presence across the value chain,” said Christopher M. Crane, Exelon’s president and CEO. “Despite major storms and severe economic challenges, we delivered 2012 earnings within our guidance range. We have revised our dividend, effective with the second quarter 2013 dividend, to position us to maintain our investment grade rating, return a stable dividend and provide capacity to invest in growth.”

Fourth Quarter Operating Results

Fourth quarter 2012 earnings include financial results for Constellation Energy and Baltimore Gas and Electric Company (BGE). Therefore, the composition of results of operations from 2012 and 2011 are not comparable for Exelon Generation Company, LLC (Generation), BGE and Exelon.

 

1


As shown in the table above, Exelon’s adjusted (non-GAAP) operating earnings declined to $0.64 per share in the fourth quarter of 2012 from $0.82 per share in the fourth quarter of 2011. Earnings in fourth quarter 2012 primarily reflected the following negative factors:

 

   

Lower energy margins at Generation, resulting from decreased capacity pricing related to the Reliability Pricing Model (RPM) for the PJM Interconnection, LLC (PJM) market, higher nuclear fuel costs and lower realized market prices for the sale of energy in the Mid-Atlantic and Midwest regions;

 

   

Higher operating and maintenance expenses, including increased labor, contracting and materials and the impact of higher storm costs at PECO and BGE due to Sandy;

 

   

Impact of increased average diluted common shares outstanding as a result of the merger; and

 

   

Higher depreciation and amortization expense due to ongoing capital expenditures.

These factors were partially offset by:

 

   

The addition of Constellation Energy’s contribution to Generation’s energy margins; and

 

   

Favorable impacts of weather at ComEd and PECO.

Adjusted (non-GAAP) operating earnings for the fourth quarter of 2012 do not include the following items (after tax) that were included in reported GAAP earnings:

 

     (in millions)     (per diluted share)  

Mark-to-Market Impact of Economic Hedging Activities

   $ 123      $ 0.14   

Unrealized Gains Related to NDT (Nuclear Decommissioning Trust) Fund Investments

   $ 2        —     

Plant Retirements and Divestitures

   $ (38   $ (0.05

Constellation Merger and Integration Costs

   $ (46   $ (0.05

Non-Cash Remeasurement of Deferred Income Taxes

   $ 1        —     

Amortization of Commodity Contract Intangibles

   $ (211   $ (0.24

Amortization of the Fair Value of Certain Debt

   $ 3        —     

Asset Retirement Obligation

   $ 5      $ 0.01   

Midwest Generation Bankruptcy Charges

   $ (8   $ (0.01

Adjusted (non-GAAP) operating earnings for the fourth quarter of 2011 do not include the following items (after tax) that were included in reported GAAP earnings:

 

     (in millions)     (per diluted share)  

Mark-to-Market Impact of Economic Hedging Activities

   $ 45      $ 0.07   

Unrealized Gains Related to NDT Fund Investments

   $ 46      $ 0.07   

Plant Retirements and Divestitures

   $ (4   $ (0.01

Constellation Merger and Integration Costs

   $ (21   $ (0.03

Non-Cash Remeasurement of Deferred Income Taxes

   $ (4   $ (0.01

 

2


Dividend

Exelon’s Board of Directors declared the first quarter 2013 dividend of $0.525 per share and approved a revised dividend policy going forward. The first quarter dividend is payable on March 8, 2013 to shareholders of record at 5:00 PM EST on Feb. 19, 2013. The first quarter dividend is based on our previous level of $2.10 per share on an annualized basis, while the new dividend contemplates a regular $0.31 per share quarterly dividend beginning in the second quarter of 2013 (or $1.24 per share on an annualized basis). Exelon intends to maintain the normal cadence of quarterly dividend declarations by the Board, so the Board will take formal action to declare the next dividend in the second quarter.

2013 Earnings Outlook

Exelon introduced a guidance range for 2013 adjusted (non-GAAP) operating earnings of $2.35 to $2.65 per share. Operating earnings guidance is based on the assumption of normal weather.

The outlook for 2013 adjusted (non-GAAP) operating earnings for Exelon and its subsidiaries excludes the following items:

 

   

Mark-to-market adjustments from economic hedging activities;

 

   

Financial impacts associated with the planned retirement of fossil generating units and the sale in the fourth quarter of 2012 of three generating stations as required by the merger;

 

   

Certain costs incurred related to the Constellation merger and integration initiatives;

 

   

Non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date;

 

   

Non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013;

 

   

Significant impairments of assets, including goodwill;

 

   

Other unusual items; and

 

   

Significant changes to GAAP.

Fourth Quarter and Recent Highlights

 

   

Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station, produced 34,882 gigawatt-hours (GWh) in the fourth quarter of 2012, compared with 34,893 GWh in the fourth quarter of 2011. The output data excludes the units owned by Constellation Energy Nuclear Group LLC (CENG). Excluding Salem and the units owned by CENG, the Exelon-operated nuclear plants achieved a 93.0 percent capacity factor for both the fourth quarter of 2012 and fourth quarter of 2011. The number of planned refueling outage days totaled 113 in the fourth quarter of 2012 versus 103 days in the fourth quarter of 2011. The number of non-refueling outage days at the Exelon-operated plants totaled one day in the fourth quarter of 2012, compared with 11 days in the fourth quarter of 2011.

 

3


   

Fossil and Renewables Operations: The equivalent demand forced outage rate for Generation’s fossil fleet was 1.5 percent in the fourth quarter of 2012, compared with 1.6 percent in the fourth quarter of 2011. The 2012 results include former Constellation plants, exclusive of the Maryland Clean Coal plants that were sold on Dec. 3, 2012, whereas 2011 data includes only legacy Exelon plants. The equivalent availability factor for the hydroelectric facilities was 95.0 percent in the fourth quarter of 2012, compared with 95.9 percent in the fourth quarter of 2011. The energy capture for the wind fleet was 92.2 percent in the fourth quarter of 2012, compared with 94.8 percent in the fourth quarter of 2011.

 

   

ComEd Distribution Formula Rate Cases: On Oct. 3, 2012, the Illinois Commerce Commission (ICC) issued its final Order on Remand (Rehearing Order) in ComEd’s expedited rehearing of specific items pursuant to the Electric Infrastructure Modernization Act (EIMA). The Rehearing Order (which covered docket 11-0721) addressed three key conclusions reached in the ICC’s May Order: (1) ComEd’s pension asset recovery; (2) the rate of interest to affix to over or under recovered costs; and (3) the use of a year-end or an “average year” rate base in determining ComEd’s reconciliation revenue requirement. In the Rehearing Order, the ICC adopted ComEd’s position on the return on its pension asset. As a result, ComEd recorded in the fourth quarter an increase in revenue of approximately $135 million pre-tax in 2012 consistent with the terms of the Rehearing Order.

On Dec. 19, 2012, the ICC ruled on ComEd’s formula rate (docket 12-0321) setting rates for 2013 based on (1) 2011 actual costs updated for 2012 plant additions and the associated depreciation and accumulated deferred income taxes and (2) reconciling the revenue requirements underlying the rates in effect in 2011 with 2011 actual costs and factoring in the ROE Collar. The ICC approved a $72.6 million increase over the rates approved in docket 11-0721 on re-hearing. ComEd had requested an increase of $74.2 million. The contested items from docket 11-0721 on re-hearing such as use of average vs. year-end rate base and the interest rate on the reconciliation are currently under appeal with the court and are not included in the approved amount.

 

   

Credit Facility Synergies: On Dec. 31, 2012, Exelon achieved targeted credit facility reductions and associated synergies with the termination of the $1.5 billion legacy Constellation revolver. Cost effective liquidity was established earlier in 2012 for all operating companies through 2017. The ComEd $1 billion facility was established in March 2012. Via the “Amend and Extend” program executed in August 2012, facilities were refinanced at BGE ($600 million), Exelon Corp ($500 million), Generation ($5.3 billion) and PECO ($600 million),

 

   

Pension Funding Strategy: Exelon executed a lump sum buyout offering for terminated vested employees in the largest pension plans (approximately 7,500 former employees). This transaction involved using $260 million of pension trust assets to buyout terminated vested employees and permanently settling the associated obligation. Exelon’s gross pension liability was reduced by $425 million, resulting in a $165 million improvement in the funded status of the pension plans at year end. The lump sum buyout option was an incremental step in Exelon’s ongoing effort to manage benefit costs and de-risk the pension plans over time.

 

4


   

ComEd Like-Kind-Exchange: As previously disclosed, in 1999 ComEd deferred $1.2 billion of gain on the sale of its fossil generating facilities by acquiring like-kind property in a purchase leaseback transaction. In a recent decision, a court disallowed deductions stemming from a lease-in, lease-out transaction. This decision has caused Exelon to assess whether it is more likely than not that it will prevail in litigation with the IRS concerning the purchase leaseback transaction. As a result of the assessment, Exelon expects to record in the first quarter of 2013 a non-cash charge to earnings of approximately $270 million, which represents the full amount of interest expense (after-tax) and incremental state tax expense that would be payable if Exelon is unsuccessful in litigation. Of this amount, approximately $185 million will be recorded at ComEd and the balance at Exelon. These charges to expense will not be reflected in adjusted (non-GAAP) operating earnings. Exelon intends to hold ComEd harmless from any unfavorable impacts of the after-tax interest amounts on ComEd’s equity. For additional information, please see the Form 8-K that Exelon filed on January 31, 2013.

 

   

Renewable Fleet: Four wind construction projects (totaling 273 megawatts (MW)) achieved commercial operation in the fourth quarter: Harvest II (59 MW in Huron County, Mich.) on Nov. 1, 2012; Beebe (82 MW in Gratiot, Mich.) on Dec. 18, 2012; Whitetail (92 MW in Webb, Texas) on Dec. 21, 2012; and High Mesa (40 MW in Twin Falls County, Idaho) on Dec. 27, 2012. In addition, the first block (31 MW) of the Antelope Valley Solar Ranch Project became operational in December 2012. The remaining phases of the project are on track to be completed by the original planned commercial operation date of December 2013.

 

   

Fossil Fleet Sales and Retirements: Exelon Power finalized the sale of its three Maryland power plants (2,648 MW of installed capacity) to Raven Power Holdings LLC on Dec. 3, 2012. The sale fulfills Exelon’s commitment to divest the plants as a part of its merger with Constellation. Exelon Power also completed the sale of its ownership stake in ACE Cogeneration, a 102-MW coal facility in Trona, Calif., to DCO Energy on Nov. 6, 2012. In addition to the asset sales, Exelon Power informed PJM on Oct. 31, 2012 of its intent to retire Schuylkill Unit 1 in Philadelphia and Riverside Unit 6 in Baltimore County. Schuylkill Unit 1 was deactivated on Jan. 1, 2013. Riverside 6 will be deactivated by Jun. 1, 2014.

 

   

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 Dec. 31, 2012, is 94 to 97 percent for 2013, 62 to 65 percent for 2014, and 27 to 30 percent for 2015. The primary objective of Exelon’s hedging program is 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.

 

5


Operating Company Results

Generation consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products, risk management services and natural gas exploration and production activities.

Fourth quarter 2012 GAAP net income was $137 million, compared with $446 million in the fourth quarter of 2011. Adjusted (non-GAAP) operating earnings for the fourth quarter of 2011 and 2012 do not include various items (after tax) that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:

 

($ millions)

   4Q12     4Q11  

Generation Adjusted (non-GAAP) Operating Earnings

   $ 283      $ 359   

Mark-to-Market Impact of Economic Hedging Activities

   $ 145      $ 45   

Unrealized Gains Related to NDT Fund Investments

   $ 2      $ 46   

Plant Retirements and Divestitures

   $ (38   $ (4

Constellation Merger and Integration Costs

   $ (35   $ (6

Non-Cash Remeasurement of Deferred Income Taxes

   $ (9   $ 6   

Amortization of Commodity Contract Intangibles

   $ (211     —     

Amortization of Fair Value of Certain Debt

   $ 3        —     

Asset Retirement Obligation

   $ 5        —     

Midwest Generation Bankruptcy Charges

   $ (8     —     
  

 

 

   

 

 

 

Generation GAAP Net Income

   $ 137      $ 446   
  

 

 

   

 

 

 

Generation’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2012 decreased $76 million compared with the same quarter in 2011. This decrease primarily reflected:

 

   

Lower energy margins at Generation, resulting from decreased capacity pricing related to RPM for the PJM market, higher nuclear fuel costs and lower realized market prices for the sale of energy in the Mid-Atlantic and Midwest regions;

 

   

Higher operating and maintenance expenses;

 

   

Higher depreciation and amortization expense due to ongoing capital expenditures; and

 

   

Higher interest due to higher outstanding debt balance.

These items were partially offset by contribution to Generation’s energy margins from the addition of Constellation Energy to Generation’s operations.

 

6


Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $26.52 per megawatt-hour (MWh) in the fourth quarter of 2012, compared with $39.31 per MWh in the fourth quarter of 2011.

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

ComEd recorded GAAP net income of $160 million in the fourth quarter of 2012, compared with net income of $121 million in the fourth quarter of 2011. Adjusted (non-GAAP) operating earnings for the fourth quarter of 2011 and 2012 do not include an item (after tax) that was included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:

 

($ millions)

   4Q12     4Q11  

ComEd Adjusted (non-GAAP) Operating Earnings

   $ 162      $ 121   

Constellation Merger and Integration Costs

   $ (2     —     
  

 

 

   

 

 

 

ComEd GAAP Net Income

   $ 160      $ 121   
  

 

 

   

 

 

 

ComEd’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2012 were up $41 million from the same quarter in 2011, primarily due to:

 

   

Impacts of the October 2012 rehearing order issued by the ICC primarily related to ComEd’s recovery of the pension asset;

 

   

Lower interest expense due to tax settlements; and

 

   

Lower income taxes.

These items were partially offset by lower distribution revenue due to lower allowed ROE under the provision of the formula rate mechanism and a 2011 credit for the allowed recovery of certain storm costs pursuant to EIMA.

For the fourth quarter of 2012, heating degree-days in the ComEd service territory were up 10.8 percent relative to the same period in 2011 but were 11.5 percent below normal. Total retail electric deliveries increased 0.4 percent quarter over quarter.

Weather-normalized retail electric deliveries decreased 0.1 percent in the fourth quarter of 2012 relative to 2011, reflecting decreases in deliveries to residential and large commercial & industrial customers, partially offset by increases in deliveries to small commercial & industrial customers. For ComEd, weather had a favorable after-tax effect of $1 million on fourth quarter 2012 earnings relative to 2011 and an unfavorable after-tax effect of $4 million relative to normal weather.

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

PECO’s GAAP net income in the fourth quarter of 2012 was $79 million, compared with $73 million in the fourth quarter of 2011. Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2011 and 2012 do not include an item (after tax) that was included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:

 

($ millions)

   4Q12     4Q11  

PECO Adjusted (non-GAAP) Operating Earnings

   $ 81      $ 74   

Constellation Merger and Integration Costs

   $ (2   $ (1
  

 

 

   

 

 

 

PECO GAAP Net Income

   $ 79      $ 73   
  

 

 

   

 

 

 

 

7


PECO’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2012 increased $7 million from the same quarter in 2011, reflecting the impact of favorable weather and lower income taxes primarily due to gas tax repairs deduction; these favorable items were partially offset by higher storm costs from Sandy.

For the fourth quarter of 2012, heating degree-days in the PECO service territory were up 13.8 percent from 2011 but were 9.0 percent below normal. Total retail electric deliveries were up 2.3 percent quarter over quarter. On the gas side, deliveries in the fourth quarter of 2012 were up 12.4 percent from the fourth quarter of 2011.

Weather-normalized retail electric deliveries were up 0.6 percent in the fourth quarter of 2012 relative to 2011, reflecting increases in deliveries to residential and large consumer & industrial customers and declines in deliveries to small commercial & industrial customers. Weather-normalized gas deliveries were up 0.6 percent in the fourth quarter of 2012. For PECO, weather had a favorable after-tax effect of $17 million on fourth quarter 2012 earnings relative to 2011 and unfavorable after-tax effect of $10 million relative to normal weather.

BGE consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland.

BGE’s GAAP net income in the fourth quarter of 2012 was $15 million. The net income included after-tax costs of $3 million associated with the merger and integration initiatives. Excluding the effects of these items, BGE’s adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2012 were $18 million.

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 reconciliation on pages 10 and 11 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 February 7, 2013.

 

8


Cautionary Statements Regarding Forward-Looking Information

This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company and Exelon Generation Company, LLC (Registrants) include those factors discussed herein, as well as the items discussed in (1) Exelon’s 2011 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 18; (2) Constellation Energy Group’s 2011 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 12; (3) the Registrants’ Third Quarter 2012 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 15; and (4) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this new release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this news release.

# # #

Exelon Corporation is the nation’s leading competitive energy provider, with 2012 revenues of approximately $23.5 billion. Headquartered in Chicago, Exelon has operations and business activities in 47 states, the District of Columbia and Canada. Exelon is one of the largest competitive U.S. power generators, with approximately 35,000 megawatts of owned capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 100,000 business and public sector customers and more than 1 million residential customers. Exelon’s utilities deliver electricity and natural gas to more than 6.6 million customers in central Maryland (BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO).

 

9


Earnings Release Attachments

Table of Contents

 

Consolidating Statements of Operations - Three Months Ended December 31, 2012 and 2011

     1   

Consolidating Statements of Operations - Twelve Months Ended December 31, 2012 and 2011

     2   

Business Segment Comparative Statements of Operations - Generation and ComEd - Three and Twelve Months Ended December 31, 2012 and 2011

     3   

Business Segment Comparative Statements of Operations - PECO and BGE - Three and Twelve Months Ended December 31, 2012 and 2011

     4   

Business Segment Comparative Statements of Operations - Other - Three and Twelve Months Ended December 31, 2012 and 2011

     5   

Consolidated Balance Sheets - December 31, 2012 and December 31, 2011

     6   

Consolidated Statements of Cash Flows - Twelve Months Ended December 31, 2012 and 2011

     7   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Three Months Ended December 31, 2012 and 2011

     8   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Twelve Months Ended December 31, 2012 and 2011

     9   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended December 31, 2012 and 2011

     10   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Twelve Months Ended December 31, 2012 and 2011

     11   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Generation - Three and Twelve Months Ended December 31, 2012 and 2011

     12   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - ComEd - Three and Twelve Months Ended December 31, 2012 and 2011

     13   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - PECO - Three and Twelve Months Ended December 31, 2012 and 2011

     14   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - BGE - Three Months Ended December 31, 2012 and March 12, 2012 through December 31, 2012.

     15   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Other - Three and Twelve Months Ended December 31, 2012 and 2011

     16   

Exelon Generation Statistics - Three Months Ended December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011

     17   

Exelon Generation Statistics - Twelve Months Ended December 31, 2012 and 2011

     18   

ComEd Statistics - Three and Twelve Months Ended December 31, 2012 and 2011

     19   

PECO Statistics - Three and Twelve Months Ended December 31, 2012 and 2011

     20   

BGE Statistics - Three Months Ended December 31, 2012 and March 12, 2012 through December 31, 2012.

     21   

 


EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)

 

     Three Months Ended December 31, 2012  
     Generation     ComEd     PECO     BGE     Other (a)     Exelon
Consolidated
 

Operating revenues

   $ 3,928      $ 1,289      $ 790      $ 703      $ (426 )    $ 6,284   

Operating expenses

            

Purchased power and fuel

     2,043        421        342        326        (373     2,759   

Operating and maintenance

     1,272        345        235        171        (11     2,012   

Depreciation, amortization, accretion and depletion

     204        152        56        80        13        505   

Taxes other than income

     97        71        40        65        9        282   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     3,616        989        673        642        (362     5,558   

Equity in earnings of unconsolidated affiliates

     (22 )      —          —          —          —          (22 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     290        300        117        61        (64 )      704   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (78     (77     (30     (34     (12     (231

Other, net

     54        27        2        5        5        93   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (24     (50     (28     (29     (7     (138
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     266        250        89        32        (71 )      566   

Income taxes

     127        90        9        14        (58 )      182   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     139        160        80        18        (13 )      384   

Net loss attributable to noncontrolling interests, preferred security dividends and preference stock dividends

     2        —          1        3        —          6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) on common stock

   $ 137      $ 160      $ 79      $ 15      $ (13 )    $ 378   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended December 31, 2011  
     Generation     ComEd     PECO     BGE     Other (a)     Exelon
Consolidated
 

Operating revenues

   $ 2,528      $ 1,362      $ 778      $ —        $ (310 )    $ 4,358   

Operating expenses

            

Purchased power and fuel

     794        599        358        —          (320     1,431   

Operating and maintenance

     842        258        196        —          26        1,322   

Depreciation, amortization, accretion and depletion

     154        149        53        —          4        360   

Taxes other than income

     65        71        40        —          7        183   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     1,855        1,077        647        —          (283     3,296   

Equity in loss of unconsolidated affiliates

     (1 )      —          —          —          —          (1 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     672        285        131        —          (27 )      1,061   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (43     (87     (32     —          (19     (181

Other, net

     135        4        2        —          9        150   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     92        (83     (30     —          (10     (31
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     764        202        101          (37 )      1,030   

Income taxes

     318        81        27        —          (3 )      423   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     446        121        74        —          (34 )      607   

Preferred security dividends

     —          —          1        —          —          1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) on common stock

   $ 446      $ 121      $ 73      $ —        $ (34 )    $ 606   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 

1


EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)

 

     Twelve Months Ended December 31, 2012 (a)  
     Generation     ComEd     PECO     BGE     Other (b)     Exelon
Consolidated
 

Operating revenues

   $ 14,437      $ 5,443      $ 3,186      $ 2,091      $ (1,668   $ 23,489   

Operating expenses

            

Purchased power and fuel

     7,061        2,307        1,375        1,052        (1,638     10,157   

Operating and maintenance

     5,028        1,345        809        596        183        7,961   

Depreciation, amortization, accretion and depletion

     768        610        217        238        48        1,881   

Taxes other than income

     369        295        162        167        26        1,019   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     13,226        4,557        2,563        2,053        (1,381     21,018   

Equity in losses of unconsolidated affiliates

     (91     —          —          —          —          (91
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     1,120        886        623        38        (287     2,380   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (301     (307     (123     (111     (86     (928

Other, net

     239        39        8        19        41        346   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (62     (268     (115     (92     (45     (582
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     1,058        618        508        (54     (332     1,798   

Income taxes

     500        239        127        (23     (216     627   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     558        379        381        (31     (116     1,171   

Net loss attributable to noncontrolling interests, preferred security dividends and preference stock dividends

     (4     —          4        11        —          11   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) on common stock

   $ 562      $ 379      $ 377      $ (42   $ (116   $ 1,160   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Twelve Months Ended December 31, 2011  
     Generation     ComEd     PECO     BGE     Other (b)     Exelon
Consolidated
 

Operating revenues

   $ 10,447      $ 6,056      $ 3,720      $ —        $ (1,160   $ 19,063   

Operating expenses

            

Purchased power and fuel

     3,589        3,035        1,864        —          (1,221     7,267   

Operating and maintenance

     3,148        1,189        794        —          53        5,184   

Depreciation, amortization, accretion and depletion

     570        554        202        —          21        1,347   

Taxes other than income

     264        296        205        —          20        785   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     7,571        5,074        3,065        —          (1,127     14,583   

Equity in loss of unconsolidated affiliates

     (1     —          —          —          —          (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     2,875        982        655        —          (33     4,479   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (170     (345     (134     —          (77     (726

Other, net

     122        29        14        —          38        203   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (48     (316     (120     —          (39     (523
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     2,827        666        535        —          (72     3,956   

Income taxes

     1,056        250        146        —          5        1,457   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     1,771        416        389        —          (77     2,499   

Preferred security dividends

     —          —          4        —          —          4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) on common stock

   $ 1,771      $ 416      $ 385      $ —        $ (77   $ 2,495   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.
(b) Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

 

2


EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

     Generation  
     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2012     2011     Variance     2012 (a)     2011     Variance  

Operating revenues

   $ 3,928      $ 2,528      $ 1,400      $ 14,437      $ 10,447      $ 3,990   

Operating expenses

            

Purchased power and fuel

     2,043        794        1,249        7,061        3,589        3,472   

Operating and maintenance

     1,272        842        430        5,028        3,148        1,880   

Depreciation, amortization, accretion and depletion

     204        154        50        768        570        198   

Taxes other than income

     97        65        32        369        264        105   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     3,616        1,855        1,761        13,226        7,571        5,655   

Equity in earnings (losses) of unconsolidated affiliates

     (22     (1     (21     (91     (1     (90
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     290        672        (382     1,120        2,875        (1,755
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (78     (43     (35     (301     (170     (131

Other, net

     54        135        (81     239        122        117   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (24     92        (116     (62     (48     (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     266        764        (498     1,058        2,827        (1,769

Income taxes

     127        318        (191     500        1,056        (556
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     139        446        (307     558        1,771        (1,213

Net loss attributable to noncontrolling interests

     2        —          2        (4     —          (4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income on common stock

   $ 137      $ 446      $ (309   $ 562      $ 1,771      $ (1,209
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Includes financial results for Constellation beginning on March 12, 2012, the date the merger was completed.

 

     ComEd  
     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2012     2011     Variance     2012     2011     Variance  

Operating revenues

   $ 1,289      $ 1,362      $ (73   $ 5,443      $ 6,056      $ (613

Operating expenses

            

Purchased power

     421        599        (178     2,307        3,035        (728

Operating and maintenance

     345        258        87        1,345        1,189        156   

Depreciation and amortization

     152        149        3        610        554        56   

Taxes other than income

     71        71        —          295        296        (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     989        1,077        (88     4,557        5,074        (517
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     300        285        15        886        982        (96
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (77     (87     10        (307     (345     38   

Other, net

     27        4        23        39        29        10   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (50     (83     33        (268     (316     48   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     250        202        48        618        666        (48

Income taxes

     90        81        9        239        250        (11
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 160      $ 121      $ 39      $ 379      $ 416      $ (37
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

3


EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

     PECO  
     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2012     2011     Variance     2012     2011     Variance  

Operating revenues

   $ 790      $ 778      $ 12      $ 3,186      $ 3,720      $ (534

Operating expenses

            

Purchased power and fuel

     342        358        (16     1,375        1,864        (489

Operating and maintenance

     235        196        39        809        794        15   

Depreciation and amortization

     56        53        3        217        202        15   

Taxes other than income

     40        40        —          162        205        (43
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     673        647        26        2,563        3,065        (502
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     117        131        (14     623        655        (32
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (30     (32     2        (123     (134     11   

Other, net

     2        2        —          8        14        (6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (28     (30     2        (115     (120     5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     89        101        (12     508        535        (27

Income taxes

     9        27        (18     127        146        (19
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     80        74        6        381        389        (8

Preferred security dividends

     1        1        —          4        4        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income on common stock

   $ 79      $ 73      $ 6      $ 377      $ 385      $ (8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     BGE  
     Three Months Ended December 31,     March 12, 2012 through December 31,  
     2012     2011     Variance     2012     2011     Variance  

Operating revenues

   $ 703      $ —        $ 703      $ 2,091      $ —        $ 2,091   

Operating expenses

            

Purchased power and fuel

     326        —          326        1,052        —          1,052   

Operating and maintenance

     171        —          171        596        —          596   

Depreciation and amortization

     80        —          80        238        —          238   

Taxes other than income

     65        —          65        167        —          167   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     642        —          642        2,053        —          2,053   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     61        —          61        38        —          38   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (34     —          (34     (111     —          (111

Other, net

     5        —          5        19        —          19   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (29     —          (29     (92     —          (92
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     32        —          32        (54     —          (54

Income taxes

     14        —          14        (23     —          (23
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     18        —          18        (31     —          (31

Preference stock dividends

     3        —          3        11        —          11   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) on common stock

   $ 15      $ —        $ 15      $ (42   $ —        $ (42
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

4


EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

     Other (a)  
     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2012     2011     Variance     2012 (b)     2011     Variance  

Operating revenues

   $ (426   $ (310   $ (116   $ (1,668   $ (1,160   $ (508

Operating expenses

            

Purchased power and fuel

     (373     (320     (53     (1,638     (1,221     (417

Operating and maintenance

     (11     26        (37     183        53        130   

Depreciation and amortization

     13        4        9        48        21        27   

Taxes other than income

     9        7        2        26        20        6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     (362     (283     (79     (1,381     (1,127     (254
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     (64     (27     (37     (287     (33     (254
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (12     (19     7        (86     (77     (9

Other, net

     5        9        (4     41        38        3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (7     (10     3        (45     (39     (6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (71     (37     (34     (332     (72     (260

Income taxes

     (58     (3     (55     (216     5        (221
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (13   $ (34   $ 21      $ (116   $ (77   $ (39
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.
(b) Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.

 

5


EXELON CORPORATION

Consolidated Balance Sheets

(unaudited)

(in millions)

 

     December 31, 2012 (a)     December 31, 2011  

ASSETS

    

Current assets

    

Cash and cash equivalents

   $ 1,411      $ 1,016   

Cash and cash equivalents of variable interest entities

     75        —     

Restricted cash and investments

     86        40   

Restricted cash and investments of variable interest entities

     47        —     

Accounts receivable, net

    

Customer

     2,787        1,613   

Other

     1,107        1,000   

Accounts receivable, net, variable interest entities

     292        —     

Mark-to-market derivative assets

     879        432   

Unamortized energy contract assets

     886        16   

Inventories, net

    

Fossil fuel

     246        208   

Materials and supplies

     768        656   

Deferred income taxes

     210        —     

Regulatory assets

     759        390   

Other

     561        342   
  

 

 

   

 

 

 

Total current assets

     10,114        5,713   
  

 

 

   

 

 

 

Property, plant and equipment, net

     45,149        32,570   

Deferred debits and other assets

    

Regulatory assets

     6,497        4,518   

Nuclear decommissioning trust (NDT) funds

     7,248        6,507   

Investments

     1,184        751   

Investments in affiliates

     22        15   

Investment in CENG

     1,849        —     

Goodwill

     2,625        2,625   

Mark-to-market derivative assets

     968        650   

Unamortized energy contract assets

     1,073        424   

Pledged assets for Zion Station decommissioning

     614        734   

Deferred income taxes

     634        —     

Other

     1,128        488   
  

 

 

   

 

 

 

Total deferred debits and other assets

     23,842        16,712   
  

 

 

   

 

 

 

Total assets

   $ 79,105      $ 54,995   
  

 

 

   

 

 

 

Liabilities and shareholders’ equity

    

Current liabilities

    

Short-term borrowings

   $ —        $ 163   

Short-term notes payable - accounts receivable agreement

     210        225   

Long-term debt due within one year

     975        828   

Long-term debt due within one year of variable interest entities

     72        —     

Accounts payable

     2,446        1,444   

Accounts payable of variable interest entities

     202        —     

Mark-to-market derivative liabilities

     293        112   

Unamortized energy contract liabilities

     455        —     

Accrued expenses

     1,854        1,255   

Deferred income taxes

     57        1   

Regulatory liabilities

     321        197   

Dividends payable

     4        349   

Other

     888        560   
  

 

 

   

 

 

 

Total current liabilities

     7,777        5,134   
  

 

 

   

 

 

 

Long-term debt

     17,192        11,799   

Long-term debt to financing trusts

     648        390   

Long-term debt of variable interest entity

     506        —     

Deferred credits and other liabilities

    

Deferred income taxes and unamortized investment tax credits

     12,139        8,253   

Asset retirement obligations

     5,074        3,884   

Pension obligations

     3,428        2,194   

Non-pension postretirement benefit obligations

     2,662        2,263   

Spent nuclear fuel obligation

     1,020        1,019   

Regulatory liabilities

     3,981        3,627   

Mark-to-market derivative liabilities

     313        126   

Unamortized energy contract liabilities

     528        —     

Payable for Zion Station decommissioning

     432        563   

Other

     1,625        1,268   
  

 

 

   

 

 

 

Total deferred credits and other liabilities

     31,202        23,197   
  

 

 

   

 

 

 

Total liabilities

     57,325        40,520   
  

 

 

   

 

 

 

Commitments and contingencies

    

Preferred securities of subsidiary

     87        87   

Shareholders’ equity

    

Common stock

     16,610        9,107   

Treasury stock, at cost

     (2,327     (2,327

Retained earnings

     9,893        10,055   

Accumulated other comprehensive loss, net

     (2,767     (2,450
  

 

 

   

 

 

 

Total shareholders’ equity

     21,409        14,385   

BGE preference stock not subject to mandatory redemption

     193        —     

Noncontrolling interest

     91        3   
  

 

 

   

 

 

 

Total equity

     21,693        14,388   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 79,105      $ 54,995   
  

 

 

   

 

 

 

 

(a) Includes the financial information of Constellation and BGE.

 

 

6


EXELON CORPORATION

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

 

     Twelve Months Ended
December 31,
 
     2012 (a)     2011  

Cash flows from operating activities

    

Net income

   $ 1,171      $ 2,499   

Adjustments to reconcile net income to net cash flows provided by operating activities:

    

Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization

     4,073        2,316   

Loss on sale of three Maryland generating stations

     272        —     

Deferred income taxes and amortization of investment tax credits

     547        1,457   

Net fair value changes related to derivatives

     (604     291   

Net realized and unrealized (gains) losses on nuclear decommissioning trust fund investments

     (157     14   

Other non-cash operating activities

     1,389        770   

Changes in assets and liabilities:

    

Accounts receivable

     113        57   

Inventories

     26        (58

Accounts payable, accrued expenses and other current liabilities

     (524     (254

Option premiums paid, net

     (114     (3

Counterparty collateral received (posted), net

     135        (344

Income taxes

     717        492   

Pension and non-pension postretirement benefit contributions

     (462     (2,360

Other assets and liabilities

     (450     (24
  

 

 

   

 

 

 

Net cash flows provided by operating activities

     6,132        4,853   
  

 

 

   

 

 

 

Cash flows from investing activities

    

Capital expenditures

     (5,789     (4,042

Proceeds from nuclear decommissioning trust fund sales

     7,265        6,139   

Investment in nuclear decommissioning trust funds

     (7,483     (6,332

Cash acquired from Constellation

     964        —     

Acquisitions of long lived assets

     (21     (387

Proceeds from sale of three Maryland generating stations

     371        —     

Proceeds from sales of investments

     28        6   

Purchases of investments

     (13     (4

Change in restricted cash

     (34     (3

Other investing activities

     137        20   
  

 

 

   

 

 

 

Net cash flows used in investing activities

     (4,575     (4,603
  

 

 

   

 

 

 

Cash flows from financing activities

    

Payment of accounts receivable agreement

     (15     —     

Changes in short-term debt

     (197     161   

Issuance of long-term debt

     2,027        1,199   

Retirement of long-term debt

     (1,145     (789

Dividends paid on common stock

     (1,716     (1,393

Proceeds from employee stock plans

     72        38   

Other financing activities

     (113     (62
  

 

 

   

 

 

 

Net cash flows used in financing activities

     (1,087     (846
  

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     470        (596

Cash and cash equivalents at beginning of period

     1,016        1,612   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 1,486      $ 1,016   
  

 

 

   

 

 

 

 

(a) Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.

 

7


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 December 31, 2012 (a)     Three Months Ended December 31, 2011  
     GAAP (b)     Adjustments     Adjusted
Non-GAAP
    GAAP (b)     Adjustments     Adjusted
Non-GAAP
 

Operating revenues

   $ 6,284      $ 160   (c),(d),(e)    $ 6,444      $ 4,358      $ (24 ) (c)    $ 4,334   

Operating expenses

            

Purchased power and fuel

     2,759        66   (c),(d),(e)      2,825        1,431        73   (c),(d)      1,504   

Operating and maintenance

     2,012        (130 ) (c),(f),(g),(h)      1,882        1,322        (43 ) (c),(f)      1,279   

Depreciation, amortization, accretion and depletion

     505        (3 ) (c)      502        360        (22 ) (c)      338   

Taxes other than income

     282        (3 ) (c)      279        183        —          183   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     5,558        (70     5,488        3,296        8        3,304   

Equity in earnings of unconsolidated affiliates

     (22     40   (e)      18        (1     —          (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     704        270        974        1,061        (32     1,029   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (231     (5 ) (i)      (236     (181     —          (181

Other, net

     93        (20 ) (c),(f),(j)      73        150        (114 ) (j)      36   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (138     (25     (163     (31     (114     (145
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     566        245        811        1,030        (146     884   

Income taxes

     182       

 

 

76

  (c),(d),(e),(f), 

  (g),(h),(i),(j),(k) 

    258        423       
 
 
(84
  (c),(d),(f), 
) (j),(k) 
    339   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     384        169        553        607        (62     545   

Net loss attributable to noncontrolling interests, preferred security dividends and preference stock dividends

     6        —          6        1        —          1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income on common stock

   $ 378      $ 169      $ 547      $ 606      $ (62   $ 544   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effective tax rate

     32.2       31.8     41.1       38.3

Earnings per average common share

            

Basic

   $ 0.44      $ 0.20      $ 0.64      $ 0.91      $ (0.09   $ 0.82   

Diluted

   $ 0.44      $ 0.20      $ 0.64      $ 0.91      $ (0.09   $ 0.82   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding

            

Basic

     854          854        664          664   

Diluted

     857          857        666          666   

Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:

 

  

Plant retirements and divestitures (c)

     $ 0.05          $ 0.01     

Mark-to-market impact of economic hedging activities (d)

       (0.14         (0.07  

Amortization of commodity contract intangibles (e)

       0.24            —       

Constellation merger and integration costs (f)

       0.05            0.03     

Asset retirement obligation (g)

       (0.01         —       

Midwest Generation bankruptcy charges (h)

       0.01            —       

Amortization of the fair value of certain debt (i)

       —              —       

Unrealized (gains) losses related to NDT fund investments (j)

       —              (0.07  

Non-cash remeasurement of deferred income taxes (k)

       —              0.01     
    

 

 

       

 

 

   

Total adjustments

     $ 0.20          $ (0.09  
    

 

 

       

 

 

   

 

(a) Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.
(b) Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(c) Adjustment to exclude costs associated with the retirement of fossil generating units, the impacts of the FERC approved reliability-must-run rate schedule and the impact associated with the sale in the fourth quarter of 2012 of three generating stations associated with certain of the regulatory approvals required for the merger.
(d) Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(e) Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date.
(f) Adjustment to exclude certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives.
(g) Adjustment to exclude the decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations.
(h) Adjustment to exclude estimated liabilities pursuant to the Midwest Generation bankruptcy.
(i) Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013.
(j) Adjustment to exclude the unrealized gains associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes.
(k) Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of the merger in 2012 and as a result of revised estimates of state apportionments in 2011.

 

8


EXELON CORPORATION

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

(unaudited)

(in millions, except per share data)

 

     Twelve Months Ended December 31, 2012 (a)     Twelve Months Ended December 31, 2011  
     GAAP (b)     Adjustments     Adjusted
Non-GAAP
    GAAP (b)     Adjustments     Adjusted
Non-GAAP
 

Operating revenues

   $ 23,489      $ 1,185   (c),(d),(e),(f)    $ 24,674      $ 19,063      $ (66 ) (c),(o)    $ 18,997   

Operating expenses

            

Purchased power and fuel

     10,157        607   (c),(d),(e),(g)      10,764        7,267        (292 ) (c),(d)      6,975   

Operating and maintenance

     7,961       

 

 

(1,182

  (c),(e),(f),(g), 

) (h),(i),(j),(k) 

    6,779        5,184       

 

 

(124

  (c),(g),(j),(k), 

) (o),(p) 

    5,060   

Depreciation, amortization, accretion and depletion

     1,881        (47 ) (c),(g)      1,834        1,347        (87 ) (c)      1,260   

Taxes other than income

     1,019        (9 ) (c),(f),(g)      1,010        785        (1 ) (c)      784   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     21,018        (631     20,387        14,583        (504     14,079   

Equity in earnings (losses) of unconsolidated affiliates

     (91     150   (e),(g)      59        (1     —          (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     2,380        1,966        4,346        4,479        438        4,917   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and deductions

            

Interest expense

     (928     (13 ) (g),(l)      (941     (726     —          (726

Other, net

     346        (94 ) (c),(g),(m)      252        203        (21 ) (m),(o)      182   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and deductions

     (582     (107     (689     (523     (21     (544
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     1,798        1,859        3,657        3,956        417        4,373   

Income taxes

     627       

 

 

 

 

689

  (c),(d),(e),(f), 

  (g),(h),(i),(j), 

  (k),(l),(m),(n) 

    1,316        1,457       
 

 

 
 

149

  (c),(d),(g),(j), 
  (k),(m),(n), 

  (o),(p) 

    1,606   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income on common stock

     1,171        1,170        2,341        2,499        268        2,767   

Net loss attributable to noncontrolling interests, preferred security dividends and preference stock dividends

     11        —          11        4        —          4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 1,160      $ 1,170      $ 2,330      $ 2,495      $ 268      $ 2,763   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effective tax rate

     34.9       36.0     36.8       36.7

Earnings per average common share

            

Basic

   $ 1.42      $ 1.43      $ 2.85      $ 3.76      $ 0.41      $ 4.17   

Diluted

   $ 1.42      $ 1.43      $ 2.85      $ 3.75      $ 0.41      $ 4.16   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding

            

Basic

     816          816        663          663   

Diluted

     819          819        665          665   

Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:

  

Plant retirements and divestitures (c)

     $ 0.29          $ 0.05     

Mark-to-market impact of economic hedging activities (d)

       (0.38         0.27     

Amortization of commodity contract intangibles (e)

       0.93            —       

Maryland commitments (f)

       0.28            —       

Constellation merger and integration costs (g)

       0.31            0.07     

Midwest Generation bankruptcy charges (h)

       0.01            —       

FERC settlement (i)

       0.21            —       

Other acquisition costs (j)

       —              0.01     

Asset retirement obligation (k)

       —              0.02     

Amortization of the fair value of certain debt (l)

       (0.01         —       

Unrealized (gains) losses related to NDT fund investments (m)

       (0.07         —       

Remeasurement of state deferred income taxes (n)

       (0.14         0.05     

Wolf Hollow acquisition (o)

       —              (0.03  

Recovery of costs pursuant to the 2011 distribution rate case order (p)

       —              (0.03  
    

 

 

       

 

 

   

Total adjustments

     $ 1.43          $ 0.41     
    

 

 

       

 

 

   

 

(a) Includes financial results for Constellation Energy including BGE, beginning on March 12, 2012, the date the acquisition was completed.
(b) Results reported in accordance with GAAP.
(c) Adjustment to exclude costs associated with the retirement of fossil generating units, the impacts of the FERC approved reliability-must-run rate schedule and the impact associated with the sale in the fourth quarter of 2012 of three generation stations associated with certain of the regulatory approvals required for the merger.
(d) Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(e) Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date.
(f) Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction.
(g) Adjustment to exclude certain activities associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives.
(h) Adjustment to exclude estimated liabilities pursuant to the Midwest Generation bankruptcy.
(i) Adjustment to exclude costs associated with the March 2012 settlement with the FERC.
(j) Adjustment to exclude certain costs associated with various acquisitions.
(k) Adjustment to exclude the increase in Generation’s decommissioning obligation for spent nuclear fuel at retired nuclear units in 2011 and 2012, a decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations in 2012 and a decrease in PECO’s asset retirement obligation in 2011.
(l) Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013.
(m) Adjustment to exclude the unrealized losses in 2011 and gains in 2012 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes.
(n) Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of the merger in 2012 and as a result of revised estimates of state apportionments in 2011.
(o) Adjustment to exclude the non-cash bargain purchase gain (negative goodwill) associated with the acquisition of Wolf Hollow, net of acquisition costs.
(p) Adjustment to exclude one-time benefits for the recovery of previously incurred costs related to the 2009 restructuring plan and for the passage of Federal health care legislation in 2010.

 

9


EXELON CORPORATION (a)

Reconciliation of Adjusted (non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Three Months Ended December 31, 2012 and 2011

 

     Exelon
Earnings per
Diluted Share
    Generation     ComEd     PECO     BGE     Other (b)     Exelon  

2011 GAAP Earnings (Loss)

   $ 0.91      $ 446      $ 121      $ 73      $ —        $ (34   $ 606   

2011 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:

              

Mark-to-Market Impact of Economic Hedging Activities

     (0.07     (45     —          —          —          —          (45

Unrealized Gains Related to NDT Fund Investments (1)

     (0.07     (46     —          —          —          —          (46

Plant Retirements and Divestitures (2)

     0.01        4        —          —          —          —          4   

Constellation Merger and Integration Costs (3)

     0.03        6        —          1        —          14        21   

Non-Cash Remeasurement of Deferred Income Taxes (4)

     0.01        (6     —          —          —          10        4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     0.82        359        121        74        —          (10     544   

Year Over Year Effects on Earnings:

              

Generation Energy Margins, Excluding Mark-to-Market:

              

Nuclear Volume

     —          (1     —          —          —          —          (1

Nuclear Fuel Costs (5)

     (0.01     (12     —          —          —          —          (12

Capacity Pricing (6)

     —          (4     —          —          —          —          (4

Market and Portfolio Conditions (7)

     0.22        188        —          —          —          —          188   

Transmission Upgrades (8)

     —          19        —          —          —          (19     —     

ComEd, PECO and BGE Margins:

              

Weather

     0.02        —          1        17        —   (c)      —          18   

Load

     —          —          1        —          —   (c)      —          1   

Other Energy Delivery (9)

     0.34        —          61        8        226        —          295   

Operating and Maintenance Expense:

              

Labor, Contracting and Materials (10)

     (0.20     (115     (13     3        (46     —          (171

Planned Nuclear Refueling Outages

     0.01        8        —          —          —          —          8   

Pension and Non-Pension Postretirement Benefits (11)

     (0.04     (10     (4     (3     (5     (12     (34

Other Operating and Maintenance (12)

     (0.21     (90     (34     (32     (49     25        (180

Depreciation and Amortization Expense (13)

     (0.12     (42     (2     (3     (48     (5     (100

Equity in Earnings of Unconsolidated Affiliates (14)

     0.01        12        —          —          —          —          12   

Income Taxes (15)

     0.06        8        11        16        (1     20        54   

Interest Expense, Net (16)

     (0.03     (24     17        1        (20     2        (24

Other

     (0.05     (13     3        —          (39     2        (47

Share Differential (17)

     (0.18     —          —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

2012 Adjusted (non-GAAP) Operating Earnings

     0.64        283        162        81        18        3        547   

2012 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:

              

Mark-to-Market Impact of Economic Hedging Activities

     0.14        145        —          —          —          (22     123   

Unrealized Gains Related to NDT Fund Investments (1)

     —          2        —          —          —          —          2   

Plant Retirements and Divestitures (2)

     (0.05     (38     —          —          —          —          (38

Constellation Merger and Integration Costs (3)

     (0.05     (35     (2     (2     (3     (4     (46

Non-Cash Remeasurement of Deferred Income Taxes (4)

     —          (9     —          —          —          10        1   

Amortization of Commodity Contract Intangibles (18)

     (0.24     (211     —          —          —          —          (211

Amortization of the Fair Value of Certain Debt (19)

     —          3        —          —          —          —          3   

Asset Retirement Obligation (20)

     0.01        5        —          —          —          —          5   

Midwest Generation Bankruptcy Charges (21)

     (0.01     (8     —          —          —          —          (8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

2012 GAAP Earnings (Loss)

   $ 0.44      $ 137      $ 160      $ 79      $ 15      $ (13   $ 378   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) For the three months ended December 31, 2012, includes financial results for Constellation and BGE. Therefore, the results of operations from 2012 and 2011 are not comparable for Generation, BGE, Other and Exelon. The explanations below identify any other significant or unusual items affecting the results of operations.
(b) Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.
(c) As approved by the Maryland PSC, BGE records a monthly adjustment to rates for residential and the majority of its commercial and industrial customers to eliminate the effect of abnormal weather and usage patterns per customer on distribution volumes.

 

(1) Reflects the impact of unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.
(2) For 2012, primarily reflects the impact associated with the sale of three generating stations associated with certain of the regulatory approvals required for the merger. For 2011, primarily reflects incremental accelerated depreciation associated with the retirement of four fossil generating units and compensation for operating two of the units past their planned retirement date under a FERC-approved reliability-must-run rate schedule.
(3) Reflects certain costs incurred associated with the merger, including transaction costs, employee-related expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives.
(4) Reflects the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of the merger in 2012 and as a result of revised estimates of state apportionments in 2011.
(5) Primarily reflects the impact of higher nuclear fuel prices during the amortization period, excluding CENG.
(6) Primarily reflects the impact of decreased capacity prices related to the Reliability Pricing Model (RPM) for the PJM Interconnection, LLC (PJM) market, partially offset by the addition of Constellation’s financial results in 2012.
(7) Primarily reflects the addition of Constellation’s financial results in 2012, partially offset by the impact of decreased realized market prices for the sale of energy in the Mid-Atlantic and Midwest regions.
(8) For Generation, reflects intercompany expense in 2011 and PJM bill credits in 2012 related to upgrades in transmission assets owned by ComEd, which are reflected as assets at Exelon Corporate.
(9) For ComEd, primarily reflects the impacts of the October 2012 rehearing order issued by the ICC related to ComEd’s recovery of pension asset costs associated with the formula rate proceeding under EIMA. For ComEd, also reflects recovery of increased costs and capital investment, net of lower allowed return on equity, pursuant to the formula rate under EIMA, and recovery of increased costs and capital investment pursuant to the FERC approved transmission formula rate. For PECO, primarily reflects increased cost recovery for regulatory required programs (partially offset in operating and maintenance expense, depreciation expense and income taxes).
(10) Primarily reflects the addition of Constellation and BGE’s financial results in 2012 and the impacts of increased wages and other benefits and increased contracting expenses (exclusive of planned nuclear refueling outages and incremental storm costs). At ComEd, primarily reflects increased contracting expenses on new projects related to EIMA. At PECO, primarily reflects a decrease in contracting expenses.
(11) The increase in pension and OPEB costs primarily reflects the impact of lower actuarially assumed discount rates and expected return on assets for 2012 as compared to 2011.
(12) Primarily reflects the addition of Constellation and BGE’s financial results in 2012 and the impact of higher storm costs in the PECO and BGE service territories. For ComEd, primarily reflects a credit in 2011 for the allowed recovery of certain storm costs pursuant to EIMA, partially offset by a 2011 one-time contribution by ComEd also pursuant to EIMA.
(13) Primarily reflects the addition of Constellation and BGE’s financial results in 2012, increased depreciation expense across the operating companies for ongoing capital expenditures and the non-cash amortization of intangible assets at Generation primarily related to the trade name and retail relationships recorded at fair value at the merger date.
(14) Primarily reflects equity in earnings in CENG, partially offset by the non-cash amortization of the fair value basis difference recorded at the merger date.
(15) At Generation, primarily reflects changes in state income tax rates. At ComEd, primarily reflects a benefit related to the final 1999-2001 IRS settlement (offset at Generation) and a favorable remeasurement of Illinois state deferred taxes. At PECO, primarily reflects a benefit for the gas property repairs deduction.
(16) Primarily reflects the addition of Constellation and BGE’s financial results in 2012. For Generation and BGE, also reflects the impact of higher interest expense due to higher outstanding debt during 2012. For ComEd, primarily reflects lower interest expense related to the 1999-2001 IRS settlement, lower outstanding debt during 2012 and lower interest rates on long-term debt.
(17) Reflects the impact on earnings per share due to the increase in Exelon’s average diluted common shares outstanding as a result of the merger.
(18) Represents the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date.
(19) Represents the non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired in 2013.
(20) Reflects a decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations.
(21) For Generation, reflects estimated liabilities pursuant to the Midwest Generation bankruptcy.

 

10


EXELON CORPORATION (a)

Reconciliation of Adjusted (non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Twelve Months Ended December 31, 2012 and 2011

 

     Exelon
Earnings per
Diluted Share
    Generation     ComEd     PECO     BGE     Other (b)     Exelon  

2011 GAAP Earnings (Loss)

   $ 3.75      $ 1,771      $ 416      $ 385      $ —        $ (77   $ 2,495   

2011 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:

              

Mark-to-Market Impact of Economic Hedging Activities

     0.27        174        —          —          —          —          174   

Unrealized Losses Related to NDT Fund Investments (1)

     —          1        —          —          —          —          1   

Plant Retirements and Divestitures (2)

     0.05        33        —          —          —          —          33   

Asset Retirement Obligation (3)

     0.02        18        —          (2     —          —          16   

Recovery of Costs Pursuant to the 2011 Distribution Rate Case Order (4)

     (0.03     —          (17     —          —          —          (17

Constellation Merger and Integration Costs (5)

     0.07        8        —          1        —          37        46   

Other Acquisition Costs

     0.01        5        —          —          —          —          5   

Wolf Hollow Acquisition (6)

     (0.03     (23     —          —          —          —          (23

Non-Cash Remeasurement of Deferred Income Taxes (7)

     0.05        15        4        —          —          14        33   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

2011 Adjusted (non-GAAP) Operating Earnings (Loss) Year Over Year Effects on Earnings:

     4.16        2,002        403        384        —          (26     2,763   

Generation Energy Margins, Excluding Mark-to-Market:

              

Nuclear Volume

     —          —          —          —          —          —          —     

Nuclear Fuel Costs (8)

     (0.07     (56     —          —          —          —          (56

Capacity Pricing (9)

     (0.13     (105     —          —          —          —          (105

Market and Portfolio Conditions (10)

     0.71        581        —          —          —          —          581   

Transmission Upgrades (11)

     —          53        —          —          —          (53     —     

ComEd, PECO and BGE Margins:

              

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