Exact Name of Registrant as Specified in Its Charter; State of | ||||
Commission File | Incorporation; Address of Principal Executive Offices; and | IRS Employer | ||
Number | Telephone Number | Identification Number | ||
1-16169
|
EXELON CORPORATION | 23-2990190 | ||
(a Pennsylvania corporation) | ||||
10 South Dearborn Street37th Floor | ||||
P.O. Box 805379 | ||||
Chicago, Illinois 60680-5379 | ||||
(312) 394-7398 | ||||
1-1839
|
COMMONWEALTH EDISON COMPANY | 36-0938600 | ||
(an Illinois corporation) | ||||
10 South Dearborn Street 37th Floor | ||||
P.O. Box 805379 | ||||
Chicago, Illinois 60680-5379 | ||||
(312) 394-4321 | ||||
1-1401
|
PECO ENERGY COMPANY | 23-0970240 | ||
(a Pennsylvania corporation) | ||||
P.O. Box 8699 | ||||
2301 Market Street | ||||
Philadelphia, Pennsylvania 19101-8699 | ||||
(215) 841-4000 | ||||
333-85496
|
EXELON GENERATION COMPANY, LLC | 23-3064219 | ||
(a Pennsylvania limited liability company) | ||||
300 Exelon Way | ||||
Kennett Square, Pennsylvania 19348 | ||||
(610) 765-6900 |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition | ||||||||
Item 7.01. Regulation FD Disclosure | ||||||||
Item 9.01 Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
Press Release |
Exhibit No.
|
Description | |
99
|
Press release and earnings release attachments |
From:
|
Corporate Communications Exelon Corporation P.O. Box 805379 Chicago, IL 60680-5379 |
FOR IMMEDIATE RELEASE | ||
Contact: |
||||
Investor Relations: Michael Metzner, 312.394.7696 Media Relations: Jennifer Medley, 312.394.7189 |
| Unrealized mark-to-market gains of $59 million, or $0.09 per diluted share, from non-trading activities at Exelon (primarily Generation). | ||
| Earnings of $21 million, or $0.03 per diluted share, from investments in synthetic fuel-producing facilities. | ||
| Severance and severance-related credits of $4 million, or $0.01 per diluted share. | ||
| Costs of $5 million, or $0.01 per diluted share, related to certain integration costs associated with the proposed merger with Public Service Enterprise Group Incorporated (PSEG). |
| Charges totaling $64 million, or $0.10 per diluted share, for premiums paid on and other costs associated with debt repurchases related to ComEds accelerated liability management plan. | ||
| Severance and severance-related costs of $19 million, or $0.03 per diluted share. | ||
| Unrealized mark-to-market gains of $35 million, or $0.05 per diluted share, from non-trading activities at Generation. | ||
| A gain of $25 million, or $0.04 per diluted share, from the reimbursement of costs incurred prior to 2004 under the DOE settlement related to spent nuclear fuel storage. | ||
| Earnings of $18 million, or $0.03 per diluted share, from investments in synthetic fuel-producing facilities. |
| Proposed Merger with PSEG: On December 20, 2004, Exelon entered into a merger agreement with PSEG, and shareholders of both companies approved the transaction in July 2005. The merger also received approval from regulatory agencies in New York and Connecticut, in addition to the Federal Energy Regulatory Commission (FERC) approval in June. On September 13, 2005, Exelon |
2
announced that PECO had reached a settlement, subject to approval, with some but not all of the parties related to Pennsylvania review of the proposed merger. The administrative law judge (ALJ) in the proceeding before the Pennsylvania Public Utility Commission (PAPUC) issued an order establishing a modified timetable that accelerated the schedule for the approval process by approximately three weeks. As a result, it is anticipated that the ALJ may issue an initial decision earlier than the previously expected date of mid-December 2005. We expect the full PAPUC to vote on the case in December 2005 or in early 2006. | |||
In New Jersey, a revised procedural schedule for the merger review calls for testimony to be filed from mid-November to mid-December and for hearings in January 2006. Settlement discussions are scheduled for December and January. Aside from the possibility of an earlier settlement, scheduled dates for the ALJ initial decision and final order from the New Jersey Board of Public Utilities remain March 30 and May 15, 2006, respectively. | |||
Other remaining regulatory reviews include the U.S. Department of Justice and the federal Securities and Exchange Commission under the Public Utility Holding Company Act (if the merger should close before February 8, 2006, when PUHCA repeal takes effect). Exelon expects to complete all of the regulatory reviews and close the merger in the first half of 2006. | |||
| Illinois Regulatory Issues: On August 31, 2005, ComEd filed a proposal with the Illinois Commerce Commission (ICC) seeking approval of its first general rate case since January 1995. The rate case filing seeks to allocate the costs of supplying electricity and to adjust ComEds rates for delivering electricity to users in its service area, effective January 2007, in order to reflect ComEds rising costs and significant capital investment in its delivery system. An ICC order on the rate increase request is expected in July 2006. | ||
ComEd filed its procurement case in February 2005, which seeks ICC approval of a reverse-auction competitive bidding process for the utility to procure energy supply beginning in 2007 and to recover the costs from retail customers. In the procurement case, various intervenors, including the Illinois Attorney General (AG) and the Citizens Utility Board (CUB), unsuccessfully challenged the ICCs authority to approve the procurement process and associated cost recovery. On September 1, 2005, these same intervenors filed a complaint in the Circuit Court of Cook County against the ICC raising similar arguments and seeking an injunction prohibiting ICC approval of the procurement case proposals. On September 30, the Circuit Court granted ComEds request to intervene in the Circuit Court case. On October 12, ComEd moved for summary judgment in the litigation, and a hearing on this motion is scheduled for December 14. ComEd continues to pursue its procurement case with the ICC. Testimony has been filed in the case, and ICC hearings concluded on September 20. An ICC order on this filing is expected in late January 2006, although the timing may depend on the outcome of the pending litigation. | |||
On October 17, 2005, ComEd and Generation filed an application with FERC seeking approval that the proposed Illinois auction process meets FERC principles concerning the procurement of wholesale electric power through a competitive process and that the proposed standard agreements under which Generation would provide electricity to ComEd if it is one of the winning bidders in the auction would be acceptable to FERC. The application requests expedited action by December 15, 2005 to ensure that the actions that the ICC is being asked to take in connection with the procurement case are fully consistent with federal law. FERC has ordered that all interventions are due by November 7. |
3
On September 21, the Illinois governor appointed Martin R. Cohen, former executive director of CUB, to the position of chairman of the ICC. On September 29, ComEd sent a letter to Cohen requesting that he recuse himself from participation in proceedings on ComEds procurement and delivery service rate cases. On October 5, ComEd filed a motion with the ICC formally seeking recusal of Cohen in the procurement case. To date, there has been no decision on this motion. However, on October 21, Cohen informed ComEd that he had retained legal counsel to advise him on the recusal request and, while consideration of that request was pending, he would not participate in ICC proceedings or discussions relating to ComEds procurement case. ComEd will consider taking further appropriate legal action, depending on the action taken by Cohen and the ICC. | |||
| Nuclear Operations: Generations nuclear fleet, including the owned output available to Generation from the Salem Generating Station operated by PSEG, produced 35,584 GWhs in the third quarter of 2005, compared with 35,303 GWhs of output in the third quarter of 2004. The Exelon Nuclear operated plants began two scheduled refuelings with 16 outage days occurring in the third quarter of 2005 compared with beginning one scheduled refueling with 16 outage days occurring in the third quarter of 2004. Operating expenses associated with the planned refueling outages were approximately $3 million higher in the third quarter of 2005 compared with the third quarter of 2004. Total non-refueling outage days in the third quarter of 2005 were 29 versus 26 in the third quarter of 2004. |
4
5
6
Consolidating Statements of Income Three Months Ended September 30, 2005 and 2004 (a) |
1 | |||
Consolidating Statements of Income Nine Months Ended September 30, 2005 and 2004 (a) |
2 | |||
Business Segment Comparative Income Statements Energy Delivery and Generation Three and Nine Months Ended September 30, 2005 and 2004 (a) |
3 | |||
Business Segment Comparative Income Statements Other Three and Nine Months Ended September 30, 2005 and 2004 (a) |
4 | |||
Consolidated Balance Sheets September 30, 2005 and December 31, 2004 |
5 | |||
Consolidated Statements of Cash Flows Nine Months Ended September 30, 2005 and 2004 |
6 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income Three Months Ended September 30, 2005 and 2004 (a) |
7 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income Nine Months Ended September 30, 2005 and 2004 (a) |
8 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings Per Diluted Share to GAAP Earnings Per Diluted Share Three Months Ended September 30, 2005 and 2004 |
9 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings Per Diluted Share to GAAP Earnings Per Diluted Share Nine Months Ended September 30, 2005 and 2004 |
10 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income Energy Delivery Three and Nine Months Ended September 30, 2005 and 2004 |
11 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income Generation Three and Nine Months Ended September 30, 2005 and 2004 (a) |
12 | |||
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income Other Three and Nine Months Ended September 30, 2005 and 2004 (a) |
13 | |||
Electric Sales Statistics Three and Nine Months Ended September 30, 2005 and 2004 |
14 | |||
Energy Delivery Sales Statistics Three Months Ended September 30, 2005 and 2004 |
15 | |||
Energy Delivery Sales Statistics Nine Months Ended September 30, 2005 and 2004 |
16 | |||
Exelon Generation Power Marketing Statistics Three Months Ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004 |
17 | |||
Exelon Generation Power Marketing Statistics Nine Months Ended September 30, 2005 and 2004 |
18 |
(a) | Certain reclassifications have been made in Exelons and Generations 2004 Statements of Income related to the presentation of discontinued operations in order to conform to the current years presentation. In addition, certain reclassifications have been made in Exelons 2004 segment presentation in order to conform to the current years presentation. These reclassifications had no effect on 2004 net income as previously reported. |
Three Months Ended September 30, 2005 | ||||||||||||||||
Energy | Exelon | |||||||||||||||
Delivery | Generation | Other | Consolidated | |||||||||||||
Operating revenues |
$ | 3,270 | $ | 2,711 | $ | (1,508 | ) | $ | 4,473 | |||||||
Operating expenses |
||||||||||||||||
Purchased power |
1,666 | 1,047 | (1,503 | ) | 1,210 | |||||||||||
Fuel |
42 | 441 | (12 | ) | 471 | |||||||||||
Operating and maintenance |
354 | 537 | 20 | 911 | ||||||||||||
Depreciation and amortization |
270 | 63 | 25 | 358 | ||||||||||||
Taxes other than income |
155 | 48 | 8 | 211 | ||||||||||||
Total operating expenses |
2,487 | 2,136 | (1,462 | ) | 3,161 | |||||||||||
Operating income (loss) |
783 | 575 | (46 | ) | 1,312 | |||||||||||
Other income and deductions |
||||||||||||||||
Interest expense |
(141 | ) | (33 | ) | (42 | ) | (216 | ) | ||||||||
Distributions on preferred securities of subsidiaries |
(1 | ) | | | (1 | ) | ||||||||||
Equity in losses of unconsolidated affiliates |
(7 | ) | (2 | ) | (30 | ) | (39 | ) | ||||||||
Other, net |
(8 | ) | 13 | 7 | 12 | |||||||||||
Total other income and deductions |
(157 | ) | (22 | ) | (65 | ) | (244 | ) | ||||||||
Income (loss) from continuing operations before
income taxes |
626 | 553 | (111 | ) | 1,068 | |||||||||||
Income taxes |
237 | 219 | (112 | ) | 344 | |||||||||||
Income from continuing operations |
389 | 334 | 1 | 724 | ||||||||||||
Income from discontinued operations |
| 1 | | 1 | ||||||||||||
Net income |
$ | 389 | $ | 335 | $ | 1 | $ | 725 | ||||||||
Three Months Ended September 30, 2004 | ||||||||||||||||
Energy | Exelon | |||||||||||||||
Delivery | Generation | Other | Consolidated | |||||||||||||
Operating revenues |
$ | 2,844 | $ | 2,151 | $ | (1,247 | ) | $ | 3,748 | |||||||
Operating expenses |
||||||||||||||||
Purchased power |
1,365 | 757 | (1,235 | ) | 887 | |||||||||||
Fuel |
35 | 318 | (7 | ) | 346 | |||||||||||
Operating and maintenance |
353 | 414 | 11 | 778 | ||||||||||||
Depreciation and amortization |
248 | 93 | 21 | 362 | ||||||||||||
Taxes other than income |
132 | 41 | 4 | 177 | ||||||||||||
Total operating expenses |
2,133 | 1,623 | (1,206 | ) | 2,550 | |||||||||||
Operating income (loss) |
711 | 528 | (41 | ) | 1,198 | |||||||||||
Other income and deductions |
||||||||||||||||
Interest expense |
(162 | ) | (25 | ) | (13 | ) | (200 | ) | ||||||||
Distributions on preferred securities of subsidiaries |
(1 | ) | | | (1 | ) | ||||||||||
Equity in losses of unconsolidated affiliates |
(10 | ) | (5 | ) | (27 | ) | (42 | ) | ||||||||
Other, net |
(98 | ) | 4 | (8 | ) | (102 | ) | |||||||||
Total other income and deductions |
(271 | ) | (26 | ) | (48 | ) | (345 | ) | ||||||||
Income (loss) from continuing operations before
income taxes and minority interest |
440 | 502 | (89 | ) | 853 | |||||||||||
Income taxes |
178 | 193 | (92 | ) | 279 | |||||||||||
Income from continuing operations before minority interest |
262 | 309 | 3 | 574 | ||||||||||||
Minority interest |
| 4 | (1 | ) | 3 | |||||||||||
Income from continuing operations |
262 | 313 | 2 | 577 | ||||||||||||
Income (loss) from discontinued operations |
| 6 | (6 | ) | | |||||||||||
Income (loss) before cumulative effect of a
change in accounting principle |
262 | 319 | (4 | ) | 577 | |||||||||||
Cumulative effect of a change in accounting principle |
| | (9 | ) | (9 | ) | ||||||||||
Net income (loss) |
$ | 262 | $ | 319 | $ | (13 | ) | $ | 568 | |||||||
1
Nine Months Ended September 30, 2005 | ||||||||||||||||
Energy | Exelon | |||||||||||||||
Delivery | Generation | Other | Consolidated | |||||||||||||
Operating revenues |
$ | 8,483 | $ | 6,836 | $ | (3,800 | ) | $ | 11,519 | |||||||
Operating expenses |
||||||||||||||||
Purchased power |
4,215 | 2,014 | (3,787 | ) | 2,442 | |||||||||||
Fuel |
373 | 1,227 | (30 | ) | 1,570 | |||||||||||
Operating and maintenance |
1,010 | 1,748 | 46 | 2,804 | ||||||||||||
Depreciation and amortization |
739 | 188 | 76 | 1,003 | ||||||||||||
Taxes other than income |
421 | 122 | 17 | 560 | ||||||||||||
Total operating expenses |
6,758 | 5,299 | (3,678 | ) | 8,379 | |||||||||||
Operating income (loss) |
1,725 | 1,537 | (122 | ) | 3,140 | |||||||||||
Other income and deductions |
||||||||||||||||
Interest expense |
(435 | ) | (91 | ) | (89 | ) | (615 | ) | ||||||||
Distributions on preferred securities of subsidiaries |
(3 | ) | | | (3 | ) | ||||||||||
Equity in earnings (losses) of unconsolidated affiliates |
(23 | ) | 2 | (86 | ) | (107 | ) | |||||||||
Other, net |
14 | 82 | 15 | 111 | ||||||||||||
Total other income and deductions |
(447 | ) | (7 | ) | (160 | ) | (614 | ) | ||||||||
Income (loss) from continuing operations before
income taxes |
1,278 | 1,530 | (282 | ) | 2,526 | |||||||||||
Income taxes |
473 | 595 | (289 | ) | 779 | |||||||||||
Income from continuing operations |
805 | 935 | 7 | 1,747 | ||||||||||||
Income (loss) from discontinued operations |
| 16 | (3 | ) | 13 | |||||||||||
Net income |
$ | 805 | $ | 951 | $ | 4 | $ | 1,760 | ||||||||
Nine Months Ended September 30, 2004 | ||||||||||||||||
Energy | Exelon | |||||||||||||||
Delivery | Generation | Other | Consolidated | |||||||||||||
Operating revenues |
$ | 7,853 | $ | 5,978 | $ | (3,010 | ) | $ | 10,821 | |||||||
Operating expenses |
||||||||||||||||
Purchased power |
3,271 | 1,863 | (2,989 | ) | 2,145 | |||||||||||
Fuel |
368 | 1,276 | (8 | ) | 1,636 | |||||||||||
Operating and maintenance |
1,056 | 1,605 | 35 | 2,696 | ||||||||||||
Depreciation and amortization |
704 | 212 | 58 | 974 | ||||||||||||
Taxes other than income |
400 | 134 | 14 | 548 | ||||||||||||
Total operating expenses |
5,799 | 5,090 | (2,890 | ) | 7,999 | |||||||||||
Operating income (loss) |
2,054 | 888 | (120 | ) | 2,822 | |||||||||||
Other income and deductions |
||||||||||||||||
Interest expense |
(517 | ) | (79 | ) | (37 | ) | (633 | ) | ||||||||
Distributions on preferred securities of subsidiaries |
(3 | ) | | | (3 | ) | ||||||||||
Equity in losses of unconsolidated affiliates |
(32 | ) | (7 | ) | (58 | ) | (97 | ) | ||||||||
Other, net |
(76 | ) | 118 | 4 | 46 | |||||||||||
Total other income and deductions |
(628 | ) | 32 | (91 | ) | (687 | ) | |||||||||
Income (loss) from continuing operations before
income taxes and minority interest |
1,426 | 920 | (211 | ) | 2,135 | |||||||||||
Income taxes |
546 | 352 | (237 | ) | 661 | |||||||||||
Income from continuing operations before
minority interest |
880 | 568 | 26 | 1,474 | ||||||||||||
Minority interest |
| 3 | | 3 | ||||||||||||
Income from continuing operations |
880 | 571 | 26 | 1,477 | ||||||||||||
Income (loss) from discontinued operations |
| (4 | ) | 5 | 1 | |||||||||||
Income from before cumulative effect of changes
in accounting principles |
880 | 567 | 31 | 1,478 | ||||||||||||
Cumulative effect of changes in accounting
principles, net of income taxes |
| 32 | (9 | ) | 23 | |||||||||||
Net income |
$ | 880 | $ | 599 | $ | 22 | $ | 1,501 | ||||||||
2
Energy Delivery | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2005 | 2004 | Variance | 2005 | 2004 | Variance | |||||||||||||||||||
Operating revenues |
$ | 3,270 | $ | 2,844 | $ | 426 | $ | 8,483 | $ | 7,853 | $ | 630 | ||||||||||||
Operating expenses |
||||||||||||||||||||||||
Purchased power |
1,666 | 1,365 | 301 | 4,215 | 3,271 | 944 | ||||||||||||||||||
Fuel |
42 | 35 | 7 | 373 | 368 | 5 | ||||||||||||||||||
Operating and maintenance |
354 | 353 | 1 | 1,010 | 1,056 | (46 | ) | |||||||||||||||||
Depreciation and amortization |
270 | 248 | 22 | 739 | 704 | 35 | ||||||||||||||||||
Taxes other than income |
155 | 132 | 23 | 421 | 400 | 21 | ||||||||||||||||||
Total operating expenses |
2,487 | 2,133 | 354 | 6,758 | 5,799 | 959 | ||||||||||||||||||
Operating income |
783 | 711 | 72 | 1,725 | 2,054 | (329 | ) | |||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||
Interest expense |
(141 | ) | (162 | ) | 21 | (435 | ) | (517 | ) | 82 | ||||||||||||||
Distributions on preferred securities of subsidiaries |
(1 | ) | (1 | ) | | (3 | ) | (3 | ) | | ||||||||||||||
Equity in losses of unconsolidated affiliates |
(7 | ) | (10 | ) | 3 | (23 | ) | (32 | ) | 9 | ||||||||||||||
Other, net |
(8 | ) | (98 | ) | 90 | 14 | (76 | ) | 90 | |||||||||||||||
Total other income and deductions |
(157 | ) | (271 | ) | 114 | (447 | ) | (628 | ) | 181 | ||||||||||||||
Income before income taxes |
626 | 440 | 186 | 1,278 | 1,426 | (148 | ) | |||||||||||||||||
Income taxes |
237 | 178 | 59 | 473 | 546 | (73 | ) | |||||||||||||||||
Net income |
$ | 389 | $ | 262 | $ | 127 | $ | 805 | $ | 880 | $ | (75 | ) | |||||||||||
Generation | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2005 | 2004 | Variance | 2005 | 2004 | Variance | |||||||||||||||||||
Operating revenues |
$ | 2,711 | $ | 2,151 | $ | 560 | $ | 6,836 | $ | 5,978 | $ | 858 | ||||||||||||
Operating expenses |
||||||||||||||||||||||||
Purchased power |
1,047 | 757 | 290 | 2,014 | 1,863 | 151 | ||||||||||||||||||
Fuel |
441 | 318 | 123 | 1,227 | 1,276 | (49 | ) | |||||||||||||||||
Operating and maintenance |
537 | 414 | 123 | 1,748 | 1,605 | 143 | ||||||||||||||||||
Depreciation and amortization |
63 | 93 | (30 | ) | 188 | 212 | (24 | ) | ||||||||||||||||
Taxes other than income |
48 | 41 | 7 | 122 | 134 | (12 | ) | |||||||||||||||||
Total operating expenses |
2,136 | 1,623 | 513 | 5,299 | 5,090 | 209 | ||||||||||||||||||
Operating income |
575 | 528 | 47 | 1,537 | 888 | 649 | ||||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||
Interest expense |
(33 | ) | (25 | ) | (8 | ) | (91 | ) | (79 | ) | (12 | ) | ||||||||||||
Equity in earnings (losses) of unconsolidated affiliates |
(2 | ) | (5 | ) | 3 | 2 | (7 | ) | 9 | |||||||||||||||
Other, net |
13 | 4 | 9 | 82 | 118 | (36 | ) | |||||||||||||||||
Total other income and deductions |
(22 | ) | (26 | ) | 4 | (7 | ) | 32 | (39 | ) | ||||||||||||||
Income from continuing operations before
income taxes and minority interest |
553 | 502 | 51 | 1,530 | 920 | 610 | ||||||||||||||||||
Income taxes |
219 | 193 | 26 | 595 | 352 | 243 | ||||||||||||||||||
Income from continuing operations before minority interest |
334 | 309 | 25 | 935 | 568 | 367 | ||||||||||||||||||
Minority interest |
| 4 | (4 | ) | | 3 | (3 | ) | ||||||||||||||||
Income from continuing operations |
334 | 313 | 21 | 935 | 571 | 364 | ||||||||||||||||||
Income (loss) from discontinued operations |
1 | 6 | (5 | ) | 16 | (4 | ) | 20 | ||||||||||||||||
Income before cumulative effect of a change in
accounting principle |
335 | 319 | 16 | 951 | 567 | 384 | ||||||||||||||||||
Cumulative effect of a change in accounting
principle, net of income taxes |
| | | | 32 | (32 | ) | |||||||||||||||||
Net income |
$ | 335 | $ | 319 | $ | 16 | $ | 951 | $ | 599 | $ | 352 | ||||||||||||
3
Other (a) | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2005 | 2004 | Variance | 2005 | 2004 | Variance | |||||||||||||||||||||||
Operating revenues |
$ | (1,508 | ) | $ | (1,247 | ) | $ | (261 | ) | $ | (3,800 | ) | $ | (3,010 | ) | $ | (790 | ) | ||||||||||
Operating expenses |
||||||||||||||||||||||||||||
Purchased power |
(1,503 | ) | (1,235 | ) | (268 | ) | (3,787 | ) | (2,989 | ) | (798 | ) | ||||||||||||||||
Fuel |
(12 | ) | (7 | ) | (5 | ) | (30 | ) | (8 | ) | (22 | ) | ||||||||||||||||
Operating and maintenance |
20 | 11 | 9 | 46 | 35 | 11 | ||||||||||||||||||||||
Depreciation and amortization |
25 | 21 | 4 | 76 | 58 | 18 | ||||||||||||||||||||||
Taxes other than income |
8 | 4 | 4 | 17 | 14 | 3 | ||||||||||||||||||||||
Total operating expenses |
(1,462 | ) | (1,206 | ) | (256 | ) | (3,678 | ) | (2,890 | ) | (788 | ) | ||||||||||||||||
Operating loss |
(46 | ) | (41 | ) | (5 | ) | (122 | ) | (120 | ) | (2 | ) | ||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||||||
Interest expense |
(42 | ) | (13 | ) | (29 | ) | (89 | ) | (37 | ) | (52 | ) | ||||||||||||||||
Equity in losses of unconsolidated affiliates |
(30 | ) | (27 | ) | (3 | ) | (86 | ) | (58 | ) | (28 | ) | ||||||||||||||||
Other, net |
7 | (8 | ) | 15 | 15 | 4 | 11 | |||||||||||||||||||||
Total other income and deductions |
(65 | ) | (48 | ) | (17 | ) | (160 | ) | (91 | ) | (69 | ) | ||||||||||||||||
Loss from continuing operations before income taxes |
(111 | ) | (89 | ) | (22 | ) | (282 | ) | (211 | ) | (71 | ) | ||||||||||||||||
Income taxes |
(112 | ) | (92 | ) | (20 | ) | (289 | ) | (237 | ) | (52 | ) | ||||||||||||||||
Income from continuing operations before minority interest |
1 | 3 | (2 | ) | 7 | 26 | (19 | ) | ||||||||||||||||||||
Minority interest |
| (1 | ) | 1 | | | | |||||||||||||||||||||
Income from continuing operations |
1 | 2 | (1 | ) | 7 | 26 | (19 | ) | ||||||||||||||||||||
Income (loss) from discontinued operations |
| (6 | ) | 6 | (3 | ) | 5 | (8 | ) | |||||||||||||||||||
Income
(loss) before cumulative effect of change in
accounting principle |
1 | (4 | ) | 5 | 4 | 31 | (27 | ) | ||||||||||||||||||||
Cumulative effect of change in accounting
principle, net of income taxes |
| (9 | ) | 9 | | (9 | ) | 9 | ||||||||||||||||||||
Net income (loss) |
$ | 1 | $ | (13 | ) | $ | 14 | $ | 4 | $ | 22 | $ | (18 | ) | ||||||||||||||
(a) | Other includes eliminating and consolidating adjustments, Exelons corporate operations, shared service entities, Enterprises and other financing and investment activities, including investments in synthetic fuel-producing facilities. |
4
September 30, | December 31, | |||||||
2005 | 2004 | |||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 153 | $ | 499 | ||||
Restricted cash and investments |
32 | 60 | ||||||
Accounts receivable, net |
||||||||
Customers |
1,834 | 1,649 | ||||||
Other |
263 | 409 | ||||||
Mark-to-market derivative assets |
1,240 | 403 | ||||||
Inventories fossil fuel |
262 | 230 | ||||||
Inventories materials and supplies |
336 | 312 | ||||||
Deferred income taxes |
108 | 68 | ||||||
Other |
495 | 296 | ||||||
Total current assets |
4,723 | 3,926 | ||||||
Property, plant and equipment, net |
21,613 | 21,482 | ||||||
Deferred debits and other assets |
||||||||
Regulatory assets |
4,460 | 4,790 | ||||||
Nuclear decommissioning trust funds |
5,455 | 5,262 | ||||||
Investments |
811 | 804 | ||||||
Goodwill |
4,696 | 4,705 | ||||||
Mark-to-market derivative assets |
397 | 383 | ||||||
Pension asset |
83 | | ||||||
Other |
914 | 1,418 | ||||||
Total deferred debits and other assets |
16,816 | 17,362 | ||||||
Total assets |
$ | 43,152 | $ | 42,770 | ||||
Liabilities and shareholders equity |
||||||||
Current liabilities |
||||||||
Notes payable |
$ | 446 | $ | 490 | ||||
Long-term debt due within one year |
218 | 427 | ||||||
Long-term debt to ComEd Transitional Funding Trust
and PECO Energy Transition Trust due within one year |
615 | 486 | ||||||
Accounts payable |
1,434 | 1,255 | ||||||
Mark-to-market derivative liabilities |
1,684 | 598 | ||||||
Accrued expenses |
978 | 1,143 | ||||||
Other |
670 | 483 | ||||||
Total current liabilities |
6,045 | 4,882 | ||||||
Long-term debt |
8,076 | 7,292 | ||||||
Long-term debt to ComEd Transitional Funding
Trust and PECO Energy Transition Trust |
3,542 | 4,311 | ||||||
Long-term debt to other financing trusts |
545 | 545 | ||||||
Deferred credits and other liabilities |
||||||||
Deferred income taxes |
4,753 | 4,488 | ||||||
Unamortized investment tax credits |
265 | 275 | ||||||
Asset retirement obligations |
3,872 | 3,981 | ||||||
Pension obligations |
112 | 1,993 | ||||||
Non-pension postretirement benefits obligations |
1,136 | 1,065 | ||||||
Spent nuclear fuel obligation |
897 | 878 | ||||||
Regulatory liabilities |
2,343 | 2,204 | ||||||
Mark-to-market derivative liabilities |
482 | 323 | ||||||
Other |
839 | 915 | ||||||
Total deferred credits and other liabilities |
14,699 | 16,122 | ||||||
Total liabilities |
32,907 | 33,152 | ||||||
Minority interest of consolidated subsidiaries |
1 | 42 | ||||||
Preferred securities of subsidiaries |
87 | 87 | ||||||
Shareholders equity |
||||||||
Common stock |
7,939 | 7,664 | ||||||
Treasury stock, at cost |
(344 | ) | (82 | ) | ||||
Retained earnings |
4,309 | 3,353 | ||||||
Accumulated other comprehensive loss |
(1,747 | ) | (1,446 | ) | ||||
Total shareholders equity |
10,157 | 9,489 | ||||||
Total liabilities and shareholders equity |
$ | 43,152 | $ | 42,770 | ||||
5
Nine Months Ended | ||||||||
September 30, | ||||||||
2005 | 2004 | |||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 1,760 | $ | 1,501 | ||||
Adjustments to reconcile net income to net cash flows provided by operating activities: |
||||||||
Depreciation, amortization and accretion, including nuclear fuel |
1,477 | 1,449 | ||||||
Other decommissioning-related activities |
18 | 65 | ||||||
Cumulative effect of changes in accounting principles (net of income taxes) |
| (23 | ) | |||||
Deferred income taxes and amortization of investment tax credits |
487 | 314 | ||||||
Provision for uncollectible accounts |
48 | 59 | ||||||
Equity in losses of unconsolidated affiliates |
107 | 97 | ||||||
Gains on sales of investments and wholly owned subsidiaries |
(19 | ) | (154 | ) | ||||
Net realized (gains) losses on nuclear decommissioning trust funds |
(52 | ) | (9 | ) | ||||
Other non-cash operating activities |
39 | (24 | ) | |||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
(213 | ) | (6 | ) | ||||
Inventories |
(54 | ) | (20 | ) | ||||
Other current assets |
(231 | ) | 105 | |||||
Accounts payable, accrued expenses and other current liabilities |
125 | (92 | ) | |||||
Income taxes |
257 | 149 | ||||||
Net realized and unrealized mark-to-market and hedging transactions |
(168 | ) | (6 | ) | ||||
Pension and non-pension postretirement benefit obligations |
(1,893 | ) | (259 | ) | ||||
Other noncurrent assets and liabilities |
(99 | ) | 8 | |||||
Net cash flows provided by operating activities |
1,589 | 3,154 | ||||||
Cash flows from investing activities |
||||||||
Capital expenditures |
(1,521 | ) | (1,295 | ) | ||||
Proceeds from sale of nuclear decommissioning trust fund assets |
3,234 | 1,485 | ||||||
Investment in nuclear decommissioning trust funds |
(3,387 | ) | (1,687 | ) | ||||
Collection of other notes receivable |
| 58 | ||||||
Proceeds from sales of investments and wholly owned subsidiaries, net of $32 million
of cash sold during the nine months ended September 30, 2005 |
105 | 238 | ||||||
Proceeds from sales of long-lived assets |
2 | 50 | ||||||
Acquisition of Sithe Energies, Inc. |
(97 | ) | | |||||
Investment in synthetic fuel-producing facilities |
(92 | ) | (32 | ) | ||||
Change in restricted cash |
38 | (18 | ) | |||||
Net cash increase from consolidation of Sithe Energies, Inc. |
| 19 | ||||||
Other investing activities |
(10 | ) | (25 | ) | ||||
Net cash flows used in investing activities |
(1,728 | ) | (1,207 | ) | ||||
Cash flows from financing activities |
||||||||
Issuance of long-term debt |
1,788 | 75 | ||||||
Retirement of long-term debt |
(382 | ) | (973 | ) | ||||
Retirement of long-term debt to financing affiliates |
(639 | ) | (547 | ) | ||||
Issuance of
short-term debt |
2,500 | | ||||||
Retirement of short-term debt |
(2,200 | ) | | |||||
Change in
other short-term debt |
(344 | ) | (1 | ) | ||||
Payment on acquisition note payable to Sithe Energies, Inc. |
| (27 | ) | |||||
Dividends paid on common stock |
(804 | ) | (565 | ) | ||||
Proceeds from employee stock plans |
193 | 192 | ||||||
Purchase of treasury stock |
(262 | ) | (75 | ) | ||||
Other financing activities |
(57 | ) | 36 | |||||
Net cash flows used in financing activities |
(207 | ) | (1,885 | ) | ||||
Increase (decrease) in cash and cash equivalents |
(346 | ) | 62 | |||||
Cash and cash equivalents at beginning of period |
499 | 493 | ||||||
Cash and cash equivalents at end of period |
$ | 153 | $ | 555 | ||||
6
Three Months Ended September 30, 2005 | Three Months Ended September 30, 2004 | |||||||||||||||||||||||
Adjusted | Adjusted | |||||||||||||||||||||||
GAAP (a) | Adjustments | Non-GAAP | GAAP (a) | Adjustments | Non-GAAP | |||||||||||||||||||
Operating revenues |
$ | 4,473 | $ | | $ | 4,473 | $ | 3,748 | $ | | $ | 3,748 | ||||||||||||
Operating expenses |
||||||||||||||||||||||||
Purchased power |
1,210 | (7 | )(b) | 1,203 | 887 | 43 | (b) | 930 | ||||||||||||||||
Fuel |
471 | 104 | (b) | 575 | 346 | 14 | (b) | 360 | ||||||||||||||||
Operating and maintenance |
911 | (30 | )(c),(d),(e) | 881 | 778 | (10 | )(c),(d),(g) | 768 | ||||||||||||||||
Depreciation and amortization |
358 | (19 | )(c),(e) | 339 | 362 | (13 | )(c) | 349 | ||||||||||||||||
Taxes other than income |
211 | | 211 | 177 | | 177 | ||||||||||||||||||
Total operating expenses |
3,161 | 48 | 3,209 | 2,550 | 34 | 2,584 | ||||||||||||||||||
Operating income |
1,312 | (48 | ) | 1,264 | 1,198 | (34 | ) | 1,164 | ||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||
Interest expense |
(216 | ) | 4 | (c) | (212 | ) | (200 | ) | 5 | (c) | (195 | ) | ||||||||||||
Distributions on preferred securities of subsidiaries |
(1 | ) | | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||
Equity in losses of unconsolidated affiliates |
(39 | ) | 30 | (c) | (9 | ) | (42 | ) | 25 | (c) | (17 | ) | ||||||||||||
Other, net |
12 | | 12 | (102 | ) | 106 | (f) | 4 | ||||||||||||||||
Total other income and deductions |
(244 | ) | 34 | (210 | ) | (345 | ) | 136 | (209 | ) | ||||||||||||||
Income from continuing operations before
income taxes and minority interest |
1,068 | (14 | ) | 1,054 | 853 | 102 | 955 | |||||||||||||||||
Income taxes |
344 | 65 | (b),(c),(d),(e) | 409 | 279 | 97 | (b),(c),(d),(f),(g) | 376 | ||||||||||||||||
Income from continuing operations before
minority interest |
724 | (79 | ) | 645 | 574 | 5 | 579 | |||||||||||||||||
Minority interest |
| | | 3 | | 3 | ||||||||||||||||||
Income from continuing operations |
724 | (79 | ) | 645 | 577 | 5 | 582 | |||||||||||||||||
Income from discontinued operations |
1 | (1 | )(f) | | | | | |||||||||||||||||
Income before cumulative effect of a change
in accounting principle |
725 | (80 | ) | 645 | 577 | 5 | 582 | |||||||||||||||||
Cumulative effect of a change in accounting
principle, net of income taxes |
| | | (9 | ) | | (9 | ) | ||||||||||||||||
Net income |
$ | 725 | $ | (80 | ) | $ | 645 | $ | 568 | $ | 5 | $ | 573 | |||||||||||
Earnings per average common share |
||||||||||||||||||||||||
Basic: |
||||||||||||||||||||||||
Income from continuing operations |
$ | 1.08 | $ | (0.12 | ) | $ | 0.96 | $ | 0.87 | $ | 0.01 | $ | 0.88 | |||||||||||
Income from discontinued operations |
| | | | | | ||||||||||||||||||
Income before cumulative effect of
changes in accounting principles |
1.08 | (0.12 | ) | 0.96 | 0.87 | 0.01 | 0.88 | |||||||||||||||||
Cumulative effect of changes in accounting
principles, net of income taxes |
| | | (0.01 | ) | | (0.01 | ) | ||||||||||||||||
Net income |
$ | 1.08 | $ | (0.12 | ) | $ | 0.96 | $ | 0.86 | $ | 0.01 | $ | 0.87 | |||||||||||
Diluted: |
||||||||||||||||||||||||
Income from continuing operations |
$ | 1.07 | $ | (0.12 | ) | $ | 0.95 | $ | 0.86 | $ | 0.01 | $ | 0.87 | |||||||||||
Income from discontinued operations |
| | | | | | ||||||||||||||||||
Income before cumulative effect of
changes in accounting principles |
1.07 | (0.12 | ) | 0.95 | 0.86 | 0.01 | 0.87 | |||||||||||||||||
Cumulative effect of changes in accounting
principles, net of income taxes |
| | | (0.01 | ) | | (0.01 | ) | ||||||||||||||||
Net income |
$ | 1.07 | $ | (0.12 | ) | $ | 0.95 | $ | 0.85 | $ | 0.01 | $ | 0.86 | |||||||||||
Average common shares outstanding |
||||||||||||||||||||||||
Basic |
670 | 670 | 661 | 661 | ||||||||||||||||||||
Diluted |
677 | 677 | 669 | 669 | ||||||||||||||||||||
Effect of adjustments on earnings per
average diluted common share recorded in
accordance with GAAP: |
||||||||||||||||||||||||
Mark-to-market (b) |
$ | 0.09 | $ | 0.05 | ||||||||||||||||||||
Investments in synthetic fuel-producing facilities (c) |
0.03 | 0.03 | ||||||||||||||||||||||
Severance charges (d) |
0.01 | (0.03 | ) | |||||||||||||||||||||
PSEG merger costs (e) |
(0.01 | ) | | |||||||||||||||||||||
Losses associated with debt retirements (f) |
| (0.10 | ) | |||||||||||||||||||||
Settlement associated with the storage of spent fuel (g) |
| 0.04 | ||||||||||||||||||||||
Total adjustments |
$ | 0.12 | $ | (0.01 | ) | |||||||||||||||||||
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). | |
(b) | Adjustment to exclude the mark-to-market impact of Exelons non-trading activities (primarily at Generation). | |
(c) | Adjustment to exclude the financial impact of Exelons investments in synthetic fuel-producing facilities. | |
(d) | Adjustment to exclude severance charges. | |
(e) | Adjustment to exclude certain costs associated with Exelons anticipated merger with Public Service Enterprise Group Inc. | |
(f) | Adjustment to exclude the losses associated with debt retirements at ComEd. | |
(g) | Adjustment for a settlement gain related to the storage of spent nuclear fuel. |
7
Nine Months Ended September 30, 2005 | Nine Months Ended September 30, 2004 | |||||||||||||||||||||||
Adjusted | Adjusted | |||||||||||||||||||||||
GAAP (a) | Adjustments | Non-GAAP | GAAP (a) | Adjustments | Non-GAAP | |||||||||||||||||||
Operating revenues |
$ | 11,519 | $ | | $ | 11,519 | $ | 10,821 | $ | (248 | )(g) | $ | 10,573 | |||||||||||
Operating expenses |
||||||||||||||||||||||||
Purchased power |
2,442 | (11 | )(b) | 2,431 | 2,145 | 6 | (b),(g) | 2,151 | ||||||||||||||||
Fuel |
1,570 | 163 | (b) | 1,733 | 1,636 | (193 | )(b),(g) | 1,443 | ||||||||||||||||
Operating and maintenance |
2,804 | (76 | )(c),(d),(e) | 2,728 | 2,696 | (137 | )(c),(d),(g),(i) | 2,559 | ||||||||||||||||
Depreciation and amortization |
1,003 | (56 | )(c),(e) | 947 | 974 | (40 | )(c),(g) | 934 | ||||||||||||||||
Taxes other than income |
560 | | 560 | 548 | (9 | )(g) | 539 | |||||||||||||||||
Total operating expenses |
8,379 | 20 | 8,399 | 7,999 | (373 | ) | 7,626 | |||||||||||||||||
Operating income |
3,140 | (20 | ) | 3,120 | 2,822 | 125 | 2,947 | |||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||
Interest expense |
(615 | ) | 11 | (c) | (604 | ) | (633 | ) | 19 | (c),(g) | (614 | ) | ||||||||||||
Distributions on preferred securities of subsidiaries |
(3 | ) | | (3 | ) | (3 | ) | | (3 | ) | ||||||||||||||
Equity in losses of unconsolidated affiliates |
(107 | ) | 86 | (c) | (21 | ) | (97 | ) | 48 | (c) | (49 | ) | ||||||||||||
Other, net |
111 | | 111 | 46 | 16 | (g),(h) | 62 | |||||||||||||||||
Total other income and deductions |
(614 | ) | 97 | (517 | ) | (687 | ) | 83 | (604 | ) | ||||||||||||||
Income from continuing operations before
income taxes and minority interest |
2,526 | 77 | 2,603 | 2,135 | 208 | 2,343 | ||||||||||||||||||
Income taxes |
779 | 220 | (b),(c),(d),(e) | 999 | 661 | 230 | (b),(c),(d),(g),(h),(i) | 891 | ||||||||||||||||
Income from continuing operations before
minority interest |
1,747 | (143 | ) | 1,604 | 1,474 | (22 | ) | 1,452 | ||||||||||||||||
Minority interest |
| | | 3 | | 3 | ||||||||||||||||||
Income from continuing operations |
1,747 | (143 | ) | 1,604 | 1,477 | (22 | ) | 1,455 | ||||||||||||||||
Income (loss) from discontinued operations |
13 | (16 | )(f) | (3 | ) | 1 | | 1 | ||||||||||||||||
Income before cumulative effect of changes
in accounting principles |
1,760 | (159 | ) | 1,601 | 1,478 | (22 | ) | 1,456 | ||||||||||||||||
Cumulative effect of changes in accounting
principles, net of income taxes |
| | | 23 | (32 | )(j) | (9 | ) | ||||||||||||||||
Net income |
$ | 1,760 | $ | (159 | ) | $ | 1,601 | $ | 1,501 | $ | (54 | ) | $ | 1,447 | ||||||||||
Earnings per average common share
|
||||||||||||||||||||||||
Basic: |
||||||||||||||||||||||||
Income from continuing operations |
$ | 2.61 | $ | (0.21 | ) | $ | 2.40 | $ | 2.23 | $ | (0.03 | ) | $ | 2.20 | ||||||||||
Income from discontinued operations |
0.02 | (0.02 | ) | | | | | |||||||||||||||||
Income before cumulative effect of
changes in accounting principles |
2.63 | (0.23 | ) | 2.40 | 2.23 | (0.03 | ) | 2.20 | ||||||||||||||||
Cumulative effect of changes in accounting
principles, net of income taxes |
| | | 0.04 | (0.05 | ) | (0.01 | ) | ||||||||||||||||
Net income |
$ | 2.63 | $ | (0.23 | ) | $ | 2.40 | $ | 2.27 | $ | (0.08 | ) | $ | 2.19 | ||||||||||
Diluted: |
||||||||||||||||||||||||
Income from continuing operations |
$ | 2.58 | $ | (0.21 | ) | $ | 2.37 | $ | 2.21 | $ | (0.03 | ) | $ | 2.18 | ||||||||||
Income from discontinued operations |
0.02 | (0.02 | ) | | | | | |||||||||||||||||
Income before cumulative effect of
changes in accounting principles |
2.60 | (0.23 | ) | 2.37 | 2.21 | (0.03 | ) | 2.18 | ||||||||||||||||
Cumulative effect of changes in accounting
principles, net of income taxes |
| | | 0.04 | (0.05 | ) | (0.01 | ) | ||||||||||||||||
Net income |
$ | 2.60 | $ | (0.23 | ) | $ | 2.37 | $ | 2.25 | $ | (0.08 | ) | $ | 2.17 | ||||||||||
Average common shares outstanding |
||||||||||||||||||||||||
Basic |
669 | 669 | 660 | 660 | ||||||||||||||||||||
Diluted |
676 | 676 | 668 | 668 | ||||||||||||||||||||
Effect of adjustments on earnings per
average diluted common share recorded in
accordance with GAAP: |
||||||||||||||||||||||||
Mark-to-market (b) |
$ | 0.14 | $ | 0.03 | ||||||||||||||||||||
Investments in synthetic fuel-producing facilities (c) |
0.08 | 0.07 | ||||||||||||||||||||||
Severance charges (d) |
0.01 | (0.05 | ) | |||||||||||||||||||||
PSEG merger costs (e) |
(0.02 | ) | | |||||||||||||||||||||
2005 financial impact of Generations investment in
Sithe Energies, Inc. (f) |
0.02 | | ||||||||||||||||||||||
2004 financial impact of Boston Generating, LLC (g) |
| 0.04 | ||||||||||||||||||||||
Losses associated with debt retirements (h) |
| (0.10 | ) | |||||||||||||||||||||
Settlement associated with the storage of spent fuel (i) |
| 0.04 | ||||||||||||||||||||||
Cumulative effect pursuant to FIN 46-R (j) |
| 0.05 | ||||||||||||||||||||||
Total adjustments |
$ | 0.23 | $ | 0.08 | ||||||||||||||||||||
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). | |
(b) | Adjustment to exclude the mark-to-market impact of Exelons non-trading activities (primarily at Generation). | |
(c) | Adjustment to exclude the financial impact of Exelons investments in synthetic fuel-producing facilities. | |
(d) | Adjustment to exclude severance charges. | |
(e) | Adjustment to exclude certain costs associated with Exelons anticipated merger with Public Service Enterprise Group Inc. | |
(f) | Adjustment to exclude the 2005 financial impact of Generations investment in Sithe Energies, Inc. | |
(g) | Adjustment to exclude the 2004 financial impact of Boston Generating, LLC. | |
(h) | Adjustment to exclude the losses associated with debt retirements at ComEd. | |
(I) | Adjustment for a settlement gain related to the storage of spent nuclear fuel. | |
(j) | Adjustment for the cumulative effect of adopting FIN 46-R. |
8
2004 GAAP Earnings per Diluted Share |
$ | 0.85 | ||
2004 Adjusted (non-GAAP) Operating Earnings Adjustments |
||||
Mark-to-Market (1) |
(0.05 | ) | ||
Investments in Synthetic Fuel-Producing Facilities (2) |
(0.03 | ) | ||
Severance Charges (3) |
0.03 | |||
Losses
Associated with Debt Retirements (4) |
0.10 | |||
Settlement
Associated with the Storage of Spent Fuel (5) |
(0.04 | ) | ||
2004 Adjusted (non-GAAP) Operating Earnings |
0.86 | |||
Year Over Year Effects on Earnings: |
||||
Energy Margins: |
||||
Weather (6) |
0.15 | |||
Other Energy Delivery (7) |
(0.01 | ) | ||
Transmission Revenue (SECA) (8) |
(0.01 | ) | ||
Ancillary PJM Costs (9) |
(0.04 | ) | ||
Generation, Excluding Mark-to-Market (10) |
0.10 | |||
Other Operating and Maintenance Expense (11) |
(0.03 | ) | ||
Depreciation
and Amortization (12) |
(0.01 | ) | ||
Interest Expense (13) |
(0.02 | ) | ||
Income and Other Taxes (14) |
(0.02 | ) | ||
Enterprises and All Other (15) |
(0.01 | ) | ||
Share Differential (16) |
(0.01 | ) | ||
2005 Adjusted (non-GAAP) Operating Earnings |
0.95 | |||
2005 Adjusted (non-GAAP) Operating Earnings Adjustments: |
||||
Mark-to-Market (1) |
0.09 | |||
Investments in Synthetic Fuel-Producing Facilities (2) |
0.03 | |||
Severance Charges (3) |
0.01 | |||
Charges Associated with Exelons Anticipated Merger with Public Service Enterprise Group Inc. (17) |
(0.01 | ) | ||
2005 GAAP Earnings per Diluted Share |
$ | 1.07 | ||
(1) | Reflects the mark-to-market impact of Exelons non-trading activities (primarily at Generation). | |
(2) | Reflects the financial impact of Exelons investments in synthetic fuel-producing facilities. | |
(3) | For 2004, reflects severance charges recorded during the period; for 2005, reflects adjustments to previously recorded severance reserves. | |
(4) | Reflects losses associated with debt retirements at ComEd. | |
(5) | Reflects a settlement gain related to the storage of spent nuclear fuel. | |
(6) | Reflects favorable weather conditions in the Energy Delivery service territories. | |
(7) | Reflects decreased margins at Energy Delivery due to customer mix. Excludes the impact of ComEds purchase power agreement with Generation. | |
(8) | Reflects a decrease in net collections of through and out rates (prior to December 2004) and SECA rates. | |
(9) | Reflects ancillary service costs ComEd paid to PJM which, prior to January 1, 2005, were included in the purchase power agreement with Generation. | |
(10) | Reflects higher realized prices on market sales at Generation, net of higher costs to serve affiliates. Excludes the effects of Sithe, Sithe International, mark-to-market and the purchase power agreement with ComEd. | |
(11) | Reflects the impact on net income of increased operating and maintenance expense, primarily due to unplanned substation maintenance costs and increased contractor costs at Energy Delivery. | |
(12) | Reflects increased depreciation and amortization, including increased CTC amortization at PECO. | |
(13) | Reflects loss on settlement of interest rate swaps partially offset by lower interest expense at Energy Delivery due to debt retirements in 2004. Excludes the effects of Boston Generating, Sithe and investments in synthetic fuel-producing facilities. | |
(14) | Reflects the impact on net income of adjustments related to certain state tax matters. | |
(15) | Reflects the impact on net income of Enterprises results of operations. | |
(16) | Reflects dilution of earnings per share due to increased diluted common shares outstanding. | |
(17) | Reflects costs incurred in connection with Exelons proposed merger with Public Service Enterprise Group Inc. |
9
2004 GAAP Earnings per Diluted Share |
$ | 2.25 | ||
2004 Adjusted (non-GAAP) Operating Earnings Adjustments: |
||||
Mark-to-Market (1) |
(0.03 | ) | ||
Investments in Synthetic Fuel-Producing Facilities (2) |
(0.07 | ) | ||
Severance Charges (3) |
0.05 | |||
Boston Generating, LLC 2004 Impact (4) |
(0.04 | ) | ||
Losses
Associated with Debt Retirements (5) |
0.10 | |||
Settlement
Associated with the Storage of Spent Fuel (6) |
(0.04 | ) | ||
Cumulative Effect Pursuant to FIN 46-R |
(0.05 | ) | ||
2004 Adjusted (non-GAAP) Operating Earnings |
2.17 | |||
Year Over Year Effects on Earnings: |
||||
Energy Margins: |
||||
Weather (7) |
0.19 | |||
Other Energy Delivery (8) |
(0.02 | ) | ||
Transmission Revenue (SECA) (9) |
(0.02 | ) | ||
Ancillary PJM Costs (10) |
(0.07 | ) | ||
Generation, Excluding Mark-to-Market (11) |
0.23 | |||
Asbestos Reserve (12) |
(0.04 | ) | ||
Planned Nuclear Refueling Outages (13) |
(0.02 | ) | ||
Pension Expense (14) |
0.03 | |||
Other Operating and Maintenance Expense (15) |
(0.03 | ) | ||
Depreciation
and Amortization (16) |
(0.03 | ) | ||
Interest Expense (17) |
0.02 | |||
Nuclear Decommissioning Trust Fund Rebalancing (18) |
0.03 | |||
Income and Other Taxes (19) |
(0.02 | ) | ||
Enterprises and All Other (20) |
(0.02 | ) | ||
Share Differential (21) |
(0.03 | ) | ||
2005 Adjusted (non-GAAP) Operating Earnings |
2.37 | |||
2005 Adjusted (non-GAAP) Operating Earnings Adjustments: |
||||
Mark-to-Market (1) |
0.14 | |||
Investments in Synthetic Fuel-Producing Facilities (2) |
0.08 | |||
Exelon Way Severance and Severance-Related Charges (3) |
0.01 | |||
Charges Associated with Exelons Anticipated Merger with Public Service Enterprise Group Inc. (22) |
(0.02 | ) | ||
2005
Financial Impact of Generations Investment in Sithe Energies, Inc. (23) |
0.02 | |||
2005 GAAP Earnings per Diluted Share |
$ | 2.60 | ||
(1) | Reflects the mark-to-market impact of Exelons non-trading activities (primarily at Generation). | |
(2) | Reflects the financial impact of Exelons investments in synthetic fuel-producing facilities. | |
(3) | For 2004, reflects severance charges recorded during the period; for 2005, reflects adjustments to previously recorded severance reserves. | |
(4) | Reflects the 2004 financial impact of Boston Generating. | |
(5) | Reflects losses associated with debt retirements at ComEd. | |
(6) | Reflects a settlement gain related to the storage of spent nuclear fuel. | |
(7) | Reflects favorable weather conditions in the Energy Delivery service territories. | |
(8) | Reflects decreased margins at Energy Delivery due to customer mix. Excludes the impact of ComEds purchase power agreement with Generation. | |
(9) | Reflects a decrease in net collections of through and out rates (prior to December 2004) and SECA rates. | |
(10) | Reflects ancillary service costs ComEd paid to PJM which, prior to January 1, 2005, were included in the purchase power agreement with Generation. | |
(11) | Reflects higher realized prices on market sales at Generation, net of higher costs to serve affiliates. Excludes the effects of Sithe, Sithe International, mark-to-market and the purchase power agreement with ComEd. | |
(12) | Reflects the impact on net income of a reserve recorded by Generation in 2005 for estimated future asbestos-related bodily injury claims. | |
(13) | Reflects the impact on net income of increased planned refueling outage days. | |
(14) | Reflects lower pension expense as a result of discretionary pension contributions of $2 billion made during the first quarter of 2005. | |
(15) | Reflects the impact on net income of increased operating and maintenance expense, primarily due to unplanned substation maintenance costs and increased contractor costs at Energy Delivery. | |
(16) | Reflects increased depreciation and amortization, including
increased CTC amortization at PECO. |
|
(17) | Reflects lower interest expense at Energy Delivery due to debt retirements in 2004 partially offset by loss on settlement of interest rate swaps. Excludes the effects of Boston Generating, Sithe and investments in synthetic fuel-producing facilities. | |
(18) | Reflects the impact on net income of the gains realized on AmerGens decommissioning trust fund investments. | |
(19) | Reflects the impact on net income of adjustments related to certain state tax matters. | |
(20) | Reflects the impact on net income of Enterprises results of operations. | |
(21) | Reflects dilution of earnings per share due to increased diluted common shares outstanding. | |
(22) | Reflects costs incurred in connection with Exelons proposed merger with Public Service Enterprise Group Inc. | |
(23) | Reflects the 2005 financial impact of Generations investment in Sithe Energies, Inc. |
10
Energy Delivery | ||||||||||||||||||||||||||
Three Months Ended September 30, 2005 | Three Months Ended September 30, 2004 | |||||||||||||||||||||||||
Adjusted Non- | Adjusted Non- | |||||||||||||||||||||||||
GAAP (a) | Adjustments | GAAP | GAAP (a) | Adjustments | GAAP | |||||||||||||||||||||
Operating revenues |
$ | 3,270 | $ | | $ | 3,270 | $ | 2,844 | $ | | $ | 2,844 | ||||||||||||||
Operating expenses |
||||||||||||||||||||||||||
Purchased power |
1,666 | | 1,666 | 1,365 | | 1,365 | ||||||||||||||||||||
Fuel |
42 | | 42 | 35 | | 35 | ||||||||||||||||||||
Operating and maintenance |
354 | 3 | (b),(c) | 357 | 353 | (20 | ) | (b) | 333 | |||||||||||||||||
Depreciation and amortization |
270 | (3 | ) | (c) | 267 | 248 | | 248 | ||||||||||||||||||
Taxes other than income |
155 | | 155 | 132 | | 132 | ||||||||||||||||||||
Total operating expenses |
2,487 | | 2,487 | 2,133 | (20 | ) | 2,113 | |||||||||||||||||||
Operating income |
783 | | 783 | 711 | 20 | 731 | ||||||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||||
Interest expense |
(141 | ) | | (141 | ) | (162 | ) | | (162 | ) | ||||||||||||||||
Distributions on preferred securities of
subsidiaries |
(1 | ) | | (1 | ) | (1 | ) | | (1 | ) | ||||||||||||||||
Equity in losses of unconsolidated affiliates |
(7 | ) | | (7 | ) | (10 | ) | | (10 | ) | ||||||||||||||||
Other, net |
(8 | ) | | (8 | ) | (98 | ) | 106 | (d) | 8 | ||||||||||||||||
Total other income and deductions |
(157 | ) | | (157 | ) | (271 | ) | 106 | (165 | ) | ||||||||||||||||
Income before income taxes |
626 | | 626 | 440 | 126 | 566 | ||||||||||||||||||||
Income taxes |
237 | | (b),(c) | 237 | 178 | 50 | (b),(d) | 228 | ||||||||||||||||||
Net income |
$ | 389 | $ | | $ | 389 | $ | 262 | $ | 76 | $ | 338 | ||||||||||||||
Nine Months Ended September 30, 2005 | Nine Months Ended September 30, 2004 | |||||||||||||||||||||||||
Adjusted Non- | Adjusted Non- | |||||||||||||||||||||||||
GAAP (a) | Adjustments | GAAP | GAAP (a) | Adjustments | GAAP | |||||||||||||||||||||
Operating revenues |
$ | 8,483 | $ | | $ | 8,483 | $ | 7,853 | $ | | $ | 7,853 | ||||||||||||||
Operating expenses |
||||||||||||||||||||||||||
Purchased power |
4,215 | | 4,215 | 3,271 | | 3,271 | ||||||||||||||||||||
Fuel |
373 | | 373 | 368 | | 368 | ||||||||||||||||||||
Operating and maintenance |
1,010 | 4 | (b),(c) | 1,014 | 1,056 | (40 | ) | (b) | 1,016 | |||||||||||||||||
Depreciation and amortization |
739 | (9 | ) | (c) | 730 | 704 | | 704 | ||||||||||||||||||
Taxes other than income |
421 | | 421 | 400 | | 400 | ||||||||||||||||||||
Total operating expenses |
6,758 | (5 | ) | 6,753 | 5,799 | (40 | ) | 5,759 | ||||||||||||||||||
Operating income |
1,725 | 5 | 1,730 | 2,054 | 40 | 2,094 | ||||||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||||
Interest expense |
(435 | ) | | (435 | ) | (517 | ) | | (517 | ) | ||||||||||||||||
Distributions on preferred securities of
subsidiaries |
(3 | ) | | (3 | ) | (3 | ) | | (3 | ) | ||||||||||||||||
Equity in losses of unconsolidated affiliates |
(23 | ) | | (23 | ) | (32 | ) | | (32 | ) | ||||||||||||||||
Other, net |
14 | | 14 | (76 | ) | 106 | (d) | 30 | ||||||||||||||||||
Total other income and deductions |
(447 | ) | | (447 | ) | (628 | ) | 106 | (522 | ) | ||||||||||||||||
Income before income taxes |
1,278 | 5 | 1,283 | 1,426 | 146 | 1,572 | ||||||||||||||||||||
Income taxes |
473 | 1 | (b),(c) | 474 | 546 | 58 | (b),(d) | 604 | ||||||||||||||||||
Net income |
$ | 805 | $ | 4 | $ | 809 | $ | 880 | $ | 88 | $ | 968 | ||||||||||||||
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). | |
(b) | Adjustment to exclude severance charges and adjustments to previously recorded severance reserves. | |
(c) | Adjustment to exclude certain costs associated with Exelons anticipated merger with Public Service Enterprise Group Inc. | |
(d) | Adjustment to exclude the losses associated with debt retirements at ComEd. |
11
Generation | ||||||||||||||||||||||||||
Three Months Ended September 30, 2005 | Three Months Ended September 30, 2004 | |||||||||||||||||||||||||
Adjusted Non- | Adjusted Non- | |||||||||||||||||||||||||
GAAP (a) | Adjustments | GAAP | GAAP (a) | Adjustments | GAAP | |||||||||||||||||||||
Operating revenues |
$ | 2,711 | $ | | $ | 2,711 | $ | 2,151 | $ | | $ | 2,151 | ||||||||||||||
Operating expenses |
||||||||||||||||||||||||||
Purchased power |
1,047 | (7 | ) | (b) | 1,040 | 757 | 43 | (b) | 800 | |||||||||||||||||
Fuel |
441 | 93 | (b) | 534 | 318 | 14 | (b) | 332 | ||||||||||||||||||
Operating and maintenance |
537 | | (c),(d) | 537 | 414 | 31 | (c),(f) | 445 | ||||||||||||||||||
Depreciation and amortization |
63 | | 63 | 93 | | 93 | ||||||||||||||||||||
Taxes other than income |
48 | | 48 | 41 | | 41 | ||||||||||||||||||||
Total operating expenses |
2,136 | 86 | 2,222 | 1,623 | 88 | 1,711 | ||||||||||||||||||||
Operating income |
575 | (86 | ) | 489 | 528 | (88 | ) | 440 | ||||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||||
Interest expense |
(33 | ) | | (33 | ) | (25 | ) | | (25 | ) | ||||||||||||||||
Equity in losses of unconsolidated affiliates |
(2 | ) | | (2 | ) | (5 | ) | | (5 | ) | ||||||||||||||||
Other, net |
13 | | 13 | 4 | | 4 | ||||||||||||||||||||
Total other income and deductions |
(22 | ) | | (22 | ) | (26 | ) | | (26 | ) | ||||||||||||||||
Income from continuing operations before
income taxes and minority interest |
553 | (86 | ) | 467 | 502 | (88 | ) | 414 | ||||||||||||||||||
Income taxes |
219 | (33 | ) | (b),(c),(d) | 186 | 193 | (35 | ) | (b),(c),(f) | 158 | ||||||||||||||||
Income from continuing operations before minority interest |
334 | (53 | ) | 281 | 309 | (53 | ) | 256 | ||||||||||||||||||
Minority interest |
| | | 4 | | 4 | ||||||||||||||||||||
Income from continuing operations |
334 | (53 | ) | 281 | 313 | (53 | ) | 260 | ||||||||||||||||||
Income from discontinued operations |
1 | (1 | ) | (e) | | 6 | | 6 | ||||||||||||||||||
Net income |
$ | 335 | $ | (54 | ) | $ | 281 | $ | 319 | $ | (53 | ) | $ | 266 | ||||||||||||
Nine Months Ended September 30, 2005 | Nine Months Ended September 30, 2004 | |||||||||||||||||||||||||
Adjusted Non- | Adjusted Non- | |||||||||||||||||||||||||
GAAP (a) | Adjustments | GAAP | GAAP (a) | Adjustments | GAAP | |||||||||||||||||||||
Operating revenues |
$ | 6,836 | $ | | $ | 6,836 | $ | 5,978 | $ | (248 | ) | (g) | $ | 5,730 | ||||||||||||
Operating expenses |
||||||||||||||||||||||||||
Purchased power |
2,014 | (11 | ) | (b) | 2,003 | 1,863 | 6 | (b),(g) | 1,869 | |||||||||||||||||
Fuel |
1,227 | 135 | (b) | 1,362 | 1,276 | (193 | ) | (b),(g) | 1,083 | |||||||||||||||||
Operating and maintenance |
1,748 | (4 | ) | (c),(d) | 1,744 | 1,605 | (28 | ) | (c),(f),(g) | 1,577 | ||||||||||||||||
Depreciation and amortization |
188 | | 188 | 212 | (4 | ) | (g) | 208 | ||||||||||||||||||
Taxes other than income |
122 | | 122 | 134 | (9 | ) | (g) | 125 | ||||||||||||||||||
Total operating expenses |
5,299 | 120 | 5,419 | 5,090 | (228 | ) | 4,862 | |||||||||||||||||||
Operating income |
1,537 | (120 | ) | 1,417 | 888 | (20 | ) | 868 | ||||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||||
Interest expense |
(91 | ) | | (91 | ) | (79 | ) | 5 | (g) | (74 | ) | |||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates |
2 | | 2 | (7 | ) | | (7 | ) | ||||||||||||||||||
Other, net |
82 | | 82 | 118 | (90 | ) | (g) | 28 | ||||||||||||||||||
Total other income and deductions |
(7 | ) | | (7 | ) | 32 | (85 | ) | (53 | ) | ||||||||||||||||
Income from continuing operations before
income taxes and minority interest |
1,530 | (120 | ) | 1,410 | 920 | (105 | ) | 815 | ||||||||||||||||||
Income taxes |
595 | (46 | ) | (b),(c),(d) | 549 | 352 | (42 | ) | (b),(c),(f),(g) | 310 | ||||||||||||||||
Income from continuing operations before minority interest |
935 | (74 | ) | 861 | 568 | (63 | ) | 505 | ||||||||||||||||||
Minority interest |
| | | 3 | | 3 | ||||||||||||||||||||
Income from continuing operations |
935 | (74 | ) | 861 | 571 | (63 | ) | 508 | ||||||||||||||||||
Income (loss) from discontinued operations |
16 | (16 | ) | (e) | | (4 | ) | | (4 | ) | ||||||||||||||||
Income before cumulative effect of a change in
accounting principle |
951 | (90 | ) | 861 | 567 | (63 | ) | 504 | ||||||||||||||||||
Cumulative effect of a change in accounting
principle, net of income taxes |
| | | 32 | (32 | ) | (h) | | ||||||||||||||||||
Net income |
$ | 951 | $ | (90 | ) | $ | 861 | $ | 599 | $ | (95 | ) | $ | 504 | ||||||||||||
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). | |
(b) | Adjustment to exclude the mark-to-market impact of Generations non-trading activities, including, for fuel expense for the nine months ended September 30, 2005, $3 million in amortization of the premium on a hedge on tax credits generated from the operation of synthetic fuel-producing facilities. | |
(c) | Adjustment to exclude severance charges and adjustments to previously recorded severance reserves. | |
(d) | Adjustment to exclude certain costs associated with Exelons anticipated merger with Public Service Enterprise Group Inc. | |
(e) | Adjustment to exclude the 2005 financial impact of Generations investment in Sithe Energies, Inc. | |
(f) | Adjustment for a settlement gain related to the storage of spent nuclear fuel. | |
(g) | Adjustment to exclude the 2004 financial impact of Boston Generating, LLC. | |
(h) | Adjustment for the cumulative effect of adopting FIN 46-R. |
12
Other | ||||||||||||||||||||||||||
Three Months Ended September 30, 2005 | Three Months Ended September 30, 2004 | |||||||||||||||||||||||||
Adjusted Non- | Adjusted Non- | |||||||||||||||||||||||||
GAAP (a) | Adjustments | GAAP | GAAP (a) | Adjustments | GAAP | |||||||||||||||||||||
Operating revenues |
$ | (1,508 | ) | $ | | $ | (1,508 | ) | $ | (1,247 | ) | $ | | $ | (1,247 | ) | ||||||||||
Operating expenses |
||||||||||||||||||||||||||
Purchased power |
(1,503 | ) | | (1,503 | ) | (1,235 | ) | | (1,235 | ) | ||||||||||||||||
Fuel |
(12 | ) | 11 | (b) | (1 | ) | (7 | ) | | (7 | ) | |||||||||||||||
Operating and maintenance |
20 | (33 | ) | (c),(d),(e) | (13 | ) | 11 | (21 | ) | (c) | (10 | ) | ||||||||||||||
Depreciation and amortization |
25 | (16 | ) | (c) | 9 | 21 | (13 | ) | (c) | 8 | ||||||||||||||||
Taxes other than income |
8 | | 8 | 4 | | 4 | ||||||||||||||||||||
Total operating expenses |
(1,462 | ) | (38 | ) | (1,500 | ) | (1,206 | ) | (34 | ) | (1,240 | ) | ||||||||||||||
Operating loss |
(46 | ) | 38 | (8 | ) | (41 | ) | 34 | (7 | ) | ||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||||
Interest expense |
(42 | ) | 4 | (c) | (38 | ) | (13 | ) | 5 | (c) | (8 | ) | ||||||||||||||
Equity in losses of unconsolidated affiliates |
(30 | ) | 30 | (c) | | (27 | ) | 25 | (c) | (2 | ) | |||||||||||||||
Other, net |
7 | | 7 | (8 | ) | | (8 | ) | ||||||||||||||||||
Total other income and deductions |
(65 | ) | 34 | (31 | ) | (48 | ) | 30 | (18 | ) | ||||||||||||||||
Loss from continuing operations before
income taxes |
(111 | ) | 72 | (39 | ) | (89 | ) | 64 | (25 | ) | ||||||||||||||||
Income taxes |
(112 | ) | 98 | (b),(c),(d),(e) | (14 | ) | (92 | ) | 82 | (c) | (10 | ) | ||||||||||||||
Income (loss) from continuing operations before minority interest |
1 | (26 | ) | (25 | ) | 3 | (18 | ) | (15 | ) | ||||||||||||||||
Minority interest |
| | | (1 | ) | | (1 | ) | ||||||||||||||||||
Income (loss) from continuing operations |
1 | (26 | ) | (25 | ) | 2 | (18 | ) | (16 | ) | ||||||||||||||||
Loss from discontinued operations |
| | | (6 | ) | | (6 | ) | ||||||||||||||||||
Income (loss) before cumulative effect of change in
accounting principle |
1 | (26 | ) | (25 | ) | (4 | ) | (18 | ) | (22 | ) | |||||||||||||||
Cumulative effect of change in accounting
principle, net of income taxes |
| | | (9 | ) | | (9 | ) | ||||||||||||||||||
Net income (loss) |
$ | 1 | $ | (26 | ) | $ | (25 | ) | $ | (13 | ) | $ | (18 | ) | $ | (31 | ) | |||||||||
Nine Months Ended September 30, 2005 | Nine Months Ended September 30, 2004 | |||||||||||||||||||||||||
Adjusted Non- | Adjusted Non- | |||||||||||||||||||||||||
GAAP (a) | Adjustments | GAAP | GAAP (a) | Adjustments | GAAP | |||||||||||||||||||||
Operating revenues |
$ | (3,800 | ) | $ | | $ | (3,800 | ) | $ | (3,010 | ) | $ | | $ | (3,010 | ) | ||||||||||
Operating expenses |
||||||||||||||||||||||||||
Purchased power |
(3,787 | ) | | (3,787 | ) | (2,989 | ) | | (2,989 | ) | ||||||||||||||||
Fuel |
(30 | ) | 28 | (b) | (2 | ) | (8 | ) | | (8 | ) | |||||||||||||||
Operating and maintenance |
46 | (76 | ) | (c),(d),(e) | (30 | ) | 35 | (69 | ) | (c) | (34 | ) | ||||||||||||||
Depreciation and amortization |
76 | (47 | ) | (c) | 29 | 58 | (36 | ) | (c) | 22 | ||||||||||||||||
Taxes other than income |
17 | | 17 | 14 | | 14 | ||||||||||||||||||||
Total operating expenses |
(3,678 | ) | (95 | ) | (3,773 | ) | (2,890 | ) | (105 | ) | (2,995 | ) | ||||||||||||||
Operating loss |
(122 | ) | 95 | (27 | ) | (120 | ) | 105 | (15 | ) | ||||||||||||||||
Other income and deductions |
||||||||||||||||||||||||||
Interest expense |
(89 | ) | 11 | (c) | (78 | ) | (37 | ) | 14 | (c) | (23 | ) | ||||||||||||||
Equity in losses of unconsolidated affiliates |
(86 | ) | 86 | (c) | | (58 | ) | 48 | (c) | (10 | ) | |||||||||||||||
Other, net |
15 | | 15 | 4 | | 4 | ||||||||||||||||||||
Total other income and deductions |
(160 | ) | 97 | (63 | ) | (91 | ) | 62 | (29 | ) | ||||||||||||||||
Loss from continuing operations before
income taxes |
(282 | ) | 192 | (90 | ) | (211 | ) | 167 | (44 | ) | ||||||||||||||||
Income taxes |
(289 | ) | 265 | (b),(c),(d),(e) | (24 | ) | (237 | ) | 214 | (c) | (23 | ) | ||||||||||||||
Income (loss) from continuing operations |
7 | (73 | ) | (66 | ) | 26 | (47 | ) | (21 | ) | ||||||||||||||||
Income (loss) from discontinued operations |
(3 | ) | | (3 | ) | 5 | | 5 | ||||||||||||||||||
Income (loss) before a cumulative effect of a change in
accounting principle |
4 | (73 | ) | (69 | ) | 31 | (47 | ) | (16 | ) | ||||||||||||||||
Cumulative effect of a change in accounting
principle, net of income taxes |
| | | (9 | ) | | (9 | ) | ||||||||||||||||||
Net income (loss) |
$ | 4 | $ | (73 | ) | $ | (69 | ) | $ | 22 | $ | (47 | ) | $ | (25 | ) | ||||||||||
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). | |
(b) | Adjustment to exclude the mark-to-market impact of Exelons non-trading activities. | |
(c) | Adjustment to exclude the financial impact of Exelons investments in synthetic fuel-producing facilities. | |
(d) | Adjustment to exclude severance charges and adjustments to previously recorded severance reserves. | |
(e) | Adjustment to exclude certain costs associated with Exelons anticipated merger with Public Service Enterprise Group Inc. |
13
Three Months Ended September 30, | ||||||||||||
2005 | 2004 | % Change | ||||||||||
(in GWhs) |
||||||||||||
Supply |
||||||||||||
Nuclear |
35,584 | 35,303 | 0.8 | % | ||||||||
Purchased Power Generation (a) |
15,393 | 13,563 | 13.5 | % | ||||||||
Fossil and Hydro |
4,321 | 3,068 | 40.8 | % | ||||||||
Power Team Supply |
55,298 | 51,934 | 6.5 | % | ||||||||
Purchased Power Other |
182 | 155 | 17.4 | % | ||||||||
Total Electric Supply Available for Sale |
55,480 | 52,089 | 6.5 | % | ||||||||
Less: Line Loss and Company Use |
(3,022 | ) | (2,341 | ) | 29.1 | % | ||||||
Total Supply |
52,458 | 49,748 | 5.4 | % | ||||||||
Energy Sales |
||||||||||||
Retail Sales |
39,716 | 35,408 | 12.2 | % | ||||||||
Power Team Market Sales (a) |
17,617 | 20,234 | (12.9 | %) | ||||||||
Interchange Sales and Sales to Other Utilities |
817 | 746 | 9.5 | % | ||||||||
58,150 | 56,388 | 3.1 | % | |||||||||
Less: Distribution Only Sales |
(5,692 | ) | (6,640 | ) | (14.3 | %) | ||||||
Total Energy Sales |
52,458 | 49,748 | 5.4 | % | ||||||||
Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | % Change | ||||||||||
(in GWhs) |
||||||||||||
Supply |
||||||||||||
Nuclear |
103,049 | 102,968 | 0.1 | % | ||||||||
Purchased Power Generation (a) |
34,000 | 37,158 | (8.5 | %) | ||||||||
Fossil and Hydro |
10,704 | 14,364 | (25.5 | %) | ||||||||
Power Team Supply |
147,753 | 154,490 | (4.4 | %) | ||||||||
Purchased Power Other |
606 | 463 | 30.9 | % | ||||||||
Total Electric Supply Available for Sale |
148,359 | 154,953 | (4.3 | %) | ||||||||
Less: Line Loss and Company Use |
(8,081 | ) | (6,756 | ) | 19.6 | % | ||||||
Total Supply |
140,278 | 148,197 | (5.3 | %) | ||||||||
Energy Sales |
||||||||||||
Retail Sales |
104,584 | 99,434 | 5.2 | % | ||||||||
Power Team Market Sales (a) |
50,174 | 66,226 | (24.2 | %) | ||||||||
Interchange Sales and Sales to Other Utilities |
2,085 | 1,900 | 9.7 | % | ||||||||
156,843 | 167,560 | (6.4 | %) | |||||||||
Less: Distribution Only Sales |
(16,565 | ) | (19,363 | ) | (14.5 | %) | ||||||
Total Energy Sales |
140,278 | 148,197 | (5.3 | %) | ||||||||
(a) | Purchased power and market sales do not include trading volume of 6,757 GWhs and 7,132 GWhs for the three months ended September 30, 2005 and 2004, respectively, and 18,168 GWhs and 17,569 GWhs for the nine months ended September 30, 2005 and 2004, respectively. |
14
ComEd | PECO | |||||||||||||||||||||||
Electric Deliveries (in GWhs) | 2005 | 2004 | % Change | 2005 | 2004 | % Change | ||||||||||||||||||
Full Service (a) |
||||||||||||||||||||||||
Residential |
9,847 | 7,434 | 32.5 | % | 4,075 | 2,906 | 40.2 | % | ||||||||||||||||
Small Commercial & Industrial |
5,872 | 5,596 | 4.9 | % | 2,175 | 1,790 | 21.5 | % | ||||||||||||||||
Large Commercial & Industrial |
2,024 | 1,808 | 11.9 | % | 4,214 | 3,949 | 6.7 | % | ||||||||||||||||
Public Authorities & Electric Railroads |
496 | 616 | (19.5 | %) | 222 | 234 | (5.1 | %) | ||||||||||||||||
Total Full Service |
18,239 | 15,454 | 18.0 | % | 10,686 | 8,879 | 20.4 | % | ||||||||||||||||
PPO (ComEd Only) |
||||||||||||||||||||||||
Small Commercial & Industrial |
1,667 | 1,292 | 29.0 | % | ||||||||||||||||||||
Large Commercial & Industrial |
1,524 | 1,483 | 2.8 | % | ||||||||||||||||||||
3,191 | 2,775 | 15.0 | % | |||||||||||||||||||||
Delivery Only (b) |
||||||||||||||||||||||||
Residential |
(d | ) | (d | ) | 95 | 636 | (85.1 | %) | ||||||||||||||||
Small Commercial & Industrial |
1,391 | 1,611 | (13.7 | %) | 326 | 444 | (26.6 | %) | ||||||||||||||||
Large Commercial & Industrial |
3,785 | 3,720 | 1.7 | % | 95 | 229 | (58.5 | %) | ||||||||||||||||
5,176 | 5,331 | (2.9 | %) | 516 | 1,309 | (60.6 | %) | |||||||||||||||||
Total PPO and Delivery Only |
8,367 | 8,106 | 3.2 | % | 516 | 1,309 | (60.6 | %) | ||||||||||||||||
Total Retail Deliveries |
26,606 | 23,560 | 12.9 | % | 11,202 | 10,188 | 10.0 | % | ||||||||||||||||
Gas Deliveries (mmcf) (PECO only) |
9,541 | 10,033 | (4.9 | %) | ||||||||||||||||||||
Revenue (in millions) |
||||||||||||||||||||||||
Full Service (a) |
||||||||||||||||||||||||
Residential |
$ | 903 | $ | 699 | 29.2 | % | $ | 578 | $ | 409 | 41.3 | % | ||||||||||||
Small Commercial & Industrial |
492 | 471 | 4.5 | % | 257 | 213 | 20.7 | % | ||||||||||||||||
Large Commercial & Industrial |
115 | 107 | 7.5 | % | 325 | 290 | 12.1 | % | ||||||||||||||||
Public Authorities & Electric Railroads |
31 | 38 | (18.4 | %) | 19 | 20 | (5.0 | %) | ||||||||||||||||
Total Full Service |
1,541 | 1,315 | 17.2 | % | 1,179 | 932 | 26.5 | % | ||||||||||||||||
PPO (ComEd Only) (c) |
||||||||||||||||||||||||
Small Commercial & Industrial |
120 | 89 | 34.8 | % | ||||||||||||||||||||
Large Commercial & Industrial |
94 | 91 | 3.3 | % | ||||||||||||||||||||
214 | 180 | 18.9 | % | |||||||||||||||||||||
Delivery Only (b) |
||||||||||||||||||||||||
Residential |
(d | ) | (d | ) | 8 | 50 | (84.0 | %) | ||||||||||||||||
Small Commercial & Industrial |
20 | 31 | (35.5 | %) | 17 | 24 | (29.2 | %) | ||||||||||||||||
Large Commercial & Industrial |
40 | 53 | (24.5 | %) | 2 | 6 | (66.7 | %) | ||||||||||||||||
60 | 84 | (28.6 | %) | 27 | 80 | (66.3 | %) | |||||||||||||||||
Total PPO and Delivery Only |
274 | 264 | 3.8 | % | 27 | 80 | (66.3 | %) | ||||||||||||||||
Total Retail Electric Revenue |
1,815 | 1,579 | 14.9 | % | 1,206 | 1,012 | 19.2 | % | ||||||||||||||||
Wholesale and Miscellaneous Revenue (e) |
133 | 141 | (5.7 | %) | 49 | 52 | (5.8 | %) | ||||||||||||||||
Gas Revenue (PECO only) |
n/a | n/a | 67 | 60 | 11.7 | % | ||||||||||||||||||
Total Revenues |
$ | 1,948 | $ | 1,720 | 13.3 | % | $ | 1,322 | $ | 1,124 | 17.6 | % | ||||||||||||
Heating and Cooling Degree-Days | 2005 | 2004 | Normal | 2005 | 2004 | Normal | ||||||||||||||||||
Heating Degree-Days |
37 | 89 | 127 | 7 | 11 | 41 | ||||||||||||||||||
Cooling Degree-Days |
808 | 424 | 603 | 1,178 | 854 | 900 |
(a) | Full service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy and the cost of the transmission and distribution of the energy. PECOs tariffed rates also include a competitive transition charge (CTC). | |
(b) | Delivery only service reflects customers electing to receive electric generation service from an alternative energy supplier. Revenue from customers choosing an alternative energy supplier includes a distribution charge and a CTC. | |
(c) | Revenue from customers choosing ComEds PPO includes an energy charge at market rates, transmission and distribution charges and a CTC. | |
(d) | All ComEd residential customers are eligible to choose their supplier of electricity. As of September 30, 2005, one alternative supplier was approved to serve residential customers in the ComEd service territory. However, no residential customers have selected this alternative supplier. | |
(e) | Wholesale and miscellaneous revenue includes transmission revenue from PJM. |
15
ComEd | PECO | |||||||||||||||||||||||
Electric Deliveries (in GWhs) | 2005 | 2004 | % Change | 2005 | 2004 | % Change | ||||||||||||||||||
Full Service (a) |
||||||||||||||||||||||||
Residential |
23,193 | 20,240 | 14.6 | % | 10,030 | 7,922 | 26.6 | % | ||||||||||||||||
Small Commercial & Industrial |
16,083 | 16,305 | (1.4 | %) | 5,637 | 5,160 | 9.2 | % | ||||||||||||||||
Large Commercial & Industrial |
5,907 | 5,008 | 18.0 | % | 11,429 | 11,270 | 1.4 | % | ||||||||||||||||
Public Authorities & Electric Railroads |
1,548 | 1,842 | (16.0 | %) | 653 | 686 | (4.8 | %) | ||||||||||||||||
Total Full Service |
46,731 | 43,395 | 7.7 | % | 27,749 | 25,038 | 10.8 | % | ||||||||||||||||
PPO (ComEd Only) |
||||||||||||||||||||||||
Small Commercial & Industrial |
4,126 | 3,189 | 29.4 | % | ||||||||||||||||||||
Large Commercial & Industrial |
4,642 | 3,822 | 21.5 | % | ||||||||||||||||||||
8,768 | 7,011 | 25.1 | % | |||||||||||||||||||||
Delivery Only (b) |
||||||||||||||||||||||||
Residential |
(d | ) | (d | ) | 273 | 1,706 | (84.0 | %) | ||||||||||||||||
Small Commercial & Industrial |
4,554 | 4,689 | (2.9 | %) | 1,038 | 1,301 | (20.2 | %) | ||||||||||||||||
Large Commercial & Industrial |
10,273 | 11,098 | (7.4 | %) | 427 | 569 | (25.0 | %) | ||||||||||||||||
14,827 | 15,787 | (6.1 | %) | 1,738 | 3,576 | (51.4 | %) | |||||||||||||||||
Total PPO and Delivery Only |
23,595 | 22,798 | 3.5 | % | 1,738 | 3,576 | (51.4 | %) | ||||||||||||||||
Total Retail Deliveries |
70,326 | 66,193 | 6.2 | % | 29,487 | 28,614 | 3.1 | % | ||||||||||||||||
Gas Deliveries (mmcf) (PECO only) |
60,637 | 61,540 | (1.5 | %) | ||||||||||||||||||||
Revenue (in millions)
|
||||||||||||||||||||||||
Full Service(a)
|
||||||||||||||||||||||||
Residential |
$ | 2,027 | $ | 1,780 | 13.9 | % | $ | 1,322 | $ | 1,021 | 29.5 | % | ||||||||||||
Small Commercial & Industrial |
1,276 | 1,258 | 1.4 | % | 643 | 587 | 9.5 | % | ||||||||||||||||
Large Commercial & Industrial |
308 | 286 | 7.7 | % | 871 | 840 | 3.7 | % | ||||||||||||||||
Public Authorities & Electric Railroads |
96 | 119 | (19.3 | %) | 59 | 60 | (1.7 | %) | ||||||||||||||||
Total Full Service |
3,707 | 3,443 | 7.7 | % | 2,895 | 2,508 | 15.4 | % | ||||||||||||||||
PPO (ComEd Only) (c) |
||||||||||||||||||||||||
Small Commercial & Industrial |
285 | 213 | 33.8 | % | ||||||||||||||||||||
Large Commercial & Industrial |
265 | 221 | 19.9 | % | ||||||||||||||||||||
550 | 434 | 26.7 | % | |||||||||||||||||||||
Delivery Only (b) |
||||||||||||||||||||||||
Residential |
(d | ) | (d | ) | 21 | 131 | (84.0 | %) | ||||||||||||||||
Small Commercial & Industrial |
78 | 98 | (20.4 | %) | 52 | 67 | (22.4 | %) | ||||||||||||||||
Large Commercial & Industrial |
120 | 154 | (22.1 | %) | 11 | 15 | (26.7 | %) | ||||||||||||||||
198 | 252 | (21.4 | %) | 84 | 213 | (60.6 | %) | |||||||||||||||||
Total PPO and Delivery Only |
748 | 686 | 9.0 | % | 84 | 213 | (60.6 | %) | ||||||||||||||||
Total Retail Electric Revenue |
4,455 | 4,129 | 7.9 | % | 2,979 | 2,721 | 9.5 | % | ||||||||||||||||
Wholesale and Miscellaneous Revenue (e) |
367 | 329 | 11.6 | % | 154 | 151 | 2.0 | % | ||||||||||||||||
Gas Revenue (PECO only) |
n/a | n/a | 528 | 523 | 1.0 | % | ||||||||||||||||||
Total Revenues |
$ | 4,822 | 4,458 | 8.2 | % | $ | 3,661 | $ | 3,395 | 7.8 | % | |||||||||||||
Heating and Cooling Degree-Days | 2005 | 2004 | Normal | 2005 | 2004 | Normal | ||||||||||||||||||
Heating Degree-Days |
3,781 | 3,976 | 4,187 | 3,115 | 3,075 | 3,088 | ||||||||||||||||||
Cooling Degree-Days |
1,123 | 600 | 820 | 1,505 | 1,270 | 1,216 |
(a) | Full service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy and the cost of the transmission and distribution of the energy. PECOs tariffed rates also include a competitive transition charge (CTC). | |
(b) | Delivery only service reflects customers electing to receive electric generation service from an alternative energy supplier. Revenue from customers choosing an alternative energy supplier includes a distribution charge and a CTC. | |
(c) | Revenue from customers choosing ComEds PPO includes an energy charge at market rates, transmission and distribution charges and a CTC. | |
(d) | All ComEd residential customers are eligible to choose their supplier of electricity. As of September 30, 2005, one alternative supplier was approved to serve residential customers in the ComEd service territory. However, no residential customers have selected this alternative supplier. | |
(e) | Wholesale and miscellaneous revenue includes transmission revenue from PJM and, prior to ComEds full integration into PJM on May 1, 2004, ComEds transmission charges received from alternative energy suppliers. |
16
Three Months Ended | ||||||||||||||||||||
September 30, 2005 | June 30, 2005 | March 31, 2005 | December 31, 2004 | September 30, 2004 | ||||||||||||||||
GWh Sales |
||||||||||||||||||||
Energy Delivery |
35,773 | 28,582 | 28,453 | 26,828 | 30,040 | |||||||||||||||
Market and Retail Sales |
19,525 | 18,410 | 17,010 | 21,281 | 21,894 | |||||||||||||||
Total Sales (a) |
55,298 | 46,992 | 45,463 | 48,109 | 51,934 | |||||||||||||||
Average Margin ($/MWh) |
||||||||||||||||||||
Average Realized Revenue |
||||||||||||||||||||
Energy Delivery |
$ | 41.48 | $ | 39.64 | $ | 39.29 | $ | 30.75 | $ | 40.55 | ||||||||||
Market and Retail Sales (b) |
53.16 | 42.53 | 38.80 | 34.11 | 34.67 | |||||||||||||||
Total Sales without trading |
45.61 | 40.77 | 39.11 | 32.24 | 38.07 | |||||||||||||||
Average Purchased Power and Fuel Cost without trading (c) |
$ | 27.09 | $ | 17.71 | $ | 15.22 | $ | 14.33 | $ | 20.66 | ||||||||||
Average Margin without trading (c) |
$ | 18.52 | $ | 23.06 | $ | 23.89 | $ | 17.91 | $ | 17.41 | ||||||||||
Around-the-clock Market Prices ($/MWh) |
||||||||||||||||||||
PJM |
$ | 75.33 | $ | 47.30 | $ | 47.18 | $ | 38.84 | $ | 41.38 | ||||||||||
MAIN |
54.75 | 38.35 | 39.68 | 29.99 | 28.41 |
(a) | Total sales do not include trading volume of 6,757 GWhs, 5,660 GWhs, 5,751 GWhs, 6,432 GWhs and 7,132 GWhs for the three months ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, respectively. | |
(b) | Market and retail sales exclude revenues related to tolling agreements of $52 million, $34 million and $58 million for the three months ended September 30, 2005, June 30, 2005 and September 30, 2004, respectively. | |
(c) | Adjustments have been made to historical periods for consistency with current year presentation, including the exclusion of mark-to-market adjustments from operating earnings and the classification of Sithes results as discontinued operations. |
17
Nine Months Ended September 30, | ||||||||
2005 | 2004 | |||||||
GWh Sales |
||||||||
Energy Delivery |
92,808 | 83,637 | ||||||
Market and Retail Sales |
54,945 | 70,853 | ||||||
Total Sales (a) |
147,753 | 154,490 | ||||||
Average Margin ($/MWh) |
||||||||
Average Realized Revenue |
||||||||
Energy Delivery |
$ | 40.24 | $ | 34.96 | ||||
Market and Retail Sales (b) |
45.15 | 35.30 | ||||||
Total Sales without trading |
42.07 | 35.12 | ||||||
Average
Purchased Power and Fuel Cost without trading (c) |
$ | 20.45 | $ | 18.60 | ||||
Average
Margin without trading (c) |
$ | 21.62 | $ | 16.52 | ||||
Around-the-clock Market Prices ($/MWh) |
||||||||
PJM |
$ | 56.60 | $ | 43.50 | ||||
MAIN |
44.26 | 31.52 | ||||||
2005 Forward market prices October through December |
||||||||
Around-the-clock Market Prices ($/MWh) |
||||||||
PJM |
$ | 74.59 | ||||||
MAIN |
51.16 | |||||||
Gas Prices ($/Mmbtu) |
||||||||
Henry Hub |
$ | 14.09 |
(a) | Total sales do not include trading volume of 18,168 GWhs and 17,569 GWhs for the nine months ended September 30, 2005 and 2004, respectively. | |
(b) | Market and retail sales exclude revenues related to tolling agreements of $86 million and $97 million for the nine months ended September 30, 2005 and 2004, respectively. | |
(c) | Adjustments have been made to historical periods for consistency with current year presentation, including the exclusion of mark-to-market adjustments from operating earnings and the classification of Sithes results as discontinued operations. |
18