UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
February 12, 2002
(Date of earliest
event reported)
Commission File Name of Registrant; State of Incorporation; Address of IRS Employer
Number Principal Executive Offices; and Telephone Number Identification Number
- --------------------- --------------------------------------------------------- -------------------------
1-16169 EXELON CORPORATION 23-2990190
(a Pennsylvania corporation)
10 South Dearborn Street - 37th Floor
P.O. Box 805379
Chicago, Illinois 60680-5379
(312) 394-4321
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
Item 9. Regulation FD Disclosure
On February 12, 2002, Corbin A. McNeill, Jr., Chairman and Co-CEO of Exelon
Corporation, made a presentation to investors at the UBS Warburg Energy and
Utilities Conference. Attached as exhibits to this Current Report on Form 8-K
are the slides he used and copies of materials made available to investors
attending the conference.
This report contains certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are based
on management's current expectations and are subject to uncertainty and changes
in circumstances. Actual results may vary materially from the expectations
contained herein. The forward-looking statements herein include statements about
future financial and operating results of Exelon. Economic, business,
competitive and/or regulatory factors affecting Exelon's businesses generally
could cause actual results to differ materially from those described herein. For
a discussion of the factors that could cause actual results to differ
materially, please see Exelon's filings with the Securities and Exchange
Commission, particularly those discussed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations-- Outlook" in Exelon's
2000 Annual Report. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. Exelon does not undertake any obligation to publicly release any
revisions to these forward-looking statements to reflect events or circumstances
after the date of this report.
EXHIBIT INDEX
Exhibit
Number Description
- ------ -----------
99.1 Slides used in Mr. McNeill's presentation
99.2 Background materials
99.3 Exelon Earnings Press Release, issued January 29, 2002.
99.4 Exelon Restatement Release, issued January 25, 2002
99.5 Materials on Regulatory Initiatives in Illinois
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
EXELON CORPORATION
/S/ Ruth Ann M. Gillis
----------------------------
Ruth Ann M. Gillis
Principal Financial Officer
February 12, 2002
EXHIBIT 99.1 [LOGO FOR EXELON] Fueling Energy for Growth UBS Warburg Energy and Utilities Conference February 12, 2002 Corbin A. McNeill, Jr. Chairman and Co-CEO Exelon CorporationThis presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein. The forward-looking statements herein include statements about future financial and operating results of Exelon. Economic, business, competitive and/or regulatory factors affecting Exelon's businesses generally could cause actual results to differ materially from those described herein. For a discussion of the factors that could cause actual results to differ materially, please see Exelon's filings with the Securities and Exchange Commission, particularly those discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations-- Outlook" in Exelon's 2000 Annual Report. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Exelon does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation. [logo of Exelon]
[logo of Exelon] The Changing Future of Power Generation - --------------------------------------- o Boost development of domestic energy sources o Continue down road to national energy independence o Public opinion shifting on the issue of nuclear power o After hiatus, new generation will be needed to meet demand
[logo of Exelon] Need for New Power Generation is Clear - -------------------------------------- o Forecast a 50% increase in demand over the next 20 years* o Bush energy plan calls for 1,200 new power plants in the next 20 years o Expect most plants near term will be natural gas or clean coal * Source: Nuclear Energy Institute
Volatility in Gas Prices and Spark Spreads - ------------------------------------------ (This slide includes two graphs. The first graph shows gas prices (in $/mmBtu) for the period for August 28, 2000 through January 31, 2001. The second graph shows the spark spread (in $/MWh) for the same period. The data points are as follows: Gas Prices ($/mmBtu) - -------------------- Algonquin City Gate Price ------------------------- 08/28/2000 $4.745 08/29/2000 $4.900 08/30/2000 $4.940 08/31/2000 $4.925 09/01/2000 $5.150 09/05/2000 $5.075 09/06/2000 $5.135 09/07/2000 $5.210 09/08/2000 $5.215 09/11/2000 $5.120 09/12/2000 $5.280 09/13/2000 $5.425 09/14/2000 $5.490 09/15/2000 $5.500 09/18/2000 $5.635 09/19/2000 $5.405 09/20/2000 $5.595 09/21/2000 $5.680 09/22/2000 $5.615 09/25/2000 $5.535 09/26/2000 $5.465 09/27/2000 $5.685 09/28/2000 $5.775 09/29/2000 $5.660 10/02/2000 $5.370 10/03/2000 $5.580 10/04/2000 $5.590 10/05/2000 $5.590 10/06/2000 $5.580 10/09/2000 $5.540 10/10/2000 $5.585 10/11/2000 $5.530 10/12/2000 $5.580 10/13/2000 $5.935 10/16/2000 $5.770 10/17/2000 $5.715 10/18/2000 $5.685 10/19/2000 $5.825 10/20/2000 $5.435 10/23/2000 $5.245 10/24/2000 $5.205 10/25/2000 $5.225 10/26/2000 $4.980
10/27/2000 $5.030 10/30/2000 $4.980 10/31/2000 $5.290 11/01/2000 $5.055 11/02/2000 $4.885 11/03/2000 $4.835 11/06/2000 $4.995 11/07/2000 $4.935 11/08/2000 $5.010 11/09/2000 $5.225 11/10/2000 $5.715 11/13/2000 $5.575 11/14/2000 $5.990 11/15/2000 $6.195 11/16/2000 $6.275 11/17/2000 $6.275 11/20/2000 $6.165 11/21/2000 $6.950 11/22/2000 $7.225 11/24/2000 $6.820 11/27/2000 $6.820 11/28/2000 $6.730 11/29/2000 $6.395 11/30/2000 $6.525 12/01/2000 $7.245 12/04/2000 $7.275 12/05/2000 $8.465 12/06/2000 $11.895 12/07/2000 $13.465 12/08/2000 $9.640 12/11/2000 $9.105 12/12/2000 $11.490 12/13/2000 $10.325 12/14/2000 $8.715 12/15/2000 $8.420 12/18/2000 $8.550 12/19/2000 $10.320 12/20/2000 $10.350 12/21/2000 $11.190 12/22/2000 $12.370 12/26/2000 $14.780 12/27/2000 $13.525 12/28/2000 $12.895 12/29/2000 $12.650 01/02/2001 $14.970 01/03/2001 $12.480 01/04/2001 $11.350 01/05/2001 $10.800 01/08/2001 $10.895 01/09/2001 $11.510 01/10/2001 $10.915 01/11/2001 $10.950
01/12/2001 $10.250 01/15/2001 $9.590 01/16/2001 $9.590 01/17/2001 $8.925 01/18/2001 $8.540 01/19/2001 $7.775 01/22/2001 $8.335 01/23/2001 $8.555 01/24/2001 $7.595 01/25/2001 $7.560 01/26/2001 $7.965 01/29/2001 $7.685 01/30/2001 $7.190 01/31/2001 $6.300 02/01/2001 $6.290 02/02/2001 $6.430 02/05/2001 $7.100 02/06/2001 $6.260 02/07/2001 $6.070 02/08/2001 $6.250 02/09/2001 $6.770 02/12/2001 $6.660 02/13/2001 $6.150 02/14/2001 $6.160 02/15/2001 $6.450 02/16/2001 $5.900 02/19/2001 $6.160 02/20/2001 $6.160 02/21/2001 $5.780 02/22/2001 $6.015 02/23/2001 $5.735 02/26/2001 $5.645 02/27/2001 $5.630 02/28/2001 $5.780 03/01/2001 $5.915 03/02/2001 $5.755 03/05/2001 $5.670 03/06/2001 $6.030 03/07/2001 $5.960 03/08/2001 $5.920 03/09/2001 $5.920 03/12/2001 $5.725 03/13/2001 $5.630 03/14/2001 $5.750 03/15/2001 $5.590 03/16/2001 $5.540 03/19/2001 $5.570 03/20/2001 $5.680 03/21/2001 $5.670 03/22/2001 $5.775 03/23/2001 $5.595 03/26/2001 $5.890
03/27/2001 $5.920 03/28/2001 $6.100 03/29/2001 $6.300 03/30/2001 $6.105 04/02/2001 $5.985 04/03/2001 $5.770 04/04/2001 $5.875 04/05/2001 $5.730 04/06/2001 $5.700 04/09/2001 $5.750 04/10/2001 $5.915 04/11/2001 $6.005 04/12/2001 $5.875 04/13/2001 $5.720 04/16/2001 $5.720 04/17/2001 $5.960 04/18/2001 $5.950 04/19/2001 $5.705 04/20/2001 $5.515 04/23/2001 $5.395 04/24/2001 $5.500 04/25/2001 $5.590 04/26/2001 $5.475 04/27/2001 $5.350 04/30/2001 $5.235 05/01/2001 $5.175 05/02/2001 $4.990 05/03/2001 $5.030 05/04/2001 $4.880 05/07/2001 $4.850 05/08/2001 $4.695 05/09/2001 $4.610 05/10/2001 $4.505 05/11/2001 $4.555 05/14/2001 $4.605 05/15/2001 $4.655 05/16/2001 $4.870 05/17/2001 $4.840 05/18/2001 $4.560 05/21/2001 $4.490 05/22/2001 $4.510 05/23/2001 $4.430 05/24/2001 $4.440 05/25/2001 $4.495 05/29/2001 $4.180 05/30/2001 $4.205 05/31/2001 $4.025 06/01/2001 $4.025 06/04/2001 $3.985 06/05/2001 $4.250 06/06/2001 $4.335 06/07/2001 $4.065
06/08/2001 $4.020 06/11/2001 $3.920 06/12/2001 $4.210 06/13/2001 $4.410 06/14/2001 $4.550 06/15/2001 $4.345 06/18/2001 $4.260 06/19/2001 $4.320 06/20/2001 $4.390 06/21/2001 $4.250 06/22/2001 $4.060 06/25/2001 $4.030 06/26/2001 $4.000 06/27/2001 $3.985 06/28/2001 $3.930 06/29/2001 $3.650 07/02/2001 $3.335 07/03/2001 $3.240 07/05/2001 $3.265 07/06/2001 $3.425 07/09/2001 $3.330 07/10/2001 $3.440 07/11/2001 $3.530 07/12/2001 $3.555 07/13/2001 $3.650 07/16/2001 $3.425 07/17/2001 $3.410 07/18/2001 $3.450 07/19/2001 $3.525 07/20/2001 $3.350 07/23/2001 $3.295 07/24/2001 $3.405 07/25/2001 $3.415 07/26/2001 $3.420 07/27/2001 $3.615 07/30/2001 $3.365 07/31/2001 $3.605 08/01/2001 $3.635 08/02/2001 $3.640 08/03/2001 $3.495 08/06/2001 $3.450 08/07/2001 $3.585 08/08/2001 $3.765 08/09/2001 $3.655 08/10/2001 $3.585 08/13/2001 $3.360 08/14/2001 $3.365 08/15/2001 $3.395 08/16/2001 $3.515 08/17/2001 $3.825 08/20/2001 $3.565 08/21/2001 $3.505
08/22/2001 $3.530 08/23/2001 $3.575 08/24/2001 $3.210 08/27/2001 $3.055 08/28/2001 $2.950 08/29/2001 $2.880 08/30/2001 $2.810 08/31/2001 $2.790 09/04/2001 $2.415 09/05/2001 $2.495 09/06/2001 $2.625 09/07/2001 $2.680 09/10/2001 $2.610 09/11/2001 $2.730 09/12/2001 $2.600 09/13/2001 $2.845 09/14/2001 $2.755 09/17/2001 $2.740 09/18/2001 $2.660 09/19/2001 $2.470 09/20/2001 $2.415 09/21/2001 $2.375 09/24/2001 $2.385 09/25/2001 $2.405 09/26/2001 $2.410 09/27/2001 $2.330 09/28/2001 $2.330 10/01/2001 $2.09 10/02/2001 $2.12 10/03/2001 $2.39 10/04/2001 $2.47 10/05/2001 $2.53 10/08/2001 $2.46 10/09/2001 $2.48 10/10/2001 $2.57 10/11/2001 $2.75 10/12/2001 $2.67 10/15/2001 $2.64 10/16/2001 $2.96 10/17/2001 $3.14 10/18/2001 $2.80 10/19/2001 $2.62 10/22/2001 $2.99 10/23/2001 $3.19 10/24/2001 $3.07 10/25/2001 $3.76 10/26/2001 $3.59 10/29/2001 $3.77 10/30/2001 $3.59 10/31/2001 $3.54 11/01/2001 $3.29 11/02/2001 $3.26
11/05/2001 $3.48 11/06/2001 $3.31 11/07/2001 $3.24 11/08/2001 $3.19 11/09/2001 $3.05 11/12/2001 $2.91 11/13/2001 $2.85 11/14/2001 $2.65 11/15/2001 $2.26 11/16/2001 $2.04 11/19/2001 $2.56 11/20/2001 $3.08 11/21/2001 $2.22 11/23/2001 $2.22 11/26/2001 $1.95 11/27/2001 $2.32 11/28/2001 $2.73 11/29/2001 $2.47 11/30/2001 $2.24 12/03/2001 $2.50 12/04/2001 $2.36 12/05/2001 $2.23 12/06/2001 $2.20 12/07/2001 $2.59 12/10/2001 $2.79 12/11/2001 $2.94 12/12/2001 $2.89 12/13/2001 $2.78 12/14/2001 $2.85 12/17/2001 $3.10 12/18/2001 $3.10 12/19/2001 $3.15 12/20/2001 $3.07 12/21/2001 $3.04 12/24/2001 $3.04 12/26/2001 $3.87 12/27/2001 $3.45 12/28/2001 $3.48 12/31/2001 $4.20 01/02/2002 $4.14 01/03/2002 $3.81 01/04/2002 $3.08 01/07/2002 $3.10 01/08/2002 $2.98 01/09/2002 $2.71 01/10/2002 $2.68 01/11/2002 $2.68 01/14/2002 $2.87 01/15/2002 $2.99 01/16/2002 $2.93 01/17/2002 $2.98 01/18/2002 $2.73
01/21/2002 $2.73 01/22/2002 $2.53 01/23/2002 $2.39 01/24/2002 $2.43 01/25/2002 $2.32 01/28/2002 $2.31 01/29/2002 $2.34 01/30/2002 $2.48 01/31/2002 $2.48
Spark Spread ($/MWh) -------------------- 10K Spread 08/28/2000 ($0.65) 08/29/2000 ($0.71) 08/30/2000 $4.03 08/31/2000 $13.26 09/01/2000 $8.24 09/05/2000 ($13.41) 09/06/2000 ($9.83) 09/07/2000 ($4.77) 09/08/2000 ($7.06) 09/11/2000 ($4.24) 09/12/2000 $2.38 09/13/2000 $6.50 09/14/2000 ($3.33) 09/15/2000 $0.33 09/18/2000 ($9.07) 09/19/2000 ($1.48) 09/20/2000 ($4.86) 09/21/2000 ($15.67) 09/22/2000 ($12.18) 09/25/2000 ($7.94) 09/26/2000 ($8.20) 09/27/2000 ($0.07) 09/28/2000 ($11.09) 09/29/2000 ($12.65) 10/02/2000 ($5.19) 10/03/2000 $0.87 10/04/2000 $6.25 10/05/2000 $1.48 10/06/2000 ($4.82) 10/09/2000 ($2.57) 10/10/2000 $2.72 10/11/2000 $0.99 10/12/2000 ($1.37) 10/13/2000 ($6.02) 10/16/2000 $6.21 10/17/2000 ($2.02) 10/18/2000 $2.07 10/19/2000 ($11.36) 10/20/2000 ($4.19) 10/23/2000 $11.21 10/24/2000 $0.22 10/25/2000 ($1.16) 10/26/2000 $3.95 10/27/2000 $3.10 10/30/2000 $20.02 10/31/2000 $7.69 11/01/2000 $4.00 11/02/2000 $3.38
11/03/2000 $0.42 11/06/2000 $2.35 11/07/2000 ($0.91) 11/08/2000 $4.12 11/09/2000 ($0.28) 11/10/2000 ($3.11) 11/13/2000 ($8.60) 11/14/2000 ($10.42) 11/15/2000 ($12.56) 11/16/2000 ($10.86) 11/17/2000 ($10.17) 11/20/2000 ($5.01) 11/21/2000 ($16.52) 11/22/2000 ($14.94) 11/24/2000 ($11.88) 11/27/2000 ($11.54) 11/28/2000 ($14.03) 11/29/2000 ($12.55) 11/30/2000 ($12.48) 12/01/2000 ($14.82) 12/04/2000 ($6.96) 12/05/2000 ($19.58) 12/06/2000 ($49.46) 12/07/2000 ($67.67) 12/08/2000 ($15.72) 12/11/2000 ($17.54) 12/12/2000 ($40.99) 12/13/2000 ($21.57) 12/14/2000 ($9.95) 12/15/2000 ($12.36) 12/18/2000 ($26.87) 12/19/2000 ($37.76) 12/20/2000 ($7.00) 12/21/2000 ($45.66) 12/22/2000 ($57.80) 12/26/2000 ($73.66) 12/27/2000 ($69.57) 12/28/2000 ($62.34) 12/29/2000 ($67.46) 01/02/2001 ($82.83) 01/03/2001 ($38.34) 01/04/2001 ($39.56) 01/05/2001 ($27.17) 01/08/2001 ($34.30) 01/09/2001 ($50.24) 01/10/2001 ($35.99) 01/11/2001 ($22.98) 01/12/2001 ($30.94) 01/15/2001 $10.03 01/16/2001 ($29.86) 01/17/2001 ($14.19) 01/18/2001 ($20.94)
01/19/2001 ($8.67) 01/22/2001 ($25.24) 01/23/2001 ($23.38) 01/24/2001 ($14.03) 01/25/2001 ($20.89) 01/26/2001 ($14.43) 01/29/2001 ($11.57) 01/30/2001 ($17.86) 01/31/2001 ($17.35) 02/01/2001 ($15.85) 02/02/2001 ($17.66) 02/05/2001 ($17.78) 02/06/2001 $3.31 02/07/2001 ($13.85) 02/08/2001 ($11.85) 02/09/2001 ($20.14) 02/12/2001 ($27.37) 02/13/2001 ($21.96) 02/14/2001 ($17.89) 02/15/2001 ($16.74) 02/16/2001 $10.26 02/19/2001 ($16.11) 02/20/2001 ($16.52) 02/21/2001 ($14.12) 02/22/2001 ($13.20) 02/23/2001 ($14.71) 02/26/2001 ($11.49) 02/27/2001 ($12.39) 02/28/2001 ($13.18) 03/01/2001 ($16.88) 03/02/2001 ($11.82) 03/05/2001 ($6.97) 03/06/2001 ($12.17) 03/07/2001 ($3.17) 03/08/2001 ($6.23) 03/09/2001 ($1.49) 03/12/2001 ($2.00) 03/13/2001 $11.44 03/14/2001 $11.54 03/15/2001 ($6.59) 03/16/2001 ($13.16) 03/19/2001 ($3.30) 03/20/2001 ($10.98) 03/21/2001 ($6.14) 03/22/2001 ($9.35) 03/23/2001 ($9.19) 03/26/2001 $20.50 03/27/2001 ($10.80) 03/28/2001 ($9.27) 03/29/2001 $0.50 03/30/2001 $52.71 04/02/2001 ($10.11)
04/03/2001 ($11.94) 04/04/2001 ($16.09) 04/05/2001 ($19.06) 04/06/2001 ($14.80) 04/09/2001 ($12.79) 04/10/2001 ($16.80) 04/11/2001 ($15.05) 04/12/2001 ($3.91) 04/13/2001 ($16.34) 04/16/2001 ($7.52) 04/17/2001 ($16.54) 04/18/2001 ($18.22) 04/19/2001 ($11.72) 04/20/2001 ($11.83) 04/23/2001 ($3.84) 04/24/2001 ($12.23) 04/25/2001 ($13.21) 04/26/2001 ($14.58) 04/27/2001 ($10.75) 04/30/2001 ($1.73) 05/01/2001 $9.14 05/02/2001 $20.55 05/03/2001 $35.98 05/04/2001 $17.78 05/07/2001 $12.20 05/08/2001 $17.80 05/09/2001 $8.39 05/10/2001 $15.81 05/11/2001 $4.62 05/14/2001 $2.29 05/15/2001 $2.64 05/16/2001 $0.16 05/17/2001 ($3.18) 05/18/2001 $0.87 05/21/2001 $4.27 05/22/2001 ($3.39) 05/23/2001 ($4.63) 05/24/2001 ($3.34) 05/25/2001 ($9.92) 05/29/2001 ($4.22) 05/30/2001 ($8.88) 05/31/2001 ($2.08) 06/01/2001 ($0.35) 06/04/2001 ($10.11) 06/05/2001 ($11.61) 06/06/2001 ($8.94) 06/07/2001 ($2.38) 06/08/2001 ($3.35) 06/11/2001 $0.73 06/12/2001 ($5.93) 06/13/2001 ($1.57) 06/14/2001 $2.77
06/15/2001 $3.75 06/18/2001 $0.70 06/19/2001 $5.34 06/20/2001 $20.99 06/21/2001 ($4.78) 06/22/2001 $2.92 06/25/2001 $5.78 06/26/2001 $10.44 06/27/2001 ($4.95) 06/28/2001 $9.53 06/29/2001 ($1.91) 07/02/2001 ($2.77) 07/03/2001 $1.04 07/05/2001 $8.11 07/06/2001 $3.53 07/09/2001 $17.06 07/10/2001 $19.05 07/11/2001 $1.22 07/12/2001 $1.97 07/13/2001 ($1.95) 07/16/2001 $12.16 07/17/2001 ($0.28) 07/18/2001 ($1.50) 07/19/2001 $3.23 07/20/2001 $8.64 07/23/2001 $141.02 07/24/2001 $228.33 07/25/2001 $503.39 07/26/2001 $3.53 07/27/2001 ($4.07) 07/30/2001 ($0.57) 07/31/2001 $2.59 08/01/2001 $5.92 08/02/2001 ($2.17) 08/03/2001 ($2.42) 08/06/2001 $16.30 08/07/2001 $50.01 08/08/2001 $29.93 08/09/2001 $168.18 08/10/2001 $26.69 08/13/2001 $15.44 08/14/2001 $8.69 08/15/2001 $7.44 08/16/2001 $7.14 08/17/2001 $9.63 08/20/2001 $9.05 08/21/2001 $6.66 08/22/2001 $10.38 08/23/2001 $9.38 08/24/2001 $9.61 08/27/2001 $19.09 08/28/2001 $17.78
08/29/2001 $5.47 08/30/2001 $5.48 08/31/2001 $25.19 09/04/2001 $13.70 09/05/2001 $5.16 09/06/2001 $4.65 09/07/2001 $12.92 09/10/2001 $57.04 09/11/2001 $11.08 09/12/2001 $12.83 09/13/2001 $19.28 09/14/2001 $3.85 09/17/2001 $15.26 09/18/2001 $7.24 09/19/2001 $10.52 09/20/2001 $20.52 09/21/2001 $16.35 09/24/2001 $16.48 09/25/2001 $21.76 09/26/2001 $4.18 09/27/2001 $6.91 09/28/2001 $6.07 10/01/2001 $13.46 10/02/2001 $10.28 10/03/2001 $7.61 10/04/2001 $9.99 10/05/2001 $8.04 10/08/2001 $4.23 10/09/2001 $4.66 10/10/2001 $3.32 10/11/2001 $1.48 10/12/2001 $4.02 10/15/2001 $14.74 10/16/2001 $9.30 10/17/2001 $8.13 10/18/2001 $9.99 10/19/2001 $14.61 10/22/2001 $9.41 10/23/2001 $3.79 10/24/2001 $9.02 10/25/2001 ($1.61) 10/26/2001 ($2.17) 10/29/2001 ($5.89) 10/30/2001 ($4.65) 10/31/2001 ($0.04) 11/01/2001 $3.84 11/02/2001 $5.75 11/05/2001 ($1.32) 11/06/2001 ($2.79) 11/07/2001 $1.71 11/08/2001 ($2.41) 11/09/2001 $2.58
11/12/2001 $11.90 11/13/2001 $8.23 11/14/2001 $6.37 11/15/2001 $8.33 11/16/2001 $12.41 11/19/2001 $5.43 11/20/2001 ($4.44) 11/21/2001 $4.79 11/23/2001 ($6.33) 11/26/2001 $7.41 11/27/2001 ($0.31) 11/28/2001 $0.49 11/29/2001 $5.53 11/30/2001 $4.12 12/03/2001 $3.90 12/04/2001 $7.54 12/05/2001 $8.84 12/06/2001 $7.55 12/07/2001 $1.26 12/10/2001 $3.31 12/11/2001 ($4.03) 12/12/2001 ($3.66) 12/13/2001 $2.26 12/14/2001 ($3.58) 12/17/2001 $7.50 12/18/2001 $0.24 12/19/2001 ($9.47) 12/20/2001 ($7.18) 12/21/2001 ($1.85) 12/24/2001 ($3.68) 12/26/2001 ($9.88) 12/27/2001 $1.68 12/28/2001 ($3.01) 12/31/2001 ($8.73) 01/02/2002 ($8.16) 01/03/2002 ($5.30) 01/04/2002 $2.88 01/07/2002 $5.33 01/08/2002 ($2.79) 01/09/2002 $1.10 01/10/2002 $0.24 01/11/2002 $1.73 01/14/2002 $6.77 01/15/2002 ($2.26) 01/16/2002 ($1.57) 01/17/2002 ($0.35) 01/18/2002 ($1.81) 01/21/2002 $2.04 01/22/2002 $3.25 01/23/2002 $3.26 01/24/2002 $2.99 01/25/2002 $2.43
01/28/2002 $8.00 01/29/2002 $1.18 01/30/2002 $4.08 01/31/2002 $6.33
[logo of Exelon] Alternative Sources for Power Generation - ---------------------------------------- o Renewable energy, such as wind and solar o Plant efficiency modifications and upgrades o Environmentally preferable energy sources
[logo for Exelon] Nuclear - The Only Realistic Option - ----------------------------------- o U.S. needs secure, reliable, domestic energy source. o Growing electricity demand + aging plants = need for hundreds of new power plants over next 10-20 years. o U.S. economy requires abundant, low-cost energy. o Public support for nuclear option is growing. o Public putting pressure on power industry to not pollute. o Permanent spent fuel disposal is being resolved.
[logo for Exelon] Nuclear Can Be an Economical Option - ----------------------------------- Electric Power Generation Options --------------------------------- Nuclear Options Coal Options CCGT --------------------------------- ---------------- ------------------------- ALWR PBMR @Natural Gas $/MMBTU ---- ---- -------------------- Cost Comparisons ((cent)/kWh) Small Large Low Cost High Cost Clean Normal 3.00 3.50 4.50 ----- ----- -------- --------- ----- ------ ---- ---- ---- Fuel Cost 0.5 0.5 0.7 0.7 0.9 0.8 2.1 2.5 3.2 Cash O & M Cost 1.0 0.7 0.4 0.4 0.8 0.6 0.3 0.3 0.3 - ---- ---- ---- ---- ---- ---- ---- ---- ---- Total Costs 1.5 1.2 1.1 1.1 1.7 1.4 2.4 2.8 3.5 Levelized Capital Recovery 4.1 2.6 2.2 2.8 2.2 1.7 0.9 0.9 0.9 - ---- ---- ---- ---- ---- ---- ---- ---- ---- Total Cost / Revenue Required 5.6 3.8 3.3 3.9 3.9 3.1 3.3 3.7 4.4 - ----------------------------------------------------------------------------------------------------------------------------- Target IRR @ Total Cost / Revenue 10% 10% 10% 10% 8% 8% 8% 8% 8% Breakeven Natural Gas Price 6.25 3.69 3.00 3.86 3.90 2.73 3.00 3.50 4.50 ($/MMBTU) Capital Intensity, $/kW 1575 1000 1000 1250 1300 1000 525 525 525 Project Size, MW 610 1091 120 120 720 720 1000 1000 1000 Project Capital, $M 961 1091 120 150 936 720 525 525 525
[logo for Exelon] Advantages of Pebble Bed Modular Reactor - ---------------------------------------- o Failsafe, passive safety features o Much lower construction and operating costs o Standard modular design o Faster return on investment o Produces power at very competitive prices o Reduced security concerns
[logo for Exelon] Public Policy Case for Maintaining Nuclear Option - ------------------------------------------------- o Avoided Emissions - Nuclear power avoids emission of key pollutants: o SO2 - acid rain o NOx - ground-level ozone o CO2 - global warming o Implications: o Reduced fossil compliance costs o Meet demand growth without increased emissions o Achieve fuel diversity o Stable pricing
[logo for Exelon] The Road to Commercialization - ----------------------------- o Building public confidence in safety aspects o Certainty of capital costs o Technology o Construction costs o Clearing licensing hurdles o Decommissioning funding o Technological issues o Nuclear liabilities o Dealing with waste disposal o Be ready to meet next round of plant construction in 5-8 years
Exhibit 99.2
Key Assumptions: 2002
2001 Actuals 2002
------------ ----
Nuclear Capacity Factor 94.4% 91%
Total GenCo Sales (GWh) 201,845 205,000
Total Delivery Sales (GWh) 120,472 125,000
Total Unreg. Retail Sales (GWh) 6,881 4,600
Volume Retention
PECO 80% 84%
ComEd 91% 89%
*ATC Price ($/MWh)
PJM $31 $29.20
Main $25 $26.30
Merger Synergies ($MM) $148 Target $225
*ATC= Around the Clock
[logo for Exelon]
Exelon's 2002 Earnings Guidance
2002 EPS Estimate of $4.45 to $4.85
--Delivery 2002 EPS Estimate of $3.30 to $3.40
(Weather normalized)
--Generation 2002 EPS Estimate of $1.40 to $1.75
(Weather normalized)
--Enterprises, Consolidation and Corporate Estimate
Loss of $0.25 to $0.30
EPS sensitivities: 2002
(This slide contains a bar graph chart which shows the effect on EPS of a
positive or negative change in each of three key assumptions.)
- -/+ 1% Delivery Sales
PECO -$0.03 +$0.03
ComEd -$0.06 +$0.06
- -/+ 1% Nuclear Cap Factor -$0.05 +$0.05
- -/+ $1 Wholesale Mkt Price -$0.10 +$0.10
[logo for Exelon]
EXELON Logo
- --------------------------------------------------------------------------------
News Release
From: Exelon Corporation FOR IMMEDIATE RELEASE
Corporate Communications ---------------------
P.O. Box 805379 January 29, 2002
Chicago, IL 60680-5379
Contact: Donald Kirchoffner
312.394.3001
Linda Byus, CFA
312.394.7696
Linda Marsicano
312.394.3099
Exelon 2001 Earnings Up 15% at $4.43 Per Diluted Share,
Common Dividend Increased By 4.1%
Chicago (January 29, 2002) - Exelon Corporation (NYSE: EXC) today announced
reported consolidated earnings of $1,428 million, or $4.43 per share (diluted),
for the year ended December 31, 2001, a 15% increase over pro forma 2000
earnings of $1,247 million, or $3.86 per share, assuming the PECO Energy and
Unicom merger occurred January 1, 2000. Absent a net negative $0.06 per share of
unusual items, 2001 earnings from ongoing operations were $4.49 per share.
Exelon's reported earnings for the year 2000 of $586 million or $2.87 per share
represent PECO Energy's 2000 earnings and the earnings of the former Unicom
Corporation from the October 20, 2000, date of its merger with PECO Energy.
Exelon's earnings for the fourth quarter of 2001 were $338 million, or $1.05 per
common share, 59% higher than pro forma fourth quarter 2000 earnings of $0.66
per share. Reported results for the fourth quarter of 2001 include a severance
charge that lowered reported earnings by $0.03 per share.
Corbin A. McNeill, Jr., Exelon Chairman and Co-CEO, stated that "Our performance
in 2001, one of the toughest and most volatile years in the industry's history,
underscores the strength and stability of Exelon's integrated portfolio of
generation and delivery assets. We achieved 15% earnings growth in 2001 because
of the quality of our assets and the commitment of our employees."
Dividend Policy
The Exelon Board today declared a dividend of $0.44 per share of Exelon's common
stock, payable March 10, 2002, to shareholders of record at 5:00 p.m. EST on
February 15, 2002. The increase of $0.07 per share annually, approximately 4.1%,
will result in an annual dividend rate of $1.76 per share or $0.44 per share
quarterly. This is the first dividend increase since Exelon was formed in
October 2000.
Page 2
The new dividend rate reflects Exelon's integrated business portfolio and its
focus on total return to shareholders. "The new dividend rate represents about a
50% payout of the expected 2002 earnings from our regulated electricity delivery
businesses," said John W. Rowe, President and Co-CEO. "Based on the healthy cash
flow and modest earnings growth for Exelon Energy Delivery, we intend to grow
the dividend to about a 60% payout of earnings from our regulated operations."
The payment of future dividends is subject to approval and declaration by the
Board.
Highlights
Exelon Generation had an outstanding year and came in ahead of budget. Increased
generation in our nuclear group, improved availability in our fossil plants and
higher wholesale market sales volumes offset falling wholesale prices and
margins in the second half of the year.
Exelon Generation's nuclear fleet surpassed its operating goals with a nuclear
capacity factor of:
o 92.5% for the fourth quarter
o 94.4% for the year ended December 31, 2001
Exelon Generation's fossil operations continued their year-long strong
performance with:
o 97.0% on time delivery
o 94.4% dispatch availability
Exelon Generation's power marketing organization, Power Team, exceeded budget
for the fourth quarter as strategic portfolio management and increased sales
volumes offset lower wholesale electricity prices. Power Team's results for the
full year were on budget in spite of significant wholesale price volatility over
the twelve-month period. The average realized around-the-clock (ATC) price for
the full year was approximately $37/MWh, more than Power Team's $34/MWh ATC
budget assumption and significantly higher than the averaged observed ATC spot
price of approximately $28/MWh in our two primary generation supply regions of
MAIN and PJM.
Exelon Generation announced an agreement to purchase two gas-fired electric
generating plants totaling 2,334 megawatts located in the Dallas-Fort Worth
metropolis from TXU Corporation. The transaction is expected to add $0.05 to
$0.10 in earnings per share annually, and includes a five-year tolling agreement
between Exelon and TXU. The transaction was announced on December 20 and is
expected to close during the first quarter of 2002.
Exelon Energy Delivery results also exceeded expectations. Key earnings drivers
were lower operating and maintenance expenses and lower net interest expense,
which more than offset the weather-related decreases in retail deliveries in the
fourth quarter and the full year. ComEd's retail deliveries in the quarter were
down 5.6% as heating degree days were 29% lower than fourth quarter 2000. PECO's
retail kWh deliveries for the quarter were down 6.4% with heating degree days
34% lower than fourth quarter 2000. Retail kWh deliveries for both ComEd and
PECO Energy decreased for the year 2001 compared with 2000 with ComEd down 0.5%
and PECO down 1.1%.
Other items:
Fourth quarter reported earnings of $1.05 per diluted share include the effects
of the following:
o Fourth quarter 2001 earnings reflected goodwill amortization of $35 million
or $0.11 per share. Goodwill amortization totaled $150 million or $0.46 per
share in 2001. Consistent with the new accounting standard for goodwill,
Exelon discontinued goodwill amortization effective January 1, 2002. The
company's review of goodwill for impairment has not been completed.
Page 3
o Employee severance costs of $14.5 million or $0.03 per share, associated
with the staffing reductions announced in the third quarter. A total of
3,400 positions have been identified for elimination as a result of the
2000 merger of PECO Energy and Unicom.
Fourth quarter 2000 pro forma earnings of $0.66 included a $0.07 per share
write-down of a telecommunications investment.
BUSINESS UNIT RESULTS
Performance of Exelon's business segments, Energy Delivery, Generation and
Enterprises is reported on the basis of earnings before interest and income
taxes (EBIT). EBIT consists of operating income and income and expenses recorded
in other-net, with the exception of interest income. Exelon's EBIT for the
fourth quarter of 2001 was $767 million compared to pro forma EBIT of $642
million in the fourth quarter of 2000. Full year 2001 EBIT was $3,456 million
compared to pro forma EBIT of $2,970 million for 2000.
Exelon Energy Delivery consists of the retail electricity transmission and
distribution operations of ComEd and PECO Energy and the natural gas
distribution business of PECO Energy. Energy Delivery EBIT in the fourth quarter
of 2001 of $532 million compares with pro forma EBIT of $765 million in the
fourth quarter of 2000. Full year 2001 EBIT of $2,623 million was down modestly
from pro forma 2000 EBIT of $2,722 million.
Exelon Generation consists of Exelon's electric generation operations and power
marketing and trading functions. Generation's fourth quarter 2001 EBIT of $265
million was up sharply from a pro forma 2000 loss of $26 million. For the full
year 2001, Generation's EBIT of $962 million compared favorably with pro forma
2000 EBIT of $462 million. Energy sales for 2001 totaled 201,845 GWhs with 61%
of the sales to affiliates.
Exelon Enterprises consists of Exelon's competitive retail energy sales, energy
solutions and infrastructure services, venture capital investments and related
businesses. Enterprises' fourth quarter 2001 EBIT was a loss of $27 million
compared with a pro forma fourth quarter 2000 loss of $62 million. Full year
2001 EBIT was a loss of $107 million compared with a pro forma 2000 loss of $172
million. The losses in 2001 were driven by the decline in the telecommunications
market, which reduced revenue at InfraSource (formerly EIS).
Conference call information: Exelon has scheduled a Year End Conference Call for
3 PM EST (2 PM CST) on January 29. The call in number in the US is 877/780-2271;
the international call in number is 973/872-3462. No password is required. Media
representatives are invited to participate on a listen-only basis. The call will
be web-cast and archived on Exelon's web site:
www.exeloncorp.com. (Please select the Investor Relations page.)
Telephone replays will be available after 4 PM on January 29 through February 8.
The U.S. call-in number is 877.519.4471; the international call-in number is
973.341.3080. The confirmation code is 3061879.
###
================================================================================
Page 4
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary materially
from the expectations contained herein. The forward-looking statements herein
include statements about future financial and operating results of Exelon.
Economic, business, competitive and/or regulatory factors affecting Exelon's
businesses generally could cause actual results to differ materially from those
described herein. For a discussion of the factors that could cause actual
results to differ materially, please see Exelon's filings with the Securities
and Exchange Commission, particularly those discussed in "Management's
Discussion and Analysis of Financial Condition and Results of Operations--
Outlook" in Exelon's 2000 Annual Report. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date of this press release. Exelon does not undertake any obligation to publicly
release any revisions to these forward-looking statements to reflect events or
circumstances after the date of this press release.
###
Exelon Corporation is one of the nation's largest electric utilities with
approximately five million customers and more than $15 billion in annual
revenues. The company has one of the industry's largest portfolios of
electricity generation capacity, with a nationwide reach and strong positions in
the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately
five million customers in Illinois and Pennsylvania and gas to 425,000 customers
in the Philadelphia area. The company also has holdings in such competitive
businesses as energy, infrastructure services and energy services. Exelon is
headquartered in Chicago and trades on the NYSE under the ticker EXC.
EXELON CORPORATION
Unaudited Income Statement
($ 000,000, except per share data)
Three Months Ended Twelve Months
December 31 December 31
------------------------- -------------------------
2001 2000 2001 2000 (1)
-------- -------- -------- --------
Operating Revenues $ 3,381 $ 3,133 $ 15,140 $ 7,499
Operating Expenses
Fuel and Purchased Power $ 1,043 $ 1,091 $ 5,314 $ 2,606
Operating and Maintenance 1,101 1,282 4,393 2,586
Depreciation and Amortization 339 214 1,448 458
Taxes Other Than Income 130 125 623 322
-------- -------- -------- --------
Total Operating Expenses $ 2,613 $ 2,712 $ 11,778 $ 5,972
-------- -------- -------- --------
Operating Income $ 768 $ 421 $ 3,362 $ 1,527
Other Income and Deductions
Interest Expense & Preferred Dividends (255) (284) (1,156) (632)
Other, net 15 (66) 141 12
Income Taxes (190) (25) (931) (341)
Extraordinary Item, Net of Income Taxes - - - (4)
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes - - 12 24
-------- -------- -------- --------
Net Income $ 338 $ 46 $ 1,428 $ 586
======== ======== ======== ========
Average Common Shares Outstanding
Basic: 321 283 320 202
Diluted: 322 288 322 204
Earnings Per Common Share - Reported
Basic: $ 1.05 $ 0.16 $ 4.46 $ 2.91
Diluted: $ 1.05 $ 0.16 $ 4.43 $ 2.87
Unusual Items included in
Net Income (gains/(losses):
Litigation reserves - - (0.03) -
Employee severance charge (0.03) - (0.09) -
Gains and losses on investments - (0.07) (0.02) (0.10)
Implementation of FAS 133 - - 0.04 -
Settlement of Transition Bond swap - - 0.01 -
Wholesale rate settlement - - 0.01 -
CTC prepayment - - 0.02 -
Cumulative effect of change in accounting -
method for nuclear outages - - - 0.12
Premiums paid to reacquire debt - - - (0.02)
Merger costs - (0.53) - (0.84)
-------- -------- -------- --------
Total Nonrecurring Items $ (0.03) $ (0.60) $ (0.06) $ (0.84)
Earnings Per Common Share - Proforma for
merger as of 1/1/2000
Diluted: $ 0.66 $ 3.86
(1) Restated to reflect change in accounting method for nuclear outage costs.
EXELON CORPORATION
Business Segment Results
(in millions)
Three Months Ended Twelve Months Ended
December 31 December 31
------------------------------------ ------------------------------------
Pro Forma Pro Forma
2001 2000 2000 (1) 2001 2000 (2) 2000 (1)
-------- -------- -------- -------- -------- --------
Revenue
Energy Delivery $ 2,269 $ 2,015 $ 2,328 $ 10,171 $ 4,511 $ 9,679
Generation 1,510 1,229 1,385 7,048 3,316 6,088
Enterprises 550 594 637 2,292 1,395 1,862
Corporate/Intercompany Elimination (948) (705) (852) (4,371) (1,723) (4,098)
-------- -------- -------- -------- -------- --------
Total Exelon $ 3,381 $ 3,133 $ 3,498 $ 15,140 $ 7,499 $ 13,531
======== ======== ======== ======== ======== ========
Earnings Before Interest and IncomeTaxes (3)
Energy Delivery $ 532 $ 647 $ 765 $ 2,623 $ 1,503 $ 2,722
Generation 265 39 (26) 962 440 462
Enterprises (27) (54) (62) (107) (140) (172)
Corporate/Intercompany Elimination (3) (305) (35) (22) (328) (42)
-------- -------- -------- -------- -------- --------
Total Exelon $ 767 $ 327 $ 642 $ 3,456 $ 1,475 $ 2,970
======== ======== ======== ======== ======== ========
(1) Pro forma 2000 data reflects operations as if the merger occurred on January 1, 2000.
(2) Restated to reflect change in accounting method for nuclear outage costs.
(3) EBIT consists of operating income and other income and expenses recorded in Other,
net with the exception of interest income. Interest income for the three month and
twelve month periods ended December 31, 2001 was $15 million and $46 million,
respectively.
EXELON CORPORATION
Retail Electric Sales Statistics
For the Three Months Ended December 31
ComEd (1) PECO
------------------------------------------ ------------------------------------------
MWH Deliveries 2001 2000 % Change 2001 2000 % Change
- -------------- ----------- ----------- ----------- ----------- ----------- -----------
Residential 5,345,603 5,792,698 (7.7%) 2,505,918 2,838,316 (11.7%)
Small Commercial & Industrial 7,140,746 7,255,516 (1.6%) 1,785,062 1,878,461 (5.0%)
Large Commercial & Industrial 5,083,281 5,712,727 (11.0%) 3,604,675 3,743,356 (3.7%)
Public Authorities & Electric Railroads 2,262,964 2,249,112 0.6% 197,829 188,385 5.0%
----------- ----------- ----------- -----------
Total Sales to Ultimate Customers 19,832,594 21,010,053 (5.6%) 8,093,484 8,648,518 (6.4%)
=========== =========== =========== ===========
Heating Degree Days 1,862 2,631 1,219 1,852
Cooling Degree Days 1 18 38 12
Revenue (in thousands) 2001 2000 % Change 2001 2000 % Change
- ---------------------- ----------- ----------- ----------- ----------- ----------- -----------
Residential $ 455,723 $ 511,212 (10.9%) $ 272,248 $ 292,085 (6.8%)
Small Commercial & Industrial 475,021 505,178 (6.0%) 189,888 132,549 43.3%
Large Commercial & Industrial 207,511 234,986 (11.7%) 242,897 187,894 29.3%
Public Authorities & Electric Railroads 112,367 114,595 (1.9%) 18,838 16,463 14.4%
----------- ----------- ----------- -----------
Total Sales to Ultimate Customers $ 1,250,622 $ 1,365,971 (8.4%) $ 723,871 $ 628,991 15.1%
=========== =========== =========== ===========
Cents / kWh 2001 2000 % Change 2001 2000 % Change
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Residential $ 0.085 $ 0.088 (3.4%) $ 0.109 $ 0.103 5.8%
Small Commercial & Industrial $ 0.067 $ 0.070 (4.3%) $ 0.106 $ 0.071 49.3%
Large Commercial & Industrial $ 0.041 $ 0.041 0.0% $ 0.067 $ 0.050 34.0%
Public Authorities & Electric Railroad $ 0.050 $ 0.051 (2.0%) $ 0.095 $ 0.087 9.2%
Total Sales to Ultimate Customers $ 0.063 $ 0.065 (3.1%) $ 0.089 $ 0.073 21.9%
(1) Data for the three months ended December 31, 2000 reflects pro forma results for the full quarter.
EXELON CORPORATION
Retail Electric Sales Statistics
For the Year Ended December 31
ComEd (1) PECO
------------------------------------------ -----------------------------------------
MWH Deliveries 2001 2000 % Change 2001 2000 % Change
- -------------- ---------- ----------- ----------- ---------- ----------- ----------
Residential 25,281,880 23,997,261 5.4% 11,177,726 11,310,414 (1.2%)
Small Commercial & Industrial 29,580,055 29,038,204 1.9% 7,603,638 7,468,196 1.8%
Large Commercial & Industrial 21,512,972 23,967,157 (10.2%) 15,311,815 15,695,970 (2.4%)
Public Authorities & Electric Railroads 9,231,014 9,048,881 2.0% 772,839 779,787 (0.9%)
----------- ----------- ----------- -----------
Total Sales to Ultimate Customers 85,605,921 86,051,503 (0.5%) 34,866,018 35,254,367 (1.1%)
=========== =========== =========== ===========
Heating Degree Days 5,943 6,241 4,164 4,741
Cooling Degree Days 849 766 1,404 1,050
Revenue (in thousands) 2001 2000 % Change 2001 2000 % Change
- ---------------------- ---------- ----------- ----------- ---------- ----------- ----------
Residential $ 2,307,580 $ 2,235,307 3.2% $ 1,263,158 $ 1,247,766 1.2%
Small Commercial & Industrial 2,088,991 2,103,063 (0.7%) 763,422 576,409 32.4%
Large Commercial & Industrial 939,686 1,083,772 (13.3%) 992,976 712,590 39.3%
Public Authorities & Electric Railroads 494,602 486,737 1.6% 72,980 57,675 26.5%
----------- ----------- ----------- -----------
Total Sales to Ultimate Customers $ 5,830,859 $ 5,908,879 (1.3%) $ 3,092,536 $ 2,594,440 19.2%
=========== =========== =========== ===========
Cents / kWh 2001 2000 % Change 2001 2000 % Change
- ----------- ---------- ----------- ----------- ---------- ----------- ----------
Residential $ 0.091 $ 0.093 (2.2%) $ 0.113 $ 0.110 2.7%
Small Commercial & Industrial $ 0.071 $ 0.072 (1.4%) $ 0.100 $ 0.077 29.9%
Large Commercial & Industrial $ 0.044 $ 0.045 (2.2%) $ 0.065 $ 0.045 44.4%
Public Authorities & Electric Railroad $ 0.054 $ 0.054 0.0% $ 0.094 $ 0.074 27.0%
Total Sales to Ultimate Customers $ 0.068 $ 0.069 (1.4%) $ 0.089 $ 0.074 20.3%
(1) Data for the year 2000 reflects pro forma results for the full year.
EXELON CORPORATION
Exelon Generation Power Marketing 2001 Statistics
Three months ended Twelve months ended
December 31, 2001 December 31, 2001
----------------- -----------------
GWh Sales
Affiliate Sales (1) 28,760 123,805
Market Sales 21,965 78,040
------------- --------------
Total Sales 50,725 201,845
Average Realized Revenue ($/MWh)
Affiliate Sales $ 30.42 $ 33.04
Market Sales 28.03 37.03
------------- --------------
Total Sales $ 29.48 $ 34.51
Average Supply Cost $ 14.86 $ 20.39
Margin $ 14.62 $ 14.12
- -----------------------------------------------------------
Around-the-clock Market Prices ($/MWh)
October 2001 Earnings Guidance
PJM $ 29.20
Main $ 26.30
December 31, 2001
PJM $ 26.00
Main $ 22.50
- -----------------------------------------------------------
(1) Includes 1,832 GWh and 6,876 GWh sales to Exelon Energy for the three and
twelve month periods ended December 31, 2001, respectively.
[Exelon Logo]
- -------------------------------------------------------------------------------
News Release
From: Exelon Corporation FOR IMMEDIATE RELEASE
---------------------
Corporate Communications January 25, 2002
P.O. Box 805379
Chicago, IL 60680-5379
Contact: Donald Kirchoffner
312.394.3001
Linda Byus, CFA
312.394.7696
Exelon Announces Restatement of Third Quarter Results;
Reaffirms 2001 Earnings Guidance
Chicago (January 25, 2002) -- Exelon announced today that it is restating its
third quarter 2001 financial statements as a result of an error in the amount of
realized nuclear decommissioning trust fund losses recorded for the third
quarter. As a result of the restatement, third quarter 2001 diluted earnings per
share decreased to $1.16 from the previously reported $1.25.
Exelon also announced today that full year 2001 earnings are expected to be
within the $4.30-$4.45 per diluted share guidance issued in September 2001.
Exelon records realized income or loss on decommissioning trust funds based on
an estimate provided by the custodian of the funds. In January 2002, as part of
the year-end close process, Exelon discovered that the actual loss realized by
the trust funds during the third quarter was higher than the estimated amount
used in the preparation of the financial statements, and determined that
restatement of third quarter results was appropriate.
Exelon is restating its third quarter financial statements and will be filing an
amended Quarterly Report on Form 10-Q/A for the Quarter Ended September 30,
2001. The amended 10-Q/A will include revisions to reflect a decrease in Other
Income due to the additional realized decommissioning trust fund losses of $52
million, a decrease in income tax expense of $25 million, and a reduction in net
income of $27 million.
Exelon expects to announce fourth quarter and full year 2001 earnings before the
markets open on Tuesday, January 29. Exelon will host a one-hour conference call
for investors at 2 PM Central Time (3 PM Eastern Time). The call-in numbers are
as follows:
U.S. Callers: 877/780-2271
International Callers: 973/872-3462
No confirmation code required
Page 2
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary materially
from the expectations contained herein. The forward-looking statements herein
include statements about future financial and operating results of Exelon.
Economic, business, competitive and/or regulatory factors affecting Exelon's
businesses generally could cause actual results to differ materially from those
described herein. For a discussion of the factors that could cause actual
results to differ materially, please see Exelon's filings with the Securities
and Exchange Commission, particularly those discussed in "Management's
Discussion and Analysis of Financial Condition and Results of Operations--
Outlook" in Exelon's 2000 Annual Report. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date of this press release. Exelon does not undertake any obligation to publicly
release any revisions to these forward-looking statements to reflect events or
circumstances after the date of this press release.
###
Exelon Corporation is one of the nation's largest electric utilities with
approximately five million customers and more than $15 billion in annual
revenues. The company has one of the industry's largest portfolios of
electricity generation capacity, with a nationwide reach and strong positions in
the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately
five million customers in Illinois and Pennsylvania and gas to 425,000 customers
in the Philadelphia area. The company also has holdings in such competitive
businesses as energy, infrastructure services and energy services. Exelon is
headquartered in Chicago and trades on the NYSE under the ticker EXC.
Exhibit 99.5 [logo for ComEd, an Exelon Company] Regulatory Initiatives in Illinois UBS Warburg Energy and Utilities Conference February 12, 2002[logo for ComEd, an Exelon Company] The Illinois Landscape o Open access phased in for C&I customers beginning 10/1/99; all C&I customers became eligible for delivery services on 1/1/01 o Open access for all residential customers begins 5/1/02 o ComEd bundled rates frozen at 1994 levels for all customers through 2004, with 20% residential rate reduction o Utilities must continue to provide bundled service to all customers at cost-based rates until declared competitive or abandoned, which requires ICC approval - This obligation makes Illinois utilities the provider of last resort ("POLR") o Transition charges calculated on "lost revenues" basis and end in 2006 - Mitigation factors of 8 to 12% (non-residential) and 6 to 10% (residential) of bundled rates and create savings opportunities relative to bundled tariffed rates during transition charge period o Utilities required to provide unbundled power (i.e., the "PPO") to C&I customers at same market values used to calculate transition charges, creating non-supply options for agents and alternative suppliers
[logo for ComEd, an Exelon Company] The POLR Dilemma in Illinois o As is the case in other restructured states, POLR supply service offerings have a tremendous impact on the development of competition - POLR service has an "option" value - Current pricing structure for POLR services creates an inviting "nest" for some large C&I customers o Inherent tension between rate certainty and competition must be resolved - ComEd has divested itself of generation and must procure supplies from the wholesale market to meet the uncertain--and potentially volatile--levels of demand beginning 1/1/05 - A fully hedged position on POLR service rates would be costly to implement and potentially ruinous to competition - Sudden and dramatic shifts in demand could expose customers to either prevailing market prices or stranded hedging costs o Demand uncertainty creates uncertainty for both utilities and retail and wholesale suppliers alike
[logo for ComEd, an Exelon Company] Striking A Balance ComEd's Obligation to Provide Supply Service Small Customers ("Mass Market") Larger Customers less than 400 kW demand Greater than 400 kW demand 99%+ of customers less than 1% of customers o 65% of peak o 35% of peak o 53% of energy o 47% of energy o Potentially nervous about deregulation o Capable of managing risk Multi-Year Fixed-Price Offer Spot Market Passthrough o Addresses needs of mass market o Facilitates market development
[logo for ComEd, an Exelon Company] Switching Levels Vary by Customer Size C&I Customer Supply Analysis December 31, 2001 [This slide contains a stacked column chart which shows the type of electricity supply {bundled, power purchase option (PPO), or retail energy supplier (RES)} for commercial and industrial customer classes broken down according to annual kilowatt hour usage. The data points are shown on the table below.] - -------------------------------------------------------------------------------------------------- Watthour % of Class on % of Class % of Class Total Bundled Supply on PPO on RES Supply - -------------------------------------------------------------------------------------------------- 0 to 25 KW 95% 3% 2% 100% - -------------------------------------------------------------------------------------------------- 25 to 100 KW 88% 6% 6% 100% - -------------------------------------------------------------------------------------------------- 100 to 400 KW 75% 14% 11% 100% - -------------------------------------------------------------------------------------------------- 400 to 800 KW* 62% 17% 21% 100% - -------------------------------------------------------------------------------------------------- 800 to 1,000 KW 59% 24% 16% 100% - -------------------------------------------------------------------------------------------------- 1 to 3 MW** 52% 30% 19% 100% - -------------------------------------------------------------------------------------------------- 3 to 6 MW** 42% 30% 28% 100% - -------------------------------------------------------------------------------------------------- 6 to 10 MW** 45% 22% 33% 100% - -------------------------------------------------------------------------------------------------- Over 10 MW** 46% 23% 30% 100% - -------------------------------------------------------------------------------------------------- *[A box on the graph points out that "reliance on bundled rates decreases markedly at the 400 KW level and above".] **[A box on the graph points out that these are "Active shoppers that exhibit the ability to manage supply".]
[logo for ComEd, an Exelon Company] Next Steps o In order to provide sufficient time for customers, suppliers and us to prepare, ComEd's goal is to focus the POLR discussion on the large customers in 2002 o ComEd's successful filing to limit the eligibility for PPO to customers paying CTCs was an important first step because it signals to RESs and wholesale suppliers that customers must and will begin to be served by market-supplied resources o ComEd's next steps will be to - Consider the abandonment and the declaration of certain services as competitive for large customer classes - Initiate workshops early this year to discuss the large customer aspects of this proposal - Remain flexible to account for participant concerns and market developments
[logo for ComEd, an Exelon Company] Purpose of the Delivery Services Rate Case o Delivery services rates represent only the distribution costs incurred by ComEd when customers purchase unbundled generation. - One-third of ComEd's nonresidential energy sales are made under delivery services rates. - Traditional bundled rates are not affected by the delivery services filing and will remain frozen through 2004. o Filing was prompted by need to establish residential delivery services rates for residential choice beginning May 2002. o Getting the price right -- both in terms of overall revenue and rate design -- is a major objective.
[logo for ComEd, an Exelon Company] Executive Summary o ComEd is requesting a 29% increase in its delivery services rates, which includes adjustments for issues that have been resolved during the case. o The magnitude of the increase is largely driven by the higher 2000 test year expenditures (both operating expenses and rate base) when compared to the 1997 test year expenditures on which the current rates are based. - These expenditures have resulted in a 40% reduction in outage frequency and duration since 1999. o Little, if any, additional revenue is expected from the case in the year 2002. - The increased delivery services revenue is offset by reduced CTC revenue under the transition charge formula.
[logo for ComEd, an Exelon Company] ComEd has Competitive Distribution Rates Distribution revenue requirements (cents/kWh) for peer restructured utilities: NSTAR 3.54 SDG&E 3.17 PSE&G 2.90 PG&E 2.70 PECO 2.52 So. CA Edison 2.46 ComEd request 1.93 Detroit Edison 1.90 Cleveland Elec. 1.70 ComEd current 1.50 Reliant 1.27 Simple average of the utilities is 2.46 cents/kWh (excluding ComEd)
[logo for ComEd, an Exelon Company] Financial Details - Delivery Services o ComEd's requested jurisdictional revenue requirement is $1.683 billion per year with a $4.084 billion net rate base. o The overall rate of return has been largely settled with major parties in the proceeding and results in the following financial structure: Cost or Earnings ---------------- Amount Percent End of Cost of Capital (millions) of Total Year Weighted - --------------- ---------- -------- ---- -------- Long Term Debt $6,966 57.14% 6.95% 3.97% Preferred Stock 0 0.00% 0.00% 0.00% Common Equity 5,224 42.86% 11.72% 5.02% ------ ------ ------ ----- Total $12,190 100.00% 8.99% The settlement is an increase over the current approved weighted cost of capital of 8.84%
[logo for ComEd, an Exelon Company] Status of Case o Recently, ComEd and the parties reached an agreement on the scope of, and parameters for, an audit of ComEd's test year 2000 expenditures. - The purpose of the audit is to further analyze and establish the reasonableness of past investments and expenditures. - ComEd believes that an audit is unnecessary because it has already provided sufficient evidence during the proceeding. o An order establishing interim residential delivery services rates is expected to be entered by the Illinois Commerce Commission in April, 2002. o An order concluding the audit process and establishing final delivery service rates for all customers is expected to be entered by April, 2003.