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
COMMONWEALTH EDISON COMPANY
PECO ENERGY COMPANY
EXELON GENERATION COMPANY, LLC
/S/ Ruth Ann M. Gillis
-----------------------------------
Ruth Ann M. Gillis
Senior Vice President and Chief Financial Officer
Exelon Corporation
August 2, 2002
Exhibit 99.1
[EXELON LOGO]
News Release
From: Exelon Corporation FOR IMMEDIATE RELEASE
---------------------
Corporate Communications July 31, 2002
P.O. Box 805379
Chicago, IL 60680-5379
Contact: Linda Marsicano, Media Relations
312.394.3099
Linda Byus, CFA, Investor Relations
312.394.7696
Exelon Announces Second Quarter Operating Earnings
of $1.14 Before Gain on Sale of Investment
Chicago (July 31, 2002) - Exelon Corporation (NYSE: EXC) today reported
consolidated earnings of $485 million, or $1.50 per share (diluted), for the
second quarter of 2002. Operating earnings were $369 million, or $1.14 per
share, before a $116 million, or $0.36 per share, after-tax gain related to
Exelon Enterprises' sale of its 49% interest in AT&T Wireless PCS of
Philadelphia. The transaction closed on April 1, 2002. Operating earnings in the
second quarter of 2002 were up 18% compared with second quarter 2001 earnings of
$0.97 per share.
Improved operating results were due to increased weather related kWh deliveries,
lower interest expense and lower operating and maintenance expense in the
quarter compared to second quarter 2001. The Cost Management Initiative achieved
$93 million of savings in the second quarter and $104 million year-to-date. The
estimated net impact of favorable weather is $0.09 per share in the second
quarter compared to the prior year and also $0.09 per share relative to the
normal weather that was incorporated in Exelon's guidance. The cessation of
goodwill amortization contributed $0.12 per share for the quarter relative to
the second quarter of 2001.
John W. Rowe, Exelon Chairman and CEO, stated, "Our strong second quarter
earnings are the result of the efforts of Exelon employees to live up to our
commitments and perform at world-class levels. Our Cost Management Initiative,
led by Oliver Kingsley, is producing results. Based on everything we know today,
we expect to meet or exceed the current consensus estimate of $4.65 per share.
However, with the current economic and wholesale power price volatility, it is
difficult to project earnings in a narrow range."
2002 Earnings Outlook
Exelon's 2002 earnings outlook has been updated to incorporate year-to-date
events including first half operating results and our expectations for the
balance of the year. Exelon's guidance for consolidated 2002 earnings from
operations excluding unusual items remains in the range of $4.55 to $4.85 per
diluted share based on the assumption of normal weather for the balance of the
year. Earnings from operations exclude the second quarter gain from the sale of
the AT&T investment and first quarter goodwill impairment and severance costs.
Third quarter earnings are expected to represent about 30% of the full year
earnings.
Page 2
Second Quarter Highlights
o Exelon Generation's nuclear group completed two scheduled refueling outages
during the second quarter of 2002, the same as in the second quarter of
2001. The average refueling outage duration for the first half of 2002 was
23 days compared to 25 days for the first half of 2001. In the second
quarter of 2002, there was a planned maintenance outage (non-refueling
outage) at LaSalle Station with a duration of 15 days. Power uprate
modifications were installed during both of the second quarter 2002
refueling outages, adding a total of 129 MWs of additional capacity. Exelon
Generation's nuclear fleet, excluding AmerGen, produced 28,353 GWhs output
for the second quarter of 2002, compared to 28,443 GWhs output for the
second quarter of 2001. The fleet, including AmerGen, achieved a capacity
factor of 92.1% for the second quarter of 2002, compared to 93.6% for the
second quarter 2001.
o Exelon Generation's fossil operations continued their strong performance in
the second quarter with 98.9% on-time delivery and 94.2% dispatch
availability.
o Exelon Generation's power marketing organization, Power Team, mitigated the
impact of depressed wholesale power prices during the second quarter with
hedging activities. The average realized wholesale market price, excluding
trading, for the quarter was $31/MWh, significantly higher than the average
observed around-the-clock spot price of approximately $25/MWh in its two
primary generation supply regions of MAIN and PJM. The average realized
market price, excluding trading, in second quarter of 2001 was $38/MWh.
o On April 25, 2002, Exelon Generation acquired two natural-gas and oil-fired
plants from TXU Corp. (TXU) for an aggregate purchase price of $443
million. The purchase includes the 893-megawatt Mountain Creek Steam
Electric Station in Dallas and the 1,441-megawatt Handley Steam Electric
Station in Fort Worth.
o Exelon Enterprises completed the sale of its 49% interest in AT&T Wireless
PCS of Philadelphia, LLC to a subsidiary of AT&T Wireless Services for $285
million in cash. The transaction closed on April 1, 2002. The after-tax
gain was $116 million with a resulting $0.36 earnings per share (diluted)
gain included in reported earnings for the quarter but excluded from
operating income.
o On June 27, Exelon Generation announced an agreement to purchase Sithe New
England Holdings, a subsidiary of Sithe Energies, Inc., in exchange for a
$543 million note, plus the assumption of approximately $1.15 billion of
project debt. If the transaction closing conditions are met and Federal
Energy Regulatory Commission (FERC) and other approvals are received, the
transaction could be completed in November 2002.
o On July 1, 2002, Exelon Generation notified Midwest Generation of the
exercise of its call options under the existing Coal Generation Purchase
Power Agreement. Exelon Generation exercised options on 1,265 MWs of
capacity and did not exercise options on 2,684 MWs of capacity. In 2003,
Exelon Generation will take 1,696 MWs of non-option capacity and 1,265 MWs
of option capacity under the existing contract.
Page 3
o On July 19, Exelon Energy Delivery's Illinois operating company, ComEd,
filed a request with the Illinois Commerce Commission (ICC) to revise the
Provider of Last Resort (POLR) obligation in Illinois. ComEd is seeking
permission from the ICC to limit the availability by June 2006 of Rate 6L
for its largest energy customers, those with demands of at least 3
megawatts, which typically include heavy industrial plants, large office
buildings, government facilities and a variety of other businesses. Rate 6L
is a bundled fixed rate offered to about 370 customers representing 2,500
MWs of load. The ICC has 120 days to act on the filing or it will be deemed
approved.
Other items:
Exelon early adopted new accounting guidance issued by the Emerging Issues Task
Force of the Financial Accounting Standards Board (EITF 02-3) in June, which
requires that revenues and expenses related to energy trading contracts be
presented on a net basis in the income statement. Prior to the second quarter of
2002, Exelon's trading revenues and costs were presented on a gross basis. For
comparative purposes, page 14 of the attachment provides the impact of netting
trading expenses with revenues for prior quarters.
BUSINESS UNIT RESULTS
Exelon Corporation's consolidated net income for the second quarter of 2002 was
$485 million compared with net income of $315 million in the second quarter of
2001.
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's net income in the second
quarter of 2002 was $322 million compared with net income of $264 million in the
second quarter of 2001, primarily due to cost savings and increased
weather-related kWh sales in 2002.
Cooling degree days in the ComEd service territory were up 29% relative to last
year and 33% above normal. In the PECO service territory cooling degree days
were up 1% compared with 2001 and 36% above normal. Total retail KWh deliveries
rose 2.2% for ComEd, with a 12% increase in deliveries to the weather-sensitive
residential customer class. PECO's retail KWh deliveries increased 3.0% overall.
Energy Delivery's total revenues for the second quarter of 2002 of $2,476
million were up 2% from $2,436 million in 2001, offset by a $31 million net
increase in fuel and purchased power. Operating and maintenance expense
decreased $23 million reflecting lower uncollectable accounts expense and Cost
Management Initiative savings. The absence of the amortization of goodwill and
lower interest expense contributed to the increase in Energy Delivery's
operating results. The impact of the warmer summer weather increased Energy
Delivery's second quarter 2002 earnings per share (diluted) by approximately
$0.05 relative to 2001 and $0.06 relative to the normal weather that was
incorporated in our earnings guidance.
Page 4
Exelon Generation consists of Exelon's electric generation operations and power
marketing and trading functions. Generation's second quarter 2002 net income of
$84 million was up from second quarter 2001 net income of $71 million. The
increase is due to the positive impacts of Exelon's Cost Management Initiative,
lower interest expense and lower depreciation expense, partially offset by
higher trading portfolio losses. Energy sales for the second quarter of 2002
totaled 50,238 GWhs, exclusive of trading volumes, compared with 48,068 GWhs in
2001. Generation's second quarter 2002 revenue of $1,559 million includes a net
trading portfolio loss of $16 million compared to second quarter 2001 revenue of
$1,583 million, which includes a net trading portfolio loss of $6 million. As
noted above, second quarter 2001 revenues have been revised to reflect the
adoption of EITF 02-3, which requires that trading-related expenses be netted
against trading revenues. Revenues, excluding the net trading portfolio losses,
decreased 2.2% from the second quarter of 2001, reflecting lower market prices
for energy.
The average realized price excluding trading activity in the second quarter of
2002 was $31 per MWh compared with $33 per MWh in 2001. The average realized
price reflects a higher proportion ot Generation's total sales being to Exelon
Energy Delivery as a result of favorable weather conditions, which partially
offset the impact of lower market prices during the second quarter of 2002 as
compared to the second quarter of 2001. Revenue net fuel decreased $2 million to
$630 million for the second quarter of 2002 as compared to the second quarter of
2001 as a result of the factors noted above. The second quarter 2002 revenue net
fuel includes net mark-to-market losses of $5 million including non-cash
mark-to-market gains on non-trading activities of $4 million and non-cash
mark-to-market trading losses of $9 million. Operating and maintenance expenses
increased $6 million reflecting the addition of the plants acquired from TXU,
which are offset by savings generated by Exelon's Cost Management Initiative
efforts. Depreciation and amortization decreased $10 million for the second
quarter of 2002 as compared to the second quarter of 2001 due primarily to plant
life extensions, which were incorporated in the depreciation calculation
beginning in the latter half of 2001. Interest expense of $11 million was $15
million lower for the second quarter of 2002 as compared to the second quarter
of 2001 due primarily to lower interest rates on borrowings and higher
capitalized interest.
Exelon Enterprises consists of Exelon's competitive retail energy sales, Energy
Solutions and infrastructure services, venture capital investments and related
businesses. Enterprises reported second quarter 2002 net income of $83 million,
which includes the $116 million after-tax gain on the sale of the AT&T Wireless
investment. Excluding that gain, second quarter 2002 results were a loss of $33
million. Second quarter 2001 results were a loss of $5 million. Enterprises
second quarter 2001 results included an $18 million gain on investments. The $28
million decrease in 2002 earnings compared to 2001 is primarily due to $36
million of investment writedowns and $4 million of other net asset writedowns in
the second quarter of 2002, partially offset by the cessation of goodwill
amortization, lower interest expense and the absence of AT&T Wireless operating
losses after the April sale. Enterprises revenues and operating expenses were
each lower by approximately $70 million compared to 2001, as a result of reduced
project activity at Energy Solutions, reduced construction activity at
InfraSource due to the continued decline in the telecommunications industry,
reduced gas prices, and Enterprises' unregulated Exelon Energy's exit from the
retail energy business in the PJM region, partially offset by higher electric
revenues from the Illinois energy market.
Page 5
Other items:
Conference call information: Exelon has scheduled a Conference Call for 11 AM ET
(10 AM CT) on July 31. The call-in number in the U.S. is 877/691-0877 the
international call-in number is 973/582-2785. 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 through August 15. The U.S. call-in number
is 877/519-4471 the international call-in number is 973/341-3080. The
confirmation code is 3391011.
================================================================================
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 factors discussed in "Management's
Discussion and Analysis of Financial Condition and Results of Operations --
Outlook" in Exelon's 2001 Annual Report and "Risk Factors" in Exelon Generation
Company's Registration Statement on Form S-4, file number 333-85496. 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 5 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 5 million customers in Illinois and Pennsylvania and gas to more
than 440,000 customers in the Philadelphia area. Exelon is headquartered in
Chicago and trades on the NYSE under the ticker EXC.
EXELON CORPORATION
Consolidated Statements of Income
(unaudited)
(in millions, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
-------------------------- -------------------------
2002 2001 2002 2001
------------------------ ------------------------
Operating Revenues $ 3,519 $ 3,616 $ 6,876 $ 7,439
Operating Expenses
Purchased Power 759 766 1,427 1,407
Fuel 364 409 860 1,098
Operating and Maintenance 1,070 1,134 2,137 2,192
Depreciation and Amortization 332 362 667 740
Taxes Other Than Income 181 153 367 321
------- ------- ------- -------
Total Operating Expenses 2,706 2,824 5,458 5,758
------- ------- ------- -------
Operating Income 813 792 1,418 1,681
Other Income and Deductions
Interest Expense (241) (289) (490) (581)
Distributions on Preferred Securities of Subsidiaries (11) (12) (23) (23)
Equity in Earnings of Unconsolidated Affiliates, net 9 7 22 25
Other, net 194 44 222 99
------- ------- ------- -------
Total Other Income and Deductions (49) (250) (269) (480)
------- ------- ------- -------
Income Before Income Taxes and Cumulative Effect
of Changes in Acounting Principles 764 542 1,149 1,201
Income Taxes 279 227 427 499
------- ------- ------- -------
Income Before Cumulative Effect of Changes in
Accounting Principles 485 315 722 702
Cumulative Effect of Changes in Accounting
Principles, Net of Income Taxes -- -- (230) 12
------- ------- ------- -------
Net Income $ 485 $ 315 $ 492 $ 714
======= ======= ======= =======
Average Common Shares Outstanding
Basic: 322 321 322 320
Diluted: 323 324 324 323
Earnings per Average Common Share:
Basic:
Income before Cumulative Effect of Changes in Accounting Principles $ 1.50 $ 0.98 $ 2.24 $ 2.19
Cumulative Effect of Changes in Accounting Principles -- -- (0.71) 0.04
------- ------- ------- -------
Net Income $ 1.50 $ 0.98 $ 1.53 $ 2.23
======= ======= ======= =======
Diluted:
Income before Cumulative Effect of Changes in Accounting Principles $ 1.50 $ 0.97 $ 2.23 $ 2.17
Cumulative Effect of Changes in Accounting Principles -- -- (0.71) 0.04
------- ------- ------- -------
Net Income $ 1.50 $ 0.97 $ 1.52 $ 2.21
======= ======= ======= =======
Unusual Items included in Diluted Earnings per
Common Share Gains/(Losses):
Transition loss on implementation of FAS 141 and 142 $ -- $ -- $ (0.71) $ --
Gain on Sale of AT&T Wireless 0.36 -- 0.36 --
Employee severance costs -- -- (0.04) --
CTC prepayment -- 0.02 -- 0.02
Wholesale rate settlement -- 0.01 -- 0.01
Gain on investment -- 0.04 -- 0.05
Implementation of FAS 133 -- -- -- 0.04
Settlement of Transition Bond Swap -- -- -- 0.01
------- ------- ------- -------
Total Unusual Items $ 0.36 $ 0.07 $ (0.39) $ 0.13
======= ======= ======= =======
1
EXELON CORPORATION
Earnings Per Diluted Share Reconciliation
Second Quarter 2002 vs. Second Quarter 2001
2001 Earnings per Diluted Share $ 0.97
Unusual Items included in 2001 Earnings:
Gain on Investment (1) (0.04)
CTC prepayment (0.02)
Wholesale Rate Settlement (0.01)
----------
2001 Earnings Excluding Unusual Items 0.90
Year Over Year Effects on Earnings:
Lower Energy Margins - Excluding Weather (2) (0.04)
Higher Energy Margins - Weather Impact (3) 0.09
Cessation of Goodwill Amortization 0.12
Investment and Asset Write-Downs (4) (0.07)
Lower Operating and Maintenance Expense (O&M) (5) 0.02
Lower Interest Expense (6) 0.09
Higher Taxes Other Than Income (7) (0.05)
Higher Depreciation and Amortization Expense (8) (0.02)
Lower Effective Income Tax Rate (9) 0.07
Other 0.03
----------
2002 Earnings Before Gain on sale of AT&T 1.14
Gain on the Sale of AT&T Wireless 0.36
----------
2002 Earnings per Diluted Share $ 1.50
=========
(1) Realized gains on distributions on Enterprises investments.
(2) Primarily reflects higher PJM ancillary costs, lower margins on energy
trading activity and rate reductions at EED, partially offset by a stronger
economy in Chicago in 2002 compared to 2001. ComEd's 5% residential
customer rate reflects a reduction of $0.05 per share.
(3) Primarily related to warmer summer weather in the second quarter of 2002
compared to 2001. Additionally, because retail electricity sales were up
due to weather, the Power Team sold less electricity at wholesale prices.
The estimated net impact of weather is an increase to earnings per share of
$0.05, $0.02 and $0.02 at Energy Delivery, Generation and Enterprises,
respectively.
(4) Reflects $36 million of investment write-downs and $4 million of net asset
writedowns at Enterprises.
(5) Lower O&M's primarily relate to decreased Generation O&M's, offset by
increased Energy Delivery O&M's reflecting uncollectible accounts and
claims expenses and costs associated with the deployment of automatic meter
reading technology. Reductions in InfraSource and Exelon Services O&M's
resulting from lower business activity of $51 million is excluded from this
effect. The earnings effect of lower InfraSource and Exelon Services O&M's
is offset by lower nfraSource and Exelon Services revenue.
(6) Reflects lower debt outstanding and lower interest rates due to refinancing
at Energy Delivery and a lower rate on Generation's spent nuclear fuel
obligation.
(7) Primarily reflects a higher gross receipts tax rate at PECO.
(8) Depreciation and amortization expense, excluding goodwill amortization, was
higher primarily related to the effect of increased CTC amortization at
PECO and increased depreciation related to higher depreciable plant
partially offset by the extension of the estimated service lives of the
generating stations in 2001.
(9) Primarily relates to lower state income tax rates.
2
EXELON CORPORATION
Earnings Per Diluted Share Reconciliation
Six Months Ended June 30, 2002 vs. Six Months Ended June 30, 2001
2001 Earnings per Diluted Share $ 2.21
Unusual Items included in 2001 Earnings:
Cumulative Effect of Adopting SFAS 133 (0.04)
Gain on Investment (1) (0.05)
CTC Prepayment (0.02)
Wholesale Rate Settlement (0.01)
Settlement of Transition Bond Swap (0.01)
---------
2001 Earnings Excluding Unusual Items 2.08
Year Over Year Effects on Earnings:
Lower Energy Margins - Excluding Weather (2) (0.43)
Lower Energy Margins - Weather Impact (3) (0.05)
Higher Nuclear Outage Operating and Maintenance Costs (4) (0.10)
Investment and Asset Write-Downs (5) (0.08)
Cessation of Goodwill Amortization 0.24
Lower Operating and Maintenance Expense (O&M) (6) 0.08
Lower Interest Expense (7) 0.17
Higher Taxes Other Than Income (8) (0.09)
Lower Depreciation and Amortization Expense (9) 0.01
Lower Equity in Earnings of Unconsolidated Affiliates (0.01)
Lower Effective Income Tax Rate (10) 0.09
2002 Earnings Before Cumulative Effect of Adopting SFAS 142,
the Gain on the AT&T Sale and Severance 1.91
Cumulative Effect of Adopting SFAS 142 (0.71)
Gain on the Sale of AT&T Wireless 0.36
Severance (11) (0.04)
---------
2002 Earnings per Diluted Share $ 1.52
=========
(1) Realized gains on distributions on Enterprises investments.
(2) Primarily reflects lower market prices for energy, PJM ancillary costs,
margins on energy trading activity and rate reductions at EED, partially
offset by a stronger economy in Chicago in 2002 compared to 2001. ComEd's
5% residential customer rate reflects a reduction of $0.10 per share.
(3) Primarily related to warmer winter weather in Chicago and Philadelphia,
offset by warmer summer weather in Chicago in 2002 compared to 2001.
(4) Relates to five nuclear refueling outages in 2002 as compared to two
refueling outages in 2001.
(5) Reflects $38 million of investment write-downs and $4 million of net asset
write-downs at Enterprises.
(6) Lower O&M's, excluding outage costs, severance costs and lower InfraSource
and Exelon Services activity, primarily relate to Exelon's Cost Management
Initiative and decreased Generation O&M's.
(7) Reflects lower debt outstanding and lower interest rates due to refinancing
at Energy Delivery and a lower rate on Generation's spent nuclear fuel
obligation.
(8) Primarily reflects a higher gross receipts tax rate at PECO.
(9) Depreciation and amortization expense, excluding goodwill amortization, was
lower primarily related to the effect of the extension of the estimated
service lives of the generating stations in 2001, partially offset by
increased CTC amortization at PECO, higher amortization of capitalized
software at Enterprises and increased depreciation related to higher
depreciable plant.
(10) Primarily relates to lower state income tax rates.
(11) Executive severance costs partially offset by favorable adjustments to
previous severance estimates. A portion of the executive severance is not
tax deductible. As a result, the after-tax impact on earnings is $0.04 per
share.
3
EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)
Three Months Ended June 30, 2002
----------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
----------------------------------------------------------------
Operating Revenues $ 2,476 $ 1,559 $ 476 $ (992) $ 3,519
Operating Expenses
Purchased Power 958 705 56 (960) 759
Fuel 53 224 82 5 364
Operating and Maintenance 351 411 334 (26) 1,070
Depreciation and Amortization 242 65 17 8 332
Taxes Other Than Income 136 41 2 2 181
------- ------- ------- ------- -------
Total Operating Expenses 1,740 1,446 491 (971) 2,706
------- ------- ------- ------- -------
Operating Income 736 113 (15) (21) 813
Other Income and Deductions
Interest Expense (218) (11) (3) (9) (241)
Distributions on Preferred Securities of Subsidiaries (11) -- -- -- (11)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net -- 9 2 (2) 9
Other, net 15 24 158 (3) 194
------- ------- ------- ------- -------
Total Other Income and Deductions (214) 22 157 (14) (49)
------- ------- ------- ------- -------
Income Before Income Taxes and Cumulative Effect
of Change in Acounting Principle 522 135 142 (35) 764
Income Taxes 200 51 59 (31) 279
------- ------- ------- ------- -------
Income Before Cumulative Effect of Change in
Accounting Principle 322 84 83 (4) 485
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes -- -- -- -- --
------- ------- ------- ------- -------
Net Income $ 322 $ 84 $ 83 $ (4) $ 485
======= ======= ======= ======= =======
Three Months Ended June 30, 2001
----------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
----------------------------------------------------------------
Operating Revenues $ 2,436 $ 1,583 $ 546 $ (949) $ 3,616
Operating Expenses
Purchased Power 901 721 61 (917) 766
Fuel 79 230 100 -- 409
Operating and Maintenance 374 405 382 (27) 1,134
Depreciation and Amortization 267 75 16 4 362
Taxes Other Than Income 110 39 3 1 153
------- ------- ------- ------- -------
Total Operating Expenses 1,731 1,470 562 (939) 2,824
------- ------- ------- ------- -------
Operating Income 705 113 (16) (10) 792
Other Income and Deductions
Interest Expense (260) (26) (9) 6 (289)
Distributions on Preferred Securities of Subsidiaries (12) -- -- -- (12)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net -- 13 (6) -- 7
Other, net 24 14 21 (15) 44
------- ------- ------- ------- -------
Total Other Income and Deductions (248) 1 6 (9) (250)
------- ------- ------- ------- -------
Income Before Income Taxes and Cumulative Effect
of Change in Acounting Principle 457 114 (10) (19) 542
Income Taxes 193 43 (5) (4) 227
------- ------- ------- ------- -------
Income Before Cumulative Effect of Change in
Accounting Principle 264 71 (5) (15) 315
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes -- -- -- -- --
------- ------- ------- ------- -------
Net Income $ 264 $ 71 $ (5) $ (15) $ 315
======= ======= ======= ======= =======
4
EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)
Six Months Ended June 30, 2002
---------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
---------------------------------------------------------------
Operating Revenues $ 4,811 $ 3,020 $ 966 $(1,921) $ 6,876
Operating Expenses
Purchased Power 1,846 1,323 108 (1,850) 1,427
Fuel 188 433 234 5 860
Operating and Maintenance 724 844 634 (65) 2,137
Depreciation and Amortization 489 128 35 15 667
Taxes Other Than Income 268 90 5 4 367
------- ------- ------- ------- -------
Total Operating Expenses 3,515 2,818 1,016 (1,891) 5,458
------- ------- ------- ------- -------
Operating Income 1,296 202 (50) (30) 1,418
Other Income and Deductions
Interest Expense (439) (28) (8) (15) (490)
Distributions on Preferred Securities of Subsidiaries (23) -- -- -- (23)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net -- 32 (5) (5) 22
Other, net 30 40 158 (6) 222
------- ------- ------- ------- -------
Total Other Income and Deductions (432) 44 145 (26) (269)
------- ------- ------- ------- -------
Income Before Income Taxes and Cumulative Effect
of Change in Acounting Principle 864 246 95 (56) 1,149
Income Taxes 326 96 40 (35) 427
------- ------- ------- ------- -------
Income Before Cumulative Effect of Change in
Accounting Principle 538 150 55 (21) 722
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes -- 13 (243) -- (230)
------- ------- ------- ------- -------
Net Income $ 538 $ 163 $ (188) $ (21) $ 492
======= ======= ======= ======= =======
Six Months Ended June 30, 2001
---------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
---------------------------------------------------------------
Operating Revenues $ 4,933 $ 3,211 $ 1,213 $(1,918) $ 7,439
Operating Expenses
Purchased Power 1,793 1,320 157 (1,863) 1,407
Fuel 284 449 365 -- 1,098
Operating and Maintenance 724 809 705 (46) 2,192
Depreciation and Amortization 535 167 31 7 740
Taxes Other Than Income 225 85 7 4 321
------- ------- ------- ------- -------
Total Operating Expenses 3,561 2,830 1,265 (1,898) 5,758
------- ------- ------- ------- -------
Operating Income 1,372 381 (52) (20) 1,681
Other Income and Deductions
Interest Expense (506) (59) (22) 6 (581)
Distributions on Preferred Securities of Subsidiaries (23) -- -- -- (23)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net -- 39 (14) -- 25
Other, net 71 18 38 (28) 99
------- ------- ------- ------- -------
Total Other Income and Deductions (458) (2) 2 (22) (480)
------- ------- ------- ------- -------
Income Before Income Taxes and Cumulative Effect
of Change in Acounting Principle 914 379 (50) (42) 1,201
Income Taxes 384 150 (20) (15) 499
------- ------- ------- ------- -------
Income Before Cumulative Effect of Change in
Accounting Principle 530 229 (30) (27) 702
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes -- 12 -- -- 12
------- ------- ------- ------- -------
Net Income $ 530 $ 241 $ (30) $ (27) $ 714
======= ======= ======= ======= =======
5
EXELON CORPORATION
Business Segment Comparative Income Statements
(Unaudited)
(in millions)
Energy Delivery
---------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
------------------- --------------------
2002 2001 Variance 2002 2001 Variance
------- ------- ------- ------- ------- -------
Operating Revenues $ 2,476 $ 2,436 $ 40 $ 4,811 $ 4,933 $ (122)
Operating Expenses
Purchased Power 958 901 57 1,846 1,793 53
Fuel 53 79 (26) 188 284 (96)
Operating and Maintenance 351 374 (23) 724 724 --
Depreciation and Amortization 242 267 (25) 489 535 (46)
Taxes Other Than Income 136 110 26 268 225 43
------- ------- ------- ------- ------- -------
Total Operating Expenses 1,740 1,731 9 3,515 3,561 (46)
------- ------- ------- ------- ------- -------
Operating Income 736 705 31 1,296 1,372 (76)
Other Income and Deductions
Interest Expense (218) (260) 42 (439) (506) 67
Distributions on Preferred Securities of Subsidiaries (11) (12) 1 (23) (23) --
Other, net 15 24 (9) 30 71 (41)
------- ------- ------- ------- ------- -------
Total Other Income and Deductions (214) (248) 34 (432) (458) 26
------- ------- ------- ------- ------- -------
Income Before Income Taxes 522 457 65 864 914 (50)
Income Taxes 200 193 7 326 384 (58)
------- ------- ------- ------- ------- -------
Net Income $ 322 $ 264 $ 58 $ 538 $ 530 $ 8
======= ======= ======= ======= ======= =======
Generation
---------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
------------------- --------------------
2002 2001 Variance 2002 2001 Variance
------- ------- ------- ------- ------- -------
Operating Revenues $ 1,559 $ 1,583 $ (24) $ 3,020 $ 3,211 $ (191)
Operating Expenses
Purchased Power 705 721 (16) 1,323 1,320 3
Fuel 224 230 (6) 433 449 (16)
Operating and Maintenance 411 405 6 844 809 35
Depreciation and Amortization 65 75 (10) 128 167 (39)
Taxes Other Than Income 41 39 2 90 85 5
------- ------- ------- ------- ------- -------
Total Operating Expenses 1,446 1,470 (24) 2,818 2,830 (12)
------- ------- ------- ------- ------- -------
Operating Income 113 113 -- 202 381 (179)
Other Income and Deductions
Interest Expense (11) (26) 15 (28) (59) 31
Equity in Earnings of Unconsolidated Affiliates, net 9 13 (4) 32 39 (7)
Other, net 24 14 10 40 18 22
------- ------- ------- ------- ------- -------
Total Other Income and Deductions 22 1 21 44 (2) 46
------- ------- ------- ------- ------- -------
Income Before Income Taxes and Cumulative Effect
of Changes in Acounting Principles 135 114 21 246 379 (133)
Income Taxes 51 43 8 96 150 (54)
------- ------- ------- ------- ------- -------
Income Before Cumulative Effect of Changes in
Accounting Principles 84 71 13 150 229 (79)
Cumulative Effect of Changes in Accounting
Principles, Net of Income Taxes -- -- -- 13 12 1
------- ------- ------- ------- ------- -------
Net Income $ 84 $ 71 $ 13 $ 163 $ 241 $ (78)
======= ======= ======= ======= ======= =======
6
EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)
Enterprises
----------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2002 2001 Variance 2002 2001 Variance
------- ------- ------- ------- ------- -------
Operating Revenues $ 476 $ 546 $ (70) $ 966 $ 1,213 $ (247)
Operating Expenses
Purchased Power 56 61 (5) 108 157 (49)
Fuel 82 100 (18) 234 365 (131)
Operating and Maintenance 334 382 (48) 634 705 (71)
Depreciation and Amortization 17 16 1 35 31 4
Taxes Other Than Income 2 3 (1) 5 7 (2)
------- ------- ------- ------- ------- -------
Total Operating Expenses 491 562 (71) 1,016 1,265 (249)
------- ------- ------- ------- ------- -------
Operating Income (15) (16) 1 (50) (52) 2
Other Income and Deductions
Interest Expense (3) (9) 6 (8) (22) 14
Equity in Earnings (Losses) of
Unconsolidated Affiliates, net 2 (6) 8 (5) (14) 9
Other, net 158 21 137 158 38 120
------- ------- ------- ------- ------- -------
Total Other Income and Deductions 157 6 151 145 2 143
------- ------- ------- ------- ------- -------
Income Before Income Taxes and Cumulative
Effect of Change in Acounting Principle 142 (10) 152 95 (50) 145
Income Taxes 59 (5) 64 40 (20) 60
------- ------- ------- ------- ------- -------
Income Before Cumulative Effect of
Changes in Accounting Principle 83 (5) 88 55 (30) 85
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes -- -- -- (243) -- (243)
------- ------- ------- ------- ------- -------
Net Income $ 83 $ (5) $ 88 $ (188) $ (30) $ (158)
======= ======= ======= ======= ======= =======
Corporate and Eliminations
----------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2002 2001 Variance 2002 2001 Variance
------- ------- ------- ------- ------- -------
Operating Revenues $ (992) $ (949) $ (43) $(1,921) $(1,918) $ (3)
Operating Expenses
Purchased Power (960) (917) (43) (1,850) (1,863) 13
Fuel 5 -- 5 5 -- 5
Operating and Maintenance (26) (27) 1 (65) (46) (19)
Depreciation and Amortization 8 4 4 15 7 8
Taxes Other Than Income 2 1 1 4 4 --
------- ------- ------- ------- ------- -------
Total Operating Expenses (971) (939) (32) (1,891) (1,898) 7
------- ------- ------- ------- ------- -------
Operating Income (21) (10) (11) (30) (20) (10)
Other Income and Deductions
Interest Expense (9) 6 (15) (15) 6 (21)
Equity in Earnings (Losses) of
Unconsolidated Affiliates, net (2) -- (2) (5) -- (5)
Other, net (3) (15) 12 (6) (28) 22
------- ------- ------- ------- ------- -------
Total Other Income and Deductions (14) (9) (5) (26) (22) (4)
------- ------- ------- ------- ------- -------
Income Before Income Taxes (35) (19) (16) (56) (42) (14)
Income Taxes (31) (4) (27) (35) (15) (20)
------- ------- ------- ------- ------- -------
Net Income $ (4) $ (15) $ 11 $ (21) $ (27) $ 6
======= ======= ======= ======= ======= =======
7
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)
June 30, December 31,
2002 2001
-------- --------
Current Assets
Cash and Cash Equivalents $ 713 $ 485
Restricted Cash 398 372
Accounts Receivable, net
Customers 1,978 1,687
Other 196 428
Receivable from Unconsolidated Affiliate 107 44
Inventories - Fossil Fuel 206 222
Inventories - Materials and Supplies 308 249
Deferred Income Taxes 76 23
Other Current Assets 354 272
-------- --------
Total Current Assets 4,336 3,782
-------- --------
Property Plant and Equipment, net 14,654 13,781
Deferred Debits and Other Assets
Regulatory Assets 6,237 6,423
Nuclear Decommissioning Trust Funds 3,060 3,165
Investments 1,658 1,666
Goodwill, net 4,971 5,335
Other Noncurrent Assets 705 708
-------- --------
Total Deferred Debits and Other Assets 16,631 17,297
-------- --------
Total Assets $ 35,621 $ 34,860
======== ========
Liabilities and Shareholders' Equity
Current Liabilities
Notes Payable $ 470 $ 360
Long-Term Debt Due within One Year 1,772 1,406
Accounts Payable 1,164 964
Accrued Expenses 1,339 1,182
Other 527 505
-------- --------
Total Current Liabilities 5,272 4,417
-------- --------
Long-Term Debt 12,591 12,879
Deferred Credits and Other Liabilities
Deferred Income Taxes 4,204 4,303
Unamortized Investment Tax Credits 308 316
Nuclear Decommissioning Liability for Retired Plants 1,379 1,353
Pension Obligation 313 334
Non-Pension Postretirement Benefits Obligation 878 847
Spent Nuclear Fuel Obligation 851 843
Other 866 725
-------- --------
Total Deferred Credits and Other Liabilities 8,799 8,721
-------- --------
Preferred Securities of Subsidiaries 613 613
Shareholders' Equity
Common Stock 6,990 6,930
Deferred Compensation (1) (2)
Retained Earnings 1,421 1,200
Accumulated Other Comprehensive Income (64) 102
-------- --------
Total Shareholders' Equity 8,346 8,230
-------- --------
Total Liabilities and Shareholders' Equity $ 35,621 $ 34,860
======== ========
8
EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2002 2001 2002 2001
------- ------- ------- -------
Cash Flows From Operating Activities
Net Income $ 485 $ 315 $ 492 $ 714
Adjustments to Reconcile Net Income to Net Cash Flows
Provided by Operating Activities:
Depreciation and Amortization, including nuclear fuel 421 449 848 939
Cumulative Effect of Changes in Accounting
Principles (net of income taxes) -- -- 230 (12)
Provision for Uncollectible Accounts 30 30 67 60
Deferred Income Taxes (77) (58) (10) 7
Deferred Energy Costs 15 36 49 7
Equity in Earnings of Unconsolidated Affiliates, net (9) (7) (22) (25)
Net Realized Losses on Nuclear Decommissioning Trust Funds 11 9 21 24
Pre-Tax Gain on the Sale of Investments, net (199) -- (199) --
Other Operating Activities 2 (45) 115 (78)
Changes in Working Capital:
Accounts Receivable (308) 11 (259) 68
Inventories (55) (72) (42) (12)
Accounts Payable, Accrued Expenses, & Other
Current Liabilities 349 444 342 280
Changes in Receivables and Payables to
Unconsolidated Affiliates, net (5) -- 12 --
Other Current Assets 145 44 (6) (19)
------- ------- ------- -------
Net Cash Flows Provided by Operating Activities 805 1,156 1,638 1,953
------- ------- ------- -------
Cash Flows From Investing Activities
Capital Expenditures (439) (490) (1,028) (937)
Acquisition of Generating Plants (443) -- (443) --
Enterprises Acquisitions, net of cash acquired -- (1) -- (39)
Proceeds from Nuclear Decommissioning Trust Funds 309 288 889 621
Investment in Nuclear Decommissioning Trust Funds (338) (301) (943) (655)
Note Receivable from Unconsolidated Affiliate (29) -- (75) --
Proceeds from the Sale of Investment 285 -- 285 --
Other Investing Activities 24 23 47 12
------- ------- ------- -------
Net Cash Flows Used in Investing Activities (631) (481) (1,268) (998)
------- ------- ------- -------
Cash Flows From Financing Activities
Issuance of Long-Term Debt 293 1,231 701 2,058
Retirement of Long-Term Debt (226) (124) (697) (1,153)
Change in Short-Term Debt 32 (1,206) 110 (949)
Dividends on Common Stock (139) (136) (280) (312)
Change in Restricted Cash (161) (120) (26) (16)
Proceeds from Employee Stock Plans 42 15 60 51
Other Financing Activities 2 -- (10) --
------- ------- ------- -------
Net Cash Flows Used in Financing Activities (157) (340) (142) (321)
------- ------- ------- -------
Increase in Cash and Cash Equivalents 17 335 228 634
Cash and Cash Equivalents at Beginning of Period 696 825 485 526
------- ------- ------- -------
Cash and Cash Equivalents at End of Period $ 713 $ 1,160 $ 713 $ 1,160
======= ======= ======= =======
9
EXELON CORPORATION
Electric Sales Statistics
Three Months Ended June 30,
-------------------------------------
(in GWhs) 2002 2001 % Change
- --------------------------------------------------- ----------------- ------------------ ---------------
Supply
Nuclear, excluding AmerGen 28,353 28,443 (0.3%)
Purchased power - Generation (1) 18,220 16,392 11.2%
Fossil, excluding Sithe and Hydro 3,665 3,233 13.4%
----------------- ------------------
Power Team Supply 50,238 48,068 4.5%
Purchased power - Other 157 284 (44.7%)
----------------- ------------------
Total electric supply available for sale 50,395 48,352 4.2%
Less: Line loss and company use 2,175 3,377 (35.6%)
----------------- ------------------
Total Energy Sales 48,220 44,975 7.2%
================= ==================
Energy Sales
Retail Sales (2) 30,670 29,853 2.7%
Power Team Market Sales (1) 20,589 18,548 11.0%
Interchange sales and sales to other utilities 514 669 (23.2%)
----------------- ------------------
51,773 49,070 5.5%
Less: Distribution Only Sales (3,553) (4,095) (13.2%)
----------------- ------------------
Total Energy Sales 48,220 44,975 7.2%
================= ==================
Six Months Ended June 30,
-------------------------------------
(in GWhs) 2002 2001 % Change
- --------------------------------------------------- ----------------- ------------------ ---------------
Supply
Nuclear, excluding AmerGen 55,886 58,410 (4.3%)
Purchased power - Generation (1) 36,314 31,954 13.6%
Fossil, excluding Sithe and Hydro 6,362 5,958 6.8%
----------------- ------------------
Power Team Supply 98,562 96,322 2.3%
Purchased power - Other 325 344 (5.5%)
----------------- ------------------
Total electric supply available for sale 98,887 96,666 2.3%
Less: Line loss and company use 4,210 5,826 (27.7%)
----------------- ------------------
Total Energy Sales 94,677 90,840 4.2%
================= ==================
Energy Sales
Retail Sales (2) 60,584 61,952 (2.2%)
Power Team Market Sales (1) 39,913 36,007 10.8%
Interchange sales and sales to other utilities 1,252 1,258 (0.5%)
----------------- ------------------
101,749 99,217 2.6%
Less: Distribution Only Sales (7,072) (8,377) (15.6%)
----------------- ------------------
Total Energy Sales 94,677 90,840 4.2%
================= ==================
(1) Purchased power and market sales do not include trading volume of 8,566
MWhs and 454 MWhs for the three months ended June 30, 2002 and 2001,
respectively and 22,805 MWhs and 454 MWhs for the six months ended June 30,
2002 and 2001, respectively. months ended June 30, 2002 and 2001,
respectively.
(2) Includes Exelon Energy sales of 1,221,239 MWh and 1,104,063 MWh for the
three months ended June 30, 2002 and 2001, respectively and and 2,326,386
MWh and 3,217,739 MWh for the six months ended June 30, 2002 and 2001,
respectively.
10
EXELON CORPORATION
Energy Delivery Sales Statistics
For the Three Months Ended June 30,
ComEd PECO
--------------------------------------------------------------------------------------
Electric Deliveries (MWh) 2002 2001 % Change 2002 2001 % Change
----------------------------------------- ----------------------------------------
Bundled Deliveries (a)
Residential 5,862,380 5,231,699 12.1% 2,114,551 1,672,763 26.4%
Small Commercial & Industrial 5,599,519 5,802,950 (3.5%) 1,880,890 1,311,548 43.4%
Large Commercial & Industrial 2,122,393 2,747,982 (22.8%) 3,927,388 3,172,115 23.8%
Public Authorities & Electric Railroads 1,684,740 1,891,021 (10.9%) 200,099 181,665 10.1%
------------------------------ ----------------------------
15,269,032 15,673,652 (2.6%) 8,122,928 6,338,091 28.2%
------------------------------ ----------------------------
Unbundled Deliveries (b)
Alternative Energy Suppliers
Residential (c) n/a 556,761 848,220 (34.4%)
Small Commercial & Industrial 1,177,493 645,229 82.5% 2,480 524,113 (99.5%)
Large Commercial & Industrial 1,621,827 1,250,539 29.7% 12,869 731,738 (98.2%)
Public Authorities & Electric Railroads 181,183 93,246 94.3% 37 1,736 (97.9%)
------------------------------ ----------------------------
2,980,503 1,989,014 49.8% 572,147 2,105,807 (72.8%)
------------------------------ ----------------------------
PPO (ComEd Only)
Small Commercial & Industrial 838,533 798,579 5.0%
Large Commercial & Industrial 1,391,928 1,517,783 (8.3%)
Public Authorities & Electric Railroads 274,202 325,903 (15.9%)
------------------------------
2,504,663 2,642,265 (5.2%)
------------------------------
Total Unbundled Deliveries 5,485,166 4,631,279 18.4% 572,147 2,105,807 (72.8%)
------------------------------ ----------------------------
Total Retail Deliveries 20,754,198 20,304,931 2.2% 8,695,075 8,443,898 3.0%
============================== ============================
Gas Deliveries (mmcf) (PECO only) 14,286 13,782 3.7%
============================
Revenue (in millions)
Bundled Revenue (a)
Residential $ 523,423 $ 501,658 4.3% $ 278,103 $ 221,816 25.4%
Small Commercial & Industrial 445,087 466,793 (4.7%) 224,143 156,937 42.8%
Large Commercial & Industrial 115,665 143,788 (19.6%) 288,135 223,504 28.9%
Public Authorities & Electric Railroads 101,645 109,578 (7.2%) 18,924 17,233 9.8%
------------------------------ ----------------------------
1,185,820 1,221,817 (2.9%) 809,305 619,490 30.6%
------------------------------ ----------------------------
Unbundled Revenue (b)
Alternative Energy Suppliers
Residential (c) n/a 42,016 67,059 (37.3%)
Small Commercial & Industrial 30,189 12,543 140.7% 135 27,737 (99.5%)
Large Commercial & Industrial 31,827 21,146 50.5% 359 19,266 (98.1%)
Public Authorities & Electric Railroads 5,368 1,343 299.7% 5 203 (97.5%)
------------------------------ ----------------------------
67,384 35,032 92.3% 42,515 114,265 (62.8%)
------------------------------ ----------------------------
PPO (ComEd Only)
Small Commercial & Industrial 55,003 53,197 3.4%
Large Commercial & Industrial 76,084 85,817 (11.3%)
Public Authorities & Electric Railroads 16,359 18,906 (13.5%)
------------------------------
147,446 157,920 (6.6%)
------------------------------
Total Unbundled Revenue 214,830 192,952 11.3% 42,515 114,265 (62.8%)
------------------------------ ----------------------------
Total Retail Electric Revenue 1,400,650 1,414,769 (1.0%) 851,820 733,755 16.1%
Wholesale Electric Revenue 26,629 39,296 (32.2%) 3,432 4,697 (26.9%)
Other Revenue 53,644 76,093 (29.5%) 55,569 55,299 0.5%
Gas Revenue n/a n/a 84,315 112,316 (24.9%)
------------------------------ ----------------------------
Total Revenues $ 1,480,923 $ 1,530,158 (3.2%) $ 995,136 $ 906,067 9.8%
============================== ============================
Heating and Cooling Degree Days 2002 2001 Normal 2002 2001 Normal
- ------------------------------- --------------------------------------- ---------------------------------------
Heating Degree Days 855 667 774 417 418 566
Cooling Degree Days 301 233 226 416 410 306
(a) Bundled service reflects deliveries to customers taking electric service
under tariffed rates, which include the cost of energy and the delivery
cost of the transmission and distribution of the energy. PECO's tariffed
rates also include a CTC charge.
(b) Unbundled service reflects customers electing to receive electric
generation service under the ComEd PPO option or an alternative energy
supplier. Revenue from customers choosing the ComEd PPO option includes an
energy charge at market rates, transmission and distribution charge and a
CTC charge. Revenue from customers choosing an alternative energy supplier
includes a distribution charge and a CTC charge. Transmission charges
received from alternative energy suppliers are included in wholesale and
miscellaneous revenue.
(c) On May 1, 2002, all ComEd residential customers were eligible to choose
their supplier of electricity, however, as of June 30, 2002, no alternative
electric supplier has sought approval from the Illinois Commerce Commission
(ICC) and no electric utilities have chosen to enter the ComEd residential
market for the supply of electricity.
n/a - not applicable
11
EXELON CORPORATION
Energy Delivery Sales Statistics
For the Six Months Ended June 30,
ComEd PECO
-----------------------------------------------------------------------------------------
Electric Deliveries (MWh) 2002 2001 % Change 2002 2001 % Change
-----------------------------------------------------------------------------------------
Bundled Deliveries (a)
Residential 12,271,063 11,538,292 6.4% 4,170,149 4,131,797 0.9%
Small Commercial & Industrial 11,049,153 11,677,768 (5.4%) 3,638,272 2,312,736 57.3%
Large Commercial & Industrial 4,078,399 5,638,041 (27.7%) 7,278,457 5,702,844 27.6%
Public Authorities & Electric Railroads 3,485,538 3,901,261 (10.7%) 393,446 374,421 5.1%
--------------- ---------------- -------------- ---------------
30,884,153 32,755,362 (5.7%) 15,480,324 12,521,798 23.6%
--------------- ---------------- -------------- ---------------
Unbundled Deliveries (b)
Alternative Energy Suppliers
Residential (c) n/a 1,348,422 1,375,349 (2.0%)
Small Commercial & Industrial 2,181,376 1,107,011 97.1% 99,002 1,416,536 (93.0%)
Large Commercial & Industrial 3,007,813 2,413,995 24.6% 115,697 1,920,938 (94.0%)
Public Authorities & Electric Railroads 319,226 136,319 134.2% 83 6,479 (98.7%)
--------------- ---------------- -------------- ---------------
5,508,415 3,657,325 50.6% 1,563,204 4,719,302 (66.9%)
--------------- ---------------- -------------- ---------------
PPO (ComEd Only)
Small Commercial & Industrial 1,601,757 1,621,488 (1.2%)
Large Commercial & Industrial 2,703,008 2,876,354 (6.0%)
Public Authorities & Electric Railroads 516,526 583,778 (11.5%)
--------------- ----------------
4,821,291 5,081,620 (5.1%)
--------------- ----------------
Total Unbundled Deliveries 10,329,706 8,738,945 18.2% 1,563,204 4,719,302 (66.9%)
--------------- ---------------- -------------- ---------------
Total Retail Deliveries 41,213,859 41,494,307 (0.7%) 17,043,528 17,241,100 (1.1%)
=============== ================ ============== ===============
Gas Deliveries (mmcf) (PECO only) 45,643 48,012 (4.9%)
============== ===============
Revenue (in thousands)
Bundled Revenue (a)
Residential $ 1,041,228 $ 1,035,809 0.5% $ 521,550 $ 502,669 3.8%
Small Commercial & Industrial 836,171 879,895 (5.0%) 412,865 263,471 56.7%
Large Commercial & Industrial 217,771 279,975 (22.2%) 532,467 406,695 30.9%
Public Authorities & Electric Railroads 193,300 216,037 (10.5%) 37,076 34,361 7.9%
--------------- ---------------- -------------- ---------------
2,288,470 2,411,716 (5.1%) 1,503,958 1,207,196 24.6%
--------------- ---------------- -------------- ---------------
Unbundled Revenue (b)
Alternative Energy Suppliers
Residential (c) n/a 96,160 102,821 (6.5%)
Small Commercial & Industrial 42,636 26,017 63.9% 4,797 68,157 (93.0%)
Large Commercial & Industrial 41,483 47,869 (13.3%) 3,272 54,591 (94.0%)
Public Authorities & Electric Railroads 7,195 1,960 267.1% 11 868 (98.7%)
--------------- ---------------- -------------- ---------------
91,314 75,846 20.4% 104,240 226,437 (54.0%)
--------------- ---------------- -------------- ---------------
PPO (ComEd Only)
Small Commercial & Industrial 98,063 90,461 8.4%
Large Commercial & Industrial 140,185 146,536 (4.3%)
Public Authorities & Electric Railroads 29,109 30,662 (5.1%)
--------------- ----------------
267,357 267,659 (0.1%)
--------------- ----------------
Total Unbundled Revenue 358,671 343,505 4.4% 104,240 226,437 (54.0%)
--------------- ---------------- -------------- ---------------
Total Retail Electric Revenue 2,647,141 2,755,221 (3.9%) 1,608,198 1,433,633 12.2%
Wholesale Electric Revenue 50,276 96,159 (47.7%) 6,965 7,846 (11.2%)
Other Revenue 98,964 125,042 (20.9%) 106,820 108,568 (1.6%)
Gas Revenue n/a n/a 292,921 407,095 (28.0%)
--------------- ---------------- -------------- ---------------
Total Revenues $ 2,796,381 $ 2,976,422 (6.0%) $ 2,014,904 $ 1,957,142 3.0%
=============== ================ ==============================
Heating and Cooling Degree Days 2002 2001 Normal 2002 2001 Normal
--------------- ---------------- --------- -------------- --------------------------
Heating Degree Days 3,720 3,948 4,028 2,484 2,917 3,288
Cooling Degree Days 301 233 227 416 410 306
(a) Bundled service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy
and the delivery cost of the transmission and distribution of the energy. PECO's tariffed rates also include a CTC charge.
(b) Unbundled service reflects customers electing to receive electric generation service under the ComEd PPO option or an
alternative energy supplier. Revenue from customers choosing the ComEd PPO option includes an energy charge at market rates,
transmission and distribution charge and a CTC charge. Revenue from customers choosing an alternative energy supplier includes
a distribution charge and a CTC charge. Transmission charges received from alternative energy suppliers are included in
wholesale and miscellaneous revenue.
(c) On May 1, 2002, all ComEd residential customers were eligible to choose their supplier of electricity, however, as of June 30,
2002, no alternative electric supplier has sought approval from the Illinois Commerce Commission (ICC) and no electric
utilities have chosen to enter the ComEd residential market for the supply of electricity.
n/a - not applicable
12
EXELON CORPORATION
Exelon Generation Power Marketing Statistics
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------ ---------------------------------------
2002 2001 2002 2001
---------------- --------------- ---------------- -------------------
GWh Sales
Energy Delivery 28,294 28,105 56,044 57,309
Exelon Energy 1,355 1,415 2,605 3,006
Market Sales 20,589 18,548 39,913 36,007
---------------- --------------- ---------------- -------------------
Total Sales (1) 50,238 48,068 98,562 96,322
================ =============== ================ ===================
Average Margin ($/MWh)
Average Realized Revenue
Energy Delivery $ 31.45 $ 30.09 $ 30.73 $ 29.58
Exelon Energy 44.73 40.11 45.08 39.30
Market Sales 30.69 37.69 29.44 38.66
Total Sales - without trading 31.50 33.32 30.58 33.27
Average Supply Cost - without trading $ 18.79 $ 20.05 $ 17.78 $ 18.75
Average Margin - without trading $ 12.71 $ 13.27 $ 12.80 $ 14.52
Around-the-clock Market Prices ($/MWh)
PJM $ 25.50 $ 30.00 $ 23.50 $ 31.50
Main 24.00 27.00 22.50 29.00
- ------------------------------------------------------------------------
July 2002 Earnings Guidance
PJM - July through December 2002 $ 28.00
MAIN - July through December 2002 22.00
- ------------------------------------------------------------------------
(1) Total sales do not include trading volume of 8,566 MWhs and 454 MWhs for
the three months ended June 30, 2002 and 2001, respectively and 22,805 MWhs
and 454 MWhs for the six months ended June 30, 2002 and 2001, respectively.
13
EXELON CORPORATION
Effect of Adoption of EITF 02-3 on Results of Trading Book
(in millions)
EITF 02-3
As Reported Adjustment As Adjusted
---------------- ---------------- ----------------
Three months ended June 30, 2001
Trading Revenue $ 29 $ (35) $ (6)
Trading Expense - Fuel 5 (5) -
Trading Expense - Purchased Power 30 (30) -
---------------- ---------------- ----------------
Net Trading Margin $ (6) $ - $ (6)
================ ================ ================
Six months ended June 30, 2001
Trading Revenue $ 29 $ (35) $ (6)
Trading Expense - Fuel 5 (5) -
Trading Expense - Purchased Power 30 (30) -
---------------- ---------------- ----------------
Net Trading Margin $ (6) $ - $ (6)
================ ================ ================
Three months ended September 30, 2001
Trading Revenue $ 105 $ (100) $ 5
Trading Expense - Fuel 7 (7) -
Trading Expense - Purchased Power 93 (93) -
---------------- ---------------- ----------------
Net Trading Margin $ 5 $ - $ 5
================ ================ ================
Nine months ended September 30, 2001
Trading Revenue $ 134 $ (135) $ (1)
Trading Expense - Fuel 12 (12) -
Trading Expense - Purchased Power 123 (123) -
---------------- ---------------- ----------------
Net Trading Margin $ (1) $ - $ (1)
================ ================ ================
Three months ended December 31, 2001
Trading Revenue $ 96 $ (88) $ 8
Trading Expense - Fuel 3 (3) -
Trading Expense - Purchased Power 86 (86) -
Trading Expense - Operating and Maintenance (1) 1 -
---------------- ---------------- ----------------
Net Trading Margin $ 8 $ - $ 8
================ ================ ================
Twelve months ended December 31, 2001
Trading Revenue $ 229 $ (222) $ 7
Trading Expense - Fuel 15 (15) -
Trading Expense - Purchased Power 208 (208) -
Trading Expense - Operating and Maintenance (1) 1 -
---------------- ---------------- ----------------
Net Trading Margin $ 7 $ (0) $ 7
================ ================ ================
Three months ended March 31, 2002
Trading Revenue $ 514 $ (513) $ 1
Trading Expense - Fuel 9 (9) -
Trading Expense - Purchased Power 504 (504) -
---------------- ---------------- ----------------
Net Trading Margin $ 1 $ - $ 1
================ ================ ================
14
Exhibit 99.2
Exelon Energy Delivery
Sales Statistics
2001
Three Months Ended
--------------------------------------------------------------- Year Ended
Retail Deliveries (in MWhs) March 31, June 30, September 30, December 31, December 31,
------------ ------------ ------------ ------------ ------------
Bundled Deliveries (a)
Residential 8,765,627 6,904,462 10,573,170 7,111,536 33,354,795
Small Commercial & Industrial 6,876,006 7,114,498 8,298,037 7,144,171 29,432,712
Large Commercial & Industrial 5,420,789 5,920,097 6,340,727 5,583,812 23,265,425
Public Authorities & Electric Railroads 2,202,997 2,072,686 2,298,848 2,070,283 8,644,814
------------ ------------ ------------ ------------ ------------
23,265,419 22,011,743 27,510,782 21,909,802 94,697,746
Unbundled Deliveries (b)
Alternative Retail Suppliers
Residential 527,129 848,220 989,476 739,986 3,104,811
Small Commercial & Industrial 1,354,205 1,169,342 997,594 950,349 4,471,490
Large Commercial & Industrial 2,352,655 1,982,277 1,796,502 1,677,933 7,809,367
Public Authorities & Electric Railroads 47,816 94,982 91,767 137,718 372,283
------------ ------------ ------------ ------------ ------------
4,281,805 4,094,821 3,875,339 3,505,986 15,757,951
PPO (ComEd Only)
Small Commercial & Industrial 822,909 798,579 826,717 831,286 3,279,491
Large Commercial & Industrial 1,358,571 1,517,783 1,447,428 1,426,213 5,749,995
Public Authorities & Electric Railroads 257,875 325,903 150,187 252,791 986,756
------------ ------------ ------------ ------------ ------------
2,439,355 2,642,265 2,424,332 2,510,290 10,016,242
------------ ------------ ------------ ------------ ------------
Total Unbundled Deliveries 6,721,160 6,737,086 6,299,671 6,016,276 25,774,193
------------ ------------ ------------ ------------ ------------
Total Retail Deliveries 29,986,579 28,748,829 33,810,453 27,926,078 120,471,939
============ ============ ============ ============ ============
Gas Deliveries (in mmcf)
Gas Deliveries 34,230 13,782 10,525 22,991 81,528
============ ============ ============ ============ ============
Three Months Ended
--------------------------------------------------------------- Year Ended
Revenues (in thousands) March 31, June 30, September 30, December 31, December 31,
------------ ------------ ------------ ------------ ------------
Bundled Revenue (a)
Residential $ 815,004 $ 723,474 $ 1,120,250 $ 676,625 $ 3,335,353
Small Commercial & Industrial 519,635 623,730 767,151 592,563 2,503,079
Large Commercial & Industrial 319,378 367,292 407,951 356,964 1,451,585
Public Authorities & Electric Railroads 123,586 126,811 137,944 114,390 502,731
------------ ------------ ------------ ------------ ------------
1,777,603 1,841,307 2,433,296 1,740,542 7,792,748
Unbundled Revenue (b)
ARES
Residential 35,762 67,059 81,218 51,346 235,385
Small Commercial & Industrial 53,894 40,280 15,521 19,482 129,177
Large Commercial & Industrial 62,048 40,412 18,515 16,986 137,961
Public Authorities & Electric Railroads 1,282 1,546 1,221 2,349 6,398
------------ ------------ ------------ ------------ ------------
152,986 149,297 116,475 90,163 508,921
PPO
Small Commercial & Industrial 37,263 53,197 76,832 52,863 220,155
Large Commercial & Industrial 60,719 85,817 120,122 76,458 343,116
Public Authorities & Electric Railroads 11,756 18,906 13,325 14,466 58,453
------------ ------------ ------------ ------------ ------------
109,738 157,920 210,279 143,787 621,724
------------ ------------ ------------ ------------ ------------
Total Unbundled Revenue 262,724 307,217 326,754 233,950 1,130,645
------------ ------------ ------------ ------------ ------------
Total Retail Revenue 2,040,327 2,148,524 2,760,050 1,974,492 8,923,393
Wholesale and Miscellaneous Revenue 162,230 175,385 134,079 121,463 593,157
Gas Revenue 294,778 112,316 74,674 172,829 654,597
------------ ------------ ------------ ------------ ------------
Total Revenue $ 2,497,335 $ 2,436,225 $ 2,968,803 $ 2,268,784 $ 10,171,147
============ ============ ============ ============ ============
(a) Bundled service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of
energy and the delivery cost of the transmission and distribution of the energy. PECO's tariffed rates also include a
CTC charge.
(b) Unbundled service reflects customers electing to receive electric generation service under the ComEd PPO option or an
alternative energy supplier. Revenue from customers choosing the ComEd PPO option includes an energy charge at market
rates, transmission and distribution charges and a CTC charges. Revenue from customers choosing an alternative energy
supplier includes a distribution charge and a CTC charge. Transmission charges received from alternative energy
suppliers are included in wholesale and miscellaneous revenue.
1
ComEd
Sales Statistics
2001
Three Months Ended
------------------------------------------------------------------ Year Ended
Retail Deliveries (in MWhs) March 31, June 30, September 30, December 31, December 31,
----------- ----------- ----------- ----------- -----------
Bundled Deliveries (a)
Residential 6,306,593 5,231,699 8,397,985 5,345,603 25,281,880
Small Commercial & Industrial 5,874,818 5,802,950 6,308,108 5,449,265 23,435,141
Large Commercial & Industrial 2,890,060 2,747,982 2,505,688 2,161,400 10,305,130
Public Authorities & Electric Railroads 2,010,241 1,891,021 2,105,490 1,872,508 7,879,260
----------- ----------- ----------- ----------- -----------
17,081,712 15,673,652 19,317,271 14,828,776 66,901,411
Unbundled Deliveries (b)
ARES
Small Commercial & Industrial 461,782 645,229 898,218 860,194 2,865,423
Large Commercial & Industrial 1,163,455 1,250,539 1,548,185 1,495,668 5,457,847
Public Authorities & Electric Railroads 43,073 93,246 91,014 137,665 364,998
----------- ----------- ----------- ----------- -----------
1,668,310 1,989,014 2,537,417 2,493,527 8,688,268
PPO
Small Commercial & Industrial 822,909 798,579 826,717 831,286 3,279,491
Large Commercial & Industrial 1,358,571 1,517,783 1,447,428 1,426,213 5,749,995
Public Authorities & Electric Railroads 257,875 325,903 150,187 252,791 986,756
----------- ----------- ----------- ----------- -----------
2,439,355 2,642,265 2,424,332 2,510,290 10,016,242
----------- ----------- ----------- ----------- -----------
Total Unbundled Deliveries 4,107,665 4,631,279 4,961,749 5,003,817 18,704,510
----------- ----------- ----------- ----------- -----------
Total Retail Deliveries 21,189,377 20,304,931 24,279,020 19,832,593 85,605,921
=========== =========== =========== =========== ===========
Three Months Ended
------------------------------------------------------------------ Year Ended
Revenues (in thousands) March 31, June 30, September 30, December 31, December 31,
----------- ----------- ----------- ----------- -----------
Bundled Revenue (a)
Residential $ 534,151 $ 501,658 $ 816,048 $ 455,723 $ 2,307,580
Small Commercial & Industrial 413,101 466,793 530,571 410,133 1,820,598
Large Commercial & Industrial 136,187 143,788 125,790 116,971 522,736
Public Authorities & Electric Railroads 106,458 109,578 119,135 95,561 430,732
----------- ----------- ----------- ----------- -----------
1,189,897 1,221,817 1,591,544 1,078,388 5,081,646
Unbundled Revenue (b)
ARES
Small Commercial & Industrial 13,474 12,543 10,195 12,024 48,236
Large Commercial & Industrial 26,723 21,146 11,883 14,082 73,834
Public Authorities & Electric Railroads 617 1,343 1,116 2,340 5,416
----------- ----------- ----------- ----------- -----------
40,814 35,032 23,194 28,446 127,486
PPO
Small Commercial & Industrial 37,263 53,197 76,832 52,863 220,155
Large Commercial & Industrial 60,719 85,817 120,122 76,458 343,116
Public Authorities & Electric Railroads 11,756 18,906 13,325 14,466 58,453
----------- ----------- ----------- ----------- -----------
109,738 157,920 210,279 143,787 621,724
----------- ----------- ----------- ----------- -----------
Total Unbundled Revenue 150,552 192,952 233,473 172,233 749,210
----------- ----------- ----------- ----------- -----------
Total Retail Revenue 1,340,449 1,414,769 1,825,017 1,250,621 5,830,856
Wholesale and Miscellaneous Revenue 105,812 115,389 93,068 60,645 374,914
----------- ----------- ----------- ----------- -----------
Total Revenue $ 1,446,261 $ 1,530,158 $ 1,918,085 $ 1,311,266 $ 6,205,770
=========== =========== =========== =========== ===========
(a) Bundled service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of
energy and the delivery cost of the transmission and distribution of the energy.
(b) Unbundled service reflects customers electing to receive electric generation service under the ComEd PPO option or an
alternative energy supplier. Revenue from customers choosing the ComEd PPO option includes an energy charge at market
rates, transmission and distribution charges and a CTC charges. Revenue from customers choosing an alternative energy
supplier includes a distribution charge and a CTC charge. Transmission charges received from alternative energy
suppliers are included in wholesale and miscellaneous revenue.
2
PECO
Sales Statistics
2001
Three Months Ended
----------------------------------------------------------------- Year Ended
Retail Deliveries (in MWhs) March 31, June 30, September 30, December 31, December 31,
----------- ----------- ----------- ----------- -----------
Bundled Deliveries (a)
Residential 2,459,034 1,672,763 2,175,185 1,765,933 8,072,915
Small Commercial & Industrial 1,001,188 1,311,548 1,989,929 1,694,906 5,997,571
Large Commercial & Industrial 2,530,729 3,172,115 3,835,039 3,422,412 12,960,295
Public Authorities & Electric Railroads 192,756 181,665 193,358 197,775 765,554
----------- ----------- ----------- ----------- -----------
6,183,707 6,338,091 8,193,511 7,081,026 27,796,335
Unbundled Deliveries (b)
Residential 527,129 848,220 989,476 739,986 3,104,811
Small Commercial & Industrial 892,423 524,113 99,376 90,155 1,606,067
Large Commercial & Industrial 1,189,200 731,738 248,317 182,265 2,351,520
Public Authorities & Electric Railroads 4,743 1,736 753 53 7,285
----------- ----------- ----------- ----------- -----------
2,613,495 2,105,807 1,337,922 1,012,459 7,069,683
----------- ----------- ----------- ----------- -----------
Total Retail Deliveries 8,797,202 8,443,898 9,531,433 8,093,485 34,866,018
Gas Deliveries (in mmcf)
Gas Deliveries 34,230 13,782 10,525 22,991 81,528
=========== =========== =========== =========== ===========
Three Months Ended
----------------------------------------------------------------- Year Ended
Revenue (in thousands) March 31, June 30, September 30, December 31, December 31,
----------- ----------- ----------- ----------- -----------
Bundled Revenue (a)
Residential $ 280,853 $ 221,816 $ 304,202 $ 220,902 $ 1,027,773
Small Commercial & Industrial 106,534 156,937 236,580 182,430 682,481
Large Commercial & Industrial 183,191 223,504 282,161 239,993 928,849
Public Authorities & Electric Railroads 17,128 17,233 18,809 18,829 71,999
----------- ----------- ----------- ----------- -----------
587,706 619,490 841,752 662,154 2,711,102
Unbundled Revenue (b)
Residential 35,762 67,059 81,218 51,346 235,385
Small Commercial & Industrial 40,420 27,737 5,326 7,458 80,941
Large Commercial & Industrial 35,325 19,266 6,632 2,904 64,127
Public Authorities & Electric Railroads 665 203 105 9 982
----------- ----------- ----------- ----------- -----------
112,172 114,265 93,281 61,717 381,435
----------- ----------- ----------- ----------- -----------
Total Retail Revenue 699,878 733,755 935,033 723,871 3,092,537
Wholesale and Miscellaneous Revenue 56,418 59,996 41,011 60,818 218,243
Gas Revenue 294,778 112,316 74,674 172,829 654,597
----------- ----------- ----------- ----------- -----------
Total Revenue $ 1,051,074 $ 906,067 $ 1,050,718 $ 957,518 $ 3,965,377
=========== =========== =========== =========== ===========
(a) Bundled service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of
energy, the delivery cost of the transmission and distribution of the energy and a CTC charge.
(b) Unbundled 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
charge. Transmission charges received from alternative energy suppliers are included in wholesale and miscellaneous
revenue.
3
