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
September 4, 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) 394-7398
1-1839 COMMONWEALTH EDISON COMPANY 36-0938600
(an Illinois corporation)
10 South Dearborn Street - 37th Floor
P.O. Box 805379
Chicago, Illinois 60680-5379
(312) 394-4321
1-1401 PECO ENERGY COMPANY 23-0970240
(a Pennsylvania corporation)
P.O. Box 8699
2301 Market Street
Philadelphia, Pennsylvania 19101-8699
(215) 841-4000
333-85496 EXELON GENERATION COMPANY, LLC 23-3064219
(a Pennsylvania limited liability company)
300 Exelon Way
Kennett Square, Pennsylvania 19348
(610) 765-8200
Item 9. Regulation FD
On September 4, 2002 Oliver D. Kingsley, Jr., Senior Executive Vice President,
made a presentation at the Lehman Brothers Conference in New York City. The
slides used in the presentations are attached to this report as Exhibit 99.1. In
addition, a list of the principal generating assets of Sithe Energies, Inc.
(Sithe) was made available to those who attended the conference, which are
attached as Exhibit 99.2. Exhibit 99.3 contains additional information made
available during the presentation.
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 Corporation, Commonwealth
Edison Company, PECO Energy Company and Exelon Generation Company, LLC
(Registrants). Economic, business, competitive and/or regulatory factors
affecting Registrant'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 2001 Annual Report and those discussed in
"Risk Factors" and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" in Exelon Generation Company, LLC's Registration
Statement on Form S-4, Reg. No. 333-85496. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date of this report. Registrants do 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 Description
99.1 Presentation Slides
99.2 List of the principal generating assets of Sithe Energies, Inc.
99.3 Information made available during the presentation
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
Exelon Corporation
September 4, 2002
Exhibit 99.1
[Exelon Logo]
Exelon Corporation -
A Measure of Our Strength
Oliver D. Kingsley, Jr.
Senior Executive Vice President
Lehman Brothers Conference
New York City
September 4, 2002
[Exelon Logo]
Forward-Looking Statements
This 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 2001 Annual Report and those discussed in "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" in Exelon Generation Company, LLC's Registration Statement on Form
S-4, Reg. No. 333-85496. 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.
[Exelon Logo]
One Company, One Vision
Exelon strives to build exceptional value - by becoming the best and most
consistently profitable electricity and gas company in the United States.
To succeed, we must....
- LIVE UP TO OUR COMMITMENTS
- PERFORM AT WORLD-CLASS LEVELS
- INVEST IN OUR CONSOLIDATING INDUSTRY
[Exelon Logo]
What Is Exelon?
----------------------------------- -------------------------- ----------------------- ---------------------
US Electric US
Companies Companies
----------------------------------- -------------------------- ----------------------- ---------------------
Retail Electric Customers 5.1 Million 1st -
Nuclear Capacity 15K MWs* 1st -
US Generating Capacity 41K MWs** 1st -
2001 Revenue $15.1 Billion 9th 135th
2001 Net Income $1.4 Billion 2nd 53rd
Market Cap $16.6 Billion (8/27/02) 4th (8/27/02) 106th (8/27/02)
----------------------------------- -------------------------- ----------------------- ---------------------
* Includes AmerGen investment
** Includes AmerGen and Sithe investments
[Exelon Logo]
YTD Relative Stock Performance
[This slide includes a line chart depicting Exelon's stock performance relative
to the PHL Utility Average, S&P 500 Index and S&P Utility Index from December
31, 2001 to August 29, 2002. Exelon's stock followed the same trends but
outperformed the indices for the comparison period. See data points below
expressed as percentages as compared to December 31, 2001 values:
PHL S&P S&P
Utility 500 Elec Util
EXC Avg. Index Index
- -------------------------------------------------------------
12/31/2001 100 100 100 100
1/2/2002 101.25 101.21 100.57 101.19
1/3/2002 101.09 100.58 101.5 100.46
1/4/2002 100.02 99.91 102.13 99.8
1/7/2002 100.36 100.66 101.46 100.51
1/8/2002 98.79 99.28 101.1 99.09
1/9/2002 97.22 99.41 100.61 98.99
1/10/2002 98.93 99.92 100.74 99.49
1/11/2002 98.71 99.14 99.78 98.53
1/14/2002 100.77 100.27 99.16 99.36
1/15/2002 100.56 100.76 99.84 99.68
1/16/2002 100.46 100.53 98.21 99.74
1/17/2002 98.16 98.77 99.2 98.02
1/18/2002 97.77 98.99 98.21 98.04
1/22/2002 96.14 97.89 97.49 96.69
1/23/2002 96.68 97.99 98.27 96.94
1/24/2002 97.87 98.41 98.61 97.08
1/25/2002 97.93 98.41 98.71 97.05
1/28/2002 97.99 98.16 98.69 96.68
1/29/2002 97.7 96.46 95.87 94.78
1/30/2002 100.27 96.43 96.99 94.66
1/31/2002 102.84 97.94 98.44 96.13
2/1/2002 104.7 98.17 97.75 96.64
2/4/2002 105.45 97.58 95.33 95.72
2/5/2002 105.05 96.41 94.94 94.43
2/6/2002 104.43 94.95 94.38 92.74
2/7/2002 105.68 95.38 94.08 93.41
2/8/2002 105.7 95.37 95.48 93.52
2/11/2002 106.22 96.13 96.85 94.4
2/12/2002 108.1 96.59 96.47 94.99
2/13/2002 105.24 97.09 97.42 95.35
2/14/2002 104.37 96.64 97.25 94.93
2/15/2002 105.05 95.14 96.18 93.43
2/19/2002 103.2 93.79 94.36 93.43
2/20/2002 103.34 93.8 95.64 91.8
2/21/2002 101.36 93.21 94.15 91.22
2/22/2002 103.28 94.03 94.93 92.01
2/25/2002 103.74 94.04 96.63 91.91
2/26/2002 103.82 94.64 96.63 92.67
2/27/2002 103.97 95.43 96.67 93.44
2/28/2002 102.92 95.59 96.4 93.5
3/1/2002 105.51 97.11 98.58 94.97
3/4/2002 105.99 98.46 100.5 96.64
3/5/2002 106.2 99.6 99.83 98.06
3/6/2002 109.38 101.1 101.28 99.9
3/7/2002 109.42 101.14 100.82 100.13
3/8/2002 108.6 100.65 101.41 99.79
3/11/2002 109.13 101.05 101.76 100.21
3/12/2002 108.58 100.07 101.52 99.15
3/13/2002 107.98 99.34 100.52 98.33
3/14/2002 109.44 99.52 100.43 98.49
3/15/2002 109.48 99.81 101.57 98.77
3/18/2002 110.19 100.66 101.52 99.98
3/19/2002 110.55 100.85 101.93 100.39
3/20/2002 108.19 100.59 100.33 100.04
3/21/2002 110.09 103.17 100.48 102.84
3/22/2002 111.11 103.07 100.05 102.67
3/25/2002 110.9 102.75 98.59 102.42
3/26/2002 108.81 102.12 99.16 101.49
3/27/2002 110.36 103.32 99.7 102.93
3/28/2002 110.63 103.52 99.94 103.19
4/1/2002 110.13 103 99.87 102.65
4/2/2002 109.65 103.35 99.01 102.98
4/3/2002 109.65 103.17 98.02 102.68
4/4/2002 109.02 103.85 98.11 103.04
4/5/2002 108.06 103.4 97.79 102.58
4/8/2002 108.83 103.78 98.01 102.78
4/9/2002 107.66 103.15 97.36 102.05
4/10/2002 109.96 104.55 98.47 103.59
4/11/2002 108.77 103.07 96.13 102.2
4/12/2002 108.92 103.45 96.77 102.67
4/15/2002 108.31 101.7 96.03 101.42
4/16/2002 109.5 102.85 98.28 102.74
4/17/2002 109.69 104.02 98.08 103.43
4/18/2002 110.11 104.52 97.94 104.32
4/19/2002 111.63 105.01 98 104.93
4/22/2002 112.78 105.15 96.49 104.99
4/23/2002 112.78 105.93 95.9 105.67
4/24/2002 113.62 105.91 95.21 105.66
4/25/2002 112.55 104.55 95.07 104.26
4/26/2002 113.58 103.73 93.75 103.67
4/29/2002 111.51 104.25 92.8 103.71
4/30/2002 113.41 105.31 93.8 104.73
5/1/2002 114.04 104.99 94.63 104.49
5/2/2002 114.35 105.29 94.47 104.96
5/3/2002 114.83 105.45 93.5 105.03
5/6/2002 115.71 105.3 91.69 104.99
5/7/2002 117.52 104.5 91.41 104.39
5/8/2002 118.88 104.96 94.84 104.87
5/9/2002 116.96 104.16 93.46 104.05
5/10/2002 116.88 102.53 91.89 102.38
5/13/2002 114.97 102.3 93.6 101.79
5/14/2002 114.66 102.55 95.58 101.73
5/15/2002 114.58 101.11 95.03 100.56
5/16/2002 110.78 98.48 95.66 98.16
5/17/2002 108.58 97.27 96.39 97.42
5/20/2002 108.4 99.06 95.1 99.13
5/21/2002 108.92 99.65 94.06 99.91
5/22/2002 112.8 102 94.59 102.21
5/23/2002 114.72 102.81 95.56 103.05
5/24/2002 114.04 102.39 94.4 102.89
5/28/2002 113.39 102.02 93.6 102.54
5/29/2002 112.16 100.34 93 101.05
5/30/2002 113.83 99.29 92.73 100.55
5/31/2002 111.72 98.89 92.95 99.97
6/3/2002 109.34 96.53 90.65 97.8
6/4/2002 110.25 97.34 90.65 98.4
6/5/2002 110.42 96.25 91.45 97.36
6/6/2002 107.52 93.78 89.64 94.96
6/7/2002 108.29 93.58 89.5 95.22
6/10/2002 109.65 94.15 89.78 96.18
6/11/2002 109.98 94.04 88.29 96.05
6/12/2002 111.05 95.13 88.87 96.59
6/13/2002 112.03 96.04 87.93 97.05
6/14/2002 110.07 95.41 87.74 96.15
6/17/2002 110.69 96.63 90.25 97.21
6/18/2002 112.99 97.8 90.34 98.06
6/19/2002 113.28 97.11 88.84 97.24
6/20/2002 110.76 95.32 87.65 96.09
6/21/2002 111.32 95.87 86.16 96.42
6/24/2002 108.81 94.18 86.47 94.71
6/25/2002 108.23 93.85 85.02 94.35
6/26/2002 107.87 93.22 84.8 93.6
6/27/2002 107.98 93.55 86.29 93.97
6/28/2002 109.23 95.09 86.22 95.46
7/1/2002 107.44 93.29 84.37 94.05
7/2/2002 105.89 91.58 82.58 92.29
7/3/2002 105.26 90.82 83.09 91.59
7/5/2002 105.05 91.59 86.15 92.24
7/8/2002 103.63 90.88 85.1 91.31
7/9/2002 100.77 88.15 82.99 88.57
7/10/2002 96.83 82.94 80.17 83.8
7/11/2002 98.98 85.94 80.78 86.58
7/12/2002 94.8 82.59 80.25 84.21
7/15/2002 94.51 83.84 79.95 86.2
7/16/2002 95.24 81.27 78.47 83.88
7/17/2002 93.57 80.79 78.92 83.16
7/18/2002 92.38 78.2 76.79 81.05
7/19/2002 88.99 74.53 73.84 76.96
7/22/2002 88.64 73.69 71.41 76.34
7/23/2002 84.27 68.05 69.48 70.27
7/24/2002 91.9 74.37 73.46 76.19
7/25/2002 95.13 77.43 73.05 79.55
7/26/2002 93.9 75.87 74.28 77.98
7/29/2002 92.42 76.46 78.3 78.63
7/30/2002 100.38 81.84 78.63 83.82
7/31/2002 102.44 82.8 79.4 84.97
8/1/2002 100.25 80.61 77.06 82.44
8/2/2002 97.68 79.07 75.28 81.03
8/5/2002 98.08 78.8 72.7 80.8
8/6/2002 100.5 81.6 74.87 83.63
8/7/2002 100.65 82.13 76.37 84.15
8/8/2002 101.96 83.25 78.87 85.26
8/9/2002 102.76 83.59 79.14 85.51
8/12/2002 103.84 84.95 78.72 87.08
8/13/2002 100.21 83.02 77.02 84.66
8/14/2002 104.34 85.66 80.1 87.17
8/15/2002 103.03 85.29 81.03 86.76
8/16/2002 101.48 83.98 80.9 85.74
8/19/2002 103.28 84.97 82.81 86.64
8/20/2002 104.16 85.12 81.65 86.7
8/21/2002 108.4 87.42 82.69 88.92
8/22/2002 108.17 88.59 83.85 90.33
8/23/2002 106.75 87.13 81.95 88.97
8/26/2002 107.39 88.96 82.57 90.64
8/27/2002 107.29 87.497 81.42 89.54
8/28/2002 106.12 87.15 79.95 88.87
8/29/2002 104.45 86.02 79.94 87.53]
[Exelon Logo]
Strategic Initiatives Update
- Cost Management Initiative
- Sithe Energies Investment
- Midwest Generation contract
- Provider of Last Resort (POLR) filing
- Enterprises Path to Value
[Exelon Logo]
Cost Management Initiative Success
- CMI is ongoing initiative, not a one-shot austerity program
- Results to date - better than plan
o Target for 2002: $200 million
o Actual through July: $133 million
- Commitment for 2003
o Savings targets included in 2003 planning; 2002 base built in
o Continued focus on sustainable savings
o CMI teams are still active
[Exelon Logo]
Sithe Portfolio
- - Sithe New England assets
- Operating, merchant plants - 1,644 MWs
- Under construction - 2,421 MWs
- - Other Sithe assets
- Operating, merchant plants - 344 MWs
- Operating, qualifying facilities - 977 MWs
- Under construction - 230 MWs
- Under advanced development - 1,600 MWs
[Exelon Logo]
Midwest Gen Contract Provides Flexibility
- - Exelon/Midwest Generation contract runs through 2004
- Includes options for supply choices
- - July 1 - decision on option coal generation
- Turned back 2,684 MWs
- Retained 1,265 MWs
-Assured adequate supply, reliability of T&D system
- - October - decision on options for Collins (2,698 MWs) and peakers (994 MWs)
- - Midwestern area has seen active development of new peaker capacity
- - Opportunity for Exelon to restructure its portfolio
[Exelon Logo]
Illinois Provider of Last Resort Proposal
- - Offer fixed-price service for mass-market customers
- - Petitioned ICC to declare large commercial and industrial class (usage at or
above 3 MW) competitive
- Implementation would begin June 2003, be fully implemented June 2006
- Covers about 370 customers representing a 2,500-MW load
- Free up capacity in Midwest for competitors
[Exelon Logo]
Enterprises Paths to Value
|--------------------------------------| |---------------------------------|
| | | |
| Current Focus | | Paths to Value |
|--------------------------------------| |---------------------------------|
| A | | | Immediate exit/close |
| l | | | - Losses/Low return |
| l | | | - No business unit fit |
| | Achieving Profitable | |---------------------------------|
| B | Operations | | |
| u | | | Exit upon market recovery |
| s | | \ | - Timing of sale |
| i | | ---------------- \ | - No strategic fit |
| n |-------------------------------| \ |---------------------------------|
| e | | / | |
| s | | ---------------- / | Fix then exit |
| s | Releasing Maximum | / | - Improve Value |
| e | Value to the | | |
| s | Corporation | |---------------------------------|
| | | | |
| | | | Fix and Hold |
| | | | - Exceed cost of capital |
| | | | - Increase value short term| |
| | | | - Strategic fit |
| | | |---------------------------------|
| | | | |
| | | | Divest profitable businesses |
| | | | for cash |
|------|-------------------------------| |---------------------------------
[Exelon Logo]
Upcoming Events in 2002
- - Midwest Generation options
- - Illinois Commerce Commission decisions on ComEd audit and
POLR filing
- - Additional Sithe-related transactions
- - Q3 earnings results
[Exelon Logo]
Our Vision = Value Creation
- - Committed to Growth
- - Capitalize on Strengths
- - Focus on Fundamentals and Discipline
- - Committed to Performance
Exhibit 99.2
[Exelon Logo]
SITHE ASSETS
The following table shows Sithe's principal assets as of August 31, 2002 (1).
No. of Dispatch Net Generation
Type of Plant Station Location Units Fuel Type Capacity (MW)
================================================================================================================================
Merchant Plants Batavia New York 1 Gas Intermediate 50
Framingham 1, 2, 3 Massachusetts 3 Oil Peaking 37
Massena New York 1 Gas/Oil Intermediate 66
Mystic 4, 5, 6, 7 Massachusetts 4 Oil Intermediate 995
Mystic CT Massachusetts 1 Oil Peaking 11
New Boston 2 Massachusetts 2 Gas/Oil Intermediate 380
New Boston 3 Massachusetts 1 Oil Peaking 20
Ogdensburg New York 1 Gas/Oil Intermediate 71
West Medway 1, 2, 3 Massachusetts 3 Gas/Oil Peaking 165
Wyman 4 Maine 1 Oil Intermediate 36
Cardinal Canada 1 Gas Base-load 157
-------- ---------------
19 1,988
-------- ---------------
Qualifying Facilities Allegheny 5, 6, 8, 9 Pennsylvania 4 Hydro Intermediate 51
Bypass Idaho 1 Hydro Base-load 10
Elk Creek Idaho 1 Hydro Base-load 2
Greeley Colorado 1 Gas Base-load 48
Hazelton Idaho 1 Hydro Base-load 9
Independence New York 1 Gas Base-load 614
Ivy River North Carolina 1 Hydro Base-load 1
Kenilworth New Jersey 1 Gas/Oil Base-load 26
Montgomery Creek California 1 Hydro Base-load 3
Naval Station California 1 Gas/Oil Base-load 45
Naval Training Center California 1 Gas/Oil Base-load 23
North Island California 1 Gas/Oil Base-load 37
Oxnard California 1 Gas Base-load 48
Rock Creek California 1 Hydro Base-load 4
Sterling New York 1 Gas Intermediate 56
-------- ---------------
18 977
-------- ---------------
Under Construction ForeRiver 3 Massachusetts 1 Gas/Oil Base-load 807
Mystic 8, 9 Massachusetts 2 Gas Base-load 1,614
TEG 1, 2 Mexico 2 Coke Base-load 230
-------- ---------------
5 2,651
-------- ---------------
Under Advanced Goreway Canada 1 Gas Base-load 800
Development (1) Southdown Canada 1 Gas Base-load 800
-------- ---------------
2 1,600
-------- ---------------
44 7,216
(1)On May 9, 2002, GE Power Systems and Sithe announced the cancellation of
development of the 800-MW Heritage power plant. ForeRiver 1 & 2 plants (26
MW) were dismantled due to the construction of ForeRiver 3. The New Boston 1
plant (350 MW) was shutdown on July 1, 2002.
Exhibit 99.3
The following information was made available during the presentation:
Exelon's 2003 plans and budgets are not complete, but the acquisition of the
portion of Sithe that Exelon does not currently own (50%) is expected to be
modestly dilutive to earnings in 2003. The effect of the Sithe acquisition is
included in Exelon's earnings guidance.
Exelon expects downward pressure on revenue from lower wholesale power prices.
Weather had a slightly negative impact in the first half of the year. Weather
improved in July, however, final data for August weather is not available at
this time.
Growth drivers in the first half of the year included lower operating expenses,
lower depreciation and amortization and lower interest expense. These drivers
are expected to continue to affect earnings through the rest of the year.
Exelon reaffirmed its commitment to growth and expects to generate an average 5%
annual earnings growth in the near term from current asset and business mix
based on increased productivity and decreased costs. A stronger economy and
higher wholesale prices could also add to Exelon's current growth estimates.
