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 18, 2002
Exhibit 99.1
[Exelon Logo]
Exelon Corporation -
A Measure of Our Strength
John W. Rowe
Chairman and CEO
Merrill Lynch Global Power and Gas Leaders Conference
New York City
September 18, 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]
What Is Exelon?
- ------------------------------------------------------------------------------------------------------------
US Electric Companies US 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 $14.2 Billion (9/12/02) 4th (9/12/02) 106th (8/27/02)
- ------------------------------------------------------------------------------------------------------------
* Includes AmerGen investment
** Includes AmerGen and Sithe investments
[Exelon Logo]
Strategic Initiatives Update
- Cost Management Initiative
- Sithe Energies Investment
- Midwest Generation contract
- Provider of Last Resort (POLR) filing
- Enterprises Path to Value
- FERC Goodwill Issue
[Exelon Logo]
Exelon Consolidated Financial Outlook
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($ millions) 2001A 2002E
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Revenue 15,140 14,200-14,600
Gross Margin (Rev. net Fuel) 9,827 9,300-9,700
Other Operating Exp. 4,922 4,775-4,900
Depr. & Amort. 1,449 1,200-1,250
-------------------------------
EBIT 3,456 3,325-3,550
Interest and Pref. 1,109 930-1,000
Income Taxes 931 925-975
-------------------------------
Net Income before Cum. Effect Chg. in
Accounting 1,416 1,470-1,575
Cum. Effect Chg. in Accounting 12
-----------
Net Income* 1,428
Avg. Shares (millions) 322 325
EPS ($) $4.43 $4.55-$4.85
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* Net income as reported for 2001. Net operating income excludes one-time
items for 2002.
A = Actual; E = Estimate
[Exelon Logo]
Our Vision = Value Creation
- - Capitalize on Strengths
- - Focus on Fundamentals and Discipline
- - Committed to Performance
Exhibit 99.2
[Exelon Energy Delivery Brochure - Summer 2002
The brochure is divided into 4 major areas. The first area provides an overview
of Exelon Energy Delivery (EED) and general statistical information about
Commonwealth Edison Company (ComEd) and PECO Energy Company (PECO).
The second area of the brochure is focused on Exelon's vision to become the best
and most consistently profitable electricity and gas company in the United
States. This area includes current and target statistics for 1999 through 2004
to illustrate our expected progress in achieving this vision by optimizing
customer satisfaction, creating a high performing organization and maximizing
financial returns.
The third area of the brochure outlines regulatory initiatives, including
constructive regulatory environments, competition growth and state level
developments for Illinois and Pennsylvania.
Finally, the last area of the brochure is titled "Energy Delivery - Building for
the Future" and addresses EED's commitment to achieve high system reliability by
minimizing outage frequency and duration.]
[Area 1]
[Exelon Logo]
Exelon Energy Delivery
Exelon strives to build exceptional value - by becoming the best and most
consistently profitable electricity and gas company in the United States
This vision means that Exelon Energy Delivery (EED) plans to
- - Revolutionize the meaning, function and perception of utility service
- - Provide increasingly more reliable and affordable services
- - Be preferred by customers
- - Meet and exceed the expectations of our investors
- - Provide extraordinary opportunities for employees with diverse talents and
backgrounds
Energy Delivery Footprint
ComEd 3.6 million electric customers
PECO 1.5 million electric customers
0.4 million gas customers
Exelon Energy Delivery 5.1 million electric customers
0.4 million gas customers
ComEd 2001
Revenues (in millions)................................ $ 6,206
Service area (square miles)........................... 11,300
Electric deliveries (GWhs)............................ 85,606
All-time electric system peak (MWs)................... 21,804 (8-1-02)
Electric transmission:
Voltage (volts)/Circuit miles......................... 765,000/90
345,000/2,590
138,000/2,110
Electric distribution:
Pole-line miles....................................... 40,633 overhead lines
Cable miles........................................... 38,798 underground lines
Gas deliveries (mmcf)................................. N/A
Gas pipeline miles.................................... N/A
Employees............................................. 8,000
PECO 2001
Revenues (in millions)................................ $ 3,965
Service area (square miles)........................... 2,100
Electric deliveries (GWhs)............................ 34,866
All-time electric system peak (MWs)................... 8,164(8-14-02)
Electric transmission:
Voltage (volts)/Circuit miles...... .................. 500,000/891
220,000/1,634
132,000/15
Electric distribution:
Pole-line miles....................................... 21,009 overhead lines
Cable miles........................................... 21,002 underground lines
Gas deliveries (mmcf)................................. 81,528
Gas pipeline miles.................................... 11,401
Employees............................................. 3,000
N/A = Not applicable
Strategic focus areas and value drivers
Customers
o Achieve high system reliability
o Optimize customer satisfaction
Employees
o Maintain a safe environment
o Create a high performing organization
Shareholders
o Maximize financial returns
o Build for the future
[Area 2]
VISION: TO BECOME THE BEST AND MOST CONSISTENTLY PROFITABLE ELECTRICITY AND GAS
COMPANY IN THE UNITED STATES
Strategic Focus Areas
Customers - Employees - Shareholders
Optimize Customer Satisfaction
Exelon Energy Delivery targets first quartile in customer satisfaction by year
end 2004
Customer Satisfaction Index Goal
[Bar graph depicting the expected increasing trend in Exelon Energy Deliveries'
Customer Satisfaction Index Goal as compared to the 1st Quartile. The graph
shows Exelon Energy Deliveries' 2001 Actual Customer Satisfaction Index of 78
and the Customer Satisfaction Index Goal for the years 2002 through 2004
trending upward, reaching the 1st Quartile at 85 in 2004.
2001 actual 2002 goal 2003 goal 2004 goal
Index 78 79 83 85
1st quartile = 85
To the right of the graph the following key strategies are noted:]
Key Strategies
- - Targeted reliability improvements
- - Enhanced customer outage communications
- - Improved Exelon image
- - Customer technology improvements
- - High-quality customer interactions
ComEd System Performance History - Reliability
[Below this header are two charts side by side as described below from left to
right.
The chart to the left is a line chart showing average interruptions per year for
the years 1999 through 2001 with a linear regression line depicting the downward
trend of average interruptions per year for the following data points:
Avg
Year Month Interruptions/Year
1998 Dec 2.21
1999 Jan 2.22
1999 Feb 2.21
1999 Mar 1.82
1999 Apr 1.82
1999 May 1.76
1999 Jun 1.72
1999 Jul 1.83
1999 Aug 1.74
1999 Sep 1.69
1999 Oct 1.66
1999 Nov 1.49
1999 Dec 1.49
2000 Jan 1.41
2000 Feb 1.44
2000 Mar 1.43
2000 Apr 1.48
2000 May 1.6
2000 Jun 1.52
2000 Jul 1.35
2000 Aug 1.4
2000 Sep 1.46
2000 Oct 1.48
2000 Nov 1.47
2000 Dec 1.46
2001 Jan 1.44
2001 Feb 1.38
2001 Mar 1.37
2001 Apr 1.36
2001 May 1.23
2001 Jun 1.24
2001 Jul 1.31
2001 Aug 1.33
2001 Sep 1.29
2001 Oct 1.34
2001 Nov 1.35
2001 Dec 1.32
Across the top center of the chart there is the following wording:] Fewer
Interruptions (Frequency)
[Above the linear regression line is the following word:] Trend
[Along the x-axis of the chart is the following phrase:] 40% Improvement
[The chart to the right is a line chart showing minutes per interruption per
year for the years 1999 through 2001 with a linear regression line depicting the
downward trend of the duration interruptions per year for the following data
points:
Year Month Minutes/Interruption
1998 Dec 273
1999 Jan 274
1999 Feb 274
1999 Mar 212
1999 Apr 211
1999 May 205
1999 Jun 195
1999 Jul 207
1999 Aug 184
1999 Sep 176
1999 Oct 175
1999 Nov 136
1999 Dec 138
2000 Jan 136
2000 Feb 132
2000 Mar 131
2000 Apr 134
2000 May 158
2000 Jun 154
2000 Jul 129
2000 Aug 139
2000 Sep 141
2000 Oct 144
2000 Nov 144
2000 Dec 145
2001 Jan 145
2001 Feb 148
2001 Mar 148
2001 Apr 144
2001 May 112
2001 Jun 116
2001 Jul 120
2001 Aug 110
2001 Sep 105
2001 Oct 103
2001 Nov 103
2001 Dec 103
Across the top center of the chart there is the following wording:] Shorter
Interruptions (Duration)
[Above the linear regression line is the following word:] Trend
[Along the x-axis of the chart is the following phrase:] 62% Improvement
PECO System Performance History - Reliability
[Below this header are two charts side by side as described below from left to
right.
The chart to the left is a line chart showing average interruptions per year for
the years 1999 through 2001 with a linear regression line depicting the downward
trend of average interruptions per year for the following data points:
Avg
Year Month Interruptions/Year
1998 Dec 1.4224
1999 Jan 1.523008
1999 Feb 1.501634
1999 Mar 1.61093
1999 Apr 1.594439
1999 May 1.575076
1999 Jun 1.226508
1999 Jul 1.28189
1999 Aug 1.40679
1999 Sep 1.651984
1999 Oct 1.691979
1999 Nov 1.765955
1999 Dec 1.757855
2000 Jan 1.680432
2000 Feb 1.672717
2000 Mar 1.540906
2000 Apr 1.600627
2000 May 1.593041
2000 Jun 1.552052
2000 Jul 1.505015
2000 Aug 1.388201
2000 Sep 1.133981
2000 Oct 1.093353
2000 Nov 1.015979
2000 Dec 1.095504
2001 Jan 1.091026
2001 Feb 1.190618
2001 Mar 1.219503
2001 Apr 1.1909
2001 May 1.159288
2001 Jun 1.213231
2001 Jul 1.20471
2001 Aug 1.31049
2001 Sep 1.290993
2001 Oct 1.292222
2001 Nov 1.291571
2001 Dec 1.261615
Across the top center of the chart there is the following wording:] Fewer
Interruptions (Frequency)
[Above the linear regression line is the following word:] Trend
[Along the x-axis of the chart is the following phrase:] 27% Improvement
[The chart to the right is a line chart showing minutes per interruption per
year for the years 1999 through 2001 with a linear regression line depicting the
downward trend of the duration interruptions per year for the following data
points:
Year Month Minutes/Interruption
1998 Dec 221.6927
1999 Jan 219.9012
1999 Feb 221.6542
1999 Mar 241.4342
1999 Apr 243.5413
1999 May 236.3867
1999 Jun 149.53
1999 Jul 149.6027
1999 Aug 165.1099
1999 Sep 231.2344
1999 Oct 228.1254
1999 Nov 233.7525
1999 Dec 235.0806
2000 Jan 235.4151
2000 Feb 236.4324
2000 Mar 219.3873
2000 Apr 215.5133
2000 May 215.0856
2000 Jun 218.8437
2000 Jul 217.2127
2000 Aug 206.9334
2000 Sep 108.025
2000 Oct 109.7554
2000 Nov 90.43216
2000 Dec 96.34893
2001 Jan 96.119
2001 Feb 115.9498
2001 Mar 114.636
2001 Apr 113.5501
2001 May 110.919
2001 Jun 113.4934
2001 Jul 115.4725
2001 Aug 121.6979
2001 Sep 120.6055
2001 Oct 119.4027
2001 Nov 119.1776
2001 Dec 112.4264
Across the top center of the chart there is the following wording:] Shorter
Interruptions (Duration)
[Above the linear regression line is the following word:] Trend
[Along the x-axis of the chart is the following phrase:] 60% Improvement
[Next Section]
Create a High Performing Organization
- - Develop leadership skills across the organization
- - Establish robust performance management program across the organization
Maintain a Safe Environment
Exelon Energy Delivery targets first quartile in safety by year end 2004
OSHA Lost Workday Case Rate Targets
[Below this header is a bar graph depicting the expected decreasing trend in
Exelon Energy Deliveries' Customer Satisfaction Index Goal as compared to the
1st Quartile. The graph shows Exelon Energy Deliveries' 2001 Actual OSHA Lost
Workday Case Rate of 2.21 and the OSHA Lost Workday Case Rate Target for the
years 2002 through 2004 trending downward, dipping below the 1st Quartile at
0.69 in 2004.
2001 actual 2002 target 2003 target 2004 target
Rate 2.21 1.39 1.06 0.69
1st quartile = 0.70
To the right of the graph the following key strategy is noted:]
Key Strategy
o Increase management's visible involvement and leadership of safety
Performance History - Safety
[Below this header are two line graphs depicting ComEd and PECO's reduction in
OSHA Recordable Incidence Rates and Lost Workday Case Rates from the 1999
through 2001. The rate is defined as the number of incidents per 100 employees.]
OSHA Recordable Incidence Rate
[ 1999 2000 2001
ComEd 5.66 5.50 3.46
PECO 2.46 2.31 1.48
Below this chart are the following words:]
ComEd-38% reduction
PECO-40% reduction
[Next Section]
Lost Workday Case Rate
[ 1999 2000 2001
ComEd 4.17 3.92 2.48
PECO 1.27 0.86 0.76
Below this chart are the following words:]
ComEd-41% reduction
PECO-40% reduction
[Next Section]
Maximize Financial Returns
- - Minimize operating & maintenance costs
- - Optimize capital investment
- - Grow net operating margin
- - Increase earnings per share
PECO and ComEd each contribute to the financial success of EED and Exelon. By
seeking ways to work more efficiently and to control costs, every employee can
help achieve EED and Exelon financial goals.
Exelon Energy Delivery targets 2nd quartile in total cost per customer by year
end 2004; first quartile by year end 2006
Total Cost per Customer Targets
[Below this header is a bar graph depicting the expected decreasing trend in
Exelon Energy Deliveries' Total Cost per Customer Targets as compared to the 2nd
Quartile. The graph shows
Exelon Energy Deliveries' 2001 Actual Total Cost per Customer of $519 and the
Total Cost per Customer Targets for the years 2002 through 2004 trending
downward, equaling the 2nd Quartile at $424 in 2004.
2001 actual 2002 target 2003 target 2004 target
519 468 439 424
2nd quartile = 424
To the right of the graph the following goals are outlined:]
Goal: To reduce O&M expenses $300 million and capital expenses $175 million by
year end 2004
O&M and Margin Growth Expenses
[Below this header is a bar graph depicting Exelon Energy Deliveries' O&M and
Margin Growth Expenses from 2001 through 2004. Margin Growth O&M Expenses are
defined as those expenses relating to value-added products/services that are
expected to add incremental income.
2001 actual 2002 estimate 2003 estimate 2004 estimate
------------------------------------------------------------------
Total 1.578 1.52 1.52 1.48
------------------------------------------------------------------
Margin Growth O&M Expenses 0.010 0.03 0.06 0.08
All Other O&M Expenses 1.568 1.49 1.46 1.40
To the right of the graph are the following words:]
EED Financial Growth Outlook
CAGR 2002-2004E
Revenue 1.7-1.9%
Gross Margin (Revenue net Fuel) 1.0%
EBIT 2.2-2.4%
Net Income 5.4-5.6%
E=Estimate; CAGR=Compound Annual Growth Rate
[Area 3]
Regulatory Initiatives
Constructive Regulatory Environments
Pennsylvania
-Unbundled rates, electric choice for all customers since January 2000
-Transmission and Distribution rate cap through 2006
-Generation rate cap, collection of stranded investment through 2010
Illinois
-Open access, electric choice for all customers since May 2002
-Bundled rates frozen through 2006
-Transition charges, calculated on "lost revenues" basis, end in 2006
Competition Is Growing Unevenly
Pennsylvania Shopping (June 2002) Mass Market
- 309,000 customers
- 16% of mass market load (MWs)
Large Commercial & Industrial (C&I)
- 150 customers
- 6% of large C&I load (MWs)
Illinois Shopping (June 2002)
Mass Market
- 20,600 customers
- 14% of mass market deliveries (KWhs)
Large Commercial & Industrial
- 1,000 customers
- 48% of large C&I deliveries (KWhs)
Regulatory Developments - State Level
Illinois Provider of Last Resort (POLR) proposal
- Offer fixed-price service for mass-market customers
- Petitioned Illinois Commerce Commission to declare large C&I class
(usage at or above 3 MW) competitive
- Implementation would begin June 2003; fully implement June 2006
- Covers about 370 customers representing a 2,500 MW load (about 12%
of system peak load)
- Free up capacity in Midwest for competitors
Pennsylvania switching requirement for 50% of residential/commercial
customers by January 2003
- Will request approval to make customers available to interested suppliers
to meet one-time requirement
[Area 4]
Energy Delivery - Building for the Future
Achieve High System Reliability
Exelon Energy Delivery targets 2nd quartile in outage frequency and duration by
year end 2004
o Minimize duration of interruptions
o Minimize frequency of interruptions
o Implement targeted reliability improvements
o Invest in technology improvements such as outage management system (OMS)
o Improve distribution circuit and targeted customer programs
Safe, Reliable Service
+ Industry Leading Customer Care
+ Solid Financial Management
+ Experienced Management Team
- ------------------------------------------
Stable Earnings Contributions
Customer Outage Frequency (SAIFI)* Targets
[Below this header is a bar graph depicting the expected decreasing trend in
Exelon Energy Deliveries' Customer Outage Frequency (SAIFI) Targets and compared
to the 2nd Quartile.
2001 actual 2002 target 2003 target 2004 target
Index 1.26 1.05 0.97 0.94]
2nd quartile = 1.1
[Below this table are the following words:]
* System Average Interruption Frequency Index
Customer Outage Duration (CAIDI)* Targets
[Below this header is a bar graph depicting the expected decreasing trend in
Exelon Energy Deliveries' Customer Outage Duration (CAIDI) Targets and compared
to the 2nd Quartile.
2001 actual 2002 target 2003 target 2004 target
Minutes 110 98 90 82]
2nd quartile = 82
[Below the table are the following words:]
* Customer Average Interruption Duration Index
EED Capital Expenditure Program
[Below this header is a stacked vertical bar chart showing EED's Capital
Expenditure Program in billions of dollars for 2001 actual expenditures and
estimated expenditures from 2002 through 2004. The bars are differentiated by
Reliability/Maintenance and New Business.
2001 actual 2002 estimate 2003 estimate 2004 estimate
$ billions
--------------------------------------------------------------------
Total 1.1 1.1 1.0 1.0
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New Business 0.4 0.5 0.4 0.4
Reliability/Maintenance 0.7 0.6 0.6 0.6]
[Next Section]
This publication 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 ?nancial 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 ?lings 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. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this document.
Exelon does not undertake any obligation to publicly release any revisions to
these forward-looking statements to re?ect events or circumstances after the
date of this publication.
A publication of the Exelon Investor Relations Department. Linda C. Byus, Vice
President; Marybeth M. Flater, Manager; Isabel Fabre, Sr. Analyst; Ronald P.
Torres, Sr. Analyst For more information, call 312-394-2345 or fax 312-394-4082.
Exelon Corporation
10 S. Dearborn
P.O. Box 805379
Chicago, IL 60680-5379
Phone 312-394-7398
www.exeloncorp.com
