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/ Robert S. Shapard
-----------------------
Robert S. Shapard
Executive Vice President and Chief Financial Officer
Exelon Corporation
January 30, 2003
Exhibit 99
News Release
From: Exelon Corporation FOR IMMEDIATE RELEASE
---------------------
Corporate Communications January 29, 2003
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 Reports Fourth Quarter Earnings of $1.22 Per Diluted Share;
Common Dividend Increased by 4.5%
Chicago (January 29, 2003) - Exelon Corporation (NYSE: EXC) today reported
consolidated earnings of $397 million, or $1.22 per share (diluted), for the
fourth quarter of 2002 and $1,440 million, or $4.44 per share (diluted), for the
year ended December 31, 2002. There were no unusual earnings items in the
quarter. Earnings in the fourth quarter of 2001 were $338 million or $1.05 per
share (diluted) and included a severance charge that lowered earnings by $0.03
per share. "Earnings from operations" or "operating earnings" represent reported
earnings excluding unusual items. Excluding the severance charge, fourth quarter
2001 earnings from operations were $1.08 per share. Earnings for the fourth
quarter 2002 were up 13% over earnings from operations in fourth quarter 2001.
Full year 2002 earnings from operations were $4.83 per share, up 7.6% over 2001
earnings from operations. Exelon's reported earnings for 2002 included three
unusual items that lowered earnings by $0.39 per share, the second quarter gain
from the sale of the AT&T Wireless investment and the first quarter charges for
goodwill impairment and severance costs. Exelon's reported 2001 earnings of
$1,428 million, or $4.43 per share (diluted), included a net negative $0.06 per
share of unusual items. The unusual items in 2001 consisted of severance
charges, litigation reserves, implementation of a new accounting principle for
derivative contracts, the settlement of a transition bond swap, a wholesale rate
settlement and the prepayment of competitive transition charges by a large PECO
customer. Excluding these items, 2001 operating earnings were $4.49 per share.
Improved operating earnings for both the quarter and the full year were due to
higher sales (including increased weather-related kWh deliveries), lower
interest expense, higher interest income and the cessation of goodwill
amortization. For the full year, these positives were offset by lower energy
margins resulting from lower wholesale power prices. The estimated net impact of
favorable weather is $0.07 per share in the fourth quarter compared with the
prior year and $0.01 per share relative to normal weather. For the full year
2002, the favorable impact of weather was $0.21 per share compared with 2001 and
$0.08 per share relative to normal weather. The cessation of goodwill
amortization contributed $0.11 per share for the quarter relative to the fourth
quarter of 2001 and $0.46 per share for the full year 2002 compared with 2001.
"Our success in 2002 was the result of our drive to live up to our commitments
and perform at world-class levels," said John W. Rowe, Exelon Chairman and CEO.
"In 2003, we will build on our successful Cost Management Initiative and
continue to push for improved efficiency and productivity. Based on the current
outlook, we believe we are in a position to earn $4.80 to $5.00 per share in
2003."
Common Dividend Increase
Yesterday, the Exelon Board of Directors declared a dividend of $0.46 per share
on Exelon's common stock, payable March 10, 2003, to shareholders of record at
5:00 p.m. EST on February 15, 2003. The increase of $0.08 per share annually,
approximately 4.5%, will result in an annual dividend rate of $1.84 per share or
$0.46 per share quarterly. Payment of future dividends is subject to approval
and declaration by the Board.
Fourth Quarter Highlights
o Exelon Generation's nuclear fleet, excluding AmerGen, produced 29,727
GWhs for the fourth quarter of 2002, compared with 29,442 GWhs output
for the fourth quarter of 2001. The fleet, including AmerGen, achieved
a capacity factor of 94.2% for the fourth quarter of 2002, compared
with 92.5% for the fourth quarter of 2001. Exelon Generation's nuclear
group (Nuclear) completed three scheduled outages during the fourth
quarter of 2002 compared with two scheduled outages in the fourth
quarter of 2001. Exelon Nuclear achieved a 92.7% capacity factor for
the full year 2002 compared with 94.4% for 2001. The lower capacity
factor in 2002 was the result of more numerous refueling outages in
2002, reflecting eleven planned outages in 2002 compared with six in
2001.
o The Cost Management Initiative (CMI) achieved $154 million of
sustainable savings in the fourth quarter of 2002 relative to Exelon's
original 2002 financial plan. For the full year 2002, the CMI achieved
$340 million of sustainable savings relative to Exelon's original 2002
financial plan. Out of the total $340 million of CMI savings, $269
million represents cash savings with the balance of savings from
non-cash items.
o On November 1, Exelon Generation completed the purchase of Sithe New
England Holdings (Sithe New England), a subsidiary of Sithe Energies,
Inc. (Sithe), representing about 4,445 MWs of capacity. The purchase
price consisted of a $534 million note to Sithe, $14 million of direct
acquisition costs and the assumption of various Sithe guarantees
related to an equity contribution agreement between Sithe New England
and Sithe Boston Generation, a project subsidiary of Sithe New England.
Sithe Boston Generation has a $1.25 billion credit facility to finance
construction of the Mystic 8 and 9 generating units and the ForeRiver
unit. The $1.0 billion outstanding under the facility at December 31,
2002, is reflected on Exelon's consolidated Balance Sheet.
o On November 22, Exelon announced the renewal of its $1.5 billion credit
facility. Exelon, along with ComEd, PECO and Exelon Generation,
participates in the $1.5 billion unsecured 364-day revolving credit
facility with a group of 16 banks. The credit facility includes a
term-out option that allows any outstanding borrowings at the end of
the revolving credit period to be repaid on November 21, 2004. This
facility is used principally to support the commercial paper programs
at the Exelon holding company level and at ComEd, PECO and Generation.
2
o On January 22, 2003, ComEd closed on the sale of $350 million of 3.70%
first mortgage bonds, which are due on February 1, 2008, and $350
million of 5.875% first mortgage bonds, which are due on February 1,
2033. The net proceeds from the sale of the bonds, together with
available cash balances, will be used to pay off matured or called debt
with interest rates averaging about 6.5%. The 5-year bonds were priced
at 68 basis points over the 5-year U.S. Treasury Note at the date of
the pricing, while the 30-year bonds were priced at 90 basis points
over the 30-year U.S. Treasury Note at the date of the pricing. These
bond sales are part of an effort at Exelon Corporation to manage
ComEd's balance sheet and lower its interest expense.
BUSINESS UNIT RESULTS
Exelon Corporation's consolidated net income for the fourth quarter of 2002 was
$397 million compared with net income of $338 million in the fourth quarter of
2001.
Exelon Energy Delivery consists of the retail electricity transmission and
distribution operations of ComEd and PECO and the natural gas distribution
business of PECO. Energy Delivery's net income in the fourth quarter of 2002 was
$361 million compared with net income of $212 million in the fourth quarter of
2001. This increase was primarily due to increased sales to residential
customers, including weather-related electric and gas sales, the cessation of
goodwill amortization, lower depreciation rates at ComEd, and cost savings in
2002.
Heating degree days for the fourth quarter of 2002 in the ComEd service
territory were up 27% relative to the same period in 2001 and 3% above normal.
In the PECO service territory, heating degree days were up 42% compared with
2001 and 3% below normal. Retail KWh deliveries rose 3% for ComEd, with a 14%
increase in deliveries to the residential customer class reflecting more heating
degree days and a strong housing market. PECO's retail KWh deliveries increased
11% overall, reflecting an increase in the number of customers selecting PECO as
their energy service provider. Energy Delivery's fourth quarter 2002 revenues
were $2,484 million, up 10% from $2,268 million in 2001. Energy Delivery's
fourth quarter 2002 fuel and purchased power expense was $1,044 million, up 8%
from $970 million in 2001. Additionally, Energy Delivery's results improved due
to a decrease in operating and maintenance expense, the cessation of the
amortization of goodwill and lower interest expense. The impact of the colder
weather increased Energy Delivery's fourth quarter 2002 earnings per share
(diluted) by approximately $0.05 relative to 2001, and $0.01 relative to the
normal weather that was incorporated in our earnings guidance.
Exelon Generation consists of Exelon's electric generation operations and power
marketing and trading functions. Generation's fourth quarter 2002 net income of
$73 million decreased from fourth quarter 2001 net income of $143 million due to
higher average supply costs and higher operating and maintenance expenses,
partially offset by a weather-related increase in energy sales volumes to
affiliates and the market, and higher power prices. Generation's fourth quarter
2002 revenue of $1,626 million includes a net trading portfolio loss of $2
million compared with fourth quarter 2001 revenue of $1,423 million, which
included a net trading portfolio gain of $8 million. Revenues, excluding the
trading portfolio, increased 15% from the fourth quarter of 2001, reflecting
higher energy sales volumes, higher power prices and the 2002 acquisitions of
the New England plants and two Texas plants. Energy sales volume, exclusive of
trading volumes, totaled 51,804 GWhs in the fourth quarter of 2002 compared with
47,294 GWhs in fourth quarter 2001.
3
The average realized price excluding trading activity in the fourth quarter of
2002 was $30.04 per MWh compared with $29.66 per MWh in 2001. Higher market
prices in both MAIN and PJM, driven by higher market gas and oil prices and cold
weather, were largely offset by our hedge position during the quarter. The same
factors, cold weather and higher gas prices, also resulted in higher supply
costs, including purchase power costs. As a result of these factors margins
contracted and revenue net fuel decreased $48 million to $660 million in the
fourth quarter of 2002 as compared with the fourth quarter of 2001. The fourth
quarter 2002 revenue net fuel includes net mark-to-market losses of $4 million
from non-trading activities. Operating and maintenance expenses increased $67
million reflecting the addition of the Texas and New England plants, increased
nuclear outages and a lower 2002 insurance distribution from Nuclear Electric
Insurance Limited, partially offset by savings generated by Exelon's CMI
efforts. The $22 million increase in depreciation and amortization in the fourth
quarter of 2002 as compared with the fourth quarter of 2001 is related to the
acquired Texas and New England plants and other capital investments.
Exelon Enterprises consists of Exelon's competitive retail energy sales, energy
and infrastructure services, venture capital investments and related businesses.
Enterprises reported a fourth quarter 2002 net loss of $4 million, an
improvement of $18 million compared with the same period in 2001. The
improvement in net income was the result of increased revenues and margins in
infrastructure services, mark-to-market adjustments, Exelon's CMI savings and
the cessation of goodwill amortization. The positive operating results were
partially offset by various income tax related items.
Conference call information: Exelon has scheduled a conference call for 11 AM ET
(10 AM CT) on January 29. The call-in number in the U.S. is 800/370-0869 and the
international call-in number is 973/582-2720. 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 until February 15. The U.S. call-in number
for replays is 877/519-4471 and the international call-in number is
973/341-3080. The confirmation code is 3653872.
================================================================================
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, those discussed in "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" in Exelon Generation Company's Registration Statement on Form S-4,
Reg. No. 333-85496, those discussed in "Risk Factors" in PECO Energy Company's
Registration Statement on Form S-3, Reg. No. 333-99361, and those discussed in
"Risk Factors" in Commonwealth Edison Company's Registration Statement on Form
S-3, Reg. No. 333-99363. 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.
4
###
Exelon Corporation is one of the nation's largest electric utilities with
approximately 5 million customers and $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 Year Ended
December 31, December 31,
--------------------------------------------------
2002 2001 2002 2001
-------- -------- -------- --------
Operating Revenues $ 3,709 $ 3,293 $ 14,955 $ 14,918
Operating Expenses
Purchased Power 771 531 3,535 3,213
Fuel 494 422 1,727 1,877
Operating and Maintenance 1,093 1,101 4,345 4,394
Depreciation and Amortization 328 340 1,340 1,449
Taxes Other Than Income 141 130 709 623
-------- -------- -------- --------
Total Operating Expenses 2,827 2,524 11,656 11,556
-------- -------- -------- --------
Operating Income 882 769 3,299 3,362
-------- -------- -------- --------
Other Income and Deductions
Interest Expense (227) (243) (966) (1,107)
Distributions on Preferred Securities of Subsidiaries (12) (15) (45) (49)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net (35) (15) 80 62
Other, net 62 31 300 79
-------- -------- -------- --------
Total Other Income and Deductions (212) (242) (631) (1,015)
-------- -------- -------- --------
Income Before Income Taxes and Cumulative Effect
of Changes in Acounting Principles 670 527 2,668 2,347
-------- -------- -------- --------
Income Taxes 273 189 998 931
-------- -------- -------- --------
Income Before Cumulative Effect of Changes in
Accounting Principles 397 338 1,670 1,416
Cumulative Effect of Changes in Accounting
Principles, Net of Income Taxes -- -- (230) 12
-------- -------- -------- --------
Net Income $ 397 $ 338 $ 1,440 $ 1,428
======== ======== ======== ========
Average Common Shares Outstanding
Basic: 323 321 322 320
Diluted: 325 322 325 322
Earnings per Average Common Share:
Basic:
Income before Cumulative Effect of Changes in Accounting Principles $ 1.23 $ 1.05 $ 5.18 $ 4.42
Cumulative Effect of Changes in Accounting Principles -- -- (0.71) 0.04
-------- -------- -------- --------
Net Income $ 1.23 $ 1.05 $ 4.47 $ 4.46
======== ======== ======== ========
Diluted:
Income before Cumulative Effect of Changes in Accounting Principles $ 1.22 $ 1.05 $ 5.15 $ 4.39
Cumulative Effect of Changes in Accounting Principles -- -- (0.71) 0.04
-------- -------- -------- --------
Net Income $ 1.22 $ 1.05 $ 4.44 $ 4.43
======== ======== ======== ========
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 --
Employee severance costs -- (0.03) (0.04) (0.09)
Litigation reserves -- -- -- (0.03)
CTC prepayment -- -- -- 0.02
Wholesale rate settlement -- -- -- 0.01
Gains and losses on investments -- -- -- (0.02)
Implementation of FAS 133 -- -- -- 0.04
Settlement of Transition Bond Swap -- -- -- 0.01
-------- -------- -------- --------
Total Unusual Items $ -- $ (0.03) $ (0.39) $ (0.06)
======== ======== ======== ========
1
EXELON CORPORATION
Earnings Per Diluted Share Reconciliation
Fourth Quarter 2002 vs. Fourth Quarter 2001
2001 Earnings per Diluted Share $ 1.05
Unusual Items included in 2001 Earnings:
Employee Severance Cost (1) 0.03
-----------
2001 Earnings Excluding Unusual Items 1.08
Year Over Year Effects on Earnings:
Higher Energy Margins - Excluding Weather (2) 0.12
Higher Energy Margins - Weather Impact (3) 0.07
Cessation of Goodwill Amortization 0.11
Lower Interest Expense (4) 0.04
Higher Interest Income (5) 0.05
Higher Net Losses of Unconsolidated Subsidiaries (6) (0.04)
Lower Operating and Maintenance Expense (O&M) (7) 0.02
Higher Nuclear Outage Operating and Maintenance Costs (8) (0.03)
Lower Insurance Refund from Nuclear Electric Insurance Limited (0.05)
Lower Taxes Other Than Income (9) 0.01
Higher Depreciation and Amortization Expense (10) (0.04)
Higher Effective Income Tax Rate (11) (0.12)
-----------
2002 Earnings per Diluted Share $ 1.22
===========
(1) Relates to additional PECO positions identified to be eliminated in 2001 as
a result of the 2000 merger of PECO and Unicom.
(2) Primarily reflects higher sales, including a stronger housing market in
Chicago in 2002 compared to 2001, partially offset by higher PJM ancillary
costs.
(3) Primarily related to colder winter weather in the fourth 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.
(4) 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.
(5) Primarily reflects higher investment income from nuclear decommissioning
trust funds in 2002.
(6) Primarily reflects lower earnings at Sithe.
(7) Lower O&M's, excluding outage costs, employee severance insurance refunds
and InfraSource and Energy Services O&M's, relate to Exelon's Cost
Management Initiative and a reduction in bad debt reserves at Energy
Delivery, partially offset by Generation O&M's reflecting higher
administrative costs, an increase in credit reserves, the acquisition of
two generating stations in Texas in April 2002 and the acquisition of Sithe
New England in November 2002.
(8) Relates to three nuclear refueling outages in 2002 as compared to one
refueling outage in 2001. These outages exclude AmerGen and include Salem.
(9) Lower Taxes Other Than Income, excluding taxes included in energy margins,
relate to an adjustment to sales and use tax.
(10) 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
balances, partially offset by lower depreciation rates at ComEd.
(11) Reflects changes in deferred taxes and other tax charges.
2
EXELON CORPORATION
Earnings Per Diluted Share Reconciliation
Year Ended December 31, 2002 vs. Year Ended December 31, 2001
2001 Earnings per Diluted Share $ 4.43
Unusual Items included in 2001 Earnings:
Cumulative Effect of Adopting SFAS 133 (0.04)
Employee Severance Cost (1) 0.09
Litigation Reserves 0.03
Net Loss on Investments (2) 0.02
CTC Prepayment (0.02)
Wholesale Rate Settlement (0.01)
Settlement of Transition Bond Swap (0.01)
-------------
2001 Earnings Excluding Unusual Items 4.49
Year Over Year Effects on Earnings:
Lower Energy Margins - Excluding Weather (3) (0.35)
Higher Energy Margins - Weather Impact (4) 0.21
Higher Nuclear Outage Operating and Maintenance Costs (5) (0.15)
Investment and Asset Write-Downs (6) (0.08)
Cessation of Goodwill Amortization 0.46
Operating and Maintenance Expense (O&M) (7) -
Lower Insurance Refund from Nuclear Electric Insurance Limited (0.05)
Lower Interest Expense (8) 0.27
Higher Interest Income (9) 0.13
Higher Taxes Other Than Income (10) (0.03)
Litigation Reserve - ComEd Liberty Audit (0.02)
Higher Depreciation and Amortization Expense (11) (0.07)
Increased Reserve for Environmental Liabilities (0.03)
Higher Equity in Earnings of Unconsolidated Affiliates (12) 0.03
Lower Effective Income Tax Rate (13) 0.04
Other (0.02)
-------------
2002 Earnings Before Cumulative Effect of Adopting SFAS 142,
the Gain on the AT&T Sale and Severance 4.83
Cumulative Effect of Adopting SFAS 142 (0.71)
Gain on the Sale of AT&T Wireless 0.36
Severance (14) (0.04)
-------------
2002 Earnings per Diluted Share $ 4.44
=============
(1) Relates to additional PECO positions identified to be eliminated in 2001 as
a result of the 2000 merger of PECO and Unicom.
(2) Impairment writedowns of Enterprises' investments, partially offset by
realized gains on distributions on Enterprises' investments.
(3) Primarily reflects lower market prices for energy, higher PJM ancillary
costs, lower margins on energy trading activity and rate reductions at
Energy Delivery, partially offset by higher sales including a stronger
housing market in Chicago in 2002 compared to 2001 and the effect of
customers returning to PECO. ComEd's 5% residential customer rate
reduction, effective October 1, 2001, reflects a reduction of $0.18 per
share.
(4) Primarily related to warmer summer weather and colder winter weather in
Chicago and Philadelphia in 2002 compared to 2001.
(5) Relates to eleven nuclear refueling outages in 2002 as compared to six
nuclear refueling outages in 2001.
(6) Reflects $41 million of investment writedowns and $4 million of net asset
write-downs at Enterprises.
(7) Operating and maintenance expenses, excluding litigation and environmental
reserves, outage costs, severance costs and lower InfraSource and Exelon
Services activity, increased primarily due to a reduction in bad debt
reserves at Energy Delivery and Exelon's Cost Management Initiative
savings. These increases were offset by increased Generation O&M's related
to higher administrative costs, increased bad debt reserves, the
acquisition of two generating stations in Texas in April 2002, the
acquisition of Sithe New England in November 2002 and increased PECO
expenditures related to the deployment of automated meter reading
technology. The earnings effect of lower lnfraSource and Exelon Services
O&M's is offset by lower InfraSource and Exelon Services revenue.
(8) 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.
(9) Primarily reflects higher investment income from nuclear decommissioning
trust funds in 2002.
(10) Taxes Other Than Income, excluding gross receipts tax, primarily reflects
higher property taxes partially offset by an adjustment to sales and use
tax.
(11) Depreciation and amortization expense, excluding goodwill amortization, was
higher primarily related to increased CTC amortization at PECO, higher
amortization of capitalized software at Enterprises and increased
depreciation related to higher depreciable plant balances, partially offset
by the effect of the extension of the estimated service lives of the
generating stations in 2001 and lower depreciation rates at ComEd.
(12) Reflects higher earnings at Sithe, the absence of losses on AT&T Wireless
which was sold in 2002, and the recovery of trade receivables previously
considered uncollectible at a communications joint venture, partially
offset by lower earnings at AmerGen.
(13) Relates to reduced state income taxes partially offset by changes in
deferred taxes and other tax charges.
(14) 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 December 31, 2002
----------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
----------------------------------------------------------------
Operating Revenues $ 2,484 $ 1,626 $ 558 $ (959) $ 3,709
Operating Expenses
Purchased Power 924 713 64 (930) 771
Fuel 120 253 119 2 494
Operating and Maintenance 355 422 344 (28) 1,093
Depreciation and Amortization 232 80 9 7 328
Taxes Other Than Income 101 38 1 1 141
------- ------- ------- ------- -------
Total Operating Expenses 1,732 1,506 537 (948) 2,827
------- ------- ------- ------- -------
Operating Income 752 120 21 (11) 882
Other Income and Deductions
Interest Expense (200) (24) (3) -- (227)
Distributions on Preferred Securities of Subsidiaries (12) -- -- -- (12)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net -- (32) -- (3) (35)
Other, net 39 28 1 (6) 62
------- ------- ------- ------- -------
Total Other Income and Deductions (173) (28) (2) (9) (212)
------- ------- ------- ------- -------
Income Before Income Taxes 579 92 19 (20) 670
Income Taxes 218 19 23 13 273
------- ------- ------- ------- -------
Net Income (Loss) $ 361 $ 73 $ (4) $ (33) $ 397
======= ======= ======= ======= =======
Three Months Ended December 31, 2001
----------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
----------------------------------------------------------------
Operating Revenues $ 2,268 $ 1,423 $ 550 $ (948) $ 3,293
Operating Expenses
Purchased Power 855 517 72 (913) 531
Fuel 115 198 109 -- 422
Operating and Maintenance 423 355 370 (47) 1,101
Depreciation and Amortization 253 58 22 7 340
Taxes Other Than Income 99 28 2 1 130
------- ------- ------- ------- -------
Total Operating Expenses 1,745 1,156 575 (952) 2,524
------- ------- ------- ------- -------
Operating Income (Loss) 523 267 (25) 4 769
Other Income and Deductions
Interest Expense (214) (15) (6) (8) (243)
Distributions on Preferred Securities of Subsidiaries (15) -- -- -- (15)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net -- (9) 3 (9) (15)
Other, net 37 (1) 1 (6) 31
------- ------- ------- ------- -------
Total Other Income and Deductions (192) (25) (2) (23) (242)
------- ------- ------- ------- -------
Income (Loss) Before Income Taxes 331 242 (27) (19) 527
Income Taxes 119 99 (5) (24) 189
------- ------- ------- ------- -------
Net Income (Loss) $ 212 $ 143 $ (22) $ 5 $ 338
======= ======= ======= ======= =======
4
EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)
Year Ended December 31, 2002
----------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
----------------------------------------------------------------
Operating Revenues $ 10,457 $ 6,858 $ 2,033 $ (4,393) $ 14,955
Operating Expenses
Purchased Power 4,254 3,294 245 (4,258) 3,535
Fuel 348 959 413 7 1,727
Operating and Maintenance 1,486 1,656 1,327 (124) 4,345
Depreciation and Amortization 978 276 55 31 1,340
Taxes Other Than Income 531 164 7 7 709
-------- -------- -------- -------- --------
Total Operating Expenses 7,597 6,349 2,047 (4,337) 11,656
-------- -------- -------- -------- --------
Operating Income (Loss) 2,860 509 (14) (56) 3,299
Other Income and Deductions
Interest Expense (854) (75) (14) (23) (966)
Distributions on Preferred Securities of Subsidiaries (45) -- -- -- (45)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net 1 87 3 (11) 80
Other, net 71 83 159 (13) 300
-------- -------- -------- -------- --------
Total Other Income and Deductions (827) 95 148 (47) (631)
-------- -------- -------- -------- --------
Income Before Income Taxes and Cumulative Effect
of Change in Acounting Principle 2,033 604 134 (103) 2,668
Income Taxes 765 217 69 (53) 998
-------- -------- -------- -------- --------
Income Before Cumulative Effect of Change in
Accounting Principle 1,268 387 65 (50) 1,670
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes -- 13 (243) -- (230)
-------- -------- -------- -------- --------
Net Income (Loss) $ 1,268 $ 400 $ (178) $ (50) $ 1,440
======== ======== ======== ======== ========
Year Ended December 31, 2001
----------------------------------------------------------------
Energy Exelon
Delivery Generation Enterprises Corp/Elim Consolidated
----------------------------------------------------------------
Operating Revenues $ 10,171 $ 6,826 $ 2,292 $ (4,371) $ 14,918
Operating Expenses
Purchased Power 4,022 3,106 316 (4,231) 3,213
Fuel 450 889 538 -- 1,877
Operating and Maintenance 1,568 1,528 1,436 (138) 4,394
Depreciation and Amortization 1,081 282 69 17 1,449
Taxes Other Than Income 457 149 10 7 623
-------- -------- -------- -------- --------
Total Operating Expenses 7,578 5,954 2,369 (4,345) 11,556
-------- -------- -------- -------- --------
Operating Income (Loss) 2,593 872 (77) (26) 3,362
Other Income and Deductions
Interest Expense (973) (115) (37) 18 (1,107)
Distributions on Preferred Securities of Subsidiaries (49) -- -- -- (49)
Equity in Earnings (Losses) of Unconsolidated Affiliates, net -- 90 (19) (9) 62
Other, net 154 (8) 5 (72) 79
-------- -------- -------- -------- --------
Total Other Income and Deductions (868) (33) (51) (63) (1,015)
-------- -------- -------- -------- --------
Income (Loss) Before Income Taxes and Cumulative Effect
of Change in Acounting Principle 1,725 839 (128) (89) 2,347
Income Taxes 703 327 (43) (56) 931
-------- -------- -------- -------- --------
Income (Loss) Before Cumulative Effect of Change in
Accounting Principle 1,022 512 (85) (33) 1,416
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes -- 12 -- -- 12
-------- -------- -------- -------- --------
Net Income (Loss) $ 1,022 $ 524 $ (85) $ (33) $ 1,428
======== ======== ======== ======== ========
5
EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)
Energy Delivery
--------------------------------------------------------------------
Three Months Ended December 31, Year Ended December 31,
-------------------------------- --------------------------------
2002 2001 Variance 2002 2001 Variance
-------- -------- -------- -------- -------- --------
Operating Revenues $ 2,484 $ 2,268 $ 216 $ 10,457 $ 10,171 $ 286
Operating Expenses
Purchased Power 924 855 69 4,254 4,022 232
Fuel 120 115 5 348 450 (102)
Operating and Maintenance 355 423 (68) 1,486 1,568 (82)
Depreciation and Amortization 232 253 (21) 978 1,081 (103)
Taxes Other Than Income 101 99 2 531 457 74
-------- -------- -------- -------- -------- --------
Total Operating Expenses 1,732 1,745 (13) 7,597 7,578 19
-------- -------- -------- -------- -------- --------
Operating Income 752 523 229 2,860 2,593 267
Other Income and Deductions
Interest Expense (200) (214) 14 (854) (973) 119
Distributions on Preferred Securities of Subsidiaries (12) (15) 3 (45) (49) 4
Equity in Earnings (Losses) of Unconsolidated
Affiliates, net -- -- -- 1 -- 1
Other, net 39 37 2 71 154 (83)
-------- -------- -------- -------- -------- --------
Total Other Income and Deductions (173) (192) 19 (827) (868) 41
-------- -------- -------- -------- -------- --------
Income Before Income Taxes 579 331 248 2,033 1,725 308
Income Taxes 218 119 99 765 703 62
-------- -------- -------- -------- -------- --------
Net Income $ 361 $ 212 $ 149 $ 1,268 $ 1,022 $ 246
======== ======== ======== ======== ======== ========
Generation
--------------------------------------------------------------------
Three Months Ended December 31, Year Ended December 31,
-------------------------------- --------------------------------
2002 2001 Variance 2002 2001 Variance
-------- -------- -------- -------- -------- --------
Operating Revenues $ 1,626 $ 1,423 $ 203 $ 6,858 $ 6,826 $ 32
Operating Expenses
Purchased Power 713 517 196 3,294 3,106 188
Fuel 253 198 55 959 889 70
Operating and Maintenance 422 355 67 1,656 1,528 128
Depreciation and Amortization 80 58 22 276 282 (6)
Taxes Other Than Income 38 28 10 164 149 15
-------- -------- -------- -------- -------- --------
Total Operating Expenses 1,506 1,156 350 6,349 5,954 395
-------- -------- -------- -------- -------- --------
Operating Income 120 267 (147) 509 872 (363)
Other Income and Deductions
Interest Expense (24) (15) (9) (75) (115) 40
Equity in Earnings (Losses) of Unconsolidated
Affiliates, net (32) (9) (23) 87 90 (3)
Other, net 28 (1) 29 83 (8) 91
-------- -------- -------- -------- -------- --------
Total Other Income and Deductions (28) (25) (3) 95 (33) 128
-------- -------- -------- -------- -------- --------
Income Before Income Taxes and Cumulative Effect
of Changes in Acounting Principles 92 242 (150) 604 839 (235)
Income Taxes 19 99 (80) 217 327 (110)
-------- -------- -------- -------- -------- --------
Income Before Cumulative Effect of Changes in
Accounting Principles 73 143 (70) 387 512 (125)
Cumulative Effect of Changes in Accounting
Principles, Net of Income Taxes -- -- -- 13 12 1
-------- -------- -------- -------- -------- --------
Net Income $ 73 $ 143 $ (70) $ 400 $ 524 $ (124)
======== ======== ======== ======== ======== ========
6
EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)
Enterprises
--------------------------------------------------------------------
Three Months Ended December 31, Year Ended December 31,
-------------------------------- --------------------------------
2002 2001 Variance 2002 2001 Variance
------- ------- ------- ------- ------- -------
Operating Revenues $ 558 $ 550 $ 8 $ 2,033 $ 2,292 $ (259)
Operating Expenses
Purchased Power 64 72 (8) 245 316 (71)
Fuel 119 109 10 413 538 (125)
Operating and Maintenance 344 370 (26) 1,327 1,436 (109)
Depreciation and Amortization 9 22 (13) 55 69 (14)
Taxes Other Than Income 1 2 (1) 7 10 (3)
------- ------- ------- ------- ------- -------
Total Operating Expenses 537 575 (38) 2,047 2,369 (322)
------- ------- ------- ------- ------- -------
Operating Income 21 (25) 46 (14) (77) 63
Other Income and Deductions
Interest Expense (3) (6) 3 (14) (37) 23
Equity in Earnings (Losses) of
Unconsolidated Affiliates, net -- 3 (3) 3 (19) 22
Other, net 1 1 -- 159 5 154
------- ------- ------- ------- ------- -------
Total Other Income and Deductions (2) (2) -- 148 (51) 199
------- ------- ------- ------- ------- -------
Income (Loss) Before Income Taxes and Cumulative
Effect of Change in Acounting Principle 19 (27) 46 134 (128) 262
Income Taxes 23 (5) 28 69 (43) 112
------- ------- ------- ------- ------- -------
Income (Loss) Before Cumulative Effect of
Change in Accounting Principle (4) (22) 18 65 (85) 150
Cumulative Effect of Change in Accounting
Principle, Net of Income Taxes -- -- -- (243) -- (243)
------- ------- ------- ------- ------- -------
Net Income (Loss) $ (4) $ (22) $ 18 $ (178) $ (85) $ (93)
======= ======= ======= ======= ======= =======
Corporate and Eliminations
-------------------------------------------------------------------
Three Months Ended December 31, Year Ended December 31,
-------------------------------- -------------------------------
2002 2001 Variance 2002 2001 Variance
------- ------- -------- ------- ------- -------
Operating Revenues $ (959) $ (948) $ (11) $(4,393) $(4,371) $ (22)
Operating Expenses
Purchased Power (930) (913) (17) (4,258) (4,231) (27)
Fuel 2 -- 2 7 -- 7
Operating and Maintenance (28) (47) 19 (124) (138) 14
Depreciation and Amortization 7 7 -- 31 17 14
Taxes Other Than Income 1 1 -- 7 7 --
------- ------- ------- ------- ------- -------
Total Operating Expenses (948) (952) 4 (4,337) (4,345) 8
------- ------- ------- ------- ------- -------
Operating Income (11) 4 (15) (56) (26) (30)
Other Income and Deductions
Interest Expense -- (8) 8 (23) 18 (41)
Equity in Earnings (Losses) of
Unconsolidated Affiliates, net (3) (9) 6 (11) (9) (2)
Other, net (6) (6) -- (13) (72) 59
------- ------- ------- ------- ------- -------
Total Other Income and Deductions (9) (23) 14 (47) (63) 16
------- ------- ------- ------- ------- -------
Income (Loss) Before Income Taxes (20) (19) (1) (103) (89) (14)
Income Taxes 13 (24) 37 (53) (56) 3
------- ------- ------- ------- ------- -------
Net Income (Loss) $ (33) $ 5 $ (38) $ (50) $ (33) $ (17)
======= ======= ======= ======= ======= =======
7
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)
December 31, December 31,
2002 2001
-------- --------
Current Assets
Cash and Cash Equivalents $ 469 $ 485
Restricted Cash 396 372
Accounts Receivable, net
Customers 2,095 1,687
Other 265 381
Receivable from Unconsolidated Affiliate 32 44
Inventories - Fossil Fuel 218 222
Inventories - Materials and Supplies 306 249
Deferred Income Taxes 6 23
Other 331 272
-------- --------
Total Current Assets 4,118 3,735
-------- --------
Property Plant and Equipment, net 17,165 13,791
Deferred Debits and Other Assets
Regulatory Assets 5,938 6,423
Nuclear Decommissioning Trust Funds 3,053 3,165
Investments 1,364 1,623
Goodwill, net 4,992 5,335
Other 848 672
-------- --------
Total Deferred Debits and Other Assets 16,195 17,218
-------- --------
Total Assets $ 37,478 $ 34,744
======== ========
Liabilities and Shareholders' Equity
Current Liabilities
Notes Payable $ 681 $ 360
Notes Payable - Related Party 534 --
Long-Term Debt Due within One Year 1,402 1,406
Accounts Payable 1,563 964
Accrued Expenses 1,311 1,135
Other 483 505
-------- --------
Total Current Liabilities 5,974 4,370
-------- --------
Long-Term Debt 13,127 12,879
Deferred Credits and Other Liabilities
Deferred Income Taxes 3,702 4,362
Unamortized Investment Tax Credits 301 316
Nuclear Decommissioning Liability for Retired Plants 1,395 1,353
Pension Obligation 1,959 334
Non-Pension Postretirement Benefits Obligation 877 847
Spent Nuclear Fuel Obligation 858 843
Other 871 694
-------- --------
Total Deferred Credits and Other Liabilities 9,963 8,749
-------- --------
Minority Interest of Consolidated Subsidiaries 77 31
Preferred Securities of Subsidiaries 595 613
Shareholders' Equity
Common Stock 7,028 6,930
Deferred Compensation (1) (2)
Retained Earnings 2,073 1,200
Accumulated Other Comprehensive Income (Loss) (1,358) (26)
-------- --------
Total Shareholders' Equity 7,742 8,102
-------- --------
Total Liabilities and Shareholders' Equity $ 37,478 $ 34,744
======== ========
8
EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Three Months Ended Year Ended
December 31, December 31,
--------------------------------------------------
2002 2001 2002 2001
--------------------------------------------------
Cash Flows From Operating Activities
Net Income $ 397 $ 338 $ 1,440 $ 1,428
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization, including nuclear fuel 417 353 1,701 1,834
Cumulative Effect of a Change in Accounting Principle (net of income taxes) -- -- 230 (12)
Provision for Uncollectible Accounts 22 50 129 145
Deferred Income Taxes (15) 33 278 (68)
Employee Severance Costs -- 46 -- 46
Deferred Energy Costs (25) 8 25 29
Equity in (Earnings) Losses of Unconsolidated Affiliates, net 35 15 (80) (62)
Writedown of Investments 3 -- 41 36
Net Realized Losses on Nuclear Decommissioning Trust Funds -- 37 32 127
Net Gain on the Sale of Investments, (net of income taxes) -- -- (199) --
Other Operating Activities (112) 96 12 (16)
Changes in Working Capital:
Accounts Receivable (139) 481 (413) 318
Inventories (6) (74) (37) (33)
Accounts Payable, Accrued Expenses, & Other Current Liabilities 475 (762) 470 (190)
Other Current Assets (39) 37 (15) 33
------- ------- ------- -------
Net Cash Flows Provided by Operating Activities 1,013 658 3,614 3,615
------- ------- ------- -------
Cash Flows From Investing Activities
Capital Expenditures (616) (736) (2,150) (2,088)
Acquisition of Generating Plants (2) -- (445) --
Enterprises Acquisitions, net of cash acquired -- 9 -- (30)
Proceeds from Nuclear Decommissioning Trust Funds 428 547 1,612 1,624
Investment in Nuclear Decommissioning Trust Funds (494) (735) (1,824) (1,863)
Note Receivable from Unconsolidated Affiliate 7 -- (35) --
Proceeds from the Sale of Investments -- -- 287
Other Investing Activities (64) 108 17 (35)
------- ------- ------- -------
Net Cash Flows Used in Investing Activities (741) (807) (2,538) (2,392)
------- ------- ------- -------
Cash Flows From Financing Activities
Issuance of Long-Term Debt 267 144 1,223 2,270
Retirement of Long-Term Debt (188) (427) (2,134) (1,860)
Change in Short-Term Debt (107) (56) 321 (1,013)
Redemption of Preferred Securities of Subsidiaries -- -- (18) (17)
Dividends on Common Stock (143) (135) (563) (583)
Change in Restricted Cash (105) (183) (24) (58)
Proceeds from Employee Stock Plans 14 -- 78 39
Contribution from Minority Interest of Consolidated Subsidiary -- -- 43 --
Other Financing Activities (2) (86) (18) (42)
------- ------- ------- -------
Net Cash Flows Used in Financing Activities (264) (743) (1,092) (1,264)
------- ------- ------- -------
Change In Cash and Cash Equivalents 8 (892) (16) (41)
Cash and Cash Equivalents at Beginning of Period 461 1,377 485 526
------- ------- ------- -------
Cash and Cash Equivalents at End of Period $ 469 $ 485 $ 469 $ 485
======= ======= ======= =======
9
EXELON CORPORATION
Electric Sales Statistics
Three Months Ended December 31,
---------------------------------------------
(in GWhs) 2002 2001 % Change
- --------------------------------------------------- --------------------- --------------------- ---------------
Supply
Nuclear, excluding AmerGen 29,727 29,442 1.0%
Purchased power - Generation (1) 19,212 15,480 24.1%
Fossil, excluding Sithe, and Hydro 2,865 2,372 20.8%
--------------------- ---------------------
Power Team Supply 51,804 47,294 9.5%
Purchased power - Other 227 76 n.m.
--------------------- ---------------------
Total electric supply available for sale 52,031 47,370 9.8%
Less: Line loss and company use 2,320 2,735 (15.2%)
--------------------- ---------------------
Total Energy Sales 49,711 44,635 11.4%
===================== =====================
Energy Sales
Retail Sales (2) 30,920 28,943 6.8%
Power Team Market Sales (1) 22,475 18,545 21.2%
Interchange sales and sales to other utilities 521 653 (20.2%)
--------------------- ---------------------
53,916 48,141 12.0%
Less: Distribution Only Sales (4,205) (3,506) 19.9%
--------------------- ---------------------
Total Energy Sales 49,711 44,635 11.4%
===================== =====================
Year Ended December 31,
---------------------------------------------
(in GWhs) 2002 2001 % Change
- --------------------------------------------------- --------------------- --------------------- ---------------
Supply
Nuclear, excluding AmerGen 115,854 116,839 (0.8%)
Purchased power - Generation (1) 78,710 67,942 15.8%
Fossil, excluding Sithe, and Hydro 12,976 11,345 14.4%
--------------------- ---------------------
Power Team Supply 207,540 196,126 5.8%
Purchased power - Other 558 1,244 (55.1%)
--------------------- ---------------------
Total electric supply available for sale 208,098 197,370 5.4%
Less: Line loss and company use 8,873 11,086 (20.0%)
--------------------- ---------------------
Total Energy Sales 199,225 186,284 6.9%
===================== =====================
Energy Sales
Retail Sales (2) 129,013 126,859 1.7%
Power Team Market Sales (1) 83,565 72,333 15.5%
Interchange sales and sales to other utilities 2,816 2,850 (1.2%)
--------------------- ---------------------
215,394 202,042 6.6%
Less: Distribution Only Sales (16,169) (15,758) 2.6%
--------------------- ---------------------
Total Energy Sales 199,225 186,284 6.9%
===================== =====================
(1) Purchased power and market sales do not include trading volume of 18,673 GWhs and 3,468 GWhs for the three months
ended December 31, 2002 and 2001, respectively, and 69,933 GWhs and 5,754 GWhs for the year ended December 31,
2002 and 2001, respectively.
(2) Includes Exelon Energy sales of 1,405 GWh and 1,017 GWh for the three months ended December 31, 2002 and 2001,
respectively, and 5,420 GWh and 6,387 GWh for the year ended December 31, 2002 and 2001, respectively.
10
EXELON CORPORATION
Energy Delivery Sales Statistics
For the Three Months Ended December 31,
ComEd PECO
---------------------------------------------------------------------------------------
Electric Deliveries (MWh) 2002 2001 % Change 2002 2001 % Change
---------------------------------------------------------------------------------------
Bundled Deliveries (a)
Residential 6,082,142 5,345,603 13.8% 2,772,562 1,765,933 57.0%
Small Commercial & Industrial 5,287,190 5,449,265 (3.0%) 1,902,023 1,694,906 12.2%
Large Commercial & Industrial 1,733,875 2,161,400 (19.8%) 3,481,073 3,422,412 1.7%
Public Authorities & Electric Railroads 1,383,000 1,872,508 (26.1%) 234,214 197,775 18.4%
------------ ------------ ------------ ------------
14,486,207 14,828,776 (2.3%) 8,389,872 7,081,026 18.5%
------------ ------------ ------------ ------------
Unbundled Deliveries (b)
Alternative Energy Suppliers
Residential (c) n/a 251,055 739,986 (66.1%)
Small Commercial & Industrial 1,396,996 860,194 62.4% 162,444 90,155 80.2%
Large Commercial & Industrial 1,895,186 1,495,668 26.7% 205,751 182,265 12.9%
Public Authorities & Electric Railroads 293,783 137,665 113.4% -- 53 (100.0%)
------------ ------------ ------------ ------------
3,585,965 2,493,527 43.8% 619,250 1,012,459 (38.8%)
------------ ------------ ------------ ------------
PPO (ComEd Only)
Small Commercial & Industrial 767,934 831,286 (7.6%)
Large Commercial & Industrial 1,179,326 1,426,213 (17.3%)
Public Authorities & Electric Railroads 486,165 252,791 92.3%
------------ ------------
2,433,425 2,510,290 (3.1%)
------------ ------------
Total Unbundled Deliveries 6,019,390 5,003,817 20.3% 619,250 1,012,459 (38.8%)
------------ ------------ ------------ ------------
Total Retail Deliveries 20,505,597 19,832,593 3.4% 9,009,122 8,093,485 11.3%
============ ============ ============ ============
Gas Deliveries (mmcf) (PECO only) 28,555 22,991 24.2%
============ ============
Revenue (in thousands)
Bundled Revenue (a)
Residential $ 500,227 $ 455,723 9.8% $ 338,403 $ 220,902 53.2%
Small Commercial & Industrial 392,982 410,133 (4.2%) 200,692 182,430 10.0%
Large Commercial & Industrial 86,394 116,971 (26.1%) 257,295 239,993 7.2%
Public Authorities & Electric Railroads 79,809 95,561 (16.5%) 20,957 18,829 11.3%
------------ ------------ ------------ ------------
1,059,412 1,078,388 (1.8%) 817,347 662,154 23.4%
------------ ------------ ------------ ------------
Unbundled Revenue (b)
Alternative Energy Suppliers
Residential (c) n/a 16,493 51,346 (67.9%)
Small Commercial & Industrial 44,409 12,024 269.3% 7,996 7,458 7.2%
Large Commercial & Industrial 52,461 14,082 272.5% 5,757 2,904 98.2%
Public Authorities & Electric Railroads 10,446 2,340 346.4% -- 9 (100.0%)
------------ ------------ ------------ ------------
107,316 28,446 277.3% 30,246 61,717 (51.0%)
------------ ------------ ------------ ------------
PPO (ComEd Only)
Small Commercial & Industrial 49,214 52,863 (6.9%)
Large Commercial & Industrial 63,300 76,458 (17.2%)
Public Authorities & Electric Railroads 23,477 14,466 62.3%
------------ ------------
135,991 143,787 (5.4%)
------------ ------------
Total Unbundled Revenue 243,307 172,233 41.3% 30,246 61,717 (51.0%)
------------ ------------ ------------ ------------
Total Retail Electric Revenue 1,302,719 1,250,621 4.2% 847,593 723,871 17.1%
Wholesale Electric Revenue 25,967 9,974 160.3% 2,942 3,137 (6.2%)
Other Revenue 61,238 50,671 20.9% 52,493 57,681 (9.0%)
Gas Revenue n/a n/a 191,057 172,829 10.5%
------------ ------------ ------------ ------------
Total Revenues $ 1,389,924 $ 1,311,266 6.0% $ 1,094,085 $ 957,518 14.3%
============ ============ ============ ============
Heating and Cooling Degree Days 2002 2001 Normal 2002 2001 Normal
------------ ------------ ----------- ------------ ------------ -------
Heating Degree Days 2,356 1,862 2,279 1,762 1,240 1,819
Cooling Degree Days 14 1 11 54 38 19
(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
December 31, 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 Year Ended December 31,
ComEd PECO
---------------------------------------------------------------------------------------
Electric Deliveries (MWh) 2002 2001 % Change 2002 2001 % Change
---------------------------------------------------------------------------------------
Bundled Deliveries (a)
Residential 27,474,341 25,281,880 8.7% 10,364,585 8,072,915 28.4%
Small Commercial & Industrial 22,365,316 23,435,141 (4.6%) 7,606,297 5,997,571 26.8%
Large Commercial & Industrial 7,885,260 10,305,130 (23.5%) 14,765,926 12,960,295 13.9%
Public Authorities & Electric Railroads 6,479,960 7,879,260 (17.8%) 851,682 765,554 11.3%
------------- -------------------- -----------------------------
64,204,877 66,901,411 (4.0%) 33,588,490 27,796,335 20.8%
------------- -------------------- -----------------------------
Unbundled Deliveries (b)
Alternative Energy Suppliers
Residential (c) n/a 1,970,553 3,104,811 (36.5%)
Small Commercial & Industrial 5,218,997 2,865,423 82.1% 415,424 1,606,067 (74.1%)
Large Commercial & Industrial 7,095,044 5,457,847 30.0% 556,975 2,351,520 (76.3%)
Public Authorities & Electric Railroads 911,650 364,998 149.8% 123 7,285 (98.3%)
------------- --------------------- -----------------------------
13,225,691 8,688,268 52.2% 2,943,075 7,069,683 (58.4%)
------------- -------------------- -----------------------------
PPO (ComEd Only)
Small Commercial & Industrial 3,151,859 3,279,491 (3.9%)
Large Commercial & Industrial 5,131,309 5,749,995 (10.8%)
Public Authorities & Electric Railroads 1,347,253 986,756 36.5%
------------- --------------------
9,630,421 10,016,242 (3.9%)
------------- --------------------
Total Unbundled Deliveries 22,856,112 18,704,510 22.2% 2,943,075 7,069,683 (58.4%)
------------- -------------------- -----------------------------
Total Retail Deliveries 87,060,989 85,605,921 1.7% 36,531,565 34,866,018 4.8%
============= ==================== =============================
Gas Deliveries (mmcf) (PECO only) 85,545 81,528 4.9%
=============================
Revenue (in thousands)
Bundled Revenue (a)
Residential $ 2,381,211 $ 2,307,580 3.2% $ 1,337,746 $1,027,773 30.2%
Small Commercial & Industrial 1,735,829 1,820,598 (4.7%) 864,795 682,481 26.7%
Large Commercial & Industrial 410,239 522,736 (21.5%) 1,085,596 928,849 16.9%
Public Authorities & Electric Railroads 376,750 430,732 (12.5%) 79,432 71,999 10.3%
------------- -------------------- -----------------------------
4,904,029 5,081,646 (3.5%) 3,367,569 2,711,102 24.2%
------------- -------------------- -----------------------------
Unbundled Revenue (b)
Alternative Energy Suppliers
Residential (c) n/a 145,107 235,385 (38.4%)
Small Commercial & Industrial 138,179 48,236 186.5% 21,344 80,941 (73.6%)
Large Commercial & Industrial 154,014 73,834 108.6% 15,500 64,127 (75.8%)
Public Authorities & Electric Railroads 28,042 5,416 417.8% 16 982 (98.4%)
------------- -------------------- -------------------------------
320,235 127,486 151.2% 181,967 381,435 (52.3%)
------------- -------------------- -----------------------------
PPO (ComEd Only)
Small Commercial & Industrial 204,237 220,155 (7.2%)
Large Commercial & Industrial 277,637 343,116 (19.1%)
Public Authorities & Electric Railroads 71,222 58,453 21.8%
------------- --------------------
553,096 621,724 (11.0%)
------------- --------------------
Total Unbundled Revenue 873,331 749,210 16.6% 181,967 381,435 (52.3%)
------------- -------------------- -----------------------------
Total Retail Electric Revenue 5,777,360 5,830,856 (0.9%) 3,549,536 3,092,537 14.8%
Wholesale Electric Revenue 118,901 149,024 (20.2%) 18,078 13,979 29.3%
Other Revenue 227,729 225,890 0.8% 216,572 204,264 6.0%
Gas Revenue n/a n/a 548,847 654,597 (16.2%)
------------- -------------------- -----------------------------
Total Revenues $ 6,123,990 $ 6,205,770 (1.3%) $ 4,333,033 $3,965,377 9.3%
============= ==================== =============================
Heating and Cooling Degree Days 2002 2001 Normal 2002 2001 Normal
------------- -------------------- -----------------------------------------------------
Heating Degree Days 6,134 5,943 6,427 4,251 4,207 5,151
Cooling Degree Days 1,091 849 863 1,614 1,404 1,225
(a) Bundled service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of
energy and the delivery cost of the transmission and distribution of the energy. PECO's tariffed rates also include a CTC
charge.
(b) Unbundled service reflects customers electing to receive electric generation service under the ComEd PPO option or an
alternative energy supplier. Revenue from customers choosing the ComEd PPO option includes an energy charge at market rates,
transmission and distribution charge and a CTC charge. Revenue from customers choosing an alternative energy supplier
includes a distribution charge and a CTC charge. Transmission charges received from alternative energy suppliers are
included in wholesale and miscellaneous revenue.
(c) On May 1, 2002, all ComEd residential customers were eligible to choose their supplier of electricity, however, as of
December 31, 2002, no alternative electric supplier has sought approval from the Illinois Commerce Commission (ICC) and no
electric utilities have chosen to enter the ComEd residential market for the supply of electricity.
n/a - not applicable
12
EXELON CORPORATION
Exelon Generation Power Marketing Statistics
Three Months Ended Year Ended
December 31, December 31,
----------------------- ------------------
2002 2001 2002 2001
------ ------ ------- -------
GWh Sales
Energy Delivery 27,894 26,916 118,473 116,917
Exelon Energy 1,435 1,833 5,502 6,876
Market Sales 22,475 18,545 83,565 72,333
------ ------ ------- -------
Total Sales (1) 51,804 47,294 207,540 196,126
====== ====== ======= =======
Average Margin ($/MWh)
Average Realized Revenue
Energy Delivery $ 30.74 $ 29.83 $ 33.48 $ 32.55
Exelon Energy 39.54 39.47 44.87 41.53
Market Sales 28.57 28.46 30.75 37.00
Total Sales - without trading 30.04 29.66 32.68 34.51
Average Purchased Power and Fuel Cost - without trading $ 17.43 $ 15.05 $ 20.14 $ 20.26
Average Margin - without trading $ 12.61 $ 14.61 $ 12.54 $ 14.25
Around-the-clock Market Prices ($/MWh)
PJM $ 28.00 $ 21.50 $ 27.50 $ 31.50
Main 23.00 16.50 24.00 25.00
- --------------------------------------------------------------------------
2003 Earnings Guidance
Around-the-clock Market Prices ($/MWh)
PJM $ 25.50
MAIN 22.50
NEPOOL 33.50
Gas Prices ($/Mmbtu)
Henry Hub $ 3.75
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(1) Total sales do not include trading volume of 18,673 GWhs and 3,468 GWhs for
the three months ended December 31, 2002 and 2001, respectively, and 69,933
GWhs and 5,754 GWhs for the year ended December 31, 2002 and 2001,
respectively.
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