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
April 3, 2003
(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 Disclosure
On April 3, 2003, John W. Rowe, Chairman, President and CEO, met with investors
and presented the information in Exhibits 99.1 and 99.2.
This combined Form 8-K is being filed separately by Exelon Corporation,
Commonwealth Edison Company, PECO Energy Company and Exelon Generation Company,
LLC (Registrants). Information contained herein relating to any individual
registrant has been filed by such registrant on its own behalf. No registrant
makes any representation as to information relating to any other registrant.
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 factors discussed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations - Business Outlook and
the Challenges in Managing Our Business" in Exelon's 2002 Annual Report included
in current report on Form 8-K filed on 2/21/03, 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 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.
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
April 3, 2003
EXHIBIT 99.1
Slide 1
[Exelon logo]
Exelon Corporation
Positioned for Success
John W. Rowe
Chairman, President and CEO
Berenson & Company and The Williams Capital Group Midwest Utilities Seminar
April 3, 2003
Slide 2
[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 factors discussed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations - Business Outlook and
the Challenges in Managing Our Business" in Exelon's 2002 Annual Report included
in current report on Form 8-K filed on 2/21/03, 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 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.
Slide 3
[Exelon logo]
What Is Exelon?
- -------------------------------------- --------------------------------------------
2002
- -------------------------------------- --------------------------------------------
U.S. Electric
Exelon Companies
- -------------------------------------- ----------------------- --------------------
Retail Electric Customers 5.1 million 1st
- -------------------------------------- ----------------------- --------------------
Nuclear Capacity 15.8K MWs* 1st
- -------------------------------------- ----------------------- --------------------
U.S. Capacity Resources 42.7K MWs** Among largest
- -------------------------------------- ----------------------- --------------------
Revenues $15.0 billion 2nd
- -------------------------------------- ----------------------- --------------------
Net Income $1.4 billion 1st
- -------------------------------------- ----------------------- --------------------
Market Cap (as of 3/31/03) $16.3 billion 3rd
- -------------------------------------- ----------------------- --------------------
*Includes AmerGen investment.
**Includes AmerGen and Sithe investments.
Note: Data based on results reported through 3/31/03.
Slide 4
[Exelon logo]
Accomplishments - Creating Real Value
Since Exelon was created in 2000
o Provided average annual growth of 12% in operating EPS, excluding one-time
items, and 4.3% in dividends
o Retired $1.2 billion of transition debt and refinanced $2.8 billion of
debt, resulting in total interest expense reduction of about $120 million
o Achieved 93.5% average annual nuclear capacity factor
o Improved energy delivery reliability by 26% in Outage Duration and 18% in
Outage Frequency
Slide 5
[Exelon logo]
Opportunities and Challenges for 2003
o Enterprises (rationalize investment)
o Exelon New England plants (operate, integrate and optimize)
o Sithe Energies investment (buy, sell, restructure)
o Variable gas and wholesale market prices
o The Exelon Way
Slide 6
[Exelon logo]
Power Team Strategy in Variable Markets
o Optimize value of generation supply portfolio
o Reduce earnings risk and volatility
o Prepared to capture benefit of long-term price recovery
Slide 7
[Exelon logo]
Far-reaching Illinois Regulatory Agreement
1.Constructively concludes ComEd Residential Delivery Services rate case
2.Modifies calculation of CTC revenue for shopping customers
3.Facilitates extension of full-requirements PPA between ComEd and Generation
through 2006
4.Facilitates continued collection of decommissioning charge revenue through
2006
5. Supports Provider of Last Resort (POLR) provisions
6.Provides funding for energy-related programs in Illinois
Slide 8
Positioned for Success
- - Well positioned for growth in depressed energy market
o Low-cost generation portfolio
o Large, stable retail customer base
o No material trading or international exposure
o Strong balance sheet
o Positioned to deliver 5% annual earnings growth and commensurate
dividend growth
o without recovery in energy margins or growth in sales
- - Well positioned for upside when markets recover
Slide 9
[Exelon logo]
Valuation Measures
- --------------------- ------------------ -------------------------------------- ------------------- ------------------
P/E Earnings per Share Dividends Yield
- --------------------- ------------------ -------------------------------------- ------------------- ------------------
2004E 2-Yr CAGR 2-Yr CAGR 5-Yr CAGR
(X) 2000-2002A 2002-2004E 1997-2002A
(%) (%) (%) (%)
- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
Exelon 9.8 11.9 3.0 2.2 3.7
Entergy 12.5 10.5 3.5 -5.5 2.9
FPL Group 11.6 4.7 3.1 3.8 4.1
DTE Energy 9.7 7.4 3.0 0 5.3
Southern 14.7 10.6 2.1 0.8 4.8
Dominion Res. 11.1 20.4 1.6 0 4.7
Cinergy 12.3 1.3 1.5 0.1 5.5
Progress Energy 10.2 12.5 0.7 3.0 5.7
Duke 9.9 -5.4 -12.2 0.2 7.6
Average 11.3 8.2 0.7 0.5 4.9
- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
Sources: Thomson First Call, Bloomberg
Note: P/W and yield statistics as of 3/31/03
A=Actual; E=Estimate; CAGR=Compound annual growth rate
EXHIBIT 99.2
Reconciliation of Reported and Operating Earnings per Share
Compound Annual Growth Rate
- -------------------------------------------------------------------
2000 Reported EPS $2.87
- -------------------------------------------------------------------
Change in common shares (1.06)
- -------------------------------------------------------------------
Extraordinary items (0.07)
- -------------------------------------------------------------------
Cumulative effect of accounting change 0.01
- -------------------------------------------------------------------
Unicom pre-merger results 1.58
- -------------------------------------------------------------------
Merger-related costs 0.68
- -------------------------------------------------------------------
Pro forma merger accounting adjustments (0.15)
- -------------------------------------------------------------------
2000 Pro Forma Operating EPS $3.86
- -------------------------------------------------------------------
- ------------------------------------------------------------------------
2002 Reported EPS $4.44
- ------------------------------------------------------------------------
Transition loss on implementation of FAS 141 and 142 0.71
- ------------------------------------------------------------------------
Gain on sale of AT&T Wireless (0.36)
- ------------------------------------------------------------------------
Employee severance costs 0.04
- ------------------------------------------------------------------------
2002 Pro Forma Operating EPS $4.83
- ------------------------------------------------------------------------
2-year 2002/2000 compound annual growth rate (CAGR): $4.44/$2.87 = 24% based on
reported results.
2-year 2002/2000 CAGR: $4.83/$3.86 = 12% based on pro forma operating results.
