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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
June 25, 2003
(Date of earliest
event reported)
Exhibit 99
[Exelon Logo]
________________________________________________________________________________
Exelon Corporation www.exeloncorp.com
P.O. Box 805379
Chicago, IL 60680-5379
June 26, 2003
Note to Exelon's Financial Community:
Exelon Generation Company, LLC Exercises Options under
Purchase Power Agreement with Midwest Generation, LLC
On June 25, 2003, Exelon Generation notified Midwest Generation, LLC (Midwest)
of its exercise of Exelon Generation's call option under the existing Coal
Generating Stations Purchase Power Agreement dated December 15, 1999 (PPA).
Exelon Generation is a subsidiary of Exelon Corporation (Exelon). Midwest is a
subsidiary of Edison Mission Energy and Edison International. Exelon Generation
has elected to exercise its call option on 687 MWs of the capacity for the fifth
contract year, 2004. This option exercise is for the year 2004 and has no effect
in 2003 because the 2003 supply plan is already in place. By exercising the
call, Exelon Generation will take the output of the following Midwest generating
units during 2004 at the contract price included in the PPA.
Waukegan Unit 8 - 361 MWs
Fisk Unit 19 - 326 MWs
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Total 687 MWs
Exelon Generation did not exercise its option on the 578 MWs of capacity at the
remaining option units and will not take the output from the following units
during 2004 under the existing contract.
Waukegan Unit 6 - 100 MWs
Crawford Unit 7 - 216 MWs
Will County Unit 3 - 262 MWs
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Total 578 MWs
Under the PPA, during the fifth contract year, 2004, Exelon Generation
contracted for 1,696 MWs of non-option capacity from Midwest with a call option
on 1,265 MWs of capacity. With the June 25th exercise of the call option, Exelon
Generation will take the 1,696 MWs of non-option capacity and 687 MWs of the
option capacity from Midwest. Exelon Generation retains its 2004 options
relating to certain of Midwest's Collins units (1,084 MWs) and peaker units (694
MWs) and will make a decision on those options by early October 2003.
2004 is the last year under the existing five-year PPA contract between Exelon
and Midwest Generation. Providing reliable service to customers in Illinois
served by delivery subsidiary ComEd remains a top priority of Exelon.
Exelon's exercise of its options under the PPA is expected to provide
approximately $100 million (pre-tax) of capacity cost savings in 2004 compared
with 2003. Net pre-tax savings, after replacement energy and other associated
costs, are expected to be between $20 and $40 million. The actual cost savings
achieved will be a function of Exelon Generation's supply portfolio and
wholesale energy prices in 2004.
For additional information please contact me at (312) 394-7696 or Marybeth
Flater at (312) 394-8354.
Sincerely,
Linda C. Byus, CFA
Vice President Investor Relations
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Except for the historical information contained herein, certain of the matters
discussed in this news release are forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, that are
subject to risks and uncertainties. The factors that could cause actual results
to differ materially from the forward-looking statements made by a registrant
include those discussed herein as well as those discussed in Exelon
Corporation's 2002 Annual Report on Form10-K in (a) ITEM 7. Management's
Discussion and Analysis of Financial Condition and Results of
Operations--Business Outlook and the Challenges in Managing Our Business for
Exelon, ComEd, PECO and Generation and (b) ITEM 8. Financial Statements and
Supplementary Data: Exelon--Note 19, ComEd--Note 16, PECO--Note 18 and
Generation--Note 13, and (c) other factors discussed in filings with the
Securities and Exchange Commission (SEC) by Exelon Corporation, Commonwealth
Edison Company, PECO Energy Company and Exelon Generation Company, LLC
(Registrants). Readers are cautioned not to place undue reliance on these
forward-looking statements, which apply only as of the date of this press
release. None of the Registrants undertakes any obligation to publicly release
any revision to its forward-looking statements to reflect events or
circumstances after the date of this press release.