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
July 30, 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) 765-6900
Item 9. Regulation FD Disclosure
A. As previously announced, on July 30, 2003, Exelon Corporation (Exelon)
conducted its Second Quarter 2003 Earnings Conference Call. The call was open to
all on a listen-only basis and was audio web-cast. Telephone replays will be
available through August 15, 2003. The U.S. call-in number for replays is
877/660-6853, and the international call-in number is 201/612-7415. The account
number is 4094 and the conference call number is 70578. In addition, the call
will be archived on Exelon's web site, www.exeloncorp.com; please select the
Investor Relations page.
During the call, management reviewed Exelon's financial results for its second
quarter ended June 30, 2003, which were disclosed in the news release issued on
July 29, 2003. Other matters that management discussed included:
Forward-looking matters
- -----------------------
Exelon's third quarter 2002 earnings of $1.70 per share included a positive
impact of $0.16 per share related to better-than-normal weather conditions.
Exelon has assumed normal weather for the balance of 2003, and so far in July,
it has been cooler than normal. Also, due to the changes in the competitive
transition charges (CTC)at Commonwealth Edison Company (ComEd) that were
effective on June 1, 2003 and customer switching, Exelon expects about a $0.15
decrease in earnings at ComEd in the second half of 2003 relative to 2002.
Exelon's full year earnings are impacted by increased pension and other
post-retirement benefit costs from the prior year of about $125 million before
income taxes, or about $0.24 per share. The exercise of Exelon's options under
the Midwest Generation contract is expected to provide net savings on capacity
charges of about $130 million before income taxes in 2003 compared with 2002. On
an after-tax basis that is about $0.25 per share positive for the full year
2003. Both of these items will continue to impact earnings in the second half of
2003.
Exelon's investment in Sithe Energies, Inc. and its Exelon New England
operations will be modestly dilutive in 2003 compared to 2002. Dilution of about
$0.20 per share related to the Exelon New England operations is included in
Exelon's full year earnings guidance. Given the delay in the start-up of the new
Exelon New England plants, the dilution may be lower than $0.20 per share, but
it will be weighted to the second half of the year. It is anticipated that with
the pending exit from its ownership of the assets of Exelon Boston Generating,
that between $0.14 and $0.15 per share of dilution will be eliminated in 2004.
Also, fewer nuclear plant refueling outages in 2003 provided savings of about
$60 million pre-tax, or $0.11 per share during the first half of 2003.
Exelon previously expected Exelon Enterprises Company, LLC (Enterprises) to be
breakeven during 2003, a $0.16 improvement over 2002. In the first half of 2003,
Enterprises reported a $79 million net loss, which includes a $30 million
after-tax impairment charge associated with the anticipated sale of InfraSource,
Inc. Exelon expects Enterprises to be about break even over the last six months
of 2003.
Lower interest expense will continue to have positive impact to Exelon over the
last six months of 2003.
Previously, Exelon had indicated that it would target its dividend payout to
grow to 60% of regulated operating earnings. Exelon is now targeting to increase
its dividend payout commensurate with total corporate earnings growth.
Exelon management stated that there are various opportunities to utilize its
cash aside from Exelon's continued plans of paying down debt balances. Three
other possible cash uses include 1) increases in dividend payouts, 2) increases
to the equity at ComEd and PECO Energy Company (PECO), and 3) Exelon share
buybacks. The share buyback possibility is not considered a short-term
opportunity, but rather, something that would be considered several years from
now.
B. Additional information regarding the outstanding debt of Exelon and its
subsidiaries as of June 30, 2003 is attached hereto as Exhibit 99.
This combined Form 8-K is being filed separately by Exelon, ComEd, PECO and
Exelon Generation Company, LLC (Generation) (Registrants). Information contained
herein relating to any individual registrant has been furnished by such
registrant on its own behalf. No registrant makes any representation as to
information relating to any other registrant.
Except for the historical information contained herein, certain of the matters
discussed in this Report 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 factors discussed herein, as well as the items discussed in (a) the
Registrants' 2002 Annual Report on Form 10-K - ITEM 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations--Business Outlook
and the Challenges in Managing Our Business for each of Exelon, ComEd, PECO and
Generation, (b) the Registrants' 2002 Annual Report on Form 10-K - 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 United States Securities and Exchange Commission (SEC) by the
Registrants. Readers are cautioned not to place undue reliance on these
forward-looking statements, which apply only as of the date of this Report. 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 Report.
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
July 31, 2003
Exhibit 99
Exelon Corporation (Holding Company)
Long-Term Debt Outstanding By Issue
As of June 30, 2003
(in millions)
Interest Date Maturity Debt Current Long-Term
Series Rate Issued Date Outstanding Portion Debt
- ------------------------------------------------------------------------------------------------------------------------------------
Senior Notes - Exelon Corporation
- ----------------------------------
2001 Senior Notes 6.75% 05/03/01 05/01/11 $ 500 $ 0 $ 500
--------- ---------- -------
Total Senior Notes - Exelon Corporation $ 500 $ 0 $ 500
--------- ---------- -------
Notes - Exelon Corporation
- ----------------------------------
NDH Capital Corporation 8.300% 08/02/99 01/15/09 $ 3 $ 1 $ 2
NDH Capital Corporation 8.440% 10/16/95 01/01/04 1 1 0
NDH Capital Corporation 8.550% 11/12/99 01/15/09 4 1 3
NDH Capital Corporation 8.650% 01/03/00 01/15/10 3 0 3
Corporate Credit Inc. 8.875% 12/13/99 01/15/10 4 1 3
Corporate Credit Inc. 7.980% 10/01/99 07/15/10 6 1 5
--------- --------- -------
Total Notes - Exelon Corporation $ 21 $ 5 $ 16
--------- --------- -------
Other Various $ 2 $ 0 $ 2
--------- --------- -------
Total Exelon Corporation Long-term Debt $ 523 $ 5 $ 518
========= ========= =======
Unamortized Debt Discount and Premium (2)
-------
Exelon Corporation Long-term Debt $ 516
=======
Commonwealth Edison Company and Subsidiary Companies
Long-Term Debt Outstanding By Issue
As of June 30, 2003
(in millions)
Interest Date Maturity Debt Current Long-Term
Rate Issued Date Outstanding Portion Debt
- ------------------------------------------------------------------------------------------------------------------------------------
First Mortgage Bonds
- -----------------------------------------
Series 96 6.625% 07/15/93 07/15/03 $ 100 $ 100 $ 0
Pollution Control-1994A 5.300% 01/15/94 01/15/04 26 26 0
Series 93 7.000% 07/01/93 07/01/05 225 225
Series 76 8.250% 10/01/91 10/01/06 100 100
Series 78 8.375% 10/15/91 10/15/06 125 125
Pollution Control-1996A 4.400% 06/27/96 12/01/06 110 110
Pollution Control-1996B 4.400% 06/27/96 12/01/06 89 89
Series 99 3.700% 01/22/03 02/01/08 350 350
Series 83 8.000% 05/15/92 05/15/08 140 140
Pollution Control-1994B 5.700% 01/15/94 01/15/09 20 20
Series 98 6.150% 03/13/02 03/15/12 400 400
Series 98 6.150% 06/13/02 03/15/12 200 200
Series 92 7.625% 04/15/93 04/15/13 219 219
Pollution Control-2002 Variable 06/04/02 04/15/13 100 100
Series 94 7.500% 07/01/93 07/01/13 147 147
Pollution Control-1994C 5.850% 01/15/94 01/15/14 20 20
Pollution Control-1994D 6.750% 12/01/94 03/01/15 91 91
Series 101 4.700% 04/07/03 04/15/15 395 395
Series 75 9.875% 06/15/90 06/15/20 54 54
Series 97 7.750% 07/15/93 07/15/23 150 150
Series 100 5.875% 01/22/03 02/01/33 350 350
IL Ind. Pol. Ctrl. Fin. Authority Variable 05/08/03 05/15/17 40 40
--------- --------- --------
Total First Mortgage Bonds - ComEd $ 3,451 $ 126 $ 3,325
--------- --------- --------
Sinking Fund Debentures
- -----------------------------------------
Sinking Fund Debenture 3.125% 10/01/54 10/01/04 $ 2 $ 1 $ 1
Sinking Fund Debenture 3.875% 01/01/58 01/01/08 6 1 5
Sinking Fund Debenture 4.625% 01/01/59 01/01/09 3 0 3
Sinking Fund Debenture 4.750% 12/01/61 12/01/11 7 1 6
--------- --------- --------
Total Sinking Fund Debentures - ComEd $ 18 $ 3 $ 15
--------- --------- --------
Transitional Funding Trust Notes
- -----------------------------------------
Class A-5 Transitional Funding Trust Notes, Series 1998 5.440% 12/16/98 03/25/05 $ 599 $ 340 $ 259
Class A-6 Transitional Funding Trust Notes, Series 1998 5.630% 12/16/98 06/25/07 761 761
Class A-7 Transitional Funding Trust Notes, Series 1998 5.740% 12/16/98 12/25/08 510 510
--------- --------- --------
Total Transitional Funding Trust Notes - ComE $ 1,870 $ 340 $ 1,530
--------- --------- --------
Pollution Control Obligations
- -----------------------------------------
IL Dev. Fin. Auth. - Series 1994C Variable 12/14/94 03/01/09 $ 50 $ $ 50
IL Dev. Fin. Auth. - Series 1994B Variable 10/05/94 10/15/14 42 42
--------- --------- --------
Total Pollution Control Obligations - ComEd $ 92 $ 0 $ 92
--------- --------- --------
Medium Term Notes
- -----------------------------------------
3N- 3032 9.200% 10/18/89 10/15/04 $ 14 $ $ 14
3N- 3033 9.200% 10/18/89 10/15/04 14 14
3N- 3034 9.200% 10/18/89 10/15/04 10 10
3N- 3035 9.200% 10/18/89 10/15/04 14 14
3N- 3036 9.200% 10/18/89 10/15/04 4 4
Senior Note Variable 09/14/00 09/30/03 250 250 0
--------- --------- --------
Total Medium Term Notes - ComEd $ 306 $ 250 $ 56
--------- --------- --------
Notes
- -----------------------------------------
Notes 6.400% 10/15/93 10/15/05 $ 235 $ $ 235
Notes 7.375% 01/09/97 01/15/04 150 150 0
Notes 7.625% 01/09/97 01/15/07 150 150
Notes 6.950% 07/16/98 07/15/18 225 225
--------- --------- --------
Total Notes - ComEd $ 760 $ 150 $ 610
--------- --------- --------
Total ComEd Long-Term Debt $ 6,497 $ 869 $ 5,628
========= ========= ========
Unamortized Debt Discount and Premium (90)
Fair Value Hedge Carrying Value Adjustment 46
--------
ComEd Long-Term Debt $ 5,584
========
PECO Energy Company and Subsidiary Companies
Long-Term Debt By Issue
As of June 30, 2003
(in millions)
Interest Issue Maturity Debt Current Long-Term
Series Rate Date Date Outstanding Portion Debt
- ------------------------------------------------------------------------------------------------------------------------------------
First Mortgage Bonds
- ---------------------------------------
FMB 4.7500% 9/23/02 10/1/12 $ 225 $ $ 225
FMB 5.9500% 11/01/01 11/01/11 250 250
FMB 6.3750% 08/15/93 08/15/05 75 75
FMB 3.5000% 04/28/03 05/01/08 450 450
--------- --------- --------
Total First Mortgage Bonds $ 1,000 $ - $ 1,000
--------- --------- --------
Mortgage-Backed Pollution Control Notes
- ---------------------------------------
Delaware Co. 1988 Ser. A var. rate 04/01/93 12/01/12 $ 50 $ $ 50
Delaware Co. 1988 Ser. B var. rate 04/01/93 12/01/12 50 50
Delaware Co. 1988 Ser. C var. rate 04/01/93 12/01/12 50 50
Salem Co. 1988 Ser. A var. rate 04/01/93 12/01/12 4 4
--------- --------- --------
Total Mortgage-Backed Pollution Control Notes $ 154 $ $ 154
--------- --------- --------
Pollution Control Notes
- -----------------------------------------------------
Delaware Co. 1999 Ser. A 5.20% 10/14/99 04/01/21 $ 51 $ $ 51
Montgomery Co. 1999 Ser. A 5.20% 10/14/99 10/01/30 92 92
Montgomery Co. 1999 Ser. B 5.30% 10/14/99 10/01/34 14 14
--------- --------- --------
Total Pollution Control Notes $ 157 $ - $ 157
--------- --------- --------
PECO Energy Transition Trust Debt (PETT)
- ------------------------------------------------------
1999 A-3 variable 03/26/99 03/01/04 $ 92 $ 92 $ 0
1999 A-4 5.8000% 03/26/99 03/01/05 459 172 287
1999 A-5 variable 03/26/99 09/01/07 139 139
1999 A-6 6.0500% 03/26/99 03/01/07 993 993
1999 A-7 6.1300% 03/26/99 09/01/08 897 897
2000 A-3 7.6250% 05/02/00 03/01/09 399 399
2000 A-4 7.6500% 05/02/00 09/01/09 351 351
2001 A-1 6.5200% 03/01/01 03/01/10 805 805
--------- --------- --------
Total PECO Energy Transition Trust Debt $ 4,135 $ 264 $ 3,871
--------- --------- --------
Company Obligated Mandatorily Redeemable Preferred Securities
- -------------------------------------------------------
PECO Energy Capital Trust IV 5.75% 06/24/03 06/15/33 $ 100 $ $ 100
--------- --------- --------
Total COMPRS $ 100 $ - $ 100
--------- --------- --------
Other Various $ 1 $ 0 $ 1
--------- --------- --------
Total PECO Long-Term Debt $ 5,547 $ 264 $ 5,283
========= ========= ========
Unamortized Debt Discount and Premium (10)
Notes Payable - Accounts Receivable agreement 56
Capital Lease Obligation $ 1 $ 0 $ 1
--------
PECO Long-Term Debt $ 5,330
========
Exelon Generation Company, LLC and Subsidiary Companies
Long-Term Debt By Issue
As of June 30, 2003
(in millions)
Interest Issue Maturity Debt Current Long-Term
Series Rate Date Date Outstanding Portion Debt
- ------------------------------------------------------------------------------------------------------------------------------------
Senior Notes
- -------------------------------
2001 Senior Unsecured Notes 6.95% 6/14/01 6/15/11 $ 700 $ 0 $ 700
------------ ------------ ----------
Unsecured Pollution Control Notes
- -------------------------------
Montgomery Co. 2001 Ser. B var. rate 9/5/01 10/1/30 $ 69 $ 0 $ 69
Delaware Co. 2001 Ser. A var. rate 4/25/01 4/1/21 39 39
Montgomery Co. 2001 Ser. A var. rate 4/25/01 10/1/34 13 13
Delaware Co. 1993 Ser. A var. rate 8/24/93 8/1/16 24 24
Salem Co. 1993 Ser. A var. rate 9/9/93 3/1/25 23 23
Montgomery Co. 1994 Ser. A var. rate 2/14/95 6/1/29 83 83
Montgomery Co. 1994 Ser. B var. rate 7/2/95 6/1/29 13 13
York County 1993 Ser. A var. rate 8/24/93 8/1/16 18 18
Montgomery Co. 1996 Ser. A var. rate 3/27/96 3/1/34 34 34
Montgomery Co. 2002 Ser. A var. rate 7/24/02 12/1/29 30 30
Indiana Co. 2003 A var. rate 6/3/03 6/1/27 17 17
------------ ------------ ----------
Total Unsecured Pollution Control Notes $ 363 $ 0 $ 363
------------ ------------ ----------
Notes Payable
- -------------------------------
Exelon Boston Generating Project Construction Notes Various 11/1/02 12/31/07 $ 1,037 $ 1,037 $ 0
Exelon Generation Term Loan L + .875% 11/01/02 6/18/03 210 210 0
Limerick Turbine Note Payable (Siemens) 7.25% 12/31/97 6/30/04 3 3 0
Notes Payable & Other Various 51 2 49
------------ ------------ ----------
Total Notes Payable $ 1,301 $ 1,252 $ 49
------------ ------------ ----------
Total Exelon Generation Long-Term Debt $ 2,364 $ 1,252 $ 1,112
------------ ------------ ----------
Unamortized Debt Discount and Premium (1)
----------
Exelon Generation Long-Term Debt $ 1,111
==========
Exelon Enterprises Company, LLC and Subsidiary Companies
Long-Term Debt By Issue
As of June 30, 2003
(in millions)
Interest Date Maturity Debt Current Long-Term
Series Rate Issued Date Outstanding Portion Debt
- ------------------------------------------------------------------------------------------------------------------------------------
Notes - Exelon Thermal Technologies
- -----------------------------------------
Guaranteed Senior Notes 7.680% 06/25/99 06/30/23 $ 11 $ 0 $ 11
Guaranteed Senior Notes 9.090% 05/19/00 01/31/20 27 1 26
------------ ---------- -----------
Total Notes - Exelon Thermal Technologies $ 38 $ 1 $ 37
------------ ---------- -----------
Total Enterprises Long-Term Debt $ 38 $ 1 $ 37
------------ ---------- -----------
Unamortized Debt Discount and Premium $ 2
Capital Lease Obligation $ 1 $ 1 0
----------
Enterprises Long-Term Debt $ 39
==========
