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 9, 2013
Date of Report (Date of earliest event reported)
Commission File Number |
Exact Name of Registrant as Specified in Its Charter; State of Incorporation; Address of Principal Executive Offices; and Telephone Number |
IRS Employer | ||
1-16169 | EXELON CORPORATION (a Pennsylvania corporation) 10 South Dearborn Street P.O. Box 805379 Chicago, Illinois 60680-5379 (312) 394-7398 |
23-2990190 | ||
333-85496 | EXELON GENERATION COMPANY, LLC (a Pennsylvania limited liability company) 300 Exelon Way Kennett Square, Pennsylvania 19348-2473 (610) 765-5959 |
23-3064219 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 7 Regulation FD
Item 7.01. | Regulation FD Disclosure. |
On April 11, 2013, Exelon Corporation (Exelon) will participate in the Wolfe Trahan Power & Gas Deep Dive Conference. Attached as Exhibit 99.1 to this Current Report on Form 8-K are the presentation slides and handouts to be used at the conference.
Section 9 Financial Statements and Exhibits
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit |
Description | |
99.1 | Presentation slides and handouts |
* * * * *
This combined Form 8-K is being furnished separately by Exelon and Exelon Generation Company, LLC (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.
This Current Report includes 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 these forward-looking statements include those discussed herein as well as those discussed in (1) Exelons 2012 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Managements Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 19; and (2) other factors discussed in filings with the Securities and Exchange Commission 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 Current 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 Current Report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
EXELON CORPORATION |
/s/ Jonathan W. Thayer |
Jonathan W. Thayer |
Executive Vice President and Chief Financial Officer |
Exelon Corporation |
EXELON GENERATION COMPANY, LLC |
/s/ Bryan P. Wright |
Bryan P. Wright |
Senior Vice President and Chief Financial Officer Exelon Generation Company, LLC |
April 9, 2013
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Presentation slides and handouts |
Wolfe Trahan Power & Gas Deep Dive Conference
Houston, TX
Joe Nigro, SVP Portfolio Strategy
Ed Quinn, SVP Wholesale Trading & Origination
April 11, 2013
Exhibit 99.1 |
Cautionary Statements Regarding Forward Looking Information
Wolfe Trahan Power & Gas Deep Dive Conference
1
This presentation contains certain 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 Exelon Corporation, Commonwealth Edison Company, PECO
Energy Company, Baltimore Gas and Electric Company and Exelon Generation
Company, LLC (Registrants) include those factors discussed herein, as
well as the items discussed in (1) Exelons 2012 Annual Report on
Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7.
Managements Discussion and Analysis of Financial Condition and
Results of Operations and (c) ITEM 8. Financial Statements and
Supplementary Data: Note 19; and (2) other factors discussed in filings with the
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 presentation. 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 presentation.
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Conventional
Generation
Fuels
Retail
Renewable
Generation
Electric &
Gas Utilities
Beyond The
Meter
Presence across the entire energy value chain
Unique Combination of Scale, Scope and Flexibility to Invest
Across The Value Chain with Metrics Oriented Operational Model
Wolfe Trahan Power & Gas Deep Dive Conference
2
Exelon Generation Components
Leading competitive energy provider in the U.S.
Constellations retail business serves more than
100,000 business and public sector customers
and approximately 1 million residential
customers
o
Wide range of products and services,
including load response, energy efficiency
and distributed solar
Top-notch portfolio and risk management
capabilities
35,000 megawatts
(1)
of diverse generation
across 22 states and Canada
One of the largest and best-managed nuclear
fleets in the world (approximately 19,000
megawatts)
(1)
Ten consecutive years with nuclear capacity
factor over 92%
One of the nations cleanest fleets as measured
by CO2, SO2 and NOx intensity
Constellation
Power Generation
(1)
Includes ~2,000 megawatts from Exelon Generations investment in CENG, a
joint venture with EDF. |
Wolfe Trahan Power & Gas Deep Dive Conference
3
Portfolio Management Strategy
Protect Balance Sheet
Ensure Earnings Stability
Create Value
Exercising Market Views
Purely ratable
Actual hedge %
Market views on timing, product
allocation and regional spreads
reflected in actual hedge %
High End of Profit
Low End of Profit
% Hedged
Open Generation
with LT Contracts
Portfolio Management &
Optimization
Portfolio Management Over Time
Align Hedging & Financials
Establishing Minimum Hedge Targets
Strategic Policy Alignment
Aligns hedging program with
financial policies and financial
outlook
Establish minimum hedge targets
to meet financial objectives of the
company (dividend, credit rating)
Hedge enough commodity risk to
meet future cash requirements
under a stress scenario
Three-Year Ratable Hedging
Ensure stability in near-term cash
flows and earnings
Disciplined approach to hedging
Tenor aligns with customer
preferences and market liquidity
Multiple channels to market that
allow us to maximize margins
Large open position in outer years
to benefit from price upside
Bull / Bear Program
Ability to exercise fundamental
market views to create value within
the ratable framework
Modified timing of hedges versus
purely ratable
Cross-commodity hedging (heat
rate positions, options, etc.)
Delivery locations, regional and
zonal spread relationships
Credit Rating
Capital &
Operating
Expenditure
Dividend
Capital
Structure |
Creating Value in a Low Commodity Price Environment
Wolfe Trahan Power & Gas Deep Dive Conference
4
The
competitive
advantage
of
our
platform
is
the
scale
and
scope
of the
business across the energy value chain
Exelon is well positioned for any power market recovery
Market Forces
Customer
Focused
Deregulation of non-competitive states
Hyper competitive retail market
Constellations platform provides opportunities to create value in this
low commodity price environment
RGGI = Regional Greenhouse Gas Initiative
Constellation Actions
New product and service bundles
Cross-selling products
Disciplined pricing
Regulatory advocacy
Flexible hedging strategy
Selection of products (i.e. sell gas
instead of power)
Regulatory advocacy
Portfolio optimization (short, medium
and
long
term)
physical presence
provides increased optimization
opportunities
Effective channel management
EPA Regulation
Natural gas price
Power demand
Power market design (ERCOT and PJM)
PTC (Production Tax Credit)
Subsidized generation
RGGI Proposed Changes
Technological Innovation
Generation
Focused |
(1) Owned and contracted generation capacity converted from MW to MWh
assuming 100% capacity factor for all technology types, except for renewable capacity which is shown at estimated capacity factor.
Generation Fleet Overview
Wolfe Trahan Power & Gas Deep Dive Conference
5
Owned Generation (Technology Type)
Generation
and
Load
Match
(2013
TWh)
(1,2)
Multiple paths to market available to hedge the ~35,000 MW fleet
that has
both technological and regional diversification
New York
New England
ERCOT
MidAtlantic
116
MidWest
118
Renewables
Baseload
Intermediate
Peaking
Expected Load
Expected Generation
Generation capacity
43
30
26
14
15
6
12
17
14
17
18
48
75
25
97
11
South/West/
Canada
(2) Expected generation and load shown in the chart above will not tie
out with load volume and ExGen disclosures. Load shown above does not include indexed products and generation reflects a net owned
and contracted position. Estimates as of 9/30/2012.
Hydro
6%
Wind/Solar/Other
4%
Coal
4%
Oil
3%
Gas
28%
Nuclear
55% |
Market Update
Wolfe Trahan Power & Gas Deep Dive Conference
6
2015 Henry Hub
$4.30
$4.23
3/31/2013
12/31/2012
2015 PJM-W ATC
$41.43
$39.17
2015 NiHub ATC
$33.72
$31.87
2015
Gross
Margin
Sensitivities
(1)
($M)
Henry Hub
+ $1/Mmbtu
$590
-
$1/Mmbtu
($520)
NiHub ATC
+ $5/MWh
$410
-
$5/MWh
($410)
PJM-W ATC
+ $5/MWh
$260
-
$5/MWh
($250)
2015 Price Change
ATC = Around the Clock.
(1)
Sensitivity data as of
12/31/12. (2) Uses midpoint of hedge percentage provided in 4Q12 earnings release (data as of 12/31/12).
9.8
9.6
9.4
7.8
7.6
0.0
3/31/13
3/1/13
2/1/13
1/1/13
9.6
7.8
9.3
7.5
PJM W
NiHub
26.5%
62.5%
93.5%
34.5%
67.5%
98.5%
2015
2014
2013
Mid-Atlantic
Midwest
2015 ATC Heat Rate 1Q13
%
of Expected Generation Hedged
(2) |
Other Constellation Businesses
7
Provides strong returns ( >12% IRR)
$140M (~50% utilized) Reserve Based Lending
(RBL) facility in place
Receives off-balance sheet treatment from
S&P
Provides valuable market intelligence in complex
natural gas markets
266 Bcfe of net proved reserves as of 12/31/12
Presence and experience across the value chain allows Constellation to offer
customers multiple products to manage their energy risk
Retail Gas:
All States are competitive
~430 Bcf projected to be served in 2013
Month to month customers, with high retention
rates
Wholesale Gas:
Expand presence to complement power assets
Portfolio Size: 5 Bcf wholesale storage,
200,000 MMBtus per day of term transport
and over 1.5 Bcf/day of plant supply
2013 market size of 5.5 GW estimated to grow 1-2
GW per year for the next 5 years
Focus on states with established markets in place
and where there is potential for new incentives
Pursue opportunities in non-Solar REC markets
where there is increased interest in solar
~155 MW in operation or under construction
(excludes Antelope Valley Solar Ranch facility)
Load Response:
~2 GW of load response under contract
Roughly 100 GW total market
Energy Efficiency:
Over 4,000 projects implemented to date
Focus on government, education,
healthcare and multi-family housing
sectors
Upstream E&P Assets
Retail and Wholesale Gas
Solar
Energy Efficiency and Load Response
E&P = Exploration and Production. REC = Renewable Energy
Credit. Wolfe Trahan Power & Gas Deep Dive Conference
|
8
Components of Gross Margin Categories
Margins move from new business to MtM of hedges over
the course of the year as sales are executed
Margins move from Non power new business
to
Non power executed
over the course of the year
Gross margin linked to power production and sales
Gross margin from
other business activities
Open Gross
Margin
MtM of
Hedges
(2)
Power
New
Business
Non Power
Executed
Non Power
New Business
Generation Gross
Margin at current
market prices,
including capacity
and ancillary
revenues, nuclear
fuel amortization
and fossils fuels
expense
Exploration and
Production
Power Purchase
Agreement (PPA)
Costs and
Revenues
Provided at a
consolidated level
for all regions
(includes hedged
gross margin for
South, West and
Canada
(1)
)
Mark to Market
(MtM) of power,
capacity and
ancillary hedges,
including cross
commodity, retail
and wholesale load
transactions
Provided directly at
a consolidated
level for five major
regions. Provided
indirectly for each
of the five major
regions via
Effective Realized
Energy Price
(EREP), reference
price, hedge %,
expected
generation
Retail, Wholesale
planned electric
sales
Portfolio
Management new
business
Mid marketing new
business
Retail, Wholesale
executed gas sales
Load Response
Energy Efficiency
BGE Home
Distributed Solar
Retail, Wholesale
planned gas sales
Load Response
Energy Efficiency
BGE Home
Distributed Solar
Portfolio
Management /
origination fuels
new business
Proprietary
trading
(3)
Wolfe Trahan Power & Gas Deep Dive Conference
(1) Hedged gross margins for South, West and Canada region will be included
with Open Gross Margin, and no expected generation, hedge %, EREP or reference prices provided for this region.
(2) MtM of hedges provided directly for the five larger regions. MtM of hedges
is not provided directly at the regional level but can be easily estimated using EREP, reference price and hedged MWh.
(3) Proprietary trading gross margins will remain within Non Power
New Business category and not move to Non Power Executed category.
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