PECO ENERGY CO - FORM 8-K - EX-99.1 - PRESS RELEASE AND EARNINGS RELEASE ATTACHMENTS

Attached files

file	filename
8-K - FORM 8-K - PECO ENERGY CO	d8k.htm
EX-99.2 - EARNINGS CONFERENCE CALL PRESENTATION SLIDES - PECO ENERGY CO	dex992.htm

EXHIBIT 99.1

LOGO


Contact:	Karie Anderson	FOR IMMEDIATE RELEASE
	Investor Relations
	312-394-4255

	Kathleen Cantillon
	Corporate Communications
	312-394-7417

Exelon Announces Third Quarter Results;

Narrows Full Year 2009 Earnings Guidance

CHICAGO (October 23, 2009) – Exelon Corporation (NYSE: EXC) today announced that its third quarter 2009 consolidated earnings prepared in accordance with GAAP were $757 million, or $1.14 per diluted share, compared with earnings of $700 million, or $1.06 per diluted share, in the third quarter of 2008.

Exelon’s adjusted (non-GAAP) operating earnings for the third quarter of 2009 were $633 million, or $0.96 per diluted share, compared with $706 million, or $1.07 per diluted share, for the same period in 2008.

“We are achieving our financial commitments despite difficult weather, economic and market conditions,” said John W. Rowe, Exelon’s chairman and CEO. “We continue to deliver cost savings and solid operations as shown by a 94.7 percent nuclear capacity factor for the third quarter and reliable utility performance through the critical summer months. We remain committed to achieving full year 2009 operating earnings within the guidance range we issued last fall and are narrowing that range to $4.00 to $4.10 per share.”

The decrease in third quarter 2009 adjusted (non-GAAP) operating earnings to $0.96 per share from $1.07 per share in third quarter 2008 was primarily due to:

•

Lower energy gross margins at Exelon Generation Company, LLC (Generation) largely due to unfavorable portfolio and market conditions;

•

Higher costs at Generation associated with a higher number of scheduled nuclear refueling outage days;

•

Reversal of benefits recorded in the first quarter of 2009 related to an Illinois investment tax credit ruling;

•

Reduced load at Commonwealth Edison Company (ComEd) and PECO Energy Company (PECO), primarily driven by the impact of unfavorable weather conditions and current economic conditions; and

•

Increased depreciation and amortization expense primarily related to the higher scheduled competitive transition charge (CTC) amortization at PECO and increased depreciation across the operating companies due to ongoing capital expenditures.

Lower third quarter 2009 earnings were partially offset by:

•

Increased electric distribution revenue at ComEd resulting from the September 2008 distribution rate case order; and

•

Decreased operating and maintenance expense largely due to savings achieved through the ongoing cost management initiative and lower uncollectible accounts expense at PECO, partially offset by increased pension and other postretirement benefits (OPEB) expense.

Adjusted (non-GAAP) operating earnings for the third quarter of 2009 do not include the following items (after-tax) that were included in reported GAAP earnings:

•

Unrealized gains of $87 million, or $0.13 per diluted share, related to nuclear decommissioning trust (NDT) fund investments;

•

Mark-to-market gains of $77 million, or $0.12 per diluted share, primarily from Generation’s economic hedging activities;

•

Costs totaling $58 million, or $0.09 per diluted share, associated with early debt retirements;

•

Income of $32 million, or $0.05 per diluted share, resulting from the reduction in Generation’s decommissioning obligations;

•

Costs of $11 million, or $0.02 per diluted share, associated with the 2007 Illinois electric rate settlement agreement;

•

External costs of $6 million, or $0.01 per diluted share, related to Exelon’s terminated offer to acquire NRG Energy, Inc. (NRG); and

•

Income of $3 million for the true-up of severance costs as a result of headcount reductions associated with Exelon’s cost management program.

Adjusted (non-GAAP) operating earnings for the third quarter of 2008 did not include the following items (after-tax) that were included in reported GAAP earnings:

•

Mark-to-market gains of $65 million, or $0.10 per diluted share, primarily from Generation’s economic hedging activities;

•

Costs of $26 million, or $0.04 per diluted share, associated with the 2007 Illinois electric rate settlement agreement;

•

Unrealized losses of $60 million, or $0.09 per diluted share, related to NDT fund investments; and

•

Income of $15 million, or $0.02 per diluted share, resulting from the reduction in Generation’s decommissioning obligations.

2009 Earnings Outlook

Exelon narrowed its guidance range for 2009 adjusted (non-GAAP) operating earnings to $4.00 to $4.10 per share from $4.00 to $4.30 per share. Operating earnings guidance is based on the assumption of normal weather for the remainder of the year.

The outlook for 2009 adjusted (non-GAAP) operating earnings for Exelon and its subsidiaries excludes the following items:

•

Mark-to-market adjustments from economic hedging activities

•

Unrealized gains and losses from NDT fund investments primarily related to the Clinton, Oyster Creek and Three Mile Island nuclear plants (the former AmerGen units)

•

Significant impairments of assets, including goodwill

•

Changes in decommissioning obligation estimates

•

Costs associated with the 2007 Illinois electric rate settlement agreement

•

Costs associated with ComEd’s 2007 settlement with the City of Chicago

•

Costs incurred for employee severance related to the cost reduction program announced in June 2009

•

Costs associated with early debt retirements

•

External costs associated with the terminated offer to acquire NRG

•

Non-cash remeasurement of income tax uncertainties and reassessment of state deferred income taxes

•

Other unusual items

•

Significant future changes to GAAP

Third Quarter and Recent Highlights

•

Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station, produced 35,684 gigawatt-hours (GWh) in the third quarter of 2009, compared with 36,451 GWh in the third quarter of 2008. The Exelon-operated nuclear plants achieved a 94.7 percent capacity factor for the third quarter of 2009 compared with 97.2 percent for the third quarter of 2008. The Exelon-operated nuclear plants began two scheduled refueling outages in the third quarter of 2009, compared with beginning one scheduled refueling outage in the third quarter of 2008. The number of refueling outage days totaled 36 and 17, respectively, in the third quarter of 2009 and 2008. Also contributing to lower total nuclear output was a higher number of non-refueling outage days at the Exelon-operated plants, which totaled 21 days in the third quarter of 2009, compared to 8 days in the third quarter of 2008.

•

Fossil and Hydro Operations: Generation’s fossil fleet commercial availability was 87.0 percent in the third quarter of 2009, compared with 95.1 percent in the third quarter of 2008, primarily reflecting the impact of extended maintenance outages in 2009. The equivalent availability factor for the hydroelectric facilities was 97.1 percent in the third quarter of 2009, compared with 90.9 percent in the third quarter of 2008, primarily due to an extended planned outage in 2008 to overhaul one of the Conowingo units.

•

Three Mile Island (TMI) Unit 1 Nuclear Plant License Extension: On October 22, 2009, the Nuclear Regulatory Commission approved a 20-year operating license extension until April 19, 2034 for the TMI Unit 1 Generating Station. TMI Unit 1 began operating in 1974.

•

Hedging Update: Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. Expected generation represents the amount of energy estimated to be generated or purchased through owned or contracted-for capacity. The proportion of expected generation hedged as of September 30, 2009 is 98-100 percent for 2009, 88-91 percent for 2010 and 63-66 percent for 2011. The primary objective of Exelon’s hedging program is to manage market risks and protect the value of its generation and its investment grade balance sheet while preserving its ability to participate in improving long-term market fundamentals.

•

ComEd Smart Meter/Smart Grid Plan: On June 1, 2009, ComEd filed a petition with the Illinois Commerce Commission (ICC) recommending a one-year Advanced Metering Infrastructure (AMI) pilot program. Current plans call for the deployment of approximately 131,000 smart meters in 10 suburban communities and in the City of Chicago, and will include tests of customers’ responses to alternative pricing plans, in-home displays and Home Area Network control systems. ComEd requested recovery of and a return on its investment through a rider beginning in 2010. On October 14, 2009, the ICC approved ComEd’s AMI pilot program and rider with minor modifications.

On August 4, 2009, ComEd announced it filed an application with the U.S. Department of Energy (DOE) for $175 million in matching funds made available under the American Recovery and Reinvestment Act of 2009. The matching funds would enable an expansion of the company’s AMI pilot, from approximately 131,000 customers to 310,000 customers, and additional investments in Smart Grid technologies. The DOE is expected to select projects for funding later this year.

On September 2, 2009, ComEd submitted a petition to the ICC requesting recovery of the remaining costs of the stimulus projects after receiving the matching funds from the DOE.

•

Illinois Uncollectibles Recovery Rider: On August 9, 2009, Illinois Governor Pat Quinn signed legislation that includes assistance to low-income customers to manage their energy bills. In addition, the legislation includes a provision for utilities to recover their actual uncollectible accounts expenses through a rider adjustment mechanism. The rider would minimize regulatory lag during times when uncollectible accounts expenses are increasing beyond what is recovered through base rates and provide credits when lower than what is covered in base rates. On September 8, 2009, ComEd filed a proposed tariff with the ICC to implement this rider. An ICC decision is expected in the first quarter of 2010.

•

PECO Smart Meter/Smart Grid Plan: PECO is planning to spend up to approximately $650 million on its smart meter and smart grid infrastructure. On August 14, 2009, PECO filed its $550 million Smart Meter Procurement and Installation Plan with the Pennsylvania Public Utility Commission (PAPUC) in accordance with the requirements of Pennsylvania Act 129. PECO is requesting PAPUC approval to install more than 1.6 million smart meters and deploy advanced

communication networks over a 15-year period. The first phase of the plan includes the procurement and deployment of automated meter infrastructure and initial deployment of 100,000 smart meters over the next three years.

On August 6, 2009, PECO filed with the DOE its application seeking $200 million in American Recovery and Reinvestment Act grant funds under the Smart Grid Investment Grant Program. PECO’s “Smart Future Greater Philadelphia” project will increase the number of smart meters initially installed to 600,000, accelerate universal meter deployment by five years and increase Smart Grid investments up to approximately $100 million over the next three years.

•

PECO Energy Procurement: On September 23, 2009, the PAPUC approved the results of PECO’s second competitive procurement request for proposal (RFP) for residential customers and its initial generation supply procurement for the small and medium commercial classes. The September procurements for the residential class included full requirements fixed price contracts for 17-month and 29-month periods beginning January 1, 2011, and forward purchase block contracts to procure electric generation for the 12-month period beginning January 1, 2011. The procurements for the small and medium commercial classes included full requirements fixed-price contracts for the 17-month period beginning January 1, 2011.

The June and September procurements combined accounted for approximately 49 percent of the total full requirements electricity needed for PECO’s residential customers beginning in 2011 at an average retail price of 9.41 cents per kilowatt-hour (kWh), about a 4 percent increase compared to current prices. The September procurement accounted for approximately 24 percent and 16 percent of the full requirement fixed-price product for PECO’s small and medium commercial customers, respectively, at an average blended retail price of 9.79 cents per kWh. PECO’s next supply purchases for the residential and the small and medium commercial classes will take place in May 2010.

•

Pension Contribution: On September 9, 2009, Exelon announced that it was making a $350 million discretionary pension contribution allocated to the 2008 plan year, taking advantage of Federal pension funding relief provided by the Worker, Retiree and Employer Recovery Act of 2008 that allows use of average expected returns to establish asset values for determining funding requirements. The U.S. Treasury Department also has provided some funding relief through options in selecting the interest rates used for funding. The discretionary pension contribution – funded with cash from operations in excess of Exelon’s original 2009 plan – and Exelon’s pension funding elections will lower near-term mandatory pension contributions, which should increase future financial flexibility.

•

Financing Activities: On September 23, 2009, Generation issued $600 million of Senior Notes maturing on October 1, 2019, with a coupon of 5.20 percent and $900 million of Senior Notes maturing on October 1, 2039, with a coupon of 6.25 percent. Generation used the net proceeds from the sale (1) to pay approximately $622 million of principal, premium and accrued interest in connection with the purchase of approximately $555 million in aggregate principal amount of its 6.95 percent Notes due June 15, 2011 pursuant to Generation’s cash tender offer announced on September 16, 2009, (2) for a $432 million distribution to Exelon Corporation to fund its purchase of approximately $387 million in aggregate principal amount of its 6.75 percent Senior

Notes due May 1, 2011 pursuant to its cash tender offer announced on September 16, 2009, and (3) to fund Generation’s repurchase of $307 million of pollution-control bonds in early September. On September 23, 2009, Exelon Corporation and Generation called the remaining bonds that were not tendered pursuant to their tender offers, according to the terms of the respective bond issues. These bonds are obligated to be tendered today under the terms of the bonds and the call notices. Through these debt repurchase and refinancing activities, Exelon was able to capitalize on favorable market conditions, resulting in lower interest expense and an extended debt maturity profile.

•

Credit Rating Actions: Following the termination of Exelon’s proposed offer for NRG on July 21, 2009, the rating agencies took the following actions.

On July 21, 2009, Fitch Ratings, Ltd. removed Exelon and Generation from Ratings Watch Negative. The ratings for Exelon and Generation were affirmed and each entity was assigned a Stable Ratings Outlook.

On July 22, 2009, Standard & Poor’s Ratings Services (S&P) affirmed its corporate credit rating on Exelon, Generation and PECO of “BBB” and removed their ratings from CreditWatch Negative. In addition, S&P raised the corporate credit rating of ComEd to “BBB” from “BBB-”, raised its debt and preferred stock ratings and removed its ratings from CreditWatch Negative. An S&P research report cited “improvement in both ComEd’s business risk profile and its financial measures”. The outlook for ratings of all the Exelon entities is stable.

On July 23, 2009, Moody’s Investors Service (Moody’s) confirmed the ratings of Exelon and Generation and assigned a stable outlook. Moody’s also confirmed the long-term debt rating of PECO but downgraded its short-term rating to “P-2” from “P-1” and changed the outlook on PECO’s long-term debt to negative.

On August 3, 2009, Moody’s changed its credit rating methodology, widening the notching between most senior secured debt ratings and senior unsecured debt ratings of investment grade regulated utilities. As a result, Moody’s upgraded ComEd’s senior secured debt rating to “Baa1” from “Baa2”.

OPERATING COMPANY RESULTS

Generation consists of owned and contracted electric generating facilities, wholesale energy marketing operations and competitive retail sales operations.

Third quarter 2009 net income was $657 million compared with $635 million in the third quarter of 2008. Third quarter 2009 net income included (all after tax) costs of $9 million associated with the 2007 Illinois electric rate settlement, mark-to-market gains of $77 million from economic hedging activities before the elimination of intercompany transactions, unrealized gains of $87 million related to NDT fund investments, income of $32 million resulting from the reduction in decommissioning obligations primarily related to the former AmerGen nuclear plants, income of $2 million from the true-up of 2009 costs incurred for severance, and costs of $36 million associated with the early retirement of long-term debt. Third quarter 2008 net income included (all after tax) costs of $25 million associated with the

2007 Illinois electric rate settlement, mark-to-market gains of $96 million from economic hedging activities before the elimination of intercompany transactions, unrealized losses of $60 million related to NDT fund investments primarily related to the former AmerGen nuclear plants, and income of $15 million resulting from the reduction in decommissioning obligations primarily related to the former AmerGen nuclear plants. Excluding the impact of these items, Generation’s net income in the third quarter of 2009 decreased $105 million compared with the same quarter last year primarily due to:

•

Lower energy gross margins, largely due to unfavorable portfolio and market conditions, decreased nuclear output as a result of a higher number of refueling and non-refueling outage days and higher nuclear fuel costs; and

•

Higher costs related to a higher number of scheduled nuclear refueling outage days and increased pension and OPEB expense.

The decrease in net income was partially offset by:

•

Establishment of a reserve in 2008 related to Generation’s accounts receivable from Lehman Brothers Holdings Inc. due to its bankruptcy filing; and

•

Savings achieved through the cost management initiative.

Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $36.32 per MWh in the third quarter of 2009 compared with $36.54 per MWh in the third quarter of 2008.

ComEd consists of the electricity transmission and distribution operations in northern Illinois.

ComEd recorded net income of $46 million in the third quarter of 2009, compared with net income of $33 million in the third quarter of 2008. Third quarter net income in 2009 and 2008 included costs of $2 million and $1 million after tax, respectively, associated with the Illinois electric rate settlement. Excluding the impact of these items, ComEd’s net income in the third quarter of 2009 increased $14 million from the same quarter last year primarily due to:

•

Increased distribution revenue due to the September 2008 distribution rate case order;

•

Lower operating and maintenance expense, which primarily reflected savings achieved through the cost management initiative and the impact of decreased storm costs, partially offset by increased pension and OPEB expense; and

•

Discrete disallowances recorded in 2008, net of allowed regulatory assets, mandated by the September 2008 rate case order.

The increase in net income was partially offset by:

•

Reversal of an Illinois investment tax credit ruling – this benefit previously was recorded in the first quarter of 2009; and

•

Reduced load, primarily driven by the impact of unfavorable weather conditions and current economic conditions.

In the third quarter of 2009, cooling degree-days in the ComEd service territory were down 34.2 percent relative to the same period in 2008, and were 34.0 percent below normal. This reflected the Chicago area’s coolest summer weather in 17 years. ComEd’s total retail kilowatt-hour (kWh) deliveries decreased by 9.8 percent quarter over quarter, with declines in deliveries to all major customer classes. In addition, the number of residential customers being served in the ComEd region decreased 0.5 percent from the third quarter of 2008.

Weather-normalized retail kWh deliveries decreased by 3.8 percent from the third quarter of 2008. For ComEd, weather had an unfavorable after-tax impact of $18 million on third quarter 2009 earnings relative to 2008 and an unfavorable after-tax impact of $24 million relative to normal weather that was incorporated in earnings guidance.

PECO consists of the electricity transmission and distribution operations and the retail natural gas distribution business in southeastern Pennsylvania.

PECO’s net income in the third quarter of 2009 was $92 million, up from $90 million in the third quarter of 2008. This increase was primarily due to:

•

Lower uncollectible accounts expense.

The increase in net income was partially offset by:

•

Reduced load, primarily driven by the impact of current economic conditions and unfavorable weather conditions; and

•

Higher CTC amortization, which was in accordance with PECO’s 1998 restructuring settlement with the PAPUC. As expected, the increase in amortization expense exceeded the increase in CTC revenues.

In the third quarter of 2009, cooling degree-days in the PECO service territory were down 6.2 percent from 2008, and were 5.9 percent below normal. Total retail kWh deliveries were down 5.6 percent from last year, reflecting a decline in deliveries across all customer classes, primarily driven by the impact of current economic conditions and unfavorable weather conditions. The number of residential electric customers being served in the PECO region decreased 0.4 percent from the third quarter of 2008.

Weather-normalized retail kWh deliveries decreased by 3.9 percent from the third quarter of 2008, primarily reflecting decreased residential and large commercial and industrial deliveries. For PECO, weather had an unfavorable after-tax impact of $9 million on third quarter 2009 earnings relative to 2008 and an unfavorable after-tax impact of $19 million relative to normal weather that was incorporated in earnings guidance.

Adjusted (non-GAAP) Operating Earnings

Adjusted (non-GAAP) operating earnings, which generally exclude significant one-time charges or credits that are not normally associated with ongoing operations, mark-to-market adjustments from economic hedging activities and unrealized gains and losses from NDT fund investments, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-

GAAP) operating earnings measures internally to evaluate the company’s performance and manage its operations. Reconciliation of GAAP to adjusted (non-GAAP) operating earnings for historical periods is attached. Additional earnings release attachments, which include the reconciliation on page 7, are posted on Exelon’s Web site: www.exeloncorp.com and have been filed with the Securities and Exchange Commission on Form 8-K on October 23, 2009.

Conference call information: Exelon has scheduled a conference call for 10:30 AM ET (9:30 AM CT) on October 23, 2009. The call-in number in the U.S. and Canada is 800-690-3108, and the international call-in number is 973-935-8753. If requested, the conference ID number is 32242270. 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 November 6. The U.S. and Canada call-in number for replays is 800-642-1687, and the international call-in number is 706-645-9291. The conference ID number is 32242270.

Forward Looking Statements

This press release 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) Exelon’s 2008 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 18; (2) Exelon’s Third Quarter 2009 Quarterly Report on Form 10-Q (to be filed on October 23, 2009) in (a) Part II, Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 14; and (3) 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 (Companies). 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 Companies 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.

###

Exelon Corporation is one of the nation’s largest electric utilities with approximately 5.4 million customers and $19 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 5.4 million customers in Illinois and Pennsylvania and natural gas to approximately 485,000 customers in southeastern Pennsylvania. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.

EXELON CORPORATION

Earnings Release Attachments

Table of Contents


Consolidating Statements of Operations - Three Months Ended September 30, 2009 and 2008		1

Consolidating Statements of Operations - Nine Months Ended September 30, 2009 and 2008		2

Business Segment Comparative Statements of Operations - Generation and ComEd - Three and Nine Months Ended September 30, 2009 and 2008		3

Business Segment Comparative Statements of Operations - PECO and Other - Three and Nine Months Ended September 30, 2009 and 2008		4

Consolidated Balance Sheets - September 30, 2009 and December 31, 2008		5

Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2009 and 2008		6

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Three Months Ended September 30, 2009 and 2008		7

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Nine Months Ended September 30, 2009 and 2008		8

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended September 30, 2009 and 2008		9

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Nine Months Ended September 30, 2009 and 2008		10

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Generation - Three and Nine Months Ended September 30, 2009 and 2008		11

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - ComEd - Three and Nine Months Ended September 30, 2009 and 2008		12

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - PECO - Three and Nine Months Ended September 30, 2009 and 2008		13

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Other - Three and Nine Months Ended September 30, 2009 and 2008		14

Exelon Generation Statistics - Three Months Ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008 and September 30, 2008		15

Exelon Generation Statistics - Nine Months Ended September 30, 2009 and 2008		16

ComEd Statistics - Three and Nine Months Ended September 30, 2009 and 2008		17

PECO Statistics - Three and Nine Months Ended September 30, 2009 and 2008		18

EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)


	Three Months Ended September 30, 2009
	Generation			ComEd			PECO			Other			Exelon Consolidated
Operating revenues	$	2,445		$	1,475		$	1,327		$	(908	)	$	4,339

Operating expenses
Purchased power		303			776			625			(908	)		796
Fuel		379			—			26			(1	)		404
Operating and maintenance		592			273			154			1			1,020
Operating and maintenance for regulatory required programs (a)		—			19			—			—			19
Depreciation and amortization		74			125			272			14			485
Taxes other than income		51			79			78			4			212


Total operating expenses		1,399			1,272			1,155			(890	)		2,936


Operating income (loss)		1,046			203			172			(18	)		1,403


Other income and deductions
Interest expense, net		(24	)		(82	)		(46	)		(36	)		(188	)
Equity in losses of unconsolidated affiliates and investments		(1	)		—			(6	)		(1	)		(8	)
Other, net		192			(19	)		2			(27	)		148


Total other income and deductions		167			(101	)		(50	)		(64	)		(48	)


Income (loss) before income taxes		1,213			102			122			(82	)		1,355

Income taxes		556			56			30			(44	)		598


Net income (loss)	$	657		$	46		$	92		$	(38	)	$	757


	Three Months Ended September 30, 2008
	Generation			ComEd			PECO			Other			Exelon Consolidated
Operating revenues	$	3,073		$	1,729		$	1,441		$	(1,015	)	$	5,228

Operating expenses
Purchased power		528			1,068			693			(962	)		1,327
Fuel		669			—			50			(1	)		718
Operating and maintenance		625			306			192			(13	)		1,110
Operating and maintenance for regulatory required programs (a)		—			11			—			—			11
Depreciation and amortization		58			119			243			11			431
Taxes other than income		53			87			73			5			218


Total operating expenses		1,933			1,591			1,251			(960	)		3,815


Operating income (loss)		1,140			138			190			(55	)		1,413


Other income and deductions
Interest expense, net		(34	)		(87	)		(55	)		(27	)		(203	)
Equity in losses of unconsolidated affiliates and investments		—			(2	)		(4	)		—			(6	)
Other, net		(164	)		3			2			1			(158	)


Total other income and deductions		(198	)		(86	)		(57	)		(26	)		(367	)


Income (loss) before income taxes		942			52			133			(81	)		1,046

Income taxes		307			19			43			(23	)		346


Net income (loss)	$	635		$	33		$	90		$	(58	)	$	700

(a)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period.

EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)


	Nine Months Ended September 30, 2009
	Generation			ComEd			PECO			Other			Exelon Consolidated
Operating revenues	$	7,424		$	4,417		$	4,045		$	(2,684	)	$	13,202

Operating expenses
Purchased power		962			2,373			1,742			(2,677	)		2,400
Fuel		1,295			—			346			(1	)		1,640
Operating and maintenance		2,210			796			481			5			3,492
Operating and maintenance for regulatory required programs (a)		—			44			—			—			44
Depreciation and amortization		223			371			726			40			1,360
Taxes other than income		150			215			213			14			592


Total operating expenses		4,840			3,799			3,508			(2,619	)		9,528


Operating income (loss)		2,584			618			537			(65	)		3,674


Other income and deductions
Interest expense, net		(77	)		(241	)		(145	)		(92	)		(555	)
Equity in losses of unconsolidated affiliates and investments		(2	)		—			(19	)		—			(21	)
Other, net		325			67			8			(33	)		367


Total other income and deductions		246			(174	)		(156	)		(125	)		(209	)


Income (loss) before income taxes		2,830			444			381			(190	)		3,465

Income taxes		1,133			169			106			(69	)		1,339


Net income (loss)	$	1,697		$	275		$	275		$	(121	)	$	2,126


	Nine Months Ended September 30, 2008
	Generation			ComEd			PECO			Other			Exelon Consolidated
Operating revenues	$	8,311		$	4,594		$	4,195		$	(2,734	)	$	14,366

Operating expenses
Purchased power		1,704			2,729			1,859			(2,727	)		3,565
Fuel		1,211			—			397			—			1,608
Operating and maintenance		2,023			828			557			(25	)		3,383
Operating and maintenance for regulatory required programs (a)		—			17			—			—			17
Depreciation and amortization		202			343			653			32			1,230
Taxes other than income		153			227			203			14			597


Total operating expenses		5,293			4,144			3,669			(2,706	)		10,400


Operating income (loss)		3,018			450			526			(28	)		3,966


Other income and deductions
Interest expense, net		(108	)		(279	)		(171	)		(80	)		(638	)
Equity in losses of unconsolidated affiliates and investments		(1	)		(7	)		(11	)		—			(19	)
Other, net		(292	)		12			13			11			(256	)


Total other income and deductions		(401	)		(274	)		(169	)		(69	)		(913	)


Income (loss) from continuing operations before income taxes		2,617			176			357			(97	)		3,053

Income taxes		891			66			111			(46	)		1,022


Income (loss) from continuing operations		1,726			110			246			(51	)		2,031

Loss from discontinued operations		(1	)		—			—			—			(1	)


Net income (loss)	$	1,725		$	110		$	246		$	(51	)	$	2,030

(a)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period.

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)


	Generation

	Three Months Ended September 30,									Nine Months Ended September 30,
	2009			2008			Variance			2009			2008			Variance
Operating revenues	$	2,445		$	3,073		$	(628	)	$	7,424		$	8,311		$	(887	)

Operating expenses
Purchased power		303			528			(225	)		962			1,704			(742	)
Fuel		379			669			(290	)		1,295			1,211			84
Operating and maintenance		592			625			(33	)		2,210			2,023			187
Depreciation and amortization		74			58			16			223			202			21
Taxes other than income		51			53			(2	)		150			153			(3	)


Total operating expenses		1,399			1,933			(534	)		4,840			5,293			(453	)


Operating income		1,046			1,140			(94	)		2,584			3,018			(434	)


Other income and deductions
Interest expense, net		(24	)		(34	)		10			(77	)		(108	)		31
Equity in losses of investments		(1	)		—			(1	)		(2	)		(1	)		(1	)
Other, net		192			(164	)		356			325			(292	)		617


Total other income and deductions		167			(198	)		365			246			(401	)		647


Income from continuing operations before income taxes		1,213			942			271			2,830			2,617			213

Income taxes		556			307			249			1,133			891			242


Income from continuing operations		657			635			22			1,697			1,726			(29	)

Loss from discontinued operations		—			—			—			—			(1	)		1


Net income	$	657		$	635		$	22		$	1,697		$	1,725		$	(28	)


	ComEd

	Three Months Ended September 30,									Nine Months Ended September 30,
	2009			2008			Variance			2009			2008			Variance
Operating revenues	$	1,475		$	1,729		$	(254	)	$	4,417		$	4,594		$	(177	)

Operating expenses
Purchased power		776			1,068			(292	)		2,373			2,729			(356	)
Operating and maintenance		273			306			(33	)		796			828			(32	)
Operating and maintenance for regulatory required programs (a)		19			11			8			44			17			27
Depreciation and amortization		125			119			6			371			343			28
Taxes other than income		79			87			(8	)		215			227			(12	)


Total operating expenses		1,272			1,591			(319	)		3,799			4,144			(345	)


Operating income		203			138			65			618			450			168


Other income and deductions
Interest expense, net		(82	)		(87	)		5			(241	)		(279	)		38
Equity in losses of unconsolidated affiliates		—			(2	)		2			—			(7	)		7
Other, net		(19	)		3			(22	)		67			12			55


Total other income and deductions		(101	)		(86	)		(15	)		(174	)		(274	)		100


Income before income taxes		102			52			50			444			176			268

Income taxes		56			19			37			169			66			103


Net income	$	46		$	33		$	13		$	275		$	110		$	165

(a)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period.

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)


		PECO

	Three Months Ended September 30,									Nine Months Ended September 30,
	2009			2008			Variance			2009			2008			Variance
Operating revenues		$1,327		$	1,441		$	(114	)	$	4,045		$	4,195		$	(150	)

Operating expenses
Purchased power		625			693			(68	)		1,742			1,859			(117	)
Fuel		26			50			(24	)		346			397			(51	)
Operating and maintenance		154			192			(38	)		481			557			(76	)
Depreciation and amortization		272			243			29			726			653			73
Taxes other than income		78			73			5			213			203			10


Total operating expenses		1,155			1,251			(96	)		3,508			3,669			(161	)


Operating income		172			190			(18	)		537			526			11


Other income and deductions
Interest expense, net		(46	)		(55	)		9			(145	)		(171	)		26
Equity in losses of unconsolidated affiliates		(6	)		(4	)		(2	)		(19	)		(11	)		(8	)
Other, net		2			2			—			8			13			(5	)


Total other income and deductions		(50	)		(57	)		7			(156	)		(169	)		13


Income before income taxes		122			133			(11	)		381			357			24

Income taxes		30			43			(13	)		106			111			(5	)


Net income	$	92		$	90		$	2		$	275		$	246		$	29


		Other (a)

	Three Months Ended September 30,									Nine Months Ended September 30,
	2009			2008			Variance			2009			2008			Variance
Operating revenues	$	(908	)	$	(1,015	)	$	107		$	(2,684	)	$	(2,734	)	$	50

Operating expenses
Purchased power		(908	)		(962	)		54			(2,677	)		(2,727	)		50
Fuel		(1	)		(1	)		—			(1	)		—			(1	)
Operating and maintenance		1			(13	)		14			5			(25	)		30
Depreciation and amortization		14			11			3			40			32			8
Taxes other than income		4			5			(1	)		14			14			—


Total operating expenses		(890	)		(960	)		70			(2,619	)		(2,706	)		87


Operating loss		(18	)		(55	)		37			(65	)		(28	)		(37	)


Other income and deductions
Interest expense, net		(36	)		(27	)		(9	)		(92	)		(80	)		(12	)
Equity in losses of unconsolidated affiliates and investments		(1	)		—			(1	)		—			—			—
Other, net		(27	)		1			(28	)		(33	)		11			(44	)


Total other income and deductions		(64	)		(26	)		(38	)		(125	)		(69	)		(56	)


Loss before income taxes		(82	)		(81	)		(1	)		(190	)		(97	)		(93	)

Income taxes		(44	)		(23	)		(21	)		(69	)		(46	)		(23	)


Net loss	$	(38	)	$	(58	)	$	20		$	(121	)	$	(51	)	$	(70	)

(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities, including investments in synthetic fuel-producing facilities.

EXELON CORPORATION

Consolidated Balance Sheets

(unaudited)

(in millions)


	September 30, 2009			December 31, 2008
Current assets
Cash and cash equivalents	$	2,374		$	1,271
Restricted cash and investments		43			75
Accounts receivable, net
Customer		1,418			1,928
Other		442			324
Mark-to-market derivative assets		467			410
Inventories, net
Fossil fuel		216			315
Materials and supplies		568			528
Other		367			517


Total current assets		5,895			5,368


Property, plant and equipment, net		26,653			25,813

Deferred debits and other assets
Regulatory assets		5,137			5,940
Nuclear decommissioning trust (NDT) funds		6,502			5,500
Investments		732			715
Goodwill		2,625			2,625
Mark-to-market derivative assets		482			507
Other		1,476			1,349


Total deferred debits and other assets		16,954			16,636

Total assets	$	49,502		$	47,817


Liabilities and equity
Current liabilities
Short-term borrowings	$	140		$	211
Long-term debt due within one year		873			29
Long-term debt to PECO Energy Transition Trust (PETT) due within one year		591			319
Accounts payable		1,075			1,416
Mark-to-market derivative liabilities		206			214
Accrued expenses		888			1,151
Deferred income taxes		117			77
Other		554			663


Total current liabilities		4,444			4,080

Long-term debt		11,021			11,397
Long-term debt to PECO Energy Transition Trust		—			805
Long-term debt to other financing trusts		390			390

Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits		5,858			4,939
Asset retirement obligations		3,381			3,734
Pension obligations		3,782			4,111
Non-pension postretirement benefits obligations		2,248			2,255
Spent nuclear fuel obligation		1,017			1,015
Regulatory liabilities		3,395			2,520
Mark-to-market derivative liabilities		72			24
Other		1,317			1,413


Total deferred credits and other liabilities		21,070			20,011

Total liabilities		36,925			36,683


Preferred securities of subsidiary		87			87

Shareholders’ equity
Common stock		8,896			8,816
Treasury stock, at cost		(2,338	)		(2,338	)
Retained earnings		7,905			6,820
Accumulated other comprehensive loss, net		(1,973	)		(2,251	)


Total shareholders’ equity		12,490			11,047


Total liabilities and shareholders’ equity	$	49,502		$	47,817

EXELON CORPORATION

Consolidated Statements of Cash Flows

(unaudited)

(in millions)


	Nine Months Ended September 30,
	2009			2008
Cash flows from operating activities
Net income	$	2,126		$	2,030
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization and accretion, including nuclear fuel amortization		1,935			1,725
Impairment of long-lived assets		223			—
Deferred income taxes and amortization of investment tax credits		740			111
Net fair value changes related to derivatives and NDT funds		(257	)		(115	)
Other non-cash operating activities		464			658
Changes in assets and liabilities:
Accounts receivable		335			226
Inventories		41			(158	)
Accounts payable, accrued expenses and other current liabilities		(463	)		(261	)
Counterparty collateral received, net		380			245
Income taxes		(176	)		457
Pension and non-pension postretirement benefit contributions		(456	)		(103	)
Other assets and liabilities		(263	)		(448	)

Net cash flows provided by operating activities		4,629			4,367


Cash flows from investing activities
Capital expenditures		(2,252	)		(2,282	)
Proceeds from NDT fund sales		18,769			14,392
Investment in NDT funds		(18,949	)		(14,621	)
Change in restricted cash		32			28
Other investing activities		16			6

Net cash flows used in investing activities		(2,384	)		(2,477	)


Cash flows from financing activities
Changes in short-term debt		(71	)		(431	)
Issuance of long-term debt		1,987			1,969
Retirement of long-term debt		(1,515	)		(1,397	)
Retirement of long-term debt to financing affiliates		(533	)		(862	)
Dividends paid on common stock		(1,038	)		(989	)
Proceeds from employee stock plans		28			122
Purchase of treasury stock		—			(436	)
Purchase of forward contract in relation to certain treasury stock		—			(64	)
Other financing activities		—			69

Net cash flows used in financing activities		(1,142	)		(2,019	)


Increase (decrease) in cash and cash equivalents		1,103			(129	)
Cash and cash equivalents at beginning of period		1,271			311

Cash and cash equivalents at end of period	$	2,374		$	182

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations

(unaudited)

(in millions, except per share data)


	Three Months Ended September 30, 2009									Three Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	4,339		$	16	(c)	$	4,355		$	5,228		$	43	(c)	$	5,271

Operating expenses
Purchased power		796			89	(d)		885			1,327			305	(d)		1,632
Fuel		404			37	(d)		441			718			(198	)(d)		520
Operating and maintenance		1,020			46	(c),(e),(f),(g)		1,066			1,110			26	(c),(g)		1,136
Operating and maintenance for regulatory required programs (b)		19			—			19			11			—			11
Depreciation and amortization		485			—			485			431			—			431
Taxes other than income		212			—			212			218			—			218


Total operating expenses		2,936			172			3,108			3,815			133			3,948


Operating income		1,403			(156	)		1,247			1,413			(90	)		1,323


Other income and deductions
Interest expense, net		(188	)		3	(h)		(185	)		(203	)		—			(203	)
Equity in losses of unconsolidated affiliates and investments		(8	)		—			(8	)		(6	)		—			(6	)
Other, net		148			(152	)(h),(i)		(4	)		(158	)		170	(i)		12


Total other income and deductions		(48	)		(149	)		(197	)		(367	)		170			(197	)


Income before income taxes		1,355			(305	)		1,050			1,046			80			1,126

Income taxes		598			(181	)(c),(d),(e),(f),(g),(h),(i)		417			346			74	(c),(d),(g),(i)		420


Net income	$	757		$	(124	)	$	633		$	700		$	6		$	706


Effective tax rate		44.1	%					39.7	%		33.1	%					37.3	%

Earnings per average common share
Basic:
Income from continuing operations	$	1.15		$	(0.19	)	$	0.96		$	1.06		$	0.01		$	1.07
Income from discontinued operations		—			—			—			—			—			—

Net income	$	1.15		$	(0.19	)	$	0.96		$	1.06		$	0.01		$	1.07

Diluted:
Income from continuing operations	$	1.14		$	(0.18	)	$	0.96		$	1.06		$	0.01		$	1.07
Income from discontinued operations		—			—			—			—			—			—

Net income	$	1.14		$	(0.18	)	$	0.96		$	1.06		$	0.01		$	1.07


Average common shares outstanding
Basic		660						660			658						658
Diluted		662						662			662						662

Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
2007 Illinois electric rate settlement (c)				$	0.02								$	0.04
Mark-to-market impact of economic hedging activities (d)					(0.12	)								(0.10	)
NRG acquisition costs (e)					0.01									—
2009 severance charges (f)					—									—
Decommissioning obligation reduction (g)					(0.05	)								(0.02	)
Costs associated with early debt retirements (h)					0.09									—
Unrealized gains and losses related to NDT fund investments (i)					(0.13	)								0.09

Total adjustments				$	(0.18	)							$	0.01

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).

(b)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period.

(c)	Adjustment to exclude the impact of the 2007 Illinois electric rate settlement.

(d)	Adjustment to exclude the mark-to-market impact of Exelon's economic hedging activities.

(e)	Adjustment to exclude external costs in 2009 associated with Exelon’s proposed acquisition of NRG Energy, Inc. (NRG), which was terminated in July 2009.

(f)	Adjustment to exclude 2009 severance charges.

(g)	Adjustment to exclude the reduction in Generation's decommissioning obligation.

(h)	Adjustment to exclude 2009 costs associated with early debt retirements.

(i)	Adjustment to exclude the unrealized gains in 2009 and unrealized losses in 2008 associated with Generation's NDT fund investments and the associated contractual accounting relating to income taxes.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations

(unaudited)

(in millions, except per share data)


	Nine Months Ended September 30, 2009									Nine Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	13,202		$	82	(c)	$	13,284		$	14,366		$	189	(c)	$	14,555

Operating expenses
Purchased power		2,400			129	(d)		2,529			3,565			210	(d)		3,775
Fuel		1,640			9	(d)		1,649			1,608			88	(d)		1,696
Operating and maintenance		3,492			(241	)(c),(e),(f),(g),(h)		3,251			3,383			22	(c),(h)		3,405
Operating and maintenance for regulatory required programs (b)		44			—			44			17			—			17
Depreciation and amortization		1,360			—			1,360			1,230			—			1,230
Taxes other than income		592			—			592			597			—			597


Total operating expenses		9,528			(103	)		9,425			10,400			320			10,720


Operating income		3,674			185			3,859			3,966			(131	)		3,835


Other income and deductions
Interest expense, net		(555	)		12	(i),(j)		(543	)		(638	)		—			(638	)
Equity in losses of unconsolidated affiliates and investments		(21	)		—			(21	)		(19	)		—			(19	)
Other, net		367			(308	)(i),(j),(k)		59			(256	)		335	(k)		79


Total other income and deductions		(209	)		(296	)		(505	)		(913	)		335			(578	)


Income before income taxes		3,465			(111	)		3,354			3,053			204			3,257

Income taxes		1,339			(97	)(c),(d),(e),(f),(g),(h),(i),(j),(k)		1,242			1,022			162	(c),(d),(h),(k)		1,184


Income from continuing operations		2,126			(14	)		2,112			2,031			42			2,073

Loss from discontinued operations		—			—			—			(1	)		—			(1	)


Net Income	$	2,126		$	(14	)	$	2,112		$	2,030		$	42		$	2,072


Effective tax rate		38.6	%					37.0	%		33.5	%					36.4	%

Earnings per average common share
Basic:
Income from continuing operations	$	3.22		$	(0.02	)	$	3.20		$	3.09		$	0.07		$	3.16
Income from discontinued operations		—			—			—			—			—			—

Net income	$	3.22		$	(0.02	)	$	3.20		$	3.09		$	0.07		$	3.16


Diluted:
Income from continuing operations	$	3.21		$	(0.02	)	$	3.19		$	3.06		$	0.07		$	3.13
Income from discontinued operations		—			—			—			—			—			—

Net income	$	3.21		$	(0.02	)	$	3.19		$	3.06		$	0.07		$	3.13


Average common shares outstanding
Basic		659						659			658						658
Diluted		661						661			663						663

Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
2007 Illinois electric rate settlement (c)				$	0.08								$	0.18
Mark-to-market impact of economic hedging activities (d)					(0.12	)								(0.27	)
NRG acquisition costs (e)					0.03									—
Impairment of certain generating assets (f)					0.20									—
2009 severance charges (g)					0.03									—
Decommissioning obligation reduction (h)					(0.05	)								(0.02	)
Non-cash income tax matters and state taxes (i)					(0.10	)								—
Costs associated with early debt retirements (j)					0.09									—
Unrealized gains and losses related to NDT fund investments (k)					(0.18	)								0.18

Total adjustments				$	(0.02	)							$	0.07

(a)	Results reported in accordance with GAAP.

(b)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period.

(c)	Adjustment to exclude the impact of the 2007 Illinois electric rate settlement.

(d)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities.

(e)	Adjustment to exclude external costs in 2009 associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009.

(f)	Adjustment to exclude the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009.

(g)	Adjustment to exclude 2009 severance charges.

(h)	Adjustment to exclude the reduction in Generation's decommissioning obligation.

(i)	Adjustment to exclude 2009 remeasurements of tax uncertainties and a change in state deferred income taxes.

(j)	Adjustment to exclude 2009 costs associated with early debt retirements.

(k)	Adjustment to exclude the unrealized gains in 2009 and unrealized losses in 2008 associated with Generation's NDT fund investments and the associated contractual accounting relating to income taxes.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings

to GAAP Earnings By Business Segment (in millions)

Three Months Ended September 30, 2009 and 2008


	Exelon Earnings per Diluted Share			Generation			ComEd			PECO			Other			Exelon
2008 GAAP Earnings (Loss)	$	1.06		$	635		$	33		$	90		$	(58	)	$	700

2008 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
2007 Illinois Electric Rate Settlement		0.04			25			1			—			—			26
Mark-to-Market Impact of Economic Hedging Activities		(0.10	)		(96	)		—			—			31			(65	)
Unrealized Losses Related to NDT Fund Investments		0.09			60			—			—			—			60
Decommissioning Obligation Reduction (1)		(0.02	)		(15	)		—			—			—			(15	)


2008 Adjusted (non-GAAP) Operating Earnings (Loss)		1.07			609			34			90			(27	)		706

Year Over Year Effects on Earnings:
Generation Energy Margins, Excluding Mark-to-Market (2)		(0.10	)		(64	)		—			—			—			(64	)
ComEd and PECO Margins:
Weather (3)		(0.04	)		—			(18	)		(9	)		—			(27	)
Other Energy Delivery (4)		0.05			—			36			(6	)		—			30
Operating and Maintenance Expense:
Bad Debt (5)		0.05			14			(7	)		29			—			36
Labor, Contracting and Materials (6)		0.02			15			5			(6	)		—			14
Other Operating and Maintenance Expense (7)		0.04			—			19			4			3			26
Pension and Non-Pension Postretirement Benefits Expense (8)		(0.04	)		(12	)		(9	)		(1	)		(5	)		(27	)
Planned Nuclear Refueling Outages (9)		(0.02	)		(15	)		—			—			—			(15	)
Discrete Items Resulting From the Distribution Rate Case (10)		0.02			—			15			—			—			15
Depreciation and Amortization (11)		(0.06	)		(10	)		(6	)		(21	)		(1	)		(38	)
Reversal of Benefit From Tax Ruling (12)		(0.06	)		(8	)		(35	)		—			1			(42	)
Income Taxes (13)		—			(25	)		1			10			17			3
Other (14)		0.03			—			13			1			2			16


2009 Adjusted (non-GAAP) Operating Earnings (Loss)		0.96			504			48			91			(10	)		633

2009 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
2007 Illinois Electric Rate Settlement		(0.02	)		(9	)		(2	)		—			—			(11	)
Mark-to-Market Impact of Economic Hedging Activities		0.12			77			—			—			—			77
Unrealized Gains Related to NDT Fund Investments		0.13			87			—			—			—			87
Decommissioning Obligation Reduction (1)		0.05			32			—			—			—			32
NRG Acquisition Costs (15)		(0.01	)		—			—			—			(6	)		(6	)
2009 Severance Charges (16)		—			2			—			1			—			3
Costs Associated with Early Debt Retirements (17)		(0.09	)		(36	)		—			—			(22	)		(58	)


2009 GAAP Earnings (Loss)	$	1.14		$	657		$	46		$	92		$	(38	)	$	757

(1)	Reflects a decrease in Generation’s decommissioning obligation liability primarily related to the former AmerGen nuclear plants.

(2)	Primarily reflects in 2009 unfavorable portfolio and market conditions, decreased nuclear output as a result of more planned and unplanned nuclear outage days and higher nuclear fuel costs.

(3)	Primarily reflects the impact of unfavorable 2009 weather conditions, compared to 2008, in the ComEd and PECO service territories.

(4)	For ComEd, reflects the impact of increased distribution rates effective September 2008, partially offset by reduced load. For PECO, reflects reduced load, partially offset by increased gas distribution rates effective January 2009.

(5)

For Generation, reflects the impact of a reserve recorded in 2008 for counterparty exposure to Lehman Brothers Holdings, Inc. For ComEd, reflects an increase in uncollectible accounts, in part as a result of the current overall negative economic conditions, partially mitigated by ComEd’s increased collection activities in 2009. For PECO, reflects the impact of improved accounts receivable aging as a result of enhancements to its credit processes and increased termination and collection activities in late 2008 and 2009.

(6)	Primarily reflects Exelon’s ongoing cost savings initiative, partially offset by inflation related to labor, contracting and materials expenses (exclusive of planned nuclear refueling outages as disclosed in number 9 below).

(7)	Primarily reflects decreased storm costs in 2009 in the ComEd and PECO service territories.

(8)	Reflects increased pension and non-pension postretirement benefits expense primarily due to lower than expected asset returns in 2008.

(9)	Reflects increased operating and maintenance expense related to nuclear refueling outage costs associated with a higher number of planned refueling outage days during 2009 as compared to 2008, excluding Salem Generating Station (Salem).

(10)	Reflects the 2008 impact of discrete disallowances, net of allowed regulatory assets, mandated by the September 2008 Illinois Commerce Commission (ICC) rate order.

(11)	Reflects increased scheduled competitive transition charge (CTC) amortization at PECO and increased depreciation across the operating companies due to ongoing capital expenditures.

(12)	Reflects the reversal of benefits associated with Investment Tax Credits as a result of the modified opinion issued by the Illinois Supreme Court in July 2009.

(13)	Primarily reflects the 2008 impact at PECO of an IRS settlement related to prior tax years, partially offset by a decrease in Generation’s manufacturing deduction.

(14)	Primarily reflects decreased interest expense across the operating companies and decreased taxes other than income at ComEd, partially offset by realized NDT fund losses related to market conditions in 2009.

(15)	Reflects external costs incurred in 2009 associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009.

(16)	Reflects a true-up of expenses associated with the elimination of management and staff positions pursuant to Exelon’s 2009 cost management plan to achieve sustainable cost savings.

(17)	Reflects 2009 costs associated with early debt retirements at Generation and Exelon Corporate.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Earnings By Business Segment (in millions)

Nine Months Ended September 30, 2009 and 2008


	Exelon Earnings per Diluted Share			Generation			ComEd			PECO			Other			Exelon
2008 GAAP Earnings (Loss)	$	3.06		$	1,725		$	110		$	246		$	(51	)	$	2,030

2008 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
2007 Illinois Electric Rate Settlement		0.18			115			5			—			—			120
Mark-to-Market Impact of Economic Hedging Activities		(0.27	)		(180	)		—			—			—			(180	)
Unrealized Losses Related to NDT Fund Investments		0.18			117			—			—			—			117
Decommissioning Obligation Reduction (1)		(0.02	)		(15	)		—			—			—			(15	)


2008 Adjusted (non-GAAP) Operating Earnings (Loss)		3.13			1,762			115			246			(51	)		2,072

Year Over Year Effects on Earnings:
Generation Energy Margins, Excluding Mark-to-Market (2)		(0.16	)		(108	)		—			—			—			(108	)
ComEd and PECO Margins:
Weather (3)		(0.04	)		—			(21	)		(8	)		—			(29	)
Other Energy Delivery (4)		0.21			—			115			21			—			136
Operating and Maintenance Expense:
Bad Debt (5)		0.10			15			(9	)		59			—			65
Labor, Contracting and Materials (6)		0.02			5			17			(9	)		—			13
Other Operating and Maintenance Expense (7)		0.10			15			33			12			10			70
Pension and Non-Pension Postretirement Benefits Expense (8)		(0.11	)		(38	)		(25	)		(5	)		(6	)		(74	)
Planned Nuclear Refueling Outages (9)		0.02			15			—			—			—			15
Discrete Items Resulting From the Distribution Rate Case (10)		0.02			—			15			—			—			15
Depreciation and Amortization (11)		(0.14	)		(13	)		(19	)		(53	)		(5	)		(90	)
Income Taxes (12)		(0.03	)		(26	)		10			13			(18	)		(21	)
Other (13)		0.07			24			20			—			4			48


2009 Adjusted (non-GAAP) Operating Earnings (Loss)		3.19			1,651			251			276			(66	)		2,112

2009 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
2007 Illinois Electric Rate Settlement		(0.08	)		(49	)		(3	)		—			—			(52	)
Mark-to-Market Impact of Economic Hedging Activities		0.12			84			—			—			—			84
Unrealized Gains Related to NDT Fund Investments		0.18			119			—			—			—			119
Decommissioning Obligation Reduction (1)		0.05			32			—			—			—			32
NRG Acquisition Costs (14)		(0.03	)		—			—			—			(20	)		(20	)
Impairment of Certain Generating Assets (15)		(0.20	)		(135	)		—			—			—			(135	)
2009 Severance Charges (16)		(0.03	)		(7	)		(13	)		(1	)		(1	)		(22	)
Non-Cash Remeasurement of Income Tax Uncertainties and Reassessment of State Deferred Income Taxes (17)		0.10			38			40			—			(12	)		66
Costs Associated with Early Debt Retirements (18)		(0.09	)		(36	)		—			—			(22	)		(58	)


2009 GAAP Earnings (Loss)	$	3.21		$	1,697		$	275		$	275		$	(121	)	$	2,126

(1)	Reflects a decrease in Generation’s decommissioning obligation liability primarily related to the former AmerGen nuclear plants.

(2)

Primarily reflects the impact of revenue from certain long options in Generation’s proprietary trading portfolio in 2008, the impact of gains related to the settlement of uranium supply agreements in 2008 and higher nuclear fuel costs, partially offset by increased nuclear output as a result of fewer planned refueling outage days in 2009.

(3)	Primarily reflects the impact of unfavorable 2009 weather conditions, compared to 2008, in the ComEd and PECO service territories.

(4)	Primarily reflects the impact of increased distribution rates at ComEd effective September 2008 and increased gas distribution rates at PECO effective January 2009, partially offset by reduced load at ComEd and PECO.

(5)

(6)

Primarily reflects Exelon’s ongoing cost savings initiative and lower planned outage costs at Generation’s non-nuclear generating plants, partially offset by inflation related to labor, contracting and materials expenses (exclusive of planned nuclear refueling outages as disclosed in number 9 below).

(7)	Primarily reflects the impact of decreased storm costs in 2009 in the ComEd and PECO service territories, decreased nuclear refueling outage costs related to Generation’s ownership interest in Salem and decreased costs associated with the possible construction of a new nuclear plant in Texas.

(8)	Reflects increased pension and non-pension postretirement benefits expense primarily due to lower than expected asset returns in 2008.

(9)	Reflects decreased operating and maintenance expense related to nuclear refueling outage costs associated with a lower number of planned refueling outage days during 2009 as compared to 2008, excluding Salem.

(10)	Reflects the 2008 impact of discrete disallowances, net of allowed regulatory assets, mandated by the September 2008 ICC rate order.

(11)	Primarily reflects increased scheduled CTC amortization at PECO and increased depreciation across the operating companies due to ongoing capital expenditures.

(12)	Primarily reflects a decrease in Generation’s manufacturing deduction and the 2008 impact of income from state tax settlements, partially offset by a decrease in PECO’s 2009 state income tax expense due to higher deductible interest expense.

(13)

Primarily reflects decreased interest expense due to lower outstanding debt at ComEd and PECO (including to PETT) and lower interest rates on Generation’s spent nuclear fuel obligation, partially offset by the impact of income in 2008 related to the termination of a gas supply guarantee at Generation and the impact of 2008 income tax benefits associated with Exelon’s tax method of capitalizing overhead costs.

(14)	Reflects external costs incurred in 2009 associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009.

(15)	Reflects the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009.

(16)	Reflects expenses associated with the elimination of management and staff positions pursuant to Exelon’s 2009 cost management plan to achieve sustainable cost savings.

(17)	Reflects the impacts of the 2009 remeasurement of tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and a change in state deferred tax rates resulting from a reassessment of anticipated apportionment of Exelon’s income.

(18)	Reflects 2009 costs associated with early debt retirements at Generation and Exelon Corporate.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)


	Generation
	Three Months Ended September 30, 2009									Three Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	2,445		$	14	(b)	$	2,459		$	3,073		$	41	(b)	$	3,114

Operating expenses
Purchased power		303			89	(c)		392			528			356	(c)		884
Fuel		379			37	(c)		416			669			(198	)(c)		471
Operating and maintenance		592			55	(d),(e)		647			625			25	(e)		650
Depreciation and amortization		74			—			74			58			—			58
Taxes other than income		51			—			51			53			—			53


Total operating expenses		1,399			181			1,580			1,933			183			2,116


Operating income		1,046			(167	)		879			1,140			(142	)		998


Other income and deductions
Interest expense, net		(24	)		2	(f)		(22	)		(34	)		—			(34	)
Equity in losses of investments		(1	)		—			(1	)		—			—			—
Other, net		192			(188	)(f),(g)		4			(164	)		170	(g)		6


Total other income and deductions		167			(186	)		(19	)		(198	)		170			(28	)


Income before income taxes		1,213			(353	)		860			942			28			970

Income taxes		556			(200	)(b),(c),(d),(e),(f),(g)		356			307			54	(b),(c),(e),(g)		361


Net Income	$	657		$	(153	)	$	504		$	635		$	(26	)	$	609


	Nine Months Ended September 30, 2009									Nine Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	7,424		$	78	(b)	$	7,502		$	8,311		$	184	(b)	$	8,495

Operating expenses
Purchased power		962			129	(c)		1,091			1,704			210	(c)		1,914
Fuel		1,295			9	(c)		1,304			1,211			88	(c)		1,299
Operating and maintenance		2,210			(181	)(d),(e),(h)		2,029			2,023			25	(e)		2,048
Depreciation and amortization		223			—			223			202			—			202
Taxes other than income		150			—			150			153			—			153


Total operating expenses		4,840			(43	)		4,797			5,293			323			5,616


Operating income		2,584			121			2,705			3,018			(139	)		2,879


Other income and deductions
Interest expense, net		(77	)		2	(f)		(75	)		(108	)		—			(108	)
Equity in losses of investments		(2	)		—			(2	)		(1	)		—			(1	)
Other, net		325			(294	)(f),(g),(i)		31			(292	)		335	(g)		43


Total other income and deductions		246			(292	)		(46	)		(401	)		335			(66	)


Income from continuing operations before income taxes		2,830			(171	)		2,659			2,617			196			2,813

Income taxes		1,133			(125	)(b),(c),(d),(e),(f),(g),(h),(i)		1,008			891			159	(b),(c),(e),(g)		1,050


Income from continuing operations		1,697			(46	)		1,651			1,726			37			1,763

Loss from discontinued operations		—			—			—			(1	)		—			(1	)


Net income	$	1,697		$	(46	)	$	1,651		$	1,725		$	37		$	1,762

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude the impact of the 2007 Illinois electric rate settlement.

(c)	Adjustment to exclude the mark-to-market impact of Generation’s economic hedging activities.

(d)	Adjustment to exclude 2009 severance charges.

(e)	Adjustment to exclude the reduction in Generation’s decommissioning obligation.

(f)	Adjustment to exclude 2009 costs associated with early debt retirements.

(g)	Adjustment to exclude the unrealized gains in 2009 and unrealized losses in 2008 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes.

(h)	Adjustment to exclude the impairment of certain of Generation’s Texas plants recorded during the first quarter of 2009.

(i)	Adjustment to exclude a change in state deferred income taxes.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)


	ComEd
	Three Months Ended September 30, 2009									Three Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	1,475		$	2	(c)	$	1,477		$	1,729		$	2	(c)	$	1,731

Operating expenses
Purchased power		776			—			776			1,068			—			1,068
Operating and maintenance		273			(2	)(c),(d)		271			306			—			306
Operating and maintenance for regulatory required programs (b)		19			—			19			11			—			11
Depreciation and amortization		125			—			125			119			—			119
Taxes other than income		79			—			79			87			—			87


Total operating expenses		1,272			(2	)		1,270			1,591			—			1,591


Operating income		203			4			207			138			2			140


Other income and deductions
Interest expense, net		(82	)		—			(82	)		(87	)		—			(87	)
Equity in losses of unconsolidated affiliates		—			—			—			(2	)		—			(2	)
Other, net		(19	)		—			(19	)		3			—			3


Total other income and deductions		(101	)		—			(101	)		(86	)		—			(86	)


Income before income taxes		102			4			106			52			2			54

Income taxes		56			2	(c),(d)		58			19			1	(c)		20


Net income	$	46		$	2		$	48		$	33		$	1		$	34


	Nine Months Ended September 30, 2009									Nine Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	4,417		$	4	(c)	$	4,421		$	4,594		$	5	(c)	$	4,599

Operating expenses
Purchased power		2,373			—			2,373			2,729			—			2,729
Operating and maintenance		796			(21	)(c),(d)		775			828			(4	)(c)		824
Operating and maintenance for regulatory required programs (b)		44			—			44			17						17
Depreciation and amortization		371			—			371			343			—			343
Taxes other than income		215			—			215			227			—			227


Total operating expenses		3,799			(21	)		3,778			4,144			(4	)		4,140


Operating income		618			25			643			450			9			459


Other income and deductions
Interest expense, net		(241	)		(6	)(e)		(247	)		(279	)		—			(279	)
Equity in losses of unconsolidated affiliates		—			—			—			(7	)		—			(7	)
Other, net		67			(60	)(e)		7			12			—			12


Total other income and deductions		(174	)		(66	)		(240	)		(274	)		—			(274	)


Income before income taxes		444			(41	)		403			176			9			185

Income taxes		169			(17	)(c),(d),(e)		152			66			4	(c)		70


Net income	$	275		$	(24	)	$	251		$	110		$	5		$	115

(a)	Results reported in accordance with GAAP.

(b)	Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues during the period.

(c)	Adjustment to exclude the impact of the 2007 Illinois electric rate settlement.

(d)	Adjustment to exclude 2009 severance charges.

(e)	Adjustment to exclude 2009 remeasurements of income tax uncertainties.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)


	PECO
	Three Months Ended September 30, 2009									Three Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments		Adjusted Non-GAAP
Operating revenues	$	1,327		$	—		$	1,327		$	1,441		$	—	$	1,441

Operating expenses
Purchased power		625			—			625			693			—		693
Fuel		26			—			26			50			—		50
Operating and maintenance		154			2	(b)		156			192			—		192
Depreciation and amortization		272			—			272			243			—		243
Taxes other than income		78			—			78			73			—		73


Total operating expenses		1,155			2			1,157			1,251			—		1,251


Operating income		172			(2	)		170			190			—		190


Other income and deductions
Interest expense, net		(46	)		—			(46	)		(55	)		—		(55	)
Equity in losses of unconsolidated affiliates		(6	)		—			(6	)		(4	)		—		(4	)
Other, net		2			—			2			2			—		2


Total other income and deductions		(50	)		—			(50	)		(57	)		—		(57	)


Income before income taxes		122			(2	)		120			133			—		133

Income taxes		30			(1	)(b)		29			43			—		43


Net income	$	92		$	(1	)	$	91		$	90		$	—	$	90


	Nine Months Ended September 30, 2009									Nine Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments		Adjusted Non-GAAP
Operating revenues	$	4,045		$	—		$	4,045		$	4,195		$	—	$	4,195

Operating expenses
Purchased power		1,742			—			1,742			1,859			—		1,859
Fuel		346			—			346			397					397
Operating and maintenance		481			(3	)(b)		478			557			—		557
Depreciation and amortization		726			—			726			653			—		653
Taxes other than income		213			—			213			203			—		203


Total operating expenses		3,508			(3	)		3,505			3,669			—		3,669


Operating income		537			3			540			526			—		526


Other income and deductions
Interest expense, net		(145	)		—			(145	)		(171	)		—		(171	)
Equity in losses of unconsolidated affiliates		(19	)		—			(19	)		(11	)		—		(11	)
Other, net		8			—			8			13			—		13


Total other income and deductions		(156	)		—			(156	)		(169	)		—		(169	)


Income before income taxes		381			3			384			357			—		357

Income taxes		106			2	(b)		108			111			—		111


Net income	$	275		$	1		$	276		$	246		$	—	$	246

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude 2009 severance charges.

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)


		Other

	Three Months Ended September 30, 2009									Three Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments			Adjusted Non-GAAP
Operating revenues	$	(908	)	$	—		$	(908	)	$	(1,015	)	$	—		$	(1,015	)

Operating expenses
Purchased power		(908	)		—			(908	)		(962	)		(51	)(d)		(1,013	)
Fuel		(1	)		—			(1	)		(1	)		—			(1	)
Operating and maintenance		1			(9	)(b)		(8	)		(13	)		—			(13	)
Depreciation and amortization		14			—			14			11			—			11
Taxes other than income		4			—			4			5			—			5


Total operating expenses		(890	)		(9	)		(899	)		(960	)		(51	)		(1,011	)


Operating loss		(18	)		9			(9	)		(55	)		51			(4	)


Other income and deductions
Interest expense, net		(36	)		1	(c)		(35	)		(27	)		—			(27	)
Equity in losses of unconsolidated affiliates and investments		(1	)		—			(1	)		—			—			—
Other, net		(27	)		36	(c)		9			1			—			1


Total other income and deductions		(64	)		37			(27	)		(26	)		—			(26	)


Loss before income taxes		(82	)		46			(36	)		(81	)		51			(30	)

Income taxes		(44	)		18	(b),(c)		(26	)		(23	)		20	(d)		(3	)


Net loss	$	(38	)	$	28		$	(10	)	$	(58	)	$	31		$	(27	)


	Nine Months Ended September 30, 2009									Nine Months Ended September 30, 2008
	GAAP (a)			Adjustments			Adjusted Non-GAAP			GAAP (a)			Adjustments		Adjusted Non-GAAP
Operating revenues	$	(2,684	)	$	—		$	(2,684	)	$	(2,734	)	$	—	$	(2,734	)

Operating expenses
Purchased power		(2,677	)		—			(2,677	)		(2,727	)		—		(2,727	)
Fuel		(1	)		—			(1	)		—			—		—
Operating and maintenance		5			(36	)(b),(e)		(31	)		(25	)		—		(25	)
Depreciation and amortization		40			—			40			32			—		32
Taxes other than income		14			—			14			14			—		14


Total operating expenses		(2,619	)		(36	)		(2,655	)		(2,706	)		—		(2,706	)


Operating loss		(65	)		36			(29	)		(28	)		—		(28	)


Other income and deductions
Interest expense, net		(92	)		16	(c),(f)		(76	)		(80	)		—		(80	)
Equity in losses of unconsolidated affiliates and investments		—			—			—			—			—		—
Other, net		(33	)		46	(c),(f)		13			11			—		11


Total other income and deductions		(125	)		62			(63	)		(69	)		—		(69	)


Loss before income taxes		(190	)		98			(92	)		(97	)		—		(97	)

Income taxes		(69	)		43	(b),(c),(d),(e),(f)		(26	)		(46	)		—		(46	)


Net loss	$	(121	)	$	55		$	(66	)	$	(51	)	$	—	$	(51	)

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude external costs associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009.

(c)	Adjustment to exclude 2009 costs associated with early debt retirements.

(d)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities.

(e)	Adjustment to exclude 2009 severance charges.

(f)	Adjustment to exclude a change in state deferred income taxes.

EXELON CORPORATION

Exelon Generation Statistics


	Three Months Ended
	Sept. 30, 2009		Jun. 30, 2009		Mar. 31, 2009		Dec. 31, 2008		Sept. 30, 2008
Supply (in GWhs)
Nuclear		35,684		34,995		35,382		34,887		36,451
Purchased Power		6,669		5,276		6,077		6,100		8,761
Fossil and Hydro		2,689		2,701		2,765		2,162		2,685

Power Team Supply		45,042		42,972		44,224		43,149		47,897


	Three Months Ended
	Sept. 30, 2009		Jun. 30, 2009		Mar. 31, 2009		Dec. 31, 2008		Sept. 30, 2008
Electric Sales (in GWhs)
ComEd (a)		3,639		4,215		5,537		5,261		6,629
PECO (a)		10,809		9,277		10,223		9,760		11,333
Market and Retail (a)		30,594		29,480		28,464		28,128		29,935

Total Electric Sales (b) (c)		45,042		42,972		44,224		43,149		47,897


Average Margin ($/MWh)
Average Realized Revenue
ComEd (a)	$	64.03	$	63.58	$	63.21	$	63.30	$	64.41
PECO (a)		51.35		51.74		49.30		49.28		53.03
Market and Retail (a)		52.99		54.27		57.12		54.18		65.98
Total Electric Sales		53.48		54.64		56.08		54.18		62.70
Average Purchased Power and Fuel Cost (d)	$	17.16	$	15.68	$	16.82	$	15.90	$	26.16
Average Margin (d)	$	36.32	$	38.96	$	39.25	$	38.28	$	36.54

Around-the-clock Market Prices ($/MWh) (e)
PJM West Hub	$	33.20	$	33.70	$	49.18	$	52.62	$	77.37
NiHub		25.69		26.11		34.09		38.06		53.28

(a)

$104 million, $69 million, $31 million and $20 million of pre-tax revenue, and $15 million of a pre-tax reduction in revenue, resulting from the settlement of the ComEd swap starting in June 2008, have been excluded from ComEd and included in Market and Retail sales for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008 and September, 30, 2008, respectively. Additionally, $11 million (397 GWhs), $7 million (209 GWhs), $58 million (898 GWhs), and $29 million (486 GWhs) of pre-tax revenue, resulting from sales to ComEd under the RFP, which started in September 2008, have been excluded from ComEd and included in Market and Retail sales for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively. In addition, renewable energy credits sales to affiliates have been included within Market and Retail Sales.

(b)	Excludes retail gas activity, trading portfolio and other operating revenue.

(c)	Total sales do not include trading volume of 1,645 GWhs, 2,003 GWhs, 2,331 GWhs, 2,153 GWhs and 3,092 GWhs for the three months ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008 and September 30, 2008, respectively.

(d)	Excludes the mark-to-market impact of Generation’s economic hedging activities.

(e)	Represents the average for the quarter.

EXELON CORPORATION

Exelon Generation Statistics

Nine Months Ended September 30, 2009 and 2008


	September 30, 2009		September 30, 2008
Supply (in GWhs)
Nuclear		106,061		104,454
Purchased Power		18,022		20,164
Fossil and Hydro		8,155		8,407

Power Team Supply		132,238		133,025


	September 30, 2009		September 30, 2008
Electric Sales (in GWhs)
ComEd (a)		13,391		17,939
PECO (a)		30,309		31,206
Market and Retail (a)		88,538		83,880

Total Electric Sales (b) (c)		132,238		133,025


Average Margin ($/MWh)
Average Realized Revenue
ComEd (a)	$	63.55	$	63.83
PECO (a)		50.78		51.34
Market and Retail (a)		54.74		61.93
Total Electric Sales		54.70		59.70
Average Purchased Power and Fuel Cost (d)	$	16.58	$	21.16
Average Margin (d)	$	38.12	$	38.54

Around-the-clock Market Prices ($/MWh) (e)
PJM West Hub	$	38.64	$	73.86
NiHub		28.59		52.68

(a)

$204 million of pre-tax revenue, and $22 million of a pre-tax reduction in revenue, resulting from the settlement of the ComEd swap starting in June 2008, have been excluded from ComEd and included in Market and Retail sales for the nine months ended September 30, 2009 and September 30, 2008, respectively. Additionally, $76 million (1,504 GWhs) of pre-tax revenue, resulting from sales to ComEd under the RFP, which started in September 2008, have been excluded from ComEd and included in Market and Retail sales for the nine months ended September 30, 2009. In addition, renewable energy credits sales to affiliates have been included within Market and Retail Sales.

(b)	Excludes retail gas sales, trading portfolio and other operating revenue.

(c)	Total sales do not include trading volume of 5,979 GWhs and 6,738 GWhs for the nine months ended September 30, 2009 and 2008, respectively.

(d)	Excludes the mark-to-market impact of Generation’s economic hedging activities.

(e)	Represents the average for the year.

EXELON CORPORATION

ComEd Statistics

Three Months Ended September 30, 2009 and 2008


	Electric Deliveries (in GWhs)				Revenue (in millions)
	2009	2008	% Change		2009		2008		% Change
Full Service (a)
Residential	6,983	8,114	(13.9	)%	$	797	$	950	(16.1	)%
Small Commercial & Industrial	3,494	4,047	(13.7	)%		333		428	(22.2	)%
Large Commercial & Industrial	295	319	(7.5	)%		17		31	(45.2	)%
Public Authorities & Electric Railroads	98	168	(41.7	)%		10		14	(28.6	)%


Total Full Service	10,870	12,648	(14.1	)%		1,157		1,423	(18.7	)%

Delivery Only (b)
Residential (c)	1	—	n.m.			—		—	n.m.
Small Commercial & Industrial	4,954	4,932	0.4	%		88		75	17.3	%
Large Commercial & Industrial	6,627	7,379	(10.2	)%		85		78	9.0	%
Public Authorities & Electric Railroads	189	137	38.0	%		3		2	50.0	%

Total Delivery Only	11,771	12,448	(5.4	)%		176		155	13.5	%

Total Retail	22,641	25,096	(9.8	)%		1,333		1,578	(15.5	)%


Other Revenue (d)						142		151	(6.0	)%


Total Revenues					$	1,475	$	1,729	(14.7	)%


Purchased Power					$	776	$	1,068	(27.3	)%


Heating and Cooling Degree-Days (e)	2009	2008	Normal
Heating Degree-Days	77	53	110
Cooling Degree-Days	412	626	624

(a)	Reflects deliveries to customers purchasing electricity from ComEd.

(b)	Reflects customers electing to purchase electricity from an alternative electric generation supplier.

(c)	There were a minimal number of residential customers being served by alternative electric generation suppliers with total revenue of less than $1 million.

(d)	Other revenue primarily includes transmission revenue from PJM Interconnection, LLC (PJM). Other items include late payment charges and mutual assistance program revenues.

(e)	Reflects the impact of the leap year day in 2008.

n.m.	Not meaningful.

Nine Months Ended September 30, 2009 and 2008


	Electric Deliveries (in GWhs)				Revenue (in millions)
	2009	2008	% Change		2009		2008		% Change
Full Service (a)
Residential	20,078	21,521	(6.7	)%	$	2,374	$	2,444	(2.9	)%
Small Commercial & Industrial	10,445	11,392	(8.3	)%		1,038		1,169	(11.2	)%
Large Commercial & Industrial	924	803	15.1	%		56		73	(23.3	)%
Public Authorities & Electric Railroads	305	481	(36.6	)%		32		40	(20.0	)%


Total Full Service	31,752	34,197	(7.1	)%		3,500		3,726	(6.1	)%

Delivery Only (b)
Residential (c)	1	—	n	.m.		—		—	n.m.
Small Commercial & Industrial	13,892	14,029	(1.0	)%		244		211	15.6	%
Large Commercial & Industrial	19,240	21,133	(9.0	)%		238		215	10.7	%
Public Authorities & Electric Railroads	603	423	42.6	%		10		5	100.0	%

Total Delivery Only	33,736	35,585	(5.2	)%		492		431	14.2	%

Total Retail	65,488	69,782	(6.2	)%		3,992		4,157	(4.0	)%


Other Revenue (d)						425		437	(2.7	)%


Total Revenues					$	4,417	$	4,594	(3.9	)%


Purchased Power					$	2,373	$	2,729	(13.0	)%


Heating and Cooling Degree-Days (e)	2009	2008	Normal
Heating Degree-Days	4,165	4,225	4,084
Cooling Degree-Days	589	818	848

(a)	Reflects deliveries to customers purchasing electricity from ComEd.

(b)	Reflects customers electing to purchase electricity from an alternative electric generation supplier.

(c)	There were a minimal number of residential customers being served by alternative electric generation suppliers with total revenue of less than $1 million.

(d)	Other revenue primarily includes transmission revenue from PJM Interconnection, LLC (PJM). Other items include late payment charges and mutual assistance program revenues.

(e)	Reflects the impact of the leap year day in 2008.

n.m.	Not meaningful.

EXELON CORPORATION

PECO Statistics

Three Months Ended September 30, 2009 and 2008


	Electric and Gas Deliveries				Revenue (in millions)
	2009	2008	% Change		2009		2008		% Change
Electric (in GWhs)
Full Service (a)
Residential	3,501	3,802	(7.9	)%	$	547	$	591	(7.4	)%
Small Commercial & Industrial	2,128	2,258	(5.8	)%		286		293	(2.4	)%
Large Commercial & Industrial	4,294	4,445	(3.4	)%		339		376	(9.8	)%
Public Authorities & Electric Railroads	233	221	5.4	%		22		22	0.0	%

Total Full Service	10,156	10,726	(5.3	)%		1,194		1,282	(6.9	)%


Delivery Only (b)
Residential	5	9	(44.4	)%		1		1	0.0	%
Small Commercial & Industrial	95	131	(27.5	)%		5		7	(28.6	)%
Large Commercial & Industrial	7	1	600.0	%		—		—	0.0	%

Total Delivery Only	107	141	(24.1	)%		6		8	(25.0	)%


Total Electric Retail	10,263	10,867	(5.6	)%		1,200		1,290	(7.0	)%


Other Revenue (c)						65		76	(14.5	)%


Total Electric Revenue						1,265		1,366	(7.4	)%

Gas (in mmcfs)
Retail Sales	3,694	3,794	(2.6	)%		55		70	(21.4	)%
Transportation and Other	6,145	6,455	(4.8	)%		7		5	40.0	%

Total Gas	9,839	10,249	(4.0	)%		62		75	(17.3	)%


Total Electric and Gas Revenues					$	1,327	$	1,441	(7.9	)%

Purchased Power					$	625	$	693	(9.8	)%
Fuel						26		50	(48.0	)%

Total Purchased Power and Fuel					$	651	$	743	(12.4	)%


Heating and Cooling Degree-Days	2009	2008	Normal
Heating Degree-Days	19	12	36
Cooling Degree-Days	884	942	939

Nine Months Ended September 30, 2009 and 2008


	Electric and Gas Deliveries				Revenue (in millions)
	2009	2008	% Change		2009		2008		% Change
Electric (in GWhs)
Full Service (a)
Residential	9,788	10,151	(3.6	)%	$	1,428	$	1,485	(3.8	)%
Small Commercial & Industrial	6,155	6,257	(1.6	)%		787		793	(0.8	)%
Large Commercial & Industrial	11,961	12,520	(4.5	)%		995		1,074	(7.4	)%
Public Authorities & Electric Railroads	702	681	3.1	%		68		66	3.0	%

Total Full Service	28,606	29,609	(3.4	)%		3,278		3,418	(4.1	)%


Delivery Only (b)
Residential	17	24	(29.2	)%		2		2	0.0	%
Small Commercial & Industrial	277	370	(25.1	)%		15		20	(25.0	)%
Large Commercial & Industrial	9	3	200.0	%		—		—	0.0	%

Total Delivery Only	303	397	(23.7	)%		17		22	(22.7	)%

Total Electric Retail	28,909	30,006	(3.7	)%		3,295		3,440	(4.2	)%


Other Revenue (c)						200		212	(5.7	)%


Total Electric Revenue						3,495		3,652	(4.3	)%

Gas (in mmcfs)
Retail Sales	39,444	36,979	6.7	%		530		522	1.5	%
Transportation and Other	20,128	20,806	(3.3	)%		20		21	(4.8	)%

Total Gas	59,572	57,785	3.1	%		550		543	1.3	%


Total Electric and Gas Revenues					$	4,045	$	4,195	(3.6	)%

Purchased Power					$	1,742	$	1,859	(6.3	)%
Fuel						346		397	(12.8	)%

Total Purchased Power and Fuel					$	2,088	$	2,256	(7.4	)%


Heating and Cooling Degree-Days (d)	2009	2008	Normal
Heating Degree-Days	2,967	2,744	3,004
Cooling Degree-Days	1,236	1,335	1,271

(a)	Full service reflects deliveries to customers purchasing electricity directly from PECO. Revenue reflects the cost of energy, the cost of the transmission and the distribution of the energy and a CTC.

(b)	Delivery only service reflects deliveries to customers electing to receive electric generation service from a competitive electric generation supplier. Revenue reflects a distribution charge and a CTC.

(c)	Other revenue includes transmission revenue from PJM, wholesale revenue and other wholesale energy sales.

(d)	Reflects the impact of the leap year day in 2008.

PECO ENERGY CO - FORM 8-K - EX-99.1 - PRESS RELEASE AND EARNINGS RELEASE ATTACHMENTS - October 23, 2009

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