Reached after months of negotiations with Illinois Senate President Emil Jones, Illinois House Speaker Mike Madigan and the Attorney General Lisa Madigan, ComEd has agreed to participate in a statewide, comprehensive settlement that preserves the competitive electric market in Illinois, while providing a multi-year, $1 billion rate relief package for Illinois residential electric consumers, a range of related electric industry policy changes including a new state power agency and an alternative method of purchasing power for consumers. It also eliminates the need for any further consideration of rate freeze or generation tax legislation.

The settlement, which includes other participants including Exelon Generation, Ameren, Dynegy, Midwest Generation and MidAmerican, must be approved by the Illinois House of Representatives and Senate and signed by the Governor to become law.

Under the settlement, all Illinois residential electric customers will receive near-term rate relief beginning this fall. Additional targeted rate relief also will be provided to residential customers most in need and targeted small and mid-sized businesses. Of the total $1 billion to be provided over a four-year period, approximately $540 million will be made available during 2007 with the remaining amount to be provided in 2008, 2009 and 2010.

In order to avoid a generation tax, which would have been harmful to the state and the company, and to preserve the competitive market, Exelon Generation will provide a significant portion of the $1 billion funding to offer relief to Illinois customers. It is a one-time contribution to help customers transition to market rates.

“We are pleased that this settlement moves the competitive model forward in Illinois, which is in the best interest of consumers,” said ComEd Chairman and CEO Frank M. Clark. “It ends the debate over electric rates in Illinois in a productive manner by balancing the needs of our customers, Illinois utilities and generators.

Following is a summary of the settlement:

Comprehensive rate relief for Illinois customers totaling $1 billion over the next four years

• Relief for ComEd customers will be in two forms: programs for residential customers most in need and targeted small business and mid-sized customers, and bill credits providing relief to all residential customers.
• Exelon Generation will provide $747 million of the funding; ComEd will provide $53 million; Ameren will provide $150 million; Midwest Generation and Dynegy will each provide $25 million and MidAmerican will contribute $1 million.
• A total of $488 million will go directly to ComEd residential customers, with the average customer receiving a monthly bill credit ranging from approximately $4 to $13. This reduces the average residential customer’s 2007 rate increase to 13.5 percent, which cuts the increase nearly in half. The impacts reflect averages, and an individual customer’s bill may be higher or lower.
•  The $488 million ComEd customers will receive will be allocated over a four-year period, with $283 million available in 2007 ($250 million in credits to all residential customers and $33 million in targeted programs).
  

More than half of the funding is earmarked for the first year. The balance will be available in 2008-2010.

For more information on the statewide, comprehensive electric rate settlement, please view ComEd’s press release here.

This news 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 Corporation’s 2006 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors and (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 Second Quarter 2007 Quarterly Report on Form 10-Q (to be filed on July 25, 2007) in (a) Part II, Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 13; and (3) other factors discussed in filings with the Securities and Exchange Commission (SEC) by Exelon Corporation and Commonwealth Edison Company (Companies). Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news 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 news release.