CHICAGO (October 26, 2007) – Exelon Corporation’s (Exelon) third quarter 2007 consolidated earnings prepared in accordance with GAAP were $780 million, or $1.15 per diluted share, compared with a loss of $44 million, or $0.07 per share, in the third quarter of 2006.
Exelon’s adjusted (non-GAAP) operating earnings for the third quarter of 2007 were $823 million, or $1.21 per diluted share, compared with $690 million, or $1.02 per diluted share, for the same period in 2006. The increase in adjusted (non-GAAP) operating earnings per share was primarily due to higher margins on energy sales at Exelon Generation Company, LLC (Generation), previously authorized transmission and delivery service revenue increases for Commonwealth Edison Company (ComEd), higher nuclear output reflecting fewer refueling outage days, and the effects of warmer weather conditions as compared with last year in the ComEd service territory. These positive factors were partially offset by significantly lower net income at ComEd primarily due to the end of its nearly ten-year regulatory transition period and associated transition revenues, higher operating and maintenance expense, and increased depreciation and amortization primarily related to the scheduled higher competitive transition charge (CTC) amortization at PECO Energy Company (PECO).
“Our people delivered a very fine third quarter,” said John W. Rowe, Exelon chairman and CEO. “Our nuclear fleet drove improved generation margins. And ComEd and PECO performed admirably in the face of unusually warm late summer weather and severe storms. In view of our financial results thus far, we are very confident in our full year operating earnings guidance range of $4.15 to $4.30 per share.”
Adjusted (non-GAAP) operating earnings for the third quarter of 2007 do not include the following items that are included in reported GAAP earnings (all after tax):
· A charge of $80 million, or $0.12 per diluted share, for the costs associated with the Illinois electric rate settlement, including ComEd’s previously announced customer rate relief programs.
· Earnings of $17 million, or $0.03 per diluted share, associated with investments in synthetic fuel-producing facilities, including the impact of mark-to-market losses associated with the related derivatives.
· Income of $18 million, or $0.03 per diluted share, resulting from decreases in decommissioning obligations primarily related to the AmerGen Energy Company, LLC (AmerGen) nuclear plants.
Adjusted (non-GAAP) operating earnings for the third quarter of 2006 did not include the following items that were included in reported GAAP earnings (all after tax):
· A charge of $776 million, or $1.15 per diluted share, related to the impairment of ComEd’s goodwill.
· Mark-to-market gains of $58 million, or $0.08 per diluted share, primarily from Generation’s economic hedging activities.
· A one-time benefit of $52 million, or $0.08 per diluted share, approved by the Illinois Commerce Commission’s (ICC) July 26, 2006 rate order to recover previously incurred losses on the extinguishment of debt as part of ComEd's 2004 Accelerated Liability Management Plan.
· Expenses of $42 million, or $0.06 per diluted share, related to certain integration costs associated with the terminated merger with Public Service Enterprise Group Incorporated (PSEG). These expenses include approximately $35 million for the write-off of previously capitalized merger-related costs.
· Severance charges of $14 million, or $0.02 per diluted share.
· A net loss of $13 million, or $0.02 per diluted share, associated with investments in synthetic fuel-producing facilities, including the impact of mark-to-market losses associated with the related derivatives.
2007 Earnings Outlook
Exelon affirmed its adjusted (non-GAAP) operating earnings guidance range for 2007 of $4.15 to $4.30 per share. The following table indicates guidance ranges by operating company contribution to 2007 adjusted (non-GAAP) operating earnings per Exelon share, excluding Exelon holding company.
Generation: $3.45 to $3.55
ComEd: $0.20 to $0.25
PECO: $0.65 to $0.70
The outlook for 2007 adjusted (non-GAAP) operating earnings for Exelon and its subsidiaries excludes the following items:
· mark-to-market adjustments from economic hedging activities
· significant impairments of intangible assets, including goodwill
· significant changes in decommissioning obligation estimates
· investments in synthetic fuel-producing facilities
· costs associated with the Illinois electric rate settlement, including ComEd’s previously announced customer rate relief programs
· gains or losses on the State Line Energy, L.L.C. (State Line) and Tenaska Georgia Partners, LP transactions
· other unusual items
· significant future changes to GAAP
Giving consideration to these factors, Exelon estimates GAAP earnings in 2007 will fall in the range of $3.90 to $4.20 per share, up from $3.70 to $4.00 per share previously. Both Exelon’s operating earnings and GAAP earnings guidance are based on the assumption of normal weather.
Third Quarter and Recent Highlights
· Illinois Settlement Legislation on Electric Rates and Policy: On July 24, 2007, following extensive discussions with legislative leaders in Illinois, ComEd, Generation, and other utilities and generators in Illinois reached an oral agreement (the Settlement) with various representatives from the State of Illinois concluding discussions of measures to address concerns about higher electric bills without rate freeze, generation tax or other legislation that Exelon believes would be harmful to electricity consumers, electric utilities and generators, and the State of Illinois. Legislation reflecting the Settlement (Settlement Legislation) was passed by the Illinois legislature on July 26, 2007 and was signed into law on August 28, 2007 by the Governor of Illinois. The Settlement Legislation preserves the competitive electric market in Illinois while providing a multi-year, $1 billion rate relief package for Illinois residential electricity consumers and certain small business customers and a range of related electric industry policy changes, including the creation of the Illinois Power Agency (IPA) and an alternative method of purchasing power for consumers.
Exelon has committed to contributing approximately $800 million to rate relief programs over four years, including partial funding for the IPA, in addition to approximately $11 million of rate relief credits provided by ComEd prior to June 14, 2007 under rate relief programs previously announced. ComEd will continue to provide its $64 million rate relief package announced on April 23, 2007. Generation will contribute a total of up to $747 million, of which $435 million will be available to reimburse ComEd for rate relief programs for its customers, $307.5 million will be for rate relief programs for customers of other Illinois utilities, and $4.5 million will be for funding operations of the IPA. Of the $800 million to be contributed to rate relief by Generation and ComEd, it is estimated that $459 million, $222 million, $105 million and $14 million will be provided to Illinois customers for electricity consumed in 2007, 2008, 2009 and 2010, respectively. In September, ComEd began issuing rate relief credits in its customers’ bills.
To fulfill a requirement of the Settlement Legislation, ComEd and Generation entered into a five-year financial swap contract, the effect of which will cause ComEd to pay fixed prices and cause Generation to pay a market price for a portion of ComEd’s load. The financial terms cover energy costs only, not capacity or ancillary services. The contract is designed to dovetail with ComEd’s remaining auction contracts for energy, increasing in volume as the contracts expire. The contract volumes will be 1,000 MW for the period from June 2008 through May 2009, 2,000 MW for the period from June 2009 through May 2010, and 3,000 MW in each of the periods June 2010 through May 2011, June 2011 through May 2012, and June 2012 through May 2013. This arrangement is deemed prudent and ComEd will receive full cost recovery in rates. The contract became effective upon enactment of the Settlement Legislation.
· Value Return: On August 31, 2007, Exelon’s board of directors approved a share repurchase program for up to $1.25 billion of its outstanding common stock, consistent with Exelon’s value return policy, under which the Company uses share repurchases from time to time to return cash to shareholders after funding maintenance capital and other commitments and in the absence of higher value-added growth opportunities. On September 4, 2007, Exelon entered into agreements with two investment banks to repurchase a total of $1.25 billion of Exelon’s common shares under an accelerated share repurchase (ASR) arrangement. The ASR arrangement included a pricing collar, which established a minimum and maximum number of shares to be repurchased. On September 20 and 21, 2007, Exelon received the minimum number of shares, as determined by the ASR arrangement, which amounted to 15.1 million shares at a cost of $1.17 billion. Upon purchase of those shares from the investment banks, Exelon recorded them immediately as treasury shares. The balance of the ASR arrangement will be settled in the first quarter of 2008, at which time Exelon may receive additional shares.
· Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station operated by PSEG Nuclear LLC, produced 36,356 GWhs in the third quarter of 2007, compared with 35,867 GWhs in the third quarter of 2006. The Exelon-operated nuclear plants achieved a 97.0 percent capacity factor for the third quarter of 2007 compared with 95.8 percent for the third quarter of 2006. The Exelon-operated nuclear plants began two scheduled refueling outages late in the third quarter of 2007 (9 days), compared with beginning two refueling outages in the third quarter of 2006 (35 days). Partially offsetting the increased generation due to the lower number of refueling outage days was a higher number of non-refueling outage days, 13 days in the third quarter of 2007 versus 4 days in 2006.
· Fossil and Hydro Operations: Generation’s fossil fleet commercial availability was 91.6 percent in the third quarter of 2007, compared with 92.8 percent in the third quarter of 2006. The equivalent availability factor for the hydro facilities was 90.2 percent in the third quarter of 2007, compared with 88.9 percent in the third quarter of 2006, primarily due to a planned maintenance outage at the Muddy Run Pumped Storage Facility in 2006. Despite the higher hydro fleet equivalent availability factor in 2007, lower river flow actually resulted in lower generation during 2007 compared to 2006.
· Reliability Pricing Model (RPM) Auction: In December 2006, the Federal Energy Regulatory Commission (FERC) approved a new RPM capacity market for PJM. RPM is designed to procure capacity on a three-year forward basis and compensate those capacity resources based on the locational need for that capacity. Earlier this month, PJM conducted the last of three auctions to be held in 2007 under this new market design. The first auction was held in April to procure capacity for the period June 2007 through May 2008, and the second was conducted in July to procure capacity for the period June 2008 through May 2009. Exelon’s generation located within the PJM footprint was bid into the auctions. The payments based on the locational clearing prices that will be received as a result of the auctions may be offset by forward sales and bilateral contracts made against Generation’s generating portfolio prior to the auctions. The results of the most recent RPM auction, for capacity during the June 1, 2009 to May 31, 2010 time period, and of the previous auctions are as follows:
($ per MW-day) June 2007 – May 2008
Eastern Mid-Atlantic
Area Council (MAAC) $197.67
Southwest MAAC $188.54
MAAC + APS N/A
Rest of Market $40.80
($ per MW-day) June 2008 – May 2009
Eastern Mid-Atlantic
Area Council (MAAC) $148.80
Southwest MAAC $210.11
MAAC + APS N/A
Rest of Market $111.92
($ per MW-day) June 2009 – May 2010
Eastern Mid-Atlantic
Area Council (MAAC) $191.32
Southwest MAAC $237.33
MAAC + APS $191.32
Rest of Market $102.04
The last of these transitional auctions will occur in January 2008 for the period June 2010 to May 2011. Subsequent auctions will take place 36 months ahead of the scheduled delivery year.
· State Line Power Purchase Agreement (PPA): On October 15, 2007, Generation entered into an agreement with State Line, an indirect wholly owned subsidiary of Dominion Resources Inc., to terminate the PPA dated as of April 17, 1996 between State Line and Generation relating to the State Line coal-fired generating facility in Hammond, Indiana. Under the PPA, Generation controls 515 MW of electric energy and capacity from the State Line facility. The termination agreement, which FERC approved on October 18, 2007, is subject to a number of conditions. If the agreement becomes effective, State Line will pay Generation approximately $233 million, and Generation will recognize income of approximately $130 million (after tax) in the fourth quarter of 2007, for termination of the PPA, the purchase of coal inventories on hand and in transit and other assets. A negative net income impact to Generation of approximately $0.05 per share each year is expected beginning in 2008 through the end of the original contract term in 2012. The PPA is a non-strategic asset in Generation’s portfolio, and termination will provide immediate positive cash flow in 2007.
· ComEd Distribution Rate Case: On October 17, 2007, ComEd filed a proposal with the ICC seeking approval to increase its delivery service rates by $361.3 million (or approximately $358.9 million adjusted for normal weather) to reflect ComEd’s continued substantial investment in its delivery system. The rate case filing is based on a 2006 test year. If approved by the ICC, the total increase would raise the average ComEd residential customer bill about 7.7 percent. The ICC proceedings will take place over a period of up to eleven months.
· ComEd Transmission Rate Case: On March 1, 2007, ComEd filed a request with FERC, seeking approval to increase its annual revenue requirement for transmission services by $146 million and to implement a formula-based transmission rate. On June 5, 2007, FERC conditionally allowed ComEd to implement its formula-based transmission rate and associated rate adjustment, effective May 1, 2007 subject to refund, and provided for further hearing and settlement discussions. The new rate increased the annual revenue requirement by $116 million and raised the average residential customer bill by approximately 1 percent.
On October 5, 2007, ComEd made a filing with the FERC seeking approval of a settlement agreement reached among ComEd, the FERC Trial Staff and the active interveners in the proceeding. The settlement agreement is a comprehensive resolution of all issues in the proceeding, other than ComEd's pending request for rehearing at FERC on incentive returns on investments for two transmission projects. The formula-based rate will be updated annually to assure that customers pay the actual costs of transmission services for each year. The agreement provides for a base return on equity on transmission rate base of 11.0 percent plus an adder of 0.50 percent in recognition of ComEd’s participation in a regional transmission organization, a cap of 58 percent on the equity component of ComEd's capital structure (declining to 55 percent by 2011), and a debt-only return of 6.51 percent on ComEd's pension asset. The agreement would result in an initial increase in the annual revenue requirement of $93 million, or a $24 million reduction from the revenue requirement conditionally approved by the FERC in its June 2007 order, effective as of May 1, 2007. The reduction in the revenue requirement would be implemented following FERC approval of the settlement agreement. The timing of a FERC ruling is uncertain. Customer refunds will be required upon FERC approval, but are not expected to impact ComEd’s net income due to previously recorded reserves for refunds.
· ComEd Competitive Filing: On October 11, 2007, the ICC approved ComEd’s request that the ICC declare all of its approximately 18,000 medium-sized nonresidential customers with peak demand between 100 to 400 kW competitive. The request was part of the recent Settlement Legislation. More than 50% of these customers already have chosen alternative energy suppliers. All of ComEd’s large commercial customers with peak demand of 400 kW or more were declared competitive in August with the passage of the Settlement Legislation. More than 85 percent of customers in this group already are choosing alternative suppliers. ComEd’s provider of last resort (POLR) obligation, after a transition period, will consist only of those customers with demand of less than 100 kW.
· Pennsylvania Energy Independence Plan and Legislative Update: A special session of the Pennsylvania General Assembly was convened on September 17, 2007 to consider, among other things, elements of energy legislation previously proposed by Pennsylvania’s Governor. The proposed legislation includes such measures as a phase-in of increased generation rates after expiration of rate caps, installation of metering technology to provide time-of-use rates to retail customers, permission for distribution companies to enter into long-term contracts with large industrial customers, and creation of a fee on electric consumption that would help fund an $850 million Energy Independence Fund designed to spur biofuels development and promote energy efficiency and renewable energy initiatives. The Governor’s proposed legislation also includes a requirement for default suppliers such as PECO to procure electricity for their default-service customers after the end of their electric restructuring period (post-2010 for PECO) through a least-cost portfolio approach, with preferences for conservation and renewable power, and permits distribution companies to enter into long-term procurement contracts to enable construction of new generation. As of October 26, 2007, none of these measures has been enacted. PECO supports the development of a legislative package to help customers manage rising energy prices and increase the use of environmentally friendly alternative fuel sources to meet Pennsylvania’s growing energy needs. Other measures suggested by elected officials in Pennsylvania have included an extension of Pennsylvania’s rate cap period and a generation tax.
· Credit Rating Actions: On August 29, 2007, all three rating agencies announced rating actions after the Illinois Governor signed the Settlement Legislation:
- Fitch Ratings removed ComEd’s ratings from Ratings Watch Positive and upgraded ComEd’s senior unsecured debt ratings to “BBB-” from “BB+”. ComEd’s outlook is stable.
- Moody’s Investors Service (Moody’s) removed ComEd’s ratings from Review for Possible Downgrade and affirmed its ratings. ComEd’s outlook is stable. Moody’s also placed Exelon’s and Generation’s ratings under Review for Possible Upgrade.
- Standard and Poor’s Corporation (S&P) removed Exelon’s and its subsidiaries’ ratings from CreditWatch with Negative Implications and affirmed their ratings. ComEd’s rating outlook is positive, while Exelon’s, Generation’s and PECO’s outlooks are stable.
On September 6, 2007, S&P upgraded ComEd’s and PECO’s senior secured debt ratings following a revision of its rating methodology for senior secured debt. ComEd’s senior secured debt rating was upgraded to “BBB” from “BBB-”, and PECO’s senior secured debt rating was upgraded to “A” from “A-”.
On September 21, 2007, Moody’s removed Exelon’s and Generation’s ratings from Review for Possible Upgrade. Exelon’s issuer and senior unsecured debt ratings were upgraded to “Baa1” from “Baa2”, and Generation’s issuer and senior unsecured debt ratings were upgraded to “A3” from “Baa1”. The rating actions reflect the anticipated strong future financial credit metrics at Exelon and Generation driven by robust cash flows expected at Generation. Exelon’s and Generation’s outlooks are stable.
· Financing Activities: On September 10, 2007, ComEd issued $425 million of 6.15 percent First Mortgage Bonds due 2017. The proceeds of the bonds were used to repay borrowings made by ComEd under its revolving credit facility. On October 3, 2007, ComEd entered into an unsecured revolving credit facility of $1 billion, which replaced an existing secured facility. The new credit facility has an initial term expiring on February 16, 2011. Under the credit facility, ComEd may request up to two one-year extensions of that term. ComEd may also request increases in the aggregate bank commitments up to an additional $500 million.
On September 24, 2007, Exelon, Generation and PECO received consent from nearly all of their lenders to extend the term of their credit agreements by one year. The extension took effect on October 26, 2007 and extended the termination date of the credit agreements to October 26, 2012.
On September 28, 2007, Generation issued $700 million of 6.20 percent Senior Notes due 2017. The proceeds were used to refinance commercial paper and for general corporate purposes.
OPERATING COMPANY RESULTS
Exelon Generation consists of Exelon’s electric generation operations, power marketing and trading functions, and competitive retail sales.
Third quarter 2007 net income was $548 million compared with $394 million in the third quarter of 2006. Third quarter 2007 net income included (all after tax) a charge of $77 million for the costs associated with the Illinois electric rate settlement, income of $18 million resulting from decreases in decommissioning obligations primarily related to the AmerGen nuclear plants and a charge of $1 million related to Generation’s prior investment in Sithe, which is reflected as discontinued operations. Third quarter 2006 net income included (all after tax) mark-to-market gains of $56 million from economic hedging activities, severance charges of $6 million, certain integration costs of $2 million associated with the terminated merger with PSEG and income of $1 million related to Generation’s prior investment in Sithe, which is reflected as discontinued operations. Excluding the impact of these items, Generation’s net income in the third quarter of 2007 increased $263 million compared with the same quarter last year, primarily due to higher revenue, net of purchased power and fuel expense, more than offsetting inflationary cost pressures.
Generation’s revenue, net of purchased power and fuel expense, increased by $413 million in the third quarter of 2007 compared with the third quarter of 2006 excluding the mark-to-market impacts and costs associated with the Illinois electric rate settlement. The increase in revenue, net of purchased power and fuel expense, was driven by higher average margins primarily due to the end of the below-market price PPA with ComEd at year-end 2006, the contractual increase in the prices associated with Generation’s PPA with PECO, and higher nuclear output reflecting fewer refueling outage days. Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $32.60 per MWh in the third quarter of 2007 compared with $22.09 per MWh in the third quarter of 2006. Generation’s operating and maintenance expenses increased slightly as inflationary and cost pressures were partially offset by lower nuclear refueling outage costs.
ComEd consists of the electricity transmission and distribution operations in northern Illinois.
ComEd recorded net income of $65 million in the third quarter of 2007, compared with a net loss of $506 million in the third quarter of 2006. Third quarter 2007 net income included (both after tax) a charge of $3 million for the costs associated with the Illinois electric rate settlement, including ComEd’s previously announced customer rate relief programs, and mark-to-market gains of $1 million. The third quarter 2006 net loss included (all after tax) a non-cash charge of $776 million related to the impairment of ComEd’s goodwill, a one-time benefit of $52 million approved by the ICC’s July 26, 2006 rate order to recover previously incurred losses on the extinguishment of debt as part of ComEd's 2004 Accelerated Liability Management Plan, severance charges of $5 million, mark-to-market gains of $1 million and certain integration costs of $1 million associated with the terminated merger with PSEG. Excluding the impact of these items, ComEd’s net income in the third quarter of 2007 decreased $156 million compared with the same quarter last year, primarily due to the end of its regulatory transition period and associated transition revenues, the end of its below-market price PPA with Generation in 2006 and higher operating and maintenance expense partially due to increased incremental storm costs. These items were partially offset by the effects of warmer weather, the FERC-approved transmission rate increase, and an ICC-authorized increase in delivery service rates.
In the ComEd service territory in the third quarter of 2007, cooling degree-days were up 5 percent relative to the same period in 2006 and were 24 percent above normal. ComEd’s total retail kWh deliveries increased 2 percent in 2007 as compared with 2006, with a 4 percent increase in deliveries to the residential customer class, largely due to warmer weather. ComEd’s third quarter 2007 revenues were $1,758 million, down 4 percent from $1,840 million in 2006 primarily due to customers switching to alternative electric generation suppliers. For ComEd, weather had a favorable after-tax impact of $4 million on third quarter 2007 earnings relative to 2006 and had a favorable after-tax impact of $13 million relative to normal weather, which was incorporated in earnings guidance.
The number of customers being served in the ComEd region increased by 1.2 percent since the third quarter of 2006, and weather-normalized kWh retail deliveries increased by 1.7 percent compared with the third quarter of 2006.
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 2007 was $168 million, an increase from net income of $134 million in the third quarter of 2006. Third quarter 2006 net income included (all after tax) severance charges of $3 million, and certain integration costs of $3 million associated with the terminated merger with PSEG. Excluding the impact of these items, PECO’s net income in the third quarter of 2007 increased $28 million compared with the same quarter last year, primarily due to higher revenues net of purchased power and fuel expense and lower storm costs, partially offset by higher CTC amortization. The increase in CTC amortization expense is in accordance with PECO's 1998 restructuring settlement with the Pennsylvania Public Utility Commission. Additionally, PECO recognized $22 million of income (after tax) as a result of a determination that a portion of the liability related to previously contested tax assessments under the Pennsylvania Public Utility Realty Tax Act was no longer necessary.
In the PECO service territory in the third quarter of 2007, cooling degree-days were up 4 percent from 2006 and were 12 percent above normal. PECO’s total electric retail kWh deliveries increased 2 percent, with residential deliveries up 3 percent. Total gas retail deliveries were up 11 percent from the 2006 period. PECO’s third quarter 2007 revenues were $1,459 million, up from $1,379 million in 2006, primarily due to the effects of an authorized electric generation rate increase under the 1998 restructuring settlement and increased electric volumes due to increased usage across all customer classes. For PECO, weather had no impact on third quarter 2007 earnings relative to 2006 and a favorable after-tax impact of $6 million relative to normal weather, which was incorporated in earnings guidance.
The number of electric customers being served in the PECO region increased by 0.2 percent since the third quarter of 2006, with weather-normalized kWh growth of 2.5 percent compared with the third quarter of 2006.
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 and mark-to-market adjustments from economic hedging activities, 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. Reconciliations of GAAP to adjusted (non-GAAP) operating earnings for historical periods are attached. Additional earnings release attachments, which include the reconciliations on pages 7 and 8, 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 26, 2007.
Conference call information: Exelon has scheduled a conference call for 11 AM ET (10 AM CT) on October 26, 2007. The call-in number in the U.S. is 800-690-3108, and the international call-in number is 973-935-8753. No password is required. 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 9. The U.S. call-in number for replays is 877-519-4471, and the international call-in number is 973-341-3080. The confirmation code is 9302966.
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’s 2006 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 2007 Quarterly Report on Form 10-Q (to be filed on October 26, 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, 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 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.
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Exelon Corporation is one of the nation’s largest electric utilities with approximately 5.4 million customers and more than $15 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 more than 480,000 customers in southeastern Pennsylvania. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.