September 10, 2012

 PECO Announces $350 Million First Mortgage Bond Sale 

 PECO today announced that it has priced $350 million of First Mortgage Bonds, maturing on Sept. 15, 2022, with a coupon of 2.375 percent. 

 

PHILADELPHIA – PECO today announced that it has priced $350 million of First Mortgage Bonds, maturing on Sept. 15, 2022, with a coupon of 2.375 percent.  PECO will use the net proceeds from the sale of the bonds to pay at maturity $225 million aggregate principal amount of its 4.75% first mortgage bonds due Oct. 1, 2012, and for other general corporate purposes.   The sale is scheduled to close on Sept. 17. 

BNP Paribas Securities Corp., J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc. are leading the offering as active joint book-running managers.  Mizuho Securities USA Inc. and CIBC World Markets Corp. are serving as passive joint book-running managers, PNC Capital Markets LLC is serving as senior co-manager, and Lebenthal & Co., LLC is serving as co-manager for the offering.  

PECO’s offering demonstrates its continuing support for diversity and inclusion with the participation of Lebenthal & Co., LLC, a woman-owned firm.

An automatic shelf registration statement relating to the sale of the bonds became effective upon filing with the Securities and Exchange Commission on May 29, 2012.  The offering is being made by means of a prospectus supplement and an accompanying prospectus.  Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from BNP Paribas Securities Corp., 787 Seventh Avenue, New York, New York 10019, 1-800-854-5674; J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, 1-212-834-4533; U.S. Bancorp Investments, Inc., 214 N. Tryon St. 26th Floor, EX-NC-WSTC, Charlotte, North Carolina 28202, 1-877-558-2607.  This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities.

Cautionary Statements Regarding Forward-Looking Information

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by PECO Energy Company (the Registrant) include those factors discussed herein, as well as the items discussed in (1)  the Registrant’s 2011 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) the Registrant’s Second Quarter 2012 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 16; and (4) other factors discussed in filings with the SEC by the Registrant. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this release. The Registrant does not undertake any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this release.

PECO is a subsidiary of Exelon Corporation, and is engaged principally in the purchase and regulated retail sale of electricity and the provision of transmission and distribution services to retail customers in southeastern Pennsylvania, including the City of Philadelphia, as well as the purchase and regulated retail sale of natural gas and the provision of distribution services to retail customers in the Pennsylvania counties surrounding the City of Philadelphia.  PECO is a public utility under the Pennsylvania Public Utility Code subject to regulation by the Pennsylvania Public Utility Commission with respect to electric and gas distribution rates and service, the issuances of certain securities and certain other aspects of PECO’s operations. PECO is a public utility under the Federal Power Act subject to regulation by Federal Energy Regulatory Commission with respect to transmission rates and certain other aspects of PECO’s business and by the U.S. Department of Transportation as to pipeline safety and other areas of gas operations. Specific operations of PECO are subject to the jurisdiction of various other Federal, state, regional and local agencies. Additionally, PECO is also subject to North American Electric Reliability Corporation mandatory reliability standards.

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About PECO

Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation (NYSE: EXC). PECO serves 1.6 million electric and 490,000 natural gas customers in southeastern Pennsylvania and employs about 2,400 people in the region. PECO delivered 87.9 billion cubic feet of natural gas and 39.5 billion kilowatt-hours-hours of electricity in 2010. Founded in 1881, PECO is one of the Greater Philadelphia Region's most active corporate citizens, providing leadership, volunteer and financial support to numerous arts and culture, education, environmental, economic development and community programs and organizations.

If you are a member of the media and would like to receive PECO news releases via e-mail please email PECO Communications.

Contacts

Ravi Ganti Investor Relations
312.394.2348
Karen Geus
PECO Communications
215-841-5555
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