CHICAGO (April 24, 2008) – Exelon Corporation’s (Exelon) first quarter 2008 consolidated earnings prepared in accordance with GAAP were $581 million, or $0.88 per diluted share, compared with earnings of $691 million, or $1.02 per share, in the first quarter of 2007.

Exelon’s adjusted (non-GAAP) operating earnings for the first quarter of 2008 were $620 million, or $0.93 per diluted share, compared with $722 million, or $1.07 per diluted share, for the same period in 2007.  The lower level of earnings was primarily due to lower nuclear output at Exelon Generation Company, LLC (Generation) largely reflecting increased planned refueling outages, realized investment losses in connection with the implementation of a favorable tax law change, increased operating and maintenance expense, in part due to more nuclear refueling outages, and increased depreciation and amortization expense primarily related to the higher scheduled competitive transition charge (CTC) amortization at PECO Energy Company (PECO).  First quarter 2007 results included a one-time favorable PJM Interconnection, LLC (PJM) billing settlement with PPL Electric.  The year-over-year earnings decrease was partially offset by higher average margins on energy sales at Generation, increased transmission revenue as a result of Commonwealth Edison Company’s (ComEd) 2007 transmission rate case and a favorable impact of certain tax items.

“In the first quarter, we began five and completed four planned nuclear refueling outages, compared with beginning two and completing one in last year’s first quarter.  As expected, the impact of these additional refueling outages resulted in lower first quarter earnings than last year.  Exelon’s full-year 2008 earnings outlook remains on plan,” said John W. Rowe, Exelon’s chairman, president and CEO.  “Year-to-date, our nuclear fleet operations continued industry-leading performance as the refuelings averaged less than 24 days per outage, substantially below the 2007 industry average of 41 days.  In addition, ComEd is progressing in its pending rate case and PECO continues to work towards a successful transition to competitive markets in Pennsylvania.”  

Adjusted (non-GAAP) operating earnings for the first quarter of 2008 do not include the following items, representing an after-tax net loss of $39 million, or $0.05 per diluted share, that are included in reported GAAP earnings (all after tax):

· Mark-to-market gains of $53 million, or $0.08 per diluted share, primarily from Generation’s economic hedging activities.

· A charge of $50 million, or $0.07 per diluted share, for the costs associated with the Illinois electric rate settlement agreement.

· Unrealized losses of $42 million, or $0.06 per diluted share, related to nuclear decommissioning trust fund investments.

Adjusted (non-GAAP) operating earnings for the first quarter of 2007 did not include the following items, representing an after-tax net loss of $31 million, or $0.05 per diluted share, that were included in reported GAAP earnings (all after tax):

· Mark-to-market losses of $69 million, or $0.10 per diluted share, primarily from Generation’s economic hedging activities.

· Earnings of $24 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.

· A gain of $9 million, or $0.01 per diluted share, related to the sale of Generation’s 49.5 percent ownership interests in Termoeléctrica del Golfo (TEG) and Termoeléctrica Peñoles (TEP), two generating facilities in Mexico.

· A gain of $5 million, or $0.01 per diluted share, associated with the settlement of a tax matter at Generation related to its previous investment in Sithe Energies, Inc. (Sithe).

2008 Earnings Outlook

Exelon reaffirmed its adjusted (non-GAAP) operating earnings guidance range for 2008 of $4.00 to $4.40 per share.  The outlook for 2008 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 nuclear decommissioning trust fund investments
· significant impairments of assets, including goodwill
· significant changes in decommissioning obligation estimates
· costs associated with the Illinois electric rate settlement agreement, including ComEd’s previously announced customer rate relief programs
· costs associated with ComEd’s settlement with the City of Chicago
· other unusual items
· significant future changes to GAAP

Giving consideration to these factors, Exelon estimates GAAP earnings in 2008 will fall in the range of $3.70 to $4.10 per share.  Both Exelon’s operating earnings and GAAP earnings guidance are based on the assumption of normal weather.

First Quarter and Recent Highlights

· Nuclear Operations:  Generation’s nuclear fleet, including its owned output from the Salem Generating Station operated by PSEG Nuclear LLC, produced 32,935 GWhs in the first quarter of 2008, compared with 35,357 GWhs in the first quarter of 2007.  The Exelon-operated nuclear plants achieved an 89.0 percent capacity factor for the first quarter of 2008 compared with 96.4 percent for the first quarter of 2007.  The Exelon-operated nuclear plants completed four scheduled refueling outages and began a fifth in the first quarter of 2008 (104 days), compared with completing one refueling outage and beginning a second in the first quarter of 2007 (40 days).  Total nuclear output was also negatively impacted by a higher number of non-refueling outage days, 26 days in the first quarter of 2008 versus 1 day in the first quarter of 2007 when Exelon-operated fleet production achieved its best quarter ever.  In addition, nuclear output was negatively impacted by a higher number of refueling outage days at the co-owned Salem Generating Station, which began a scheduled refueling in both the first quarter of 2008 and in the first quarter of 2007.

· Fossil and Hydro Operations:  Generation’s fossil fleet commercial availability was 74.0 percent in the first quarter of 2008 primarily reflecting outages at the Eddystone coal units, compared with 92.8 percent in the first quarter of 2007.  The equivalent availability factor for the hydro facilities was unchanged at 99.1 percent in the first quarter of 2008 versus 2007.

· ComEd Distribution Rate Case:  On October 17, 2007, ComEd filed a request with the Illinois Commerce Commission (ICC) seeking approval to increase its delivery service revenue requirement by approximately $360 million 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 total bill about 7.7 percent.  The ICC proceedings will take place over a period of up to eleven months.

On March 12, 2008, ComEd filed rebuttal testimony that supported an adjusted revenue requirement increase of approximately $355 million.  Various intervenors and the ICC Staff have filed testimony challenging the amount of the increase.  The ICC Staff’s rebuttal testimony, filed on April 10, 2008, indicated that ComEd’s revenue increase should be approximately $269 million on an annual basis, primarily reflecting a stipulation reached with ComEd on several contested issues.  The stipulation is also subject to approval by the ICC.  On April 21, 2008, ComEd filed its surrebuttal testimony, which included the impacts of the stipulation and various other agreements.  As part of the stipulation and if the ICC agrees, ComEd will incur a write-off of about $20 million pre-tax when the final order is issued.  Hearings are scheduled during the period from April 28 to May 5, 2008.  Based on typical rate cases, the Administrative Law Judges’ recommended order in the case is expected by July, with a final ICC order in September. 
 
· ComEd Energy Procurement Plan:  On March 11, 2008, the ICC approved ComEd’s purchase of approximately 14 percent of its expected energy needs for the period June 1, 2008 through May 31, 2009, resulting from a request for proposal (RFP) process.  Approximately 19 percent of ComEd’s expected energy load for this same time period has been hedged through the previously disclosed financial swap contract with Generation.

In August 2007, Illinois electric rate settlement legislation established a new competitive process to be used for procurement of electricity by Illinois utilities, replacing the reverse-auction bidding process approved in 2006.  The energy supply contracts awarded as a result of the 2006 reverse-auction will remain in effect through their original terms, but as those contracts expire, the energy will be replaced with contracts awarded through the new process.  For energy needs beginning June 2009, the Illinois Power Agency (IPA) will participate in the design of an electricity supply portfolio and will administer a competitive process for ComEd to procure its electricity supply resources identified in the supply portfolio plans, all with the oversight of the ICC. 

· PECO Gas Distribution Rate Case:  On March 31, 2008, PECO filed a petition before the Pennsylvania Public Utility Commission (PAPUC) for an approximate $98 million increase to its delivery service revenue to fund critical infrastructure improvement projects for its natural gas delivery system.  The increase will also fund additional programs for low-income customers as well as energy efficiency enhancements.  If approved, the average monthly residential bill would increase by approximately 10.8 percent.  The PAPUC has a nine-month review process and any rate adjustment would likely be effective no later than January 2009.

· PECO Residential Real-Time Pricing Program:  On March 14, 2008, PECO requested authorization from the PAPUC to begin phase one of a voluntary Residential Real-Time Pricing program.  Available to up to 2,000 PECO customers, the program allows customers to view the day-ahead energy prices, learn about how they use energy, and potentially save money by reducing energy use during the highest cost hours of the day.  The PAPUC is expected to rule on PECO's filing in the third quarter of 2008.  If approved, PECO then will begin soliciting customer volunteers to participate in the program.
 
· Value Return – Share Repurchase:  On December 19, 2007, Exelon’s Board of Directors authorized a new share repurchase program of up to $500 million of Exelon’s outstanding common stock.  This new program was in addition to the $1.25 billion share repurchase executed in September 2007 and to any further share repurchases that may be authorized by the board of directors later in 2008 based on availability of cash and other factors.  On February 26, 2008, Exelon entered into an agreement with an investment bank to repurchase a total of $500 million of Exelon’s common shares under an accelerated share repurchase arrangement.

· Financing Activities:  On January 16, 2008, ComEd issued $450 million of 6.45 percent First Mortgage Bonds due 2038.  ComEd used the net proceeds from the sale of the bonds to refinance trust preferred securities and maturing First Mortgage Bonds.

On March 3, 2008, PECO issued $500 million of 5.35 percent First and Refunding Mortgage Bonds due 2018.  The net proceeds of the bonds were used to refund commercial paper borrowings and for general corporate purposes.

On March 5, 2008, PECO issued $150 million of 4.00 percent First and Refunding Mortgage Bonds to secure tax-exempt pollution control bonds and notes issued to refinance three series of auction-rate, tax-exempt bonds on their most recent auction dates.  The final series was retired on April 3, 2008.

On March 27, 2008, ComEd issued $700 million of 5.80 percent First Mortgage Bonds due 2018.  The proceeds are being used to repay borrowings made under ComEd's revolving credit facilities, to refinance the $120 million outstanding principal amount of its First Mortgage 8.00 percent Bonds, Series 83, which mature on May 15, 2008, and for general corporate purposes.
 
· Credit Rating Action:  On March 19, 2008, Standard & Poor’s (S&P) upgraded ComEd's senior unsecured debt rating to “BBB-” from “B+”.  The unsecured debt rating upgrade is the result of a change in methodology by S&P.  ComEd's corporate credit rating (“BB”), senior secured debt rating (“BBB”) and outlook (positive) remain unchanged.  Exelon’s, Generation’s and PECO’s ratings outlooks are stable.
 

OPERATING COMPANY RESULTS

Exelon Generation consists of owned and contracted electric generating facilities, wholesale energy marketing operations and competitive retail sales operations. 
 
First quarter 2008 net income was $438 million compared with $560 million in the first quarter of 2007.  First quarter 2008 net income included (all after tax) mark-to-market gains of $38 million from economic hedging activities, a charge of $47 million for the costs associated with the Illinois electric rate settlement and unrealized losses of $42 million related to nuclear decommissioning trust fund investments.  First quarter 2007 net income included (all after tax) mark-to-market losses of $69 million from economic hedging activities, a gain of $9 million related to the sale of its investments in TEG and TEP and earnings of $5 million associated with the settlement of a tax matter related to its previous investment in Sithe.  Excluding the impact of these items, Generation’s net income in the first quarter of 2008 decreased $126 million compared with the same quarter last year, primarily due to lower revenue, net of purchased power and fuel expense, realized investment losses associated with nuclear decommissioning trust funds in connection with the implementation of a favorable tax law change under the Energy Policy Act of 2005, and higher operating and maintenance costs associated with more planned nuclear refueling outages, continuing work on the license application submittal for a possible new nuclear plant in Texas, and inflationary and other cost pressures.

Generation’s revenue, net of purchased power and fuel expense, decreased by $96 million in the first quarter of 2008 compared with the first quarter of 2007 excluding the above-mentioned unusual items.  The decrease in revenue, net of purchased power and fuel expense, was driven primarily by lower nuclear output reflecting increased refueling and non-refueling outage days and the favorable PJM billing settlement with PPL Electric in 2007, which more than offset higher average margins on energy sales.  Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $38.77 per MWh in the first quarter of 2008 compared with $36.61 per MWh in the first quarter of 2007.

ComEd consists of the electricity transmission and distribution operations in northern Illinois. 
 
ComEd recorded net income of $41 million in the first quarter of 2008, compared with net income of $5 million in the first quarter of 2007.  First quarter 2008 net income included an after-tax charge of $3 million for the costs associated with the Illinois electric rate settlement.  Excluding the impact of this item, ComEd’s net income in the first quarter of 2008 increased $39 million compared with the same quarter last year primarily due to increased transmission revenue as a result of ComEd's 2007 transmission rate case including the impact of the Federal Energy Regulatory Commission approved formula rate, higher electric delivery volume, the impact of favorable weather and an Illinois distribution tax refund, partially offset by increased interest expense and higher operating and maintenance expense, which partially reflected increased labor costs and allowance for uncollectible accounts expense.

In the ComEd service territory in the first quarter of 2008, heating degree-days were up 9 percent relative to the same period in 2007 and were 7 percent above normal.  ComEd’s total retail kWh deliveries increased 2.4 percent in 2008 as compared with 2007, with a 2.8 percent increase in deliveries to the residential customer class, largely due to colder weather.  For ComEd, weather had a favorable after-tax impact of $7 million on first quarter 2008 earnings relative to 2007 and a favorable after-tax impact of $4 million relative to normal weather that was incorporated in earnings guidance.  ComEd’s first quarter 2008 revenues were $1,440 million, down 3 percent from $1,490 million in 2007 primarily due to a decrease in the number of customers purchasing energy directly from ComEd, and the expiration of four wholesale energy contracts with municipalities.

The number of customers being served in the ComEd region increased by 1.1 percent over the first quarter of 2007, and weather-normalized kWh retail deliveries increased by 1.4 percent over the first quarter of 2007. 

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 first quarter of 2008 was $97 million, a decrease from $128 million in the first quarter of 2007.  This decline was primarily due to the impact of unfavorable weather, higher operating and maintenance expense, which partially reflected increased allowance for uncollectible accounts expense, 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 PECO service territory in the first quarter of 2008, heating degree-days were down 7 percent from 2007 and were 7 percent below normal.  Retail gas deliveries were down 9 percent from the 2007 period.  PECO’s total electric retail and residential kWh deliveries remained relatively level quarter over quarter.  First quarter 2008 revenues were $1,476 million, down from $1,500 million in 2007, primarily due to the effects of unfavorable weather compared with 2007.  For PECO, weather had an unfavorable after-tax impact of $14 million on first quarter 2008 earnings relative to 2007 and an unfavorable after-tax impact of $14 million relative to normal weather that was incorporated in earnings guidance.

The number of electric customers being served in the PECO region increased by 0.8 percent over the first quarter of 2007, with weather-normalized kWh growth of 1.8 percent over the first quarter of 2007. 

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.  Reconciliation of GAAP to adjusted (non-GAAP) operating earnings for historical periods is attached.  Additional earnings release attachments, which include the reconciliation on page 6, 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 April 24, 2008.
 
Conference call information: Exelon has scheduled a conference call for 11 AM ET (10 AM CT) on April 24, 2008.  The call-in number in the U.S. is 800-690-3108, and the international call-in number is 973-935-8753.  If requested, the conference ID number is 41833059.  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 May 8.  The U.S. call-in number for replays is 800-642-1687, and the international call-in number is 706-645-9291.  The conference ID number is 41833059.

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 2007 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 19; (2) Exelon’s First Quarter 2008 Quarterly Report on Form 10-Q (to be filed on April 24, 2008) 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 by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, and PECO Energy Company (Companies).  Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation.  None of the 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 $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 more than 480,000 customers in southeastern Pennsylvania.  Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.