CHICAGO (July 23, 2008) – Exelon Corporation’s (Exelon) second quarter 2008 consolidated earnings prepared in accordance with GAAP were $748 million, or $1.13 per diluted share, compared with earnings of $702 million, or $1.03 per share, in the second quarter of 2007.

Exelon’s adjusted (non-GAAP) operating earnings for the second quarter of 2008 were $746 million, or $1.13 per diluted share, compared with $700 million, or $1.03 per diluted share, for the same period in 2007.  “Our strong second quarter results primarily reflected higher margins at Generation largely due to our first-rate operating performance.  We also continue to realize the benefits of a large fleet of extremely well-run nuclear plants amid rising environmental pressures,” said John W. Rowe, Exelon’s chairman, president and CEO.  “We recognize, however, that protecting these benefits requires that we actively meet our customers’ needs for affordable energy in a climate constrained environment.  As a result, last week we announced a comprehensive strategy to reduce, offset or displace more than
15 million metric tons of greenhouse gas emissions by 2020 with both efficiency and new sources of supply.”

The increased level of second quarter 2008 earnings was primarily due to:
· higher energy margins at Exelon Generation Company, LLC (Generation) due to increased nuclear output, largely reflecting fewer refueling and non-refueling outages, and increased average realized market prices;
· increased revenue at Generation driven by certain long option positions in its proprietary trading portfolio;
· a gain at Generation related to the settlement of a uranium supply agreement; and
· increased transmission revenue reflecting Commonwealth Edison’s (ComEd) 2007 transmission rate case, which became effective in May 2007.

The quarter-over-quarter earnings increase was partially offset by:
· the effect of unfavorable weather conditions compared with last year in the ComEd service territory;
· increased expense for uncollectible accounts at PECO Energy Company (PECO);
· increased operating and maintenance expense, in part due to labor and materials inflation at Generation, ComEd and PECO; and
· increased depreciation and amortization expense primarily related to the higher scheduled competitive transition charge (CTC) amortization at PECO. 

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

· Mark-to-market gains of $62 million, or $0.09 per diluted share, primarily from Generation’s economic hedging activities.
· A charge of $45 million, or $0.07 per diluted share, for the costs associated with the Illinois electric rate settlement agreement.
· Unrealized losses of $15 million, or $0.02 per diluted share, related to nuclear decommissioning trust fund investments.

Adjusted (non-GAAP) operating earnings for the second quarter of 2007 did not include the following items that were included in reported GAAP earnings (all after tax):

· Mark-to-market losses of $13 million, or $0.02 per diluted share, primarily from Generation’s economic hedging activities.
· A charge of $14 million, or $0.02 per diluted share, for the costs associated with ComEd’s initial Rate Relief and Assistance Initiative.
· Earnings of $27 million, or $0.04 per diluted share, associated with investments in synthetic fuel-producing facilities, including the impact of mark-to-market losses associated with the related derivatives.

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 likely be 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.

Second Quarter and Recent Highlights

· Exelon 2020: A Low-Carbon Roadmap:  On July 15, 2008, Exelon announced a comprehensive environmental plan that sets the standard for environmental action by a major U.S. energy utility.  The plan, Exelon 2020, details an enterprise-wide approach and a host of initiatives being pursued by the Exelon companies to cut Exelon’s greenhouse gas emissions and that of its customers, communities, suppliers and markets.  Exelon 2020 sets a goal for Exelon to reduce, offset, or displace more than 15 million metric tons of greenhouse gas emissions per year by 2020.  This is more than the company’s total current carbon footprint and is equivalent to taking nearly 3 million cars off American roads and highways.  Through Exelon 2020, Exelon is pursuing three broad strategies: reduce or offset its own carbon footprint, help customers and communities reduce their greenhouse gas emissions, and offer more low-carbon electricity in the marketplace.

· Nuclear Operations:  Generation’s nuclear fleet, including its owned output from the Salem Generating Station operated by PSEG Nuclear LLC, produced 35,069 GWhs in the second quarter of 2008, compared with 34,350 GWhs in the second quarter of 2007.  The Exelon-operated nuclear plants achieved a 95.8 percent capacity factor for the second quarter of 2008 compared with 93.6 percent for the second quarter of 2007.  The Exelon-operated nuclear plants completed two scheduled refueling outages in the second quarter of 2008 (40 days), compared with completing three scheduled refueling outages in the second quarter of 2007 (55 days).  Increased total nuclear output was also driven by a lower number of non-refueling outage days at the Exelon-operated plants, 3 days in the second quarter of 2008 versus 18 days in the second quarter of 2007.  In addition, Generation’s total nuclear output was negatively impacted by a higher number of refueling outage days at the co-owned Salem Generating Station in the second quarter of 2008 versus the second quarter of 2007.

· Fossil and Hydro Operations:  Generation’s fossil fleet commercial availability was 92.8 percent in the second quarter of 2008, compared with 93.3 percent in the second quarter of 2007.  The equivalent availability factor for the hydro facilities was 94.4 percent in the second quarter of 2008, compared with 91.0 percent in the second quarter of 2007, primarily driven by a Muddy Run canal outage in 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 increased operating costs and continued substantial investment in its delivery system.  The rate case filing is based on a 2006 test year.  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 $262 million on an annual basis, primarily reflecting a stipulation reached with ComEd on several contested issues, including those associated with an Original Cost Audit report issued in April 2008.  The stipulation is also subject to approval by the ICC.  On April 21, 2008, ComEd filed its surrebuttal testimony, which included a $345 million revenue increase reflecting certain adjustments.  ComEd’s testimony also included informational data that reflected a $314 million increase reflecting the impacts of the stipulation and certain other reductions.

On July 10, 2008, the Administrative Law Judges (ALJ) issued a recommendation to the ICC for a $218 million revenue increase, including a 10.30 percent return on equity and a 45.04 percent equity ratio in the capital structure.  The ALJs’ proposed order does not recommend approval of the stipulation and recommends that the issues in the Original Cost Audit should be addressed on their individual merits in its own proceeding.  The proposed order, if approved by the ICC, would also require ComEd to write off approximately $18 million (pre-tax) for the disallowance of certain plant costs, which would be partially offset by a benefit associated with certain previously incurred costs amounting to approximately $13 million (pre-tax).  A final ICC order related to the 2007 rate filing is expected by mid-September 2008. 
 
· PECO Gas Distribution Rate Case:  On March 31, 2008, PECO filed a petition before the Pennsylvania Public Utility Commission (PAPUC) for a $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.  On July 1, 2008, PECO received testimony submitted by various state and special interest parties opposing the level of the proposed rate increase.  Testimony on behalf of the Pennsylvania Office of Consumer Advocate and the PAPUC's Office of Trial Staff, in PECO's estimate, suggests that PECO is entitled to increase its gas delivery service rates between approximately $50 and $60 million.  PECO's rebuttal testimony is due on July 24, 2008 and hearings are scheduled to begin August 12, 2008.  An ALJ recommended decision is anticipated by October 31, 2008.  The PAPUC has a nine-month review process from the date of the initial filing and a final decision is expected by the end of 2008.

· Financing Activities:  On May 9, 2008, ComEd issued $50 million of Illinois Finance Authority Pollution Control Revenue Refunding Bonds Series 2008 D due March 1, 2020, and $91 million of Illinois Finance Authority Pollution Control Revenue Refunding Bonds Series 2008 F due March 1, 2017.  Each issue is tax-exempt, variable weekly-rate bonds, and proceeds were used to refinance an equivalent amount of two series of tax-exempt, variable auction-rate bonds.

On June 27, 2008, ComEd issued $50 million of Illinois Finance Authority Series 2008 E tax-exempt, variable weekly-rate bonds.  Proceeds were used to refinance a portion of three series of tax-exempt, variable auction-rate bonds, with the final series to be redeemed on July 29, 2008.  In addition, on July 1, 2008, ComEd separately redeemed $100 million of tax-exempt, variable auction-rate bonds (Series 2002 A). 

· Credit Rating Action:  On May 30, 2008, Fitch Ratings (Fitch) revised the rating outlook for Generation to positive from stable.  A Fitch press release indicated that Generation’s “credit profile is very strong and is expected to remain so for the foreseeable future.”  Exelon’s, ComEd’s and PECO’s ratings outlooks remain stable.

OPERATING COMPANY RESULTS

Exelon Generation consists of owned and contracted electric generating facilities, wholesale energy marketing operations and competitive retail sales operations. 
 
Second quarter 2008 net income was $653 million compared with $578 million in the second quarter of 2007.  Second quarter 2008 net income included (all after tax) mark-to-market gains of $47 million from economic hedging activities, a charge of $44 million for the costs associated with the Illinois electric rate settlement and unrealized losses of $15 million related to nuclear decommissioning trust fund investments.  Second quarter 2007 net income included (all after tax) mark-to-market losses of $13 million and a gain of $2 million 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.  Excluding the impact of these items, Generation’s net income in the second quarter of 2008 increased $76 million compared with the same quarter last year, primarily due to higher revenue, net of purchased power and fuel expense.

The quarter-over-quarter increase in net income was partially offset by:
· higher operating and maintenance expense associated with inflationary and other cost pressures and continuing work on the license application submittal for a possible new nuclear plant in Texas;
· increased depreciation and amortization expense; and
· increased interest expense.

Generation’s revenue, net of purchased power and fuel expense, increased by $177 million in the second quarter of 2008 compared with the second quarter of 2007 excluding the above-mentioned unusual items.  The increase in revenue, net of purchased power and fuel expense, was driven primarily by:
· higher nuclear output reflecting decreased refueling and non-refueling outage days;
· higher average margins on energy sales;
· increased revenue at Generation driven by certain long option positions in its proprietary trading portfolio; and
· a gain related to the settlement of claims associated with a uranium supply agreement.

Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $40.53 per MWh in the second quarter of 2008 compared with $35.97 per MWh in the second quarter of 2007.

ComEd consists of the electricity transmission and distribution operations in northern Illinois. 
 
ComEd recorded net income of $35 million in the second quarter of 2008, compared with net income of $29 million in the second quarter of 2007.  Second quarter 2008 net income included an after-tax charge of $1 million for the costs associated with the Illinois electric rate settlement.  Second quarter 2007 net income included an after-tax charge of $14 million for costs associated with ComEd’s Rate Relief and Assistance Initiative.  Excluding the impact of these items, ComEd’s net income in the second quarter of 2008 decreased $7 million from the same quarter last year primarily due to:
· the impact of unfavorable weather as compared with last year; and
· higher operating and maintenance expense, which primarily reflected increased costs related to labor, materials and storms.

Partially offsetting items included:
· increased transmission revenue as a result of ComEd's 2007 transmission rate case; and
· post rate freeze period transition expenses at ComEd in 2007.

In the ComEd service territory in the second quarter of 2008, cooling degree-days were down 37 percent relative to the same period in 2007 and were 14 percent below normal.  ComEd’s total retail kWh deliveries decreased by 3.6 percent in 2008 as compared with 2007, with a 3.8 percent decrease in deliveries to the residential customer class, largely due to unfavorable weather.  For ComEd, weather had an unfavorable after-tax impact of $12 million on second quarter 2008 earnings relative to 2007 and an unfavorable after-tax impact of $4 million relative to normal weather that was incorporated in earnings guidance.  ComEd’s second quarter 2008 revenues of $1,425 million remained relatively unchanged from $1,420 million in 2007.

The number of customers being served in the ComEd region increased by 0.6 percent over the second quarter of 2007, and weather-normalized kWh retail deliveries decreased by 0.2 percent over the second 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 second quarter of 2008 was $58 million, a decrease from $96 million in the second quarter of 2007.  This decline was primarily due to:
· increased expense for uncollectible accounts; 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.

Partially offsetting items included:
· lower interest expense due to a decrease in the outstanding debt balance to the PECO Energy Transition Trust as a result of scheduled principal payments.

In the PECO service territory in the second quarter of 2008, cooling degree-days were down 1 percent from 2007 and were 18 percent above normal, and heating degree-days decreased by 19 percent from 2007 and were 10 percent below normal.  Retail gas deliveries were down 18 percent from the 2007 period.  Second quarter 2008 revenues were $1,277 million, up from $1,269 million in 2007, primarily due to higher electricity delivery volume driven by an increase in customers across all customer classes partially offset by a decline in retail gas deliveries and the effects of unfavorable weather for electric and gas compared with 2007.  For PECO, weather had an unfavorable after-tax impact of $3 million on second quarter 2008 earnings relative to 2007 and a favorable after-tax impact of $5 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 second quarter of 2007, with weather-normalized kWh growth of 0.6 percent over the second 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, mark-to-market adjustments from economic hedging activities and unrealized gains and losses from nuclear decommissioning trust 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 July 23, 2008.
 
Conference call information: Exelon has scheduled a conference call for 11 AM ET (10 AM CT) on July 23, 2008.  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 53980436.  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 August 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 53980436.

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 Second Quarter 2008 Quarterly Report on Form 10-Q (to be filed on July 23, 2008) in (a) Part II, Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 12; and (3) other factors discussed in filings with the Securities and Exchange Commission by Exelon, Generation, ComEd, and PECO (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.