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Discussion฀of฀Financial฀Results฀-฀Exelon
26
Results฀of฀Operations
Favorable
(Unfavorable)
(Dollars฀in฀millions,฀except฀for฀per฀share฀data,฀unless฀otherwise฀noted)฀ ฀ ฀ 2009฀ 2008฀฀ Variance
Operating฀revenues฀฀ $฀ 17,318฀ $฀ 18,859฀ $฀ (1,541)฀
Operating฀expenses฀
฀ Purchased฀power฀and฀fuel฀ ฀ 5,281฀฀6,582฀฀ 1,301
฀ Operating฀and฀maintenance฀ ฀ 4,612฀฀4,538฀฀ (74)
฀ Operating฀and฀maintenance฀for฀regulatory฀required฀programs฀ ฀ 63฀฀ 28฀฀ (35)
฀ Depreciation฀and฀amortization฀ ฀ 1,834฀฀1,634฀฀(200)
฀ Taxes฀other฀than฀income฀ ฀ 778฀฀ 778฀฀ –
฀ Total฀operating฀expenses฀ ฀ 12,568฀฀13,560฀฀ 992
Operating฀income฀฀ ฀ 4,750฀฀5,299฀฀ (549)
Other฀income฀and฀deductions฀ ฀฀ ฀฀ ฀
฀ Interest฀expense฀ ฀ (654)฀฀ (699)฀฀ 45
฀ Interest฀expense฀to฀afliates,฀net฀฀ ฀ (77)฀฀ (133)฀฀ 56
฀ Equity฀in฀losses฀of฀unconsolidated฀afliates฀ ฀ (27)฀฀ (26)฀฀ (1)
฀ Other,฀net฀ ฀ 426฀฀ (407)฀฀ 833
฀ Total฀other฀income฀and฀deductions฀฀ ฀ (332)฀฀(1,265)฀฀ 933
Income฀from฀continuing฀operations฀before฀income฀taxes฀ ฀ 4,418฀฀4,034฀฀ 384฀
Income฀taxes฀ ฀ 1,712฀฀ 1,317฀฀ (395)
Income฀from฀continuing฀operations฀ ฀ 2,706฀฀ 2,717฀฀ (11)
Income฀from฀discontinued฀operations,฀net฀of฀income฀taxes฀ ฀ 1฀฀ 20฀฀ (19)
Net฀income฀ $฀ 2,707฀ $฀ 2,737฀ $฀ (30)
Diluted฀earnings฀per฀share฀ $฀ 4.09฀ $฀ 4.13฀ $฀ (0.04)
Exelon’s฀net฀income฀was฀$2,707฀million฀in฀2009฀as฀compared฀to฀$2,737฀million฀in฀2008,฀and฀diluted฀earnings฀per฀average฀common฀share฀were฀$4.09฀in฀2009฀as฀compared฀
to฀$4.13฀in฀2008.฀All฀amounts฀presented฀below฀are฀before฀the฀impact฀of฀income฀tax.
Exelon’s฀2009฀results฀were฀signicantly฀affected฀by฀lower฀revenue฀net฀of฀purchased฀power฀and฀fuel฀expense฀at฀Generation฀of฀$411฀million.฀This฀decrease฀was฀primarily฀due฀
to฀reduced฀net฀mark-to-market฀gains฀from฀its฀hedging฀activities฀of฀$271฀million฀and฀unfavorable฀portfolio฀and฀market฀conditions฀of฀$206฀million.฀Additionally,฀Generation฀
experienced฀higher฀nuclear฀fuel฀costs฀of฀$74฀million.฀Partially฀offsetting฀these฀decreases฀were฀lower฀costs฀associated฀with฀the฀Illinois฀Settlement฀of฀$123฀million.฀฀฀
ComEd฀ experienced฀ higher฀ revenue฀ net฀ of฀ purchased฀ power฀ expense฀ of฀ $155฀ million฀ despite฀ unfavorable฀ weather฀ conditions฀ and฀ reduced฀ load.฀ Distribution฀ pricing฀
increased฀ComEd’s฀operating฀revenues฀by฀$214฀million฀primarily฀due฀to฀the฀ICC’s฀September฀2008฀order฀in฀the฀2007฀distribution฀rate฀case.฀This฀increase฀was฀partially฀
offset฀by฀the฀impact฀of฀current฀economic฀conditions฀and฀unfavorable฀weather,฀which฀reduced฀ComEd’s฀load฀resulting฀in฀lower฀revenue฀net฀of฀purchased฀power฀expense฀
of฀$40฀million฀and฀$45฀million,฀respectively.฀฀