Exelon 2012 Annual Report Download - page 3

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Exelon 2012 Summary Annual Report Leer to Our Shareholders
Dear Exelon Shareholders:
The story of Exelon in 2012 is one of success with a game-
changing merger and continued strong generating and utility
operations, limited by very difficult and disappointing financial
and economic challenges. Our stock price suffered during the
year due to those economic conditions, but Exelon continued to
deliver value by focusing intently on the operational and financial
discipline you have come to expect from your company. We are
confident in our strength and value going forward.
Merger Close and Integration
The merger of Exelon and Constellation in March 2012 gives us the scale, platform,
and markets to effectively capitalize on a market recovery. The merger was
transformational, making Exelon the leading competitive energy company in the U.S.,
operating from a truly national footprint. We have generating assets in 18 states and
sell energy products and services in 47 states to more than 1.1 million commercial
and residential customers. The merger closed in record time; the integration has been
smooth; we have increased our synergies target; and we are on track with all merger
commitments to our stakeholders. The Exelon team has followed through on the
merger value proposition of matching generation to load; properly balancing assets,
markets, and revenue streams; and capitalizing on the scale of our operations. The
post-merger Exelon is better positioned to meet our current challenges than either
predecessor company on a stand-alone basis.
Operating Performance
Exelon’s performance excellence was apparent in our operating achievements in 2012.
Exelon Nuclear demonstrated its leadership in the nuclear industry with an overall
capacity factor of 92.7 percent, and our large wind, hydro and gas-fired generation
facilities all performed above production plan expectations.
In the nine months following the merger, Exelon Utilities clearly demonstrated the
value proposition of scale, geographic diversity and adoption of best practices across
BGE, ComEd and PECO. Our east coast utilities were hit by two storms of epic
proportions in 2012, along with other, more typical weather stresses. The aggressive
and integrated response to Superstorm Sandy by all three of our utilities is an
example of the benefit of our scale and collaboration. Each utility achieved industry
best quartile performance in safety and all three companies accomplished their best
reliability performance on record, with both ComEd and PECO ranking in the industry’s
top quartile.
Christopher M. Crane
President and Chief Executive Ocer
Mayo A. Shattuck III
Chairman, Board of Directors