ComEd 2001 Annual Report Download - page 37

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Cash Flows from Investing Activities
Cash flows used in investing activities for 2001 were $2.4 billion, primarily for capital expenditures of $2.0 billion. Capital
expenditures by business segment for 2001 and projected amounts for 2002 are as follows:
(in millions) 2001 2002
Energy Delivery $1,133 $ 1,060
Generation 803 1,089
Enterprises 70 114
Corporate and Other 35 27
Subtotal $2,041 $ 2,290
TXU Acquisition –443
Total Capital Expenditures and TXU Acquisition $ 2,041 $ 2,733
Energy Delivery’s estimated capital expenditures for 2002 reflect the continuation of efforts to further improve the
reliability of its distribution system in the Chicago region. Approximately 36% of the budgeted 2002 expenditures are for
growth and the remainder for additions to or upgrades of existing facilities. Exelon anticipates that Energy Delivery will
obtain financing, when necessary, through borrowings, the issuance of preferred securities, or capital contributions from
Exelon.
Approximately 75% of Generation’s estimated capital expenditures for 2002 are for additions to and upgrades of existing
facilities (including nuclear refueling outages), nuclear fuel and increases in capacity at existing plants. Capital expenditures
are projected to increase in 2002 as compared to 2001 due to higher nuclear fuel expenditures, growth and an increase in the
number of planned refueling outages, during which significant maintenance work is performed. Eleven nuclear refueling
outages, including AmerGen, are planned for 2002, compared to six during 2001. Total capital expenditures for nuclear
refueling outages are expected to increase in 2002 over 2001 by $24 million. Exelon has committed to provide AmerGen with
capital contributions equivalent to 50% of the purchase price of any acquisitions AmerGen makes in 2002. Exelon anticipates
that Generation’s capital expenditures will be funded by internally generated funds, Generation borrowings or capital
contributions from Exelon. In addition to the 2002 capital expenditures of $1.1 billion, Generation expects to close the
purchase of two natural-gas and oil-fired plants from TXU Corp. (TXU) in the first quarter of 2002. The $443 million purchase
is expected to be funded with available cash and commercial paper.
Enterprises’ capital expenditures were $70 million in 2001. Enterprises’ estimated capital expenditures for 2002 are
approximately $114 million, primarily for additions to or upgrades of existing facilities. All of Enterprises’ investments are
expected to be funded by capital contributions or borrowings from Exelon.
Exelon’s total estimated capital expenditures in 2002 are approximately $2.7 billion including the acquisition of the TXU
generating stations. Exelon’s proposed capital expenditures and other investments are subject to periodic review and
revision to reflect changes in economic conditions and other factors.
Cash Flows from Financing Activities
Cash flows used in financing activities were $1.3 billion in 2001 primarily attributable to debt service and payments of
dividends on common stock. Debt financing activities during 2001 were as follows:
– Exelon Corporation—Retired a $1.2 billion term loan with proceeds from $500 million and $700 million senior unsecured
note issuances at Exelon and Generation, respectively.
– Energy Delivery—Refinanced $805 million in PECO transition bonds, retired $340 million of ComEd transitional trust notes and
early retired $196 million in First Mortgage Bonds with available cash.
– Generation—Issued $121 million of pollution control bonds to refinance an equivalent amount originally issued by PECO
and issued $700 million of senior unsecured notes.