ComEd 2006 Annual Report Download - page 148

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
Generation
Executive Overview
A discussion of items pertinent to Generation’s executive overview is set forth under “EXELON
CORPORATION—Executive Overview” of this Report.
Results of Operation
Year Ended December 31, 2006 Compared To Year Ended December 31, 2005
A discussion of Generation’s results of operations for 2006 compared to 2005 is set forth under
“Results of Operations—Generation” in “EXELON CORPORATION—Results of Operations” of this
Report.
Year Ended December 31, 2005 Compared To Year Ended December 31, 2004
A discussion of Generation’s results of operations for 2005 compared to 2004 is set forth under
“Results of Operations—Generation” in “EXELON CORPORATION—Results of Operations” of this
Report.
Liquidity and Capital Resources
Generation’s business is capital intensive and requires considerable capital resources.
Generation’s capital resources are primarily provided by internally generated cash flows from
operations and, to the extent necessary, external financing, including the issuance of commercial
paper, participation in the intercompany money pool or capital contributions from Exelon. Generation’s
access to external financing at reasonable terms is dependent on its credit ratings and general
business conditions, as well as that of the utility industry in general. If these conditions deteriorate to
where Generation no longer has access to the capital markets at reasonable terms, Generation has
access to a revolving credit facility that Generation currently utilizes to support is commercial paper
program. See the “Credit Issues” section of “Liquidity and Capital Resources” for further discussion.
Capital resources are used primarily to fund Generation’s capital requirements, including
construction, retirement of debt, the payment of distributions to Exelon, contributions to Exelon’s
pension plans and investments in new and existing ventures. Future acquisitions could require external
financing or borrowings or capital contributions from Exelon.
Cash Flows from Operating Activities
A discussion of items pertinent to Generation’s cash flows from operating activities is set forth
under “Cash Flows from Operating Activities” in “EXELON CORPORATION—Liquidity and Capital
Resources” of this Report.
Cash Flows from Investing Activities
A discussion of items pertinent to Generation’s cash flows from investing activities is set forth
under “Cash Flows from Investing Activities” in “EXELON CORPORATION—Liquidity and Capital
Resources” of this Report.
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