ComEd 2006 Annual Report Download - page 86

nuclear output. Unlike the energy delivery business, the effects of unusually warm or cold weather on
Generation depend on the nature of its market position at the time of the unusual weather.
Generation’s net income for 2006 and 2005 reflects income from discontinued operations of $4 million
and $19 million (after tax), respectively.
Operating Revenues. For 2006 and 2005, Generation’s sales were as follows:
Revenue 2006 2005 Variance % Change
Electric sales to affiliates ................................ $4,674 $4,775 $(101) (2.1)%
Wholesale and retail electric sales ........................ 3,640 3,341 299 8.9%
Total energy sales revenue .............................. 8,314 8,116 198 2.4%
Retail gas sales ........................................ 540 613 (73) (11.9)%
Trading portfolio ....................................... 14 17 (3) (17.6)%
Other revenue (a) ....................................... 275 300 (25) (8.3)%
Total revenue ......................................... $9,143 $9,046 $ 97 1.1%
(a) Includes sales related to tolling agreements, fossil fuel sales, operating service agreements and decommissioning revenue
from ComEd and PECO.
Sales (in GWhs) 2006 2005 Variance % Change
Electric sales to affiliates .............................. 119,354 121,961 (2,607) (2.1)%
Wholesale and retail electric sales ...................... 71,326 72,376 (1,050) (1.5)%
Total sales .......................................... 190,680 194,337 (3,657) (1.9)%
Trading volumes of 31,692 GWhs and 26,924 GWhs for 2006 and 2005, respectively, are not
included in the table above.
Electric sales to affiliates. Revenue from sales to affiliates decreased $101 million in 2006 as
compared to 2005. The decrease in revenue from sales to affiliates was primarily due to a $95 million
decrease from lower electric sales volume, as well as a net $6 million decrease resulting from lower
prices.
In the ComEd territories, lower volumes resulted in a $115 million decrease in revenues as a result
of lower demand resulting from milder weather year over year. In addition, price decreases totaling
$128 million were a result of lower peak prices under the ComEd PPA.
In the PECO territories, the higher volumes resulted in increased revenues of $20 million due to
higher usage. The favorable price variance of $122 million was primarily the result of the scheduled
PAPUC-approved generation rate increase as well as to a lesser degree a change in the mix of
average pricing related to the PPA with PECO. On January 1, 2007, a scheduled electric generation
rate increase will take effect, which represents the last scheduled rate increase through 2010 under
PECO’s 1998 restructuring settlement. This rate increase will have a favorable effect on Generation’s
operating income in future years.
Wholesale and retail electric sales. The changes in Generation’s wholesale and retail electric sales
for 2006 compared to 2005 consisted of the following:
Increase
(decrease)
Price ........................................................................ $353
Volume ...................................................................... (54)
Increase in wholesale and retail electric sales ...................................... $299
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