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Discussion฀of฀Financial฀Results฀-฀ComEd
32
Results฀of฀Operations฀–฀ComEd
฀ ฀฀Favorable
฀ ฀ (Unfavorable)
(Dollars฀in฀millions)฀ ฀ ฀ 2008฀ 2007฀฀ Variance
Operating฀revenues฀ $฀ 6,136฀ $฀ 6,104฀ $฀ 32
Purchased฀power฀expense฀ ฀ 3,582฀ ฀ 3,747฀ ฀ 165
Revenue฀net฀of฀purchased฀power฀expense฀ ฀ 2,554฀ ฀ 2,357฀ ฀ 197
Other฀operating฀expenses฀ ฀฀ ฀฀ ฀
Operating฀and฀maintenance฀ ฀ 1,125฀ ฀ 1,091฀ ฀ (34)
Depreciation฀and฀amortization฀ ฀ 464฀ ฀ 440฀ ฀ (24)
Taxes฀other฀than฀income฀ ฀ 298฀ ฀ 314฀ ฀ 16
Total฀other฀operating฀expenses฀ ฀ 1,887฀ ฀ 1,845฀ ฀ (42)
Operating฀income฀ ฀ 667฀ ฀ 512฀ ฀ 155฀
Other฀income฀and฀deductions฀ ฀฀ ฀฀ ฀
Interest฀expense,฀net฀ ฀ (348)฀ ฀ (318)฀ ฀ (30)
Equity฀in฀losses฀of฀unconsolidated฀afliates฀ ฀ (8)฀ ฀ (7)฀ ฀ (1)
Other,฀net฀ ฀ 18฀ ฀ 58฀ ฀ (40)
Total฀other฀income฀and฀deductions฀ ฀ (338)฀ ฀ (267)฀ ฀ (71)
Income฀before฀income฀taxes฀ ฀ 329฀ ฀ 245฀ ฀ 84
Income฀taxes฀ ฀ 128฀ ฀ 80฀ ฀ (48)
Net฀income฀(loss)฀ $฀ 201฀ $฀ 165฀ $฀ 36
ComEd’s฀ net฀ income฀ for฀ 2008฀ compared฀ to฀ 2007฀ reected฀ higher฀ revenue฀ net฀ of฀ purchased฀ power฀ expense,฀ primarily฀ driven฀ by฀ higher฀ transmission฀ rates฀ effective฀ ฀
May฀ 1,฀ 2007฀ and฀ June฀ 1,฀ 2008฀ and฀ higher฀ distribution฀ rates฀ effective฀ September฀ 16,฀ 2008.฀ In฀ 2008,฀ ComEd฀ received฀ a฀ refund฀ of฀ Illinois฀ Distribution฀ Tax฀ that฀ also฀
contributed฀to฀the฀increase฀in฀net฀income.฀These฀increases฀were฀partially฀offset฀by฀unfavorable฀weather;฀higher฀operating฀and฀maintenance฀expense,฀principally฀driven฀
by฀disallowances฀arising฀from฀the฀2007฀Rate฀Case฀order,฀higher฀storm฀costs฀and฀an฀increase฀in฀the฀allowance฀for฀uncollectible฀accounts฀expense;฀higher฀depreciation฀and฀
amortization฀expense;฀and฀higher฀interest฀expense.฀