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E
Exelon฀Corporation
P.O.฀Box฀805398
Chicago,฀IL฀60680-5398
www.exeloncorp.com
©2010฀Exelon
฀The฀savings฀derived฀from฀using฀this฀paper฀in฀lieu฀of฀virgin฀fiber฀paper฀is฀equivalent฀to:
฀ ฀ 95฀trees฀ 274฀lbs.฀ 40,372฀gallons฀ 4,467฀lbs.฀ 8,795฀lbs.฀ 67,320,000฀BTUs฀
฀฀preserved฀for฀฀ waterborne฀ wastewater฀ solid฀waste฀ net฀greenhouse฀ energy฀not฀
฀฀ the฀future฀ waste฀not฀created฀฀ flow฀saved฀ not฀generated฀ gases฀prevented฀฀ consumed
฀ The฀savings฀derived฀from฀choosing฀a฀paper฀manufactured฀฀ This฀amount฀of฀wind-generated฀electricity฀฀
฀ using฀wind-generated฀electricity:฀฀฀ ฀ is฀equivalent฀to:฀
฀฀
฀ ฀ 14,883฀lbs.฀ 16฀฀ ฀ 1฀ 1,012฀
฀฀air฀emissions฀฀ barrels฀crude฀ ฀ cars฀off฀the฀road฀ trees฀ ฀
฀฀not฀generated฀ oil฀unused฀฀ ฀ for฀one฀year฀ planted
The฀paper฀utilized฀for฀the฀printing฀of฀this฀report฀is฀certified฀by฀the฀Forest฀Stewardship฀Council,฀which฀promotes฀environmentally฀appropriate,฀
socially฀beneficial฀and฀economically฀viable฀management฀of฀the฀world’s฀forests.฀All฀the฀paper฀utilized฀in฀the฀production฀of฀this฀annual฀report฀was฀
manufactured฀by฀Mohawk฀Fine฀Papers฀and฀contains฀30%฀post-consumer฀recycled฀fiber.฀Mohawk฀Fine฀Papers฀purchases฀enough฀Green-e฀certified฀
renewable฀energy฀certificates฀(RECs)฀to฀match฀100%฀of฀the฀electricity฀used฀in฀its฀operations.฀Mohawk฀has฀provided฀the฀calculations฀below฀on฀use฀
of฀33,000฀pounds฀of฀paper.
Exelon฀Corporation฀2009฀Summary฀Annual฀Report฀
Sustainable฀Performance

Table of contents

  • Page 1
    Exelon฀Corporation฀2009฀Summary฀Annual฀Report฀ Sustainable฀Performance

  • Page 2
    ...฀messages.฀On฀July฀4,฀2009,฀PECO฀unveiled฀its฀new฀Crown฀Lights,฀which฀comprise฀2฀million฀energy-efficient฀LED฀lights. Forward-Looking฀Statements฀This฀report฀includes฀forward-looking฀statements฀within฀the฀meaning฀of฀the฀Private฀Securities...

  • Page 3
    ...policy฀that฀gives฀us฀cleaner฀energy,฀greater฀security฀and฀more฀ durable฀jobs,฀and฀does฀so฀at฀the฀lowest฀...fleet And฀we฀must฀do฀these฀things฀in฀a฀cost-effective฀way฀through฀the฀ discipline฀and฀innovation฀of฀competitive฀markets...

  • Page 4
    ...In฀2009,฀our฀economy฀struggled฀through฀one฀of฀the฀worst฀recessions฀ in฀memory.฀Though฀signs฀of฀recovery฀have฀begun฀to฀appear,฀Exelon฀ was฀challenged฀by฀the฀nation's฀economic฀weakness฀-฀as฀was฀nearly฀ every฀major฀corporation.฀In...

  • Page 5
    ...But฀as฀growth฀returns,฀markets฀tighten฀and฀various฀forms฀ Our฀achievements฀garnered฀the฀attention฀of฀a฀variety฀of฀stakeholders.฀We฀were฀one฀of฀three฀corporations฀ to฀be฀named฀by฀Forbes฀as฀one฀of฀"America's฀Best฀Companies."฀We...

  • Page 6
    ...graduates,฀and฀GI฀Jobs฀magazine฀recognized฀us...฀as฀the฀Corporate฀Volunteer฀Program฀of...report฀that฀Exelon฀turned฀in฀top-quartile฀safety฀performance฀in฀2009.฀฀ Our฀nuclear฀fleet...the฀South฀Side฀of฀Chicago.฀ retire฀Cromby฀Station฀and...

  • Page 7
    ...Frank฀Clark's฀diligent฀commitment฀to฀managing฀expenses,฀ (ROE)฀from฀5.5%฀in฀2008฀to฀8.5%฀in฀2009.฀ComEd฀is฀targeting฀an฀ROE฀of฀at฀least฀10.0%฀in฀2010. excessive฀heat฀and฀powerful฀summer฀storms฀seen฀in฀years฀past,฀the฀improved...

  • Page 8
    ...฀to฀close฀the฀ deal.฀That฀price฀would฀have...ComEd฀is฀moving฀forward฀with฀a฀pilot฀฀ program฀on฀Chicago...experience฀in฀power฀markets฀and฀regional฀...our฀traditional฀footprint.฀ organizations,฀...up. Generation's฀nuclear฀fleet฀remains฀the฀lowest...

  • Page 9
    ...฀our฀nuclear฀fleet฀and฀increased฀...฀carbon฀footprint.฀As฀of฀2009,฀we฀...this฀way,฀market฀forces฀...-and-trade฀mechanism฀for฀controlling฀...฀performance฀in฀2009฀demonstrates฀our฀...delivery฀companies฀in฀the฀United฀States.฀ That฀is฀what฀we฀...

  • Page 10
    ... Exelon฀City฀Solar,฀the฀largest฀urban฀solar฀power฀ plant฀in฀the฀United฀States,฀is฀a฀10-megawatt฀ installation฀located฀on฀a฀41-acre฀brownfield฀in฀ Chicago's฀West฀Pullman฀neighborhood.฀Its฀32,292฀ solar฀photovoltaic฀panels฀generate฀14...

  • Page 11
    our฀goals >฀฀ Keep฀the฀lights฀on฀and฀the฀gas฀flowing >฀Run฀the฀nuclear฀fleet฀at฀world-class฀levels >฀Capitalize฀on฀environmental฀leadership฀and฀clean฀nuclear฀energy >฀Create฀a฀challenging฀and฀rewarding฀workplace >฀Enhance฀the฀value...

  • Page 12
    Limerick฀Generating฀Station฀is฀a฀nuclear฀power฀ plant฀built฀on฀a฀600-acre฀site฀located฀about฀20฀ miles฀northwest฀of฀Philadelphia฀in฀Montgomery฀ County.฀Both฀of฀Limerick's฀units฀are฀boiling฀water฀ reactors฀that฀together฀can฀produce...

  • Page 13
    ...฀economy฀and฀ reflecting฀the฀commodity-driven฀nature฀of฀Exelon฀Generation's฀revenues.฀ The฀company฀significantly฀exceeded฀its฀2009฀cost฀reduction฀goals฀by฀ reducing฀positions฀and฀increasing฀efficiencies. The฀hedging฀program฀managed฀by฀Power...

  • Page 14
    ...฀generation,฀delivery฀and฀service฀companies. With฀the฀nuclear฀fleet฀performing฀at฀an฀industry-leading฀93.6฀percent฀capacity฀ ...carbon฀intensity. ComEd฀and฀PECO,฀our฀distribution฀utilities,฀enjoyed฀similar฀successes,฀with฀ ComEd฀enjoying฀its฀...

  • Page 15
    In฀2008,฀ComEd฀opened฀a฀state-of-the-art฀฀ substation฀in฀Chicago's฀West฀Loop.฀This฀was฀part฀ of฀an฀eight-year,฀$350฀million฀project฀that฀also฀ created฀multiple฀sources฀of฀supply฀for฀other฀ downtown฀Chicago฀substations฀and฀...

  • Page 16
    ...wishes฀to฀maintain฀this฀ virtually฀emissions-free฀generating฀capacity฀and฀ its฀electrical฀output,฀and฀on฀March฀12,฀2009,฀filed฀ a฀Notification฀of฀Intent฀with฀the฀Federal฀Energy฀ Regulatory฀Commission฀to฀relicense฀Conowingo฀ beyond฀its...

  • Page 17
    ...footprint. Exelon฀was฀for฀the฀fourth฀consecutive฀year฀named฀to฀the฀Dow฀Jones฀ Sustainability฀North฀America...fleet฀by฀up฀to฀1,500฀megawatts฀(MW)฀of฀new฀zero-emissions฀output฀ and฀brought฀70฀MW฀on฀line฀in฀2009.฀Exelon฀Power's฀Chicago...

  • Page 18
    Our฀Superior฀Talent The฀sustainable฀performance฀reported฀in฀these฀pages฀is฀thanks฀to฀the฀฀ hard฀work,฀dedication฀...Energy฀for฀the฀Community"฀ volunteer฀program฀was฀named฀Corporate฀Volunteer฀Program฀of฀the฀Year฀ by฀VolunteerMatch,฀the...

  • Page 19
    At฀PECO's฀Transmission฀System฀Operations฀center฀in฀ Philadelphia,฀operators฀keep฀close฀watch฀on฀the฀฀ regional฀electric฀grid.฀PECO฀will฀spend฀more฀than฀ $500฀million฀on฀maintenance,฀system฀performance฀ and฀capacity฀expansion฀projects฀...

  • Page 20
    ...annual฀basis฀through฀a฀rider฀adjustment฀mechanism.฀On฀February฀2,฀2010,฀the฀ICC฀ issued฀an฀order฀approving฀ComEd's฀proposed฀tariffs...฀IEEE฀SAIFI).฀As...its฀fleet฀of฀...markets฀beginning฀in฀2011฀and฀ secured....6฀percent฀in฀2009,฀ the฀seventh...

  • Page 21
    ...฀generation.฀In฀2009,฀Exelon฀Power's฀fleet฀reported฀record฀performance฀...markets฀in฀several฀regions฀of฀the฀United฀States:฀the฀Mid-Atlantic,฀the฀ Midwest,฀the฀Northeast,฀the฀Southwest฀and฀Texas.฀Power฀Team's฀trade฀floor฀and฀ headquarters...

  • Page 22
    ...Jr. Executive฀Vice฀President,฀฀ Finance฀and฀Legal,฀Exelon฀ Frank฀M.฀Clark Chairman฀and฀Chief฀Executive฀Officer,฀฀ ComEd Ruth฀Ann฀M.฀Gillis Executive฀Vice฀President฀and฀Chief฀Administrative฀฀ and฀Diversity฀Officer,฀Exelon฀and฀President...

  • Page 23
    ...States฀Navy Paul฀L.฀Joskow President,฀Alfred฀P.฀Sloan฀Foundation Thomas฀J.฀Ridge Former฀Secretary,฀Department฀of฀฀ Homeland฀Security...Officer฀and฀President Aqua฀America,฀Inc. Rosemarie฀B.฀Greco...and฀Chief฀Operating฀Officer McDonald's฀Corporation 21

  • Page 24
    ...Summary฀of฀Earnings฀and฀Financial฀Condition Stock฀Performance฀Graph Discussion฀of฀Financial฀Results฀-฀Exelon฀ Discussion฀of฀Financial...of฀Financial฀Results฀-฀ComEd฀ Discussion฀of฀Financial...฀Income 40฀ Management's฀Report฀on฀Internal฀Control฀Over...

  • Page 25
    ...฀31, 2006฀฀ 2005฀ Summary฀Annual฀Report Statement฀of฀Operations฀data:฀ Operating฀revenues...฀of฀common฀stock฀outstanding฀-฀diluted฀ in฀millions,฀except฀for฀per฀share฀data฀ 2009฀ 2008฀฀ 2007฀ 17,318฀ 4,750฀ 2,706฀ 1฀ 2,707฀ ...

  • Page 26
    Summary฀Annual฀Report Summary฀of... Preferred฀securities฀of฀...of฀the฀goodwill฀impairment฀charge฀of฀$776฀million฀in฀2006. in฀millions฀ 2009฀ 2008(c) ฀ 2007(b),(c) ฀ 2006(b),(c) ฀ $฀ 5,441฀ ฀ 27...into฀the฀mark-to-market฀net฀asset฀and฀...

  • Page 27
    ...Stock฀Index฀and฀the฀S&P฀Utility฀Index฀for฀the฀period฀2005฀through฀2009.฀ This฀performance฀chart฀assumes 100฀invested฀on฀December฀31,฀2004,฀in฀Exelon฀Corporation฀common฀stock,฀in฀the฀S&P฀500฀Stock฀Index฀and฀in฀the฀S&P฀Utility...

  • Page 28
    ...market฀conditions฀of฀$206฀million.฀Additionally,฀Generation฀ experienced฀higher฀nuclear฀fuel฀costs฀of฀$74฀million.฀Partially฀offsetting฀these฀decreases฀were฀lower฀costs฀associated฀with฀the฀Illinois฀Settlement฀of฀$123฀million.฀฀฀ ComEd...

  • Page 29
    ...฀to฀ongoing฀capital฀expenditures.฀฀ In฀response฀to฀current฀market฀and฀economic฀conditions,฀Exelon฀implemented฀a฀cost฀savings฀program฀in฀2009.฀This฀initiative฀included฀job฀reductions,฀for฀which฀Exelon฀ recorded฀a฀$34฀million฀charge...

  • Page 30
    ... ฀ 2009฀ ฀ 2,258฀ 201฀ 325฀ (67)฀ 2,717฀ 2008฀฀ Favorable (Unfavorable) Variance (136) 173 28 (76) (11) Net฀Income฀(Loss)฀by฀Business฀Segment฀ ฀ ฀ Generation฀ ComEd฀ PECO฀ Other฀(a)฀ Total฀ (a)฀ Other฀primarily฀includes฀corporate...

  • Page 31
    ...outage฀costs. Additionally,฀ due฀ to฀ a฀ significant฀ rebound฀ in฀ the฀ financial฀ markets,฀ Generation฀ experienced฀ strong฀ performance฀ in฀ its฀ NDT฀ funds฀ in฀ 2009.฀ As฀ a฀ result,฀ Generation's฀ earnings฀improved฀as฀its฀NDTs฀of฀the...

  • Page 32
    ...in฀operating฀and฀maintenance฀expense฀reflects฀Exelon's฀company-wide฀cost฀savings฀initiative฀in฀2009.฀The฀initiative฀included฀job฀reductions,฀for฀which฀ComEd฀ recorded฀a฀charge฀for฀severance฀expense฀as฀a฀cost฀to฀achieve฀these฀savings...

  • Page 33
    Discussion฀of฀Financial฀Results฀-฀PECO Results฀of฀Operations฀-฀PECO ฀ (Dollars฀in฀millions 2009฀ ฀ 5,567฀ 3,018฀ 2,549฀ 731฀ 854฀ 265฀ 1,850฀ 699...gas฀distribution฀ rates฀effective฀January฀1,฀2009,฀which฀were฀partially฀offset฀by฀...

  • Page 34
    Consolidated฀Statements฀of฀Operations Exelon฀Corporation฀and฀Subsidiary฀Companies ฀ Operating฀revenues฀ ...in฀millions,฀except฀for฀per฀share฀data)฀ ฀ ฀ ฀ $฀ 17,318฀ 2009฀ For฀the฀Years฀Ended฀December฀31, 2008฀฀ 2007 $฀ 18,859฀ ...

  • Page 35
    Consolidated฀Statements฀of฀Operations Exelon฀Corporation฀and฀Subsidiary฀Companies ฀ Average฀shares฀of฀common฀stock฀outstanding฀ ฀ ...152฀through฀342฀of฀Exelon's฀2009฀Form฀10-K฀filed฀with฀the฀Securities฀and฀Exchange฀Commission฀(SEC).฀See฀...

  • Page 36
    ...฀Statements฀of฀Cash฀Flows Exelon฀Corporation฀and฀Subsidiary฀Companies ฀ Cash...)฀ 6,094฀ ฀฀ (3,273)฀ 22,905฀ (23,144)฀ 41฀ (28)฀ 35฀ 6฀ (3,458)฀ 2009฀ For฀the฀Years฀Ended฀December฀31, 2008฀฀ 2007 ฀ $฀ 2,737฀ ฀ ฀ 2,308 374฀ ฀...

  • Page 37
    Consolidated฀Statements฀of฀Cash฀Flows฀ Exelon฀Corporation฀and฀Subsidiary฀Companies Cash฀flows฀from฀financing฀activities฀ ฀ Change฀in...Consolidated฀Statements฀of฀Cash฀Flows฀in฀Exelon's฀2009฀Form฀10-K.฀For฀complete฀consolidated฀financial฀...

  • Page 38
    ...Corporation฀and฀Subsidiary฀Companies ฀ Assets฀ Current฀assets฀ Cash฀and฀cash฀equivalents฀ Restricted฀cash฀and฀investments฀ Accounts฀receivable,฀net฀ ฀ Customer฀ ฀ Other฀ Mark-to-market...16,398฀ $฀ 49,180฀ 2009฀฀ ฀ December฀31, 2008 1,...

  • Page 39
    ...Corporation...market฀derivative฀liabilities฀ Other฀ ฀ Total฀deferred฀credits฀and฀other฀liabilities฀ Total฀liabilities฀ Commitments฀and฀contingencies฀ Preferred฀securities... 8,134฀ (2,089)฀ 12,640฀ 49,180฀ 2009฀ ฀ December฀31, 2008 211 29 319 1,416...

  • Page 40
    ...฀of฀Changes฀in฀Shareholders'฀Equity Exelon฀Corporation฀and฀Subsidiary฀Companies ฀ (Dollars฀in... Other฀comprehensive฀income,฀net฀of฀income฀taxes฀of฀$119฀ Balance,฀December฀31,฀2009฀ 682,474฀ -฀ 6,455฀ 254 689,183฀ -฀ 3,452฀ 318...

  • Page 41
    ...฀of฀Comprehensive฀Income Exelon฀Corporation฀and฀Subsidiary฀Companies Net฀...in฀unrealized฀(loss)฀gain฀on฀marketable฀securities,฀net฀of฀income฀taxes฀of...Statements฀of฀Comprehensive฀Income฀in฀Exelon's฀2009฀Form฀10-K.฀For฀complete฀consolidated฀ ...

  • Page 42
    ...Form฀10-K฀annual฀report฀for฀the฀year฀ended฀December฀31,฀2009.฀That฀annual฀report฀was฀filed฀with฀the฀Securities฀and฀Exchange...31,฀2009,฀in฀conformity฀with฀accounting฀principles฀generally฀accepted฀in฀the฀United฀States฀ of฀America.฀...

  • Page 43
    ...฀area.฀Exelon฀is฀฀ headquartered฀in฀Chicago฀and฀trades฀on฀the฀NYSE฀under฀the฀ticker฀EXC. investor฀and฀general฀information Corporate฀Headquarters Exelon฀Corporation P.O.฀Box฀805398 Chicago,฀IL฀60680-5398 Transfer฀Agent BNY฀Mellon 800.626...

  • Page 44
    ...฀paper฀utilized฀in฀the฀production฀of฀this฀annual฀report฀was฀ manufactured฀by฀Mohawk฀Fine฀Papers฀and...฀road฀ for฀one฀year฀ 1,012฀ trees฀ planted ฀ Exelon฀Corporation P.O.฀Box฀805398 Chicago,฀IL฀60680-5398 www.exeloncorp.com ©2010฀Exelon