ComEd 2009 Annual Report Download - page 31
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Please find page 31 of the 2009 ComEd annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.DiscussionofFinancialResults-Generation
ResultsofOperations–Generation
Favorable
(Unfavorable)
(Dollarsinmillions) 2009 2008 Variance
Operatingrevenues $ 9,703 $ 10,754 $ (1,051)
Purchasedpowerandfuelexpense 2,3923,572 640
Revenuenetofpurchasedpowerandfuelexpense 6,7717,182 (211)
Otheroperatingexpenses
Operatingandmaintenance 2,938 2,717 (221)
Depreciationandamortization 333 274 (59)
Taxesotherthanincome 205 197 (8)
Totaloperatingexpenses 3,4763,188 (288)
Operatingincome 3,2953,994(699)
Otherincomeanddeductions
Interestexpense (113) (136) 23
Equityinlossesofunconsolidatedafliates (3) (1) (2)
Other,net 376(469) 845
Totalotherincomeanddeductions 260(606) 866
Incomefromcontinuingoperationsbeforeincometaxes 3,5553,388 167
Incometaxes 1,433 1,130 (303)
Incomefromcontinuingoperations 2,1222,258 (136)
Discontinuedoperations
Gainondisposalofdiscontinuedoperations – 20 (20)
Incomefromdiscontinuedoperations – 20 (20)
Netincome $ 2,122 $ 2,278 $ (156)
Generation’s2009resultscomparedto2008weresignicantlyaffectedbylowerrevenuenetofpurchasedpowerandfuelexpenseprimarilyduetounfavorableportfolio
andmarketconditions,includingdecreasednetmark-to-marketgainsfromitshedgingactivities,andrevenuefromcertainlongoptionsinGeneration’sproprietary
trading portfolio recorded in 2008. Additionally, Generation’s revenue net of purchased power and fuel expense was affected by gains related to the settlement of
uraniumsupplyagreementsin2008andhighernuclearfuelcostsin2009duetorisingnuclearfuelprices.ThedecreaseinGeneration’srevenuesnetofpurchasedpower
andfuelexpensewaspartiallyoffsetbylowercostsrelatedtotheIllinoisSettlement.
Generation’s2009resultscomparedto2008werefurtheraffectedbyhigheroperatingandmaintenanceexpenses.Higheroperatingandmaintenanceexpensewas
primarilyduetoa$223millionchargeassociatedwiththeimpairmentoftheHandleyandMountainCreekstationsandcostsassociatedwiththeannouncedshut-down
ofthreecoal-redandonedualfossil-redgenerationunitinPennsylvania.Theseactionswereadirectresultofcurrentandfutureexpectedmarketconditions.Market
conditionsalsocontributedtolowerthanexpectedpensionandpostretirementplanassetreturnsin2008,whichresultedinhigherpensionandotherpostretirement
benetsexpensein2009.OperatingandmaintenanceexpenseincreaseswerepartiallyoffsetbythefavorableresultsofExelon’scompanywidecostsavingsinitiative
andlowernuclearrefuelingoutagecosts.
Additionally, due to a signicant rebound in the nancial markets, Generation experienced strong performance in its NDT funds in 2009. As a result, Generation’s
earningsimprovedasitsNDTsoftheNon-RegulatoryAgreementUnitshadsignicantnetrealizedandunrealizedgainsin2009comparedtosignicantnetrealized
andunrealizedlossesin2008.
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