Exelon 2001 Annual Report Download - page 10

Download and view the complete annual report

Please find page 10 of the 2001 Exelon 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.

Page out of 98

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

3Optimizing our Portfolio.
Our Enterprises businesses continue to be a significant challenge. During 2002, we will work at rationalizing and
optimizing those businesses. Those that fit the long-term business objectives will be developed. For businesses
that don’t meet our objectives, we will work towards obtaining the maximum value through divestiture. We
believe that several businesses may be sold in 2002, but others must be operated for a longer period to develop
their potential market value or to shape into a better fit with our core operations.
We will seek to achieve an improved balance between supply and demand in the ComEd distribution service
territory. We will do this by reshaping our supply portfolio to better match the base, intermediate, and peaking
demand and by resolving the uncertainty regarding ComEd’s provider of last resort obligations after 2004.
Finally, we will continuously re-assess the performance of our acquired and owned assets and businesses against
the expectations of our business cases to calibrate our valuation processes and tools and to take the necessary
management actions to eliminate under-performing assets and businesses.
4Re-investing our Cash Flow.
Exelon’s goal is to re-invest the cash generated by our business to grow and build the scale and asset diversity we
believe is required to succeed in the restructured U.S. electricity markets of the future. We are building a successful
company for the long-term. This means we are examining such possibilities as acquiring new generation assets
and new power contracts. We will also examine company acquisitions that support our long-term aspiration of
doubling our market capitalization within five years. In addition, we plan to complete the capacity additions at our
nuclear stations and execute on our regional generation, wholesale marketing, and trading strategies.
Finally, we will exercise discipline to confine our investments to opportunities that create real value for our
shareholders.We will apply a high degree of financial rigor in any and all investment opportunities we evaluate—
projected returns will exceed our internal hurdle rates and projected earnings will reflect the importance we place
on 1st and 2nd year accretion.
8