Exelon 2002 Annual Report Download - page 40

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38
Results of Operations–Energy Delivery
Energy Delivery consists of our regulated energy delivery
operations conducted by ComEd and PECO.
ComEd is engaged principally in the purchase,transmission,
distribution and sale of electricity to a diverse base of residen-
tial, commercial, industrial and wholesale customers in north-
ern Illinois. ComEd is a public utility under the Illinois Public
Utilities Act and is subject to extensive regulation by the ICC
as to rates, the issuance of securities and certain other aspects
of ComEd’s operations. ComEd is also subject to regulation by
FERC as to transmission rates and certain other aspects of
its business.
ComEd’s retail service territory has an area of approximately
11,300 square miles and an estimated population of eight mil-
lion as of December 31, 2002. The service territory includes the
City of Chicago, an area of about 225 square miles with an esti-
mated population of three million. ComEd had approximately
3.6 million customers at December 31, 2002.
PECO is engaged principally in the purchase, transmission,
distribution and sale of electricity to residential, commercial
and industrial customers and in the purchase, distribution and
sale of natural gas to residential, commercial and industrial
customers. PECO is a public utility under the Pennsylvania
Public Utility Code and is subject to extensive regulation by the
PUC as to electric and gas rates, the issuances of securities and
certain other aspects of PECO’s operations. PECO is also subject
to regulation by FERC as to transmission rates,gas pipelines and
certain other aspects of its business.
PECO’s retail service territory covers approximately 2,100
square miles in southeastern Pennsylvania. PECO provides elec-
tric delivery service in an area of approximately 2,000 square
miles,with a population of approximately 3.8 million,including
1.5 million in the City of Philadelphia.Natural gas service is sup-
plied in an approximate 2,100 square mile area in southeastern
Pennsylvania adjacent to Philadelphia, with a population of
approximately 2.3 million. PECO delivers electricity to approxi-
mately 1.5 million customers and natural gas to approximately
450,000 customers.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
exelon corporation and subsidiary companies
Income (Loss) Before Cumulative Effect of Changes in Accounting Principles by Business Segment
2002 2001 Variance % Change
Energy Delivery $ 1,268 $ 1,022 $ 246 24.1%
Generation 387 512 (125) (24.4%)
Enterprises 65 (85) 150 176.5%
Corporate (50) (33) (17) (51.5%)
Total $ 1,670 $ 1,416 $ 254 17.9%
Net Income (Loss) by Business Segment
2002 2001 Variance % Change
Energy Delivery $ 1,268 $ 1,022 $ 246 24.1%
Generation 400 524 (124) (23.7%)
Enterprises (178) (85) (93) (109.4%)
Corporate (50) (33) (17) (51.5%)
Total $ 1,440 $ 1,428 $ 12 0.8%