Exelon 2002 Annual Report Download - page 51

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49
Revenue Taxes. The change in revenue taxes represents a
change in presentation of certain revenue taxes for ComEd
from operating revenue and tax expense to collections recorded
as liabilities resulting from Illinois legislation. This change in
presentation does not affect income.
Other Effects. A strong housing construction market in Chicago
contributed to residential and small commercial and industrial
customer volume growth, partially offset by the unfavorable
impact of a slower economy on large commercial and industrial
customers.
The reduction in Wholesale and Miscellaneous revenues in
2001, as compared to 2000, reflects lower off-system sales due
to the expiration of wholesale contracts that were offered by
ComEd from June 2000 to May 2001 to support the open access
program in Illinois, partially offset by increased transmission
service revenue and the reversal of a $15 million reserve for
revenue refunds to ComEd’s municipal customers as a result
of a favorable FERC ruling.
Energy Delivery’s gas sales statistics were as follows:
2001 2000 Variance
Deliveries in mmcf 81,528 91,686 (10,158)
Revenue $ 654 $ 532 $ 122
The changes in gas revenue for 2001,as compared to 2000,were
as follows:
Variance
Price $ 174
Weather (38)
Volume (14)
Gas Revenue $ 122
Rate Changes. The favorable variance in price is attributable to
an adjustment of the purchased gas cost recovery by the PUC,
effective in December 2000.The average price per million cubic
feet for all customers for 2001 was 39% higher than 2000.
PECO’s gas rates are subject to periodic adjustments by the PUC
designed to recover or refund the difference between actual
cost of purchased gas and the amount included in base rates
and to recover or refund increases or decreases in certain state
taxes not recovered in base rates.
Weather. The unfavorable weather impact is attributable to
warmer winter weather conditions in the PECO service territory.
Heating degree days decreased 12% in 2001 compared to 2000.
Volume. Exclusive of weather impacts, lower delivery volume
affected revenue by $14 million compared to 2000.Total volume
of sales to retail customers decreased 11% compared to 2000,
primarily as a result of slower economic conditions in 2001
offset by customer growth.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
exelon corporation and subsidiary companies
Results of Operations–Generation
Components of Variance
Merger Normal
Generation 2001 2000 Variance Variance Operations
Operating Revenues $ 6,826 $ 3,274 $ 3,552 $ 2,772 $ 780
Revenue, net of Purchased Power & Fuel Expense 2,831 1,428 1,403 1,082 321
Operating Income 872 441 431 23 408
Income Before Income Taxes 839 420 419 (10) 429
Income Before Cumulative Effect of
Changes in Accounting Principles 512 260 252 (1) 253
Net Income 524 260 264 (1) 265