Exelon 2003 Annual Report Download - page 54

52 Management’s Discussion and Analysis of Financial Condition and Results of Operations
EXELON CORPORATION AND SUBSIDIARY COMPANIES
Electric Revenue 2002 2001 Variance % Change
Bundled revenues(a)
Residential $ 3,719 $3,336 $ 383 11.5%
Small commercial & industrial 2,601 2,503 98 3.9%
Large commercial & industrial 1,496 1,452 44 3.0%
Public authorities & electric railroads 456 502 (46) (9.2%)
Total bundled revenues 8,272 7,793 479 6.1%
Unbundled revenues(b)
Alternative energy suppliers
Residential 145 235 (90) (38.3%)
Small commercial & industrial 159 129 30 23.3%
Large commercial & industrial 170 138 32 23.2%
Public authorities & electric railroads 28 6 22 n.m.
502 508 (6) (1.2%)
PPO (ComEd 0nly)
Small commercial & industrial 204 220 (16) (7.3%)
Large commercial & industrial 278 343 (65) (19.0%)
Public authorities & electric railroads 71 59 12 20.3%
553 622 (69) (11.1%)
Total unbundled revenues 1,055 1,130 (75) (6.6%)
Total electric retail revenues 9,327 8,923 404 4.5%
Wholesale and miscellaneous revenue(c) 581 594 (13) (2.2%)
Total electric revenue $9,908 $ 9,517 $ 391 4.1%
(a) Bundled revenue reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy and the delivery cost of the transmission and the
distribution of the energy. PECO’s tariffed rates also include a CTC charge. See Note 4 of the Notes to Consolidated Financial Statements for a discussion of CTC.
(b) Unbundled revenue reflects revenue from customers electing to receive electric generation service from an alternative energy supplier or ComEd’s PPO. Revenue from customers
choosing an alternative energy supplier includes a distribution charge and a CTC. Revenues from customers choosing ComEd’s PPO includes an energy charge at market rates,
transmission, and distribution charges and a CTC. Transmission charges received from alternative energy suppliers are included in wholesale and miscellaneous revenue.
(c) Wholesale and miscellaneous revenues include transmission revenue, sales to municipalities and other wholesale energy sales.
n.m.—not meaningful
Energy Delivery’s gas sales statistics and revenue detail were as follows:
Deliveries to customers in mmcf 2002 2001 Variance % Change
Retail sales 54,782 54,075 707 1.3%
Transportation 30,763 27,453 3,310 12.1%
Total 85,545 81,528 4,017 4.9%
Revenue 2002 2001 Variance % Change
Retail sales $ 490 $ 581 $ (91) (15.7%)
Transportation 19 18 1 5.6%
Resale and other 40 55 (15) (27.3%)
Total $ 549 $ 654 $ (105) (16.1%)
Results of Operations–Generation
In the second quarter of 2002, Generation early adopted Emerging Issues Task Force (EITF) Issue 02-3, “Accounting for Contracts
Involved in Energy Trading and Risk Management Activities” (EITF 02-3). EITF 02-3 was issued by the FASB EITF in June 2002 and
required revenues and energy costs related to energy trading contracts to be presented on a net basis in the income statement.
For comparative purposes, energy costs related to energy trading have been reclassified as revenue for prior periods to con-
form to the net basis of presentation required by EITF 02-3.
Generation 2002 2001 Variance % Change
Operating revenues $6,858 $6,826 $ 32 0.5%
Purchased power and fuel expense 4,253 3,995 258 6.5%
Operating and maintenance expense 1,656 1,528 128 8.4%
Depreciation and amortization expense 276 282 (6) (2.1%)
Operating income 509 872 (363) (41.6%)
Income before income taxes and cumulative effect of changes in accounting
principles 604 839 (235) (28.0%)
Income before cumulative effect of changes in accounting principles 387 512 (125) (24.4%)
Net income 400 524 (124) (23.7%)