Exelon 2003 Annual Report Download - page 7

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5
the exelon way
In January of 2003,we initiated The Exelon Way, an aggressive
and comprehensive company-wide effort to reexamine and
ultimately transform the way we do business.This past year,
we have been engaged in this ongoing, across-the-board effort
to energize our workforce;centralize key functions; optimize
the work we do and the way we do it; emphasize our basic
commitments to our customers,our employees and the com-
munities we serve; and ultimately maximize our competitive
position and shareholder value.We are creating a unified,
high-performance organization, building on a culture of
excellence that will enable us to realize more than $1 billion
in cash flow enhancements over the next three years.
To lead this effort, and oversee all of our operations,in April
the Board accepted my recommendation to promote Oliver
Kingsley to a newly created position as president and chief
operating officer.We are already seeing tangible results from
the work that Oliver and The Exelon Way team have under-
taken.Gary Snodgrass and his HR team worked tirelessly to
optimize our workforce and assure that we have the right
people in the right places. By the end of the third quarter, we
had completed initial benchmarking,begun restructuring
and centralization,and were well on the way to real savings
across our entire business. By year-end,we actually realized
$170 million in savings over program baseline in reduced oper-
ations and maintenance, and capital expenditures–savings
that weren’t anticipated until 2004.
In short,The Exelon Way is about being the best at everything
we do. Our goal is to continuously improve overall productivity
and reduce costs,while maintaining our primary focus on
customer service,reliability and safety.
leading the way forward
The Exelon Way is not an end unto itself. Our Vision Statement
speaks to more than operational prowess. It urges us to
confront the future,to adapt to rapid changes in markets,
politics,economics and technology, and to promote and
implement policies that build effective markets.
Living up to this ambition is an enormous challenge, given the
legislative and regulatory uncertainty that the industry now
faces.We operate today in a strange mixture of competition
and regulation that leaves unanswered where markets begin
and end, and where regulatory policy transcends markets.
Resolving this dilemma may ultimately prove more challenging
than achieving top quartile operating performance.
Exelon remains committed to deep, liquid,competitive whole-
sale markets. Under the leadership of Betsy Moler, our Executive
Vice President of Government Affairs,Exelon has worked tire-
lessly to promote wholesale competition both before Congress
and the Federal Energy Regulatory Commission (FERC). Among
our more challenging undertakings has been a vigorous
effort to bring ComEd within PJM.PJM is clearly the nation’s
preeminent regional transmission organization,the leader
in wholesale market development.Through the efforts of our
PJM team, the PJM Board voted to admit ComEd effective
March 1, 2004.We are presently seeking FERC approval,over
the strenuous objection of a host of competing interests.