Exelon 2008 Annual Report Download - page 35

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Discussion฀of฀Financial฀Results฀-฀PECO
Results฀of฀Operations฀–฀PECO
฀ ฀฀Favorable
฀ ฀ (Unfavorable)
(Dollars฀in฀millions)฀ ฀ ฀ 2008฀ 2007฀฀ Variance
Operating฀revenues฀ $฀ 5,567฀ $฀ 5,613฀ $฀ (46)
Purchased฀power฀expense฀and฀fuel฀expense฀ ฀ 3,018฀ ฀ 2,983฀ ฀ (35)
Revenue฀net฀of฀purchased฀power฀expense฀and฀fuel฀expense฀ ฀ 2,549฀ ฀ 2,630฀ ฀ (81)
Other฀operating฀expenses฀ ฀฀ ฀฀ ฀
Operating฀and฀maintenance฀ ฀ 731฀ ฀ 630฀ ฀ (101)
Depreciation฀and฀amortization฀ ฀ 854฀ ฀ 773฀ ฀ (81)
Taxes฀other฀than฀income฀ ฀ 265฀ ฀ 280฀ ฀ 15
Total฀other฀operating฀expenses฀ ฀ 1,850฀ ฀ 1,683฀ ฀ (167)
Operating฀income฀ ฀ 699฀ ฀ 947฀ ฀ (248)
Other฀income฀and฀deductions฀ ฀฀ ฀฀ ฀
Interest฀expense,฀net฀ ฀ (226)฀ ฀ (248)฀ ฀ 22
Equity฀in฀losses฀of฀unconsolidated฀afliates฀ ฀ (16)฀ ฀ (7)฀ ฀ (9)
Other,฀net฀ ฀ 18฀ ฀ 45฀ ฀ (27)
Total฀other฀income฀and฀deductions฀ ฀ (224)฀ ฀ (210)฀ ฀ (14)
Income฀before฀income฀taxes฀ ฀ 475฀ ฀ 737฀ ฀ (262)
Income฀taxes฀ ฀ 150฀ ฀ 230฀ ฀ 80
Net฀income฀ ฀ 325฀ ฀ 507฀ ฀ (182)
Preferred฀stock฀dividends฀ ฀ 4฀ ฀ 4฀ ฀ –
Net฀income฀on฀common฀stock฀ $฀ 321฀ $฀ 503฀ $฀ (182)
PECO’s฀net฀income฀for฀2008฀compared฀to฀2007฀decreased฀due฀to฀lower฀operating฀revenues฀net฀of฀purchased฀power฀and฀fuel฀expense,฀reecting฀unfavorable฀weather฀
conditions,฀as฀well฀as฀higher฀operating฀and฀maintenance฀expenses฀primarily฀driven฀by฀an฀increase฀in฀the฀allowance฀for฀uncollectible฀accounts฀expense฀and฀increased฀
scheduled฀CTC฀ amortization,฀ which฀ was฀ in฀accordance฀with฀ the฀ 1998฀ restructuring฀ settlement฀mandated฀by฀ the฀ Competition฀ Act,฀ partially฀offset฀by฀ the฀ decrease฀ in฀
interest฀expense฀due฀to฀lower฀long-term฀debt฀balances฀owed฀to฀PECO฀Energy฀Transition฀Trust.
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