Exelon 2010 Annual Report Download

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Exelon Corporation 2010 Summary Annual Report
Smart Investment

Table of contents

  • Page 1
    Smart Investment Exelon Corporation 2010 Summary Annual Report

  • Page 2
    ... Exelon's Vision, Goals and Values Financial Discipline Operating Excellence Environmental Leadership Talented Employees Exelon at a Glance Executive Committee Board of Directors Financial Section On the cover: A view through the Quad Cities Unit 2 generator during that nuclear power station...

  • Page 3
    ...our annually updated Exelon 2020 plan, by increasing the capacity of our nuclear fleet, complying with Illinois and Pennsylvania renewable energy standards, purchasing John Deere's wind power company and conducting some of the largest energy efficiency programs in the nation. While the cap and trade...

  • Page 4
    ...Exelon delivered another strong year, with operating earnings of $2.7 billion. We are acting to protect and grow our future upside, and we are committed to enhancing your investment in difficult economic times as well as in the better ones that will follow. John W. Rowe Chairman and Chief Executive...

  • Page 5
    3

  • Page 6
    ... gas or power prices and the coming economic recovery. Since the merger that created Exelon, our total return - measured as stock price appreciation plus reinvested dividends - has been 97.5 percent. This compares to total returns of 73.1 percent and 9 percent for the Philadelphia Utility Index...

  • Page 7
    ... average margins at Exelon Generation of $37.62 per megawatt-hour in 2010 despite lower power prices. Our hedges contributed to the $5.24 billion we generated in cash from operations across the businesses in 2010, and helped us to return $1.4 billion to our shareholders through dividends. In the...

  • Page 8
    ... human resources, adding great value to Exelon's operating companies. SMART INVESTMENT FOR THE FUTURE In 2010, we continued to execute our multi-year nuclear uprate strategy, expanding the capacity of the fleet by 59 megawatts by making improvements at our Clinton, Dresden, LaSalle and Quad Cities...

  • Page 9
    ...dividend yield and our strong balance sheet. These factors, along with our disciplined financial management and persistent hunt for investments, ensure that our company will provide enhanced value over the long-term. John W. Rowe Chairman and Chief Executive Officer Exelon Corporation March 7, 2011...

  • Page 10
    Through thb acquisition of John Dbbrb Rbnbwablbs in 2010 Exblon addbd 36 wind projbcts with 735 mbgawatts of clban gbnbration to its portfolio, including this sitb in Tiskilwa, Ill. Exblon Wind, a division of Exblon Powbr, managbs thb company's nbwly acquirbd wind assbts; approximatbly 75 pbrcbnt of...

  • Page 11
    ... leadership and clean nuclear energy > Create a challenging and rewarding workplace > Enhance the value of our generation > Build value through disciplined financial management our values Safety - for our employees, our customers and our communities Integrity - the highest ethical standards in what...

  • Page 12
    ... favorable 2010 results can be credited to a number of factors: the hedging program managed so effectively by Power Team, favorable weather, our superior operating performance, prudent cost management and efficient use of capital. Exelon's financial discipline and commitment to long-term shareholder...

  • Page 13
    From thb tradb floor in Kbnnbtt Squarb, Pa., Powbr Tbam managbs thb intbraction bbtwbbn thb gbnbration portfolio and thb wholbsalb and rbtail markbts in ordbr to rbducb risk, crbatb opportunity and optimizb thb valub of Exblon's gbnbration. 11

  • Page 14
    .... Exelon Business Services Company provided world-class, cost-effective support to our operating companies, including the launch of myHR, which includes a website and service center that have dramatically improved human resources service levels for our employees and retirees while reducing costs...

  • Page 15
    Both ComEd and PECO kbpt thb lights on and thb gas flowing dbspitb numbrous sbvbrb storms throughout thb ybar. This PECO linb bmploybb works to safbly rbmovb fallbn branchbs from powbr linbs aftbr a summbr storm. 13

  • Page 16
    ... business strategy, Exelon has achieved more than half of that goal, reducing more than 8 million metric tons of greenhouse gas emissions. Through our acquisition of John Deere Renewables, which added 36 economic wind projects to Exelon's clean energy portfolio, our ongoing nuclear uprates program...

  • Page 17
    Exblon Powbr's Handlby Station is a natural gas-burning gbnbrating facility in Ft. Worth, Tbxas, with thrbb units capablb of gbnbrating 1,265 mbgawatts whbn nbbdbd. Nbw natural gas discovbribs promisb a morb abundant supply of this critical low-carbon fubl. Thb chbapbst way to mbbt nbw dbmand for ...

  • Page 18
    ... report, from our nuclear performance to the PECO rate cases described on page 19, would have been possible without our hard-working employees. The work our employees do is complex and sometimes dangerous, and it is relied upon by millions of families and businesses in the regions where we operate...

  • Page 19
    In hblicoptbrs and buckbt trucks, at powbr plants and warbhousbs, at substations and in commbrcial locations, bmploybbs likb this ComEd undbrground cablb splicbr pbrform tasks rbquiring skill, collaboration, bxcbllbncb and a commitmbnt to safbty. 17

  • Page 20
    ...the United States. The Power Team trade floor and headquarters are located in Kennett Square, Pa. Exelon Energy is the retail marketing arm of Exelon. It markets electricity to customers in Illinois and Pennsylvania, and natural gas to customers in Illinois, Michigan and Ohio. Exelon Energy provides...

  • Page 21
    ... and services in a cost-effective manner to all Exelon companies. There are 12 EBSC practice areas: Audit and Controls, Commercial Operations Group (which includes accounts payable and payroll), Communications and Public Affairs, Corporate Strategy and Exelon 2020, Development, Finance, Government...

  • Page 22
    ..., Power Team Joseph Dominguez Senior Vice President, Federal Regulatory Affairs, Public Policy and Communications, Exelon and Senior Vice President, State Governmental Affairs, Exelon Generation Ruth Ann M. Gillis Executive Vice President and Chief Administrative and Diversity Officer, Exelon and...

  • Page 23
    ..., Inc. Bruce DeMars* Admiral (Retired), United States Navy Nelson A. Diaz Of Counsel, Cozen O'Connor Sue L. Gin Chairman and Chief Executive Officer, Flying Food Group, LLC Rosemarie B. Greco Principal, GRECOVentures Former Senior Advisor to the Governor of Pennsylvania, Health Care Reform Paul...

  • Page 24
    ... Results - PECO Condensed Consolidated Financial Statements: > Consolidated Statements of Operations and Comprehensive Income > Consolidated Statements of Cash Flows > Consolidated Balance Sheets > Consolidated Statements of Changes in Shareholders' Equity 39 Management's Report on Internal Control...

  • Page 25
    Summary Annual Report Summary of Earnings and Financial Condition (Dollars in millions, except for per share data) 2010 2009 2008 For the years ended Dec. 31, 2007 2006 Statement of operations data: Operating revenues Operating income Income from continuing operations Income from discontinued ...

  • Page 26
    Summary Annual Report Summary of Earnings and Financial Condition (Dollars in millions) 2010 2009 2008(a) For the years ended Dec. 31, 2007(a),(b) 2006(a),(b) Balance sheet data: Current assets Property, plant and equipment, net Noncurrent regulatory assets Goodwill Other deferred debits and ...

  • Page 27
    ... the S&P Utility Index for the period 2006 through 2010. This performance chart assumes: • $100 invested on Dec. 31, 2005, in Exelon common stock, in the S&P 500 Stock Index and in the S&P Utility Index; and • All dividends are reinvested. Comparison฀of฀Five-Year฀Cumulative฀Return $200...

  • Page 28
    ... - Exelon Results of Operatiocs (Dollars in millions, except for per share data) 2010 2009 Favorable (Unfavorable) Variance Operating revenues Operating expenses Purchased power and fuel expense Operating and maintenance Operating and maintenance for regulatory required programs Depreciation...

  • Page 29
    ... the Handley and Mountain Creek stations recorded in 2009 and reduced stock compensation costs in 2010 of $40 million across the operating companies. Decreased operating and maintenance expense was partially offset by higher costs at the utility companies associated with regulatory required programs...

  • Page 30
    ... in Exelon's consolidated financial statements. Net Iccome (Loss) by Busicess Segmect Favorable (Unfavorable) 2010 vs. 2009 Variance (Dollars in millions) 2010 2009 Generation ComEd PECO Other (a) Total (a) Other primarily includes corporate operations, Exelon Business Service Company, LLC...

  • Page 31
    ... Handley and Mountain Creek stations recorded in 2009. Lower operating and maintenance expense was partially offset by higher expense due to the absence of asset retirement obligation reductions that occurred in 2009; higher wages and benefits costs; and higher nuclear refueling outage costs in 2010...

  • Page 32
    ... by the Illinois Commerce Commission of ComEd's uncollectible accounts expense rider mechanism, the reduction of ComEd's asset retirement obligation in 2010, and a charge in 2009 for severance expense incurred as a cost to achieve savings under Exelon's 2009 company-wide cost savings initiative...

  • Page 33
    ...) Variance (Dollars in millions) 2010 2009 Operating revenues Purchased power and fuel expense Revenue net of purchased power and fuel expense Other operating expenses Operating and maintenance Operating and maintenance for regulatory required programs Depreciation and amortization Taxes other...

  • Page 34
    ... Income Exelon Corporation and Subsidiary Companies (Dollars in millions, except for per share data) 2010 For the years ended Dec. 31, 2009 2008 Operating revenues Operating expenses Purchased power Fuel Operating and maintenance Operating and maintenance for regulatory required programs...

  • Page 35
    ...Statements of Operations and Comprehensive Income Exelon Corporation and Subsidiary Companies (Dollars in millions, except for per share data) 2010 For the years ended Dec. 31, 2009 2008 Other comprehensive income (loss) Pension and non-pension postretirement benefit plans: Prior service benefit...

  • Page 36
    ... flows provided by operating activities Cash flows from investing activities Capital expenditures Proceeds from nuclear decommissioning trust fund sales Investment in nuclear decommissioning trust funds Acquisition of Exelon Wind Proceeds from sales of investments Purchases of investments Change in...

  • Page 37
    ... consolidated financial statements, including notes, please refer to pages 150 through 331 of Exelon's 2010 Form 10-K filed with the SEC. See also management's discussion and analysis of financial condition and results of operation, which includes a discussion of critical accounting policies and...

  • Page 38
    Consolidated Balance Sheets Exelon Corporation and Subsidiary Companies (Dollars in millions) For the years ended Dec. 31, 2010 2009 Assets Current assets Cash and cash equivalents Restricted cash and investments Accounts receivable, net Customer ($346 gross accounts receivable pledged as ...

  • Page 39
    ... Exelon Corporation and Subsidiary Companies (Dollars in millions) For the years ended Dec. 31, 2010 2009 Liabilities and shareholders' equity Current liabilities Short-term borrowings Short-term notes payable-accounts receivable agreement Long-term debt due within one year Long-term debt to PECO...

  • Page 40
    ...119 Balance, Dec. 31, 2009 Net income Long-term incentive plan activity Employee stock purchase plan issuances Common stock dividends Acquisition of Exelon Wind Other comprehensive loss, net of income taxes of $(221) Balance, Dec. 31, 2010 689,183 - 3,452 318 - - - - 692,953 - 1,088 524 - - 694,565...

  • Page 41
    ... reporting was effective. The effectiveness of the company's internal control over financial reporting as of Dec. 31, 2010, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report. Feb. 10, 2011 Icformatioc Derived from 2010 Form...

  • Page 42
    ...Secretary, Exelon Corporation, Post Office Box 805379, Chicago, Illinois 60680-5379. The company maintains a telephone information service that enables investors to obtain currently available information on financial performance, company news and to access shareholder services at Wells Fargo. To use...

  • Page 43
    ... and Executive Committee photos: Ron Wu / printing: Lithographix This piece was printed on Opus Sheets manufactured by Sappi Fine Paper North America with 10% PCW and FSC Chain of Custody Certification. 100% of the electricity used to manufacture Opus Sheets is Green-e® certified renewable energy.

  • Page 44
    Exelon Corporation P.O. Box 805379 Chicago, IL 60680-5379 www.exeloncorp.com ©2011 Exelon