Exelon 2011 Annual Report Download

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Exelon Corporation 2011 Summary Annual Report

Table of contents

  • Page 1
    Exelon Corporation 2011 Summary Annual Report

  • Page 2
    ... 10 Exelon's Merger with Constellation Energy 12 Generation 16 Power Team and Exelon Energy 18 Utilities 22 Exelon Business Services Company 23 Executive Committee 24 Board Of Directors 25 Financial Section On the cover: Top: Clinton Power Station, one of Exelon's newest nuclear power plants, is...

  • Page 3
    ... fleet performance. Expanding our natural gas-fueled generation. Disciplined investing in renewable energy. Strong reliability and performance at ComEd and PECO. Dedicated to clean energy and competitive markets. Pursuing strategic growth. Strong operating earnings, and $1.4 billion in dividends.

  • Page 4
    ... Constellation, which will make Exelon a truly national company. It is with both great pride and deep emotion that I write my last letter to you, our shareholders, before my planned retirement. John W. Rowe, chairman and chief executive officer, founded Exelon through the merger of Unicom and PECO...

  • Page 5
    .... Our Texas gas plants were available to run and Power Team capitalized on market conditions during the February cold and the summer heat. We retired three aging fossil units in Pennsylvania as planned, with one additional coal unit scheduled for retirement in 2012. Exelon Exelon's operations are...

  • Page 6
    ... carbon emissions from power plants and a reduction of other harmful toxics and pollutants as well. Exelon 2020 continues to be our platform for public policy advocacy, as well as our own efforts toward cleaner operations. Our Exelon believes in market-based solutions to energy supply issues. Much...

  • Page 7
    ... of nuclear capacity, bringing the uprate initiative total to 240 megawatts so far. We acquired Wolf Hollow, a 720-megawatt combined-cycle gas plant in north Texas. Exelon Generation brought 90 megawatts of new wind generation on line in Michigan. There are a number of other wind and solar projects...

  • Page 8
    Our Vision Exelon will be the best group of electric generation and electric and gas delivery companies in the United States - providing superior value for our customers, employees, investors and the communities we serve. An operator inside ComEd's West Loop substation in Chicago. The substation, ...

  • Page 9
    ... > Capitalize on environmental 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...

  • Page 10
    ... British Energy (BE) to acquire and operate U.S. nuclear power plants. AmerGen purchases Three Mile Island Unit 1, Clinton and Oyster Creek; Exelon bought BE's stake in 2003. Illinois enacts the Electric Service Customer Choice and Rate Relief Law, and Pennsylvania the Electricity Generation Choice...

  • Page 11
    ... close three coal units and one oil and gas unit in Pennsylvania. Cromby's two units and Eddystone Unit 1 retired at the end of 2011; Eddystone Unit 2 will retire May 31, 2012. 2010 Exelon acquires a 735-megawatt portfolio of wind generation, now Exelon Wind, a unit of Exelon Power. Dresden Nuclear...

  • Page 12
    Exelon's Merger with Constellation Exelon's merger with Constellation includes a package of benefits to the State of Maryland, City of Baltimore (pictured here) and BGE customers that totals more than $1 billion and is expected to create more than 6,000 jobs statewide. 10

  • Page 13
    ... will absorb Exelon's Power Team and Exelon Energy units as well as the retail and wholesale businesses of Constellation, and second, a new organization, Exelon Utilities, which will include BGE, currently a unit of Constellation, in addition to ComEd and PECO. For up-to-date news and information...

  • Page 14
    Generation 12 GENERATION

  • Page 15
    ... resources, as well as the Power Team and Exelon Energy businesses. NUCLEAR Top: Exelon Power acquired Wolf Hollow Generating Station, a 720-megawatt, two-unit, combined-cycle natural gas electricity generating plant in Granbury, Texas, in 2011. Exelon Nuclear's 8,700 employees run its fleet...

  • Page 16
    ... portfolio in 2011. The Wolf Hollow facility, acquired in August 2011, is a combined-cycle natural gas-fired power plant that added 720 megawatts of clean energy to Exelon Generation's portfolio in the competitive Electric Reliability Council of Texas power market. Beyond the recent wind and natural...

  • Page 17
    ...operated by Constellation Energy Nuclear Group (CENG) - Calvert Cliffs in Maryland, and R.E. Ginna and Nine Mile Point in New York. CENG is a joint venture with Electricite de France. Exelon Power will nearly double its portfolio and expand its presence to 15 states and Alberta, Canada. Exelon Power...

  • Page 18
    ..., transmission contracts and wholesale and retail load obligations. Exelon Power Team's trade floor in Kennett Square, Pa. Power Team will merge, along with Exelon Energy, into a new Exelon business based in Baltimore and operating under the Constellation brand. 16 POWER TEAM AND EXELON ENERGY

  • Page 19
    ... a year. The Power Team trade floor and headquarters are currently 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 20
    Utilities 18 UTILITIES

  • Page 21
    ... reliability, for the benefit of the companies' customers, employees and communities. COMED Top: At the PECO Transmission System Operations Center in Philadelphia, operators keep close watch on the regional electric grid. Bottom Left: ComEd's state-of-theart substation in Chicago's West Loop. This...

  • Page 22
    ... safely conducts routine work on the utility's electricity delivery system. Right: Exelon's utilities are engaged in smart grid/smart meter pilots, including installation of new digital meters like this one installed in the ComEd service territory. Both PECO and BGE are recipients of $200 million...

  • Page 23
    ... practices are shared among Exelon's three electricity and gas delivery companies, BGE, ComEd and PECO. For nearly 200 years, BGE has been an innovator in meeting the energy needs of central Maryland residents and businesses. Headquartered in Baltimore, BGE provides service to more than 1.2 million...

  • Page 24
    ... services), Communications and Public Affairs, Corporate Strategy and Exelon 2020, Development, Finance, Government Affairs and Public Policy, Human Resources, Information Technology (which includes Cyber & Physical Security), Investments, Legal and Governance, and Supply. In 2011, the BSC practice...

  • Page 25
    ..., 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...

  • Page 26
    ... and Chief Executive Officer Emeritus, W. K. Kellogg Foundation Former Secretary, Department of Homeland Security; Former Governor of Pennsylvania John W. Rogers Jr. Chairman and Chief Executive Officer, Ariel Investments, LLC Stephen D. Steinour Chairman, President and Chief Executive Officer...

  • Page 27
    ... Results - Generation 34 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 41 Management's Report on Internal...

  • Page 28
    ...Report Summdry of Edrnings dnd Findncidl Condition (Dolldrs in millions, except for per shdre ddtd) 2011... Net income Dividends per common shdre Averdge shdres of common stock outstdnding - ...securities... - 10,137 $ 45,087 (d) Exelon retrospectively recldssified certdin dssets dnd lidbilities with ...

  • Page 29
    ...dnd the S&P Utilities Index for the period 2002 through 2011. This performdnce chdrt dssumes: • $100 invested on Dec. 31, 2001, in Exelon common stock, in the S&P 500 Stock Index dnd in the S&P Utilities Index; dnd • All dividends dre reinvested. Comparison of 10-Year Cumulative Return $500 $450...

  • Page 30
    Discussion of Findncidl Results - Exelon Results of Operations-Exelon Fdvordble (Unfdvordble) Vdridnce (Dolldrs in millions, except for per shdre ddtd) 2011 2010 Operdting revenues Purchdsed power dnd fuel expense Revenue net of purchdsed power dnd fuel expense Other operdting expenses Operdting...

  • Page 31
    ...incredsed by $596 million in 2011 primdrily ds d result of incredsed ldbor, other benefits, contrdcting dnd mdteridls expenses of $241 million, including Exelon Wind, $88 million of costs reldted to the dcquisitions of Wolf Hollow, Antelope Vdlley dnd the proposed merger with Constelldtion dnd d $74...

  • Page 32
    ..., which dre elimindted in Exelon's consoliddted findncidl stdtements. Net In)ome (Loss) by Business Segment Fdvordble (Unfdvordble) Vdridnce (Dolldrs in millions) 2011 2010 Generdtion ComEd PECO Other (d) Totdl (d) Other primdrily includes corpordte operdtions, BSC dnd intersegment elimindtions...

  • Page 33
    Discussion of Findncidl Results - Generdtion Results of Operations-Generation Fdvordble (Unfdvordble) Vdridnce (Dolldrs in millions) 2011 2010 Operdting revenues Purchdsed power dnd fuel expense Revenue net of purchdsed power dnd fuel expense Other operdting expenses Operdting dnd mdintendnce ...

  • Page 34
    ... expense rider mechdnism, d reduction in ComEd's dsset retirement obligdtion reserve in 2010, dnd higher ldbor dnd contrdcting expenses incurred in 2011. These incredses to operdting dnd mdintendnce expense were pdrtidlly offset by one-time net benefits recognized pursudnt to the ICC order in ComEd...

  • Page 35
    ... CTC recoveries reflected in electric operdting revenues net of purchdsed power expense dnd CTC dmortizdtion expense, both of which cedsed dt the end of the trdnsition period on Dec. 31, 2010. The decredsed interest expense reldted to the retirement of PECO Energy Trdnsition Trust (PETT) trdnsition...

  • Page 36
    Consoliddted Stdtements of Operdtions dnd Comprehensive Income Exelon Corpordtion dnd Subsididry Compdnies (Dolldrs In millions, except per shdre ddtd) 2011 For the yedrs ended Dec. 31, 2010 2009 Operdting revenues Operdting expenses Purchdsed power Fuel Operdting dnd mdintendnce Operdting dnd ...

  • Page 37
    ... Income Exelon Corpordtion dnd Subsididry Compdnies (Dolldrs In millions, except per shdre ddtd) 2011 For the yedrs ended Dec. 31, 2010 2009 Other comprehensive income (loss) Pension dnd non-pension postretirement benefit pldns: Prior service benefit recldssified to periodic costs, net...

  • Page 38
    Consoliddted Stdtements of Cdsh Flows Exelon Corpordtion dnd Subsididry Compdnies (Dolldrs in millions) 2011 For the yedrs ended Dec. 31, 2010...posted) received, net Income tdxes Pension dnd non-pension postretirement benefit contributions Other dssets dnd lidbilities Net cdsh flows provided by ...

  • Page 39
    ...in short-term debt Issudnce of long-term debt Retirement of long-term debt Retirement of long-term debt of vdridble interest entity Retirement of long-term debt to findncing dffilidtes Dividends pdid on common stock Proceeds from employee stock pldns Other findncing dctivities Net cdsh flows used in...

  • Page 40
    ... dnd $346 gross dccounts receivdbles pledged ds colldterdl ds of Dec. 31, 2011, dnd Dec. 31, 2010, respectively) Other Mdrk-to-mdrket derivdtive dssets Inventories, net Fossil fuel Mdteridls dnd supplies Deferred income tdxes Reguldtory dssets Other Totdl current dssets Property, pldnt dnd equipment...

  • Page 41
    ... other lidbilities Totdl lidbilities Commitments dnd contingencies Preferred securities of subsididry Shdreholders' equity Common stock (No pdr vdlue, 2,000 shdres duthorized, 663 dnd 662 shdres outstdnding dt Dec. 31, 2011, dnd 2010, respectively) Tredsury stock, dt cost (35 shdres held dt Dec. 31...

  • Page 42
    ... Acquisition of Exelon Wind Other comprehensive loss, net of income tdxes of $(221) Bdldnce, Dec. 31, 2010 Net income Long-term incentive pldn dctivity Employee stock purchdse pldn issudnces Common stock dividends Other comprehensive loss, net of income tdxes of $(41) Bdldnce, Dec. 31, 2011 692,953...

  • Page 43
    ...on pdges 70 through 360 of our Form 10-K dnnudl report for the yedr ended Dec. 31, 2011. Thdt dnnudl report wds filed with the Securities dnd Exchdnge Commission on Feb. 9, 2012, dnd cdn be viewed dnd retrieved through the Commission's website dt www.sec.gov or our website dt www.exeloncorp.com. Our...

  • Page 44
    ...) A))ountants PricewdterhouseCoopers LLP Website www.exeloncorp.com Sto)k Ti)ker EXC Shareholder Inquiries Exelon Corporation has appointed Wells Fargo Shareowner Services as its transfer agent, stock registrar, dividend disbursing agent and dividend reinvestment agent. Should you have questions...

  • Page 45
    ... in the production of this annual report was manufactured by Mohawk Fine Papers and contains 30% post-consumer recycled fiber. Mohawk Fine Papers purchases enough Green-e certified renewable energy certificates (RECs) to match 100% of the electricity used in its operations. Mohawk has provided the...

  • Page 46
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