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2
Exelon 2013 Summary Annual Report
Christopher M. Crane
President and Chief Executive Ocer
Leer to Our Shareholders
Dear Exelon Shareholders:
Exelon’s operating performance in 2013 was exemplary. Each
of our three utilities had its best year ever in reliability and
customer satisfaction. Our nuclear fleet turned in its highest
generation ever; and our natural gas and hydro plants were
available 99% of the time the market demanded them. That
performance, however, is not always properly priced in our
current markets and under current energy policies. Throughout
the year, low power prices, low gas prices, subsidized generation
and sluggish load growth prevailed in the market and drove a
declining share price. Exelon is working diligently on strategies
to improve our opportunities to compete in current markets,
and promote competitive market structures that appropriately
compensate clean reliable generation. We are acting aggressively
on both the things we can control as well as the energy and
environmental policy issues we are able to influence to improve
value for our shareholders.
Financial Performance
Our GAAP earnings were $2.00 per diluted share in 2013, compared to $1.42 in 2012.
On an operating (non-GAAP) basis, our earnings were $2.50 per diluted share,
compared to $2.85 in 2012. 2013 earnings cannot be directly compared to 2012
earnings given the inclusion of Constellation and BGE in Exelon’s financial results
commencing in March 2012. However, the overall $0.35 decrease in non-GAAP
operating earnings primarily reflects continuing declines in realized power and gas
prices during 2013, in part driven by the abundance of natural gas supply, continued
sluggish demand and subsidized renewable generation; these are partially oset by
improved returns at the utilities, realization of additional post-merger synergies, and
operational excellence. The increase in GAAP earnings reflects the adverse impact
of merger-related costs in 2012, partially oset by 2013 charges for an income tax
matter, the cancellation of certain nuclear uprate projects and the accounting
impairment of certain wind generating assets.