EX-99 3 ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 Exelon Generation Company -- A Measure of Our Strength Ruth Ann M. Gillis Senior Vice President and CFO Salomon Smith Barney Power & Merchant Energy 2002 Conference May 14, 2002 [logo for Exelon] Forward-Looking Statements This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein. The forward-looking statements herein include statements about future financial and operating results of Exelon. Economic, business, competitive and/or regulatory factors affecting Exelon's businesses generally could cause actual results to differ materially from those described herein. For a discussion of the factors that could cause actual results to differ materially, please see Exelon's filings with the Securities and Exchange Commission, particularly those discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Outlook" in Exelon's 2001 Annual Report. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Exelon does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation. [logo for Exelon] Exelon Corporation Our Integrated Business Strategy Creates Value and Reduces Risk. - Exelon Energy Delivery - Exelon Generation - Exelon Enterprises [LOGO FOR EXELON] Exelon Generation Company, LLC More than 40,000 MWs of Power: /\ / \ / \ / \ Under Advanced Development / \ (49.9% of Sithe) / 800 MWs \ /------------\ Under Construction / \ (49.9% of Sithe and Calumet) / 1,671 MWs \ /------------------\ / \ AmerGen & Sithe / 2,881 MWs \ /------------------------\ Long-Term / \ Contracts / 16,245 MWs \ /------------------------------\ Owned / 14,250 MWs Nuclear \ / 7,799 MWs Fossil and Hydro \ /------------------------------------\ [LOGO FOR EXELON] Just Being Big is Not Enough! More than 40,000 MWs of Flexible and Diversified Power -------- Long-Term Contracts: Seller Location Capacity (MW) Expiration Midwest Generation, LLC Various in IL 9,105 2004 Kincaid Generation, LLC Kincaid, IL 1,158 2012 Tenaska Georgia Partners, LP Franklin, GA 900 2029 Tenaska Frontier, Ltd Shiro, TX 830 2020 Others Various 4,252 2002 to 2022 ----- Total 16,245 [LOGO FOR EXELON] Midwest Gen Contract Provides Flexibility Midwest Generation Power Purchase Agreement (part 1) Coal Power Purchase Agreement: Contract Contracted Available Option Year Capacity (MW) Capacity (MW) 1 - 2000 5,005 640 2 - 2001 4,535 1,110 3 - 2002 4,013 1,632 4 - 2003 1,696 3,949 5 - 2004 1,696 3,949 [LOGO FOR EXELON] Midwest Gen Contract Provides Flexibility Midwest Generation Power Purchase Agreement (part 2) Collins Power Purchase Agreement: -2,698 MWs under contract -Term: 2000-2004, subject to earlier termination in whole or in part by ComEd -In years 3-5, ComEd has option to drop units from contract Peaking Unit Power Purchase Agreement: -943.6 MWs under contract -Term: 2000-2004, subject to earlier termination in whole or in part by ComEd -In years 3-5, ComEd has option to drop units from contract [LOGO FOR EXELON] Just Being Big is Not Enough! More that 40,000 MWs of Flexible and Diversified Power ----------- Generation Portfolio Profile (estimated): -Fuel mix: 35% nuclear, 19% coal, 3% hydro, and 43% gas/oil -Geographic mix: 55% in MAIN, 24% in MAAC, and the balance in 6 different regions -Dispatch mix: 65% base-load, 16% intermediate and 19% peaking [LOGO FOR EXELON] TXU Power Plant Purchase TXU Asset Purchase is Already Contributing: - Purchase completed 4/25/02 - 893-MW Mountain Creek Station and 1,441-MW Handley Station - 5-year tolling agreement May through September - Contributed $275,000 to gross margin in April [LOGO FOR EXELON] Exelon Generation Business Strategy - Grow our generation portfolio - Drive cost and operational leadership through proven fleet management and economies of scale - Optimize the value of our low-cost generation portfolio through our marketing expertise [LOGO FOR EXELON] Exelon Generation Competitive Strengths -Critical mass of generation capacity and economies of scale - Competitive low-cost fleet of generating assets -Strategically integrated - Fully integrated assets and operations - Supply and distribution channels are open within one portfolio -Asset-backed physical deliveries -In 2001, less than 4% of sales represented transactions for trading purposes -Mark-to-market earnings are not a material earnings factor -Large affiliate retail hedge -Strong balance sheet and credit quality [LOGO FOR EXELON] Exelon Generation Company - A Measure of our Strength [LOGO FOR EXELON]