8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

January 25, 2006
Date of Report (Date of earliest event reported)

Commission File Number	Exact Name of Registrant as Specified in Its Charter; State of Incorporation; Address of Principal Executive Offices; and Telephone Number	IRS Employer Identification Number
1-16169	EXELON CORPORATION	23-2990190
	(a Pennsylvania corporation)
	10 South Dearborn Street—37th Floor
	P.O. Box 805379
	Chicago, Illinois 60680-5379
	(312) 394-7398
1-1839	COMMONWEALTH EDISON COMPANY	36-0938600
	(an Illinois corporation)
	440 South LaSalle Street
	Chicago, Illinois 60605-1028
	(312) 394-4321
1-1401	PECO ENERGY COMPANY	23-0970240
	(a Pennsylvania corporation)
	P.O. Box 8699
	2301 Market Street
	Philadelphia, Pennsylvania 19101-8699
	(215) 841-4000
333-85496	EXELON GENERATION COMPANY, LLC	23-3064219
	(a Pennsylvania limited liability company)
	300 Exelon Way
	Kennett Square, Pennsylvania 19348
	(610) 765-6900

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information
Item 2.02. Results of Operations and Financial Condition
Section 7 – Regulation FD
Item 7.01. Regulation FD Disclosure

On January 25, 2006, Exelon Corporation (Exelon) announced via press release Exelon’s results for the fourth quarter ended December 31, 2005. A copy of the press release and related attachments are attached hereto as Exhibit 99. This Form 8-K and the attached exhibit are provided under Items 2.02 and 7.01 of Form 8-K and are furnished to, but not filed with, the Securities and Exchange Commission (SEC).

Section 9 – Financial Statements and Exhibits
Item 9.01 – Financial Statements and Exhibits

(c) Exhibits

Exhibit No.	Description
99	Press release and earnings release attachments

*****

Forward-Looking Statements

This combined Form 8-K is being furnished separately by Exelon, Commonwealth Edison Company (ComEd), PECO Energy Company (PECO) and Exelon Generation Company, LLC (Generation) (Registrants). Information contained herein relating to any individual registrant has been furnished by such registrant on its own behalf. No registrant makes any representation as to information relating to any other registrant.

Except for the historical information contained herein, certain of the matters discussed in this Report are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by a registrant include those factors discussed herein, as well as the items discussed in (a) the Registrants’ 2004 Annual Report on Form 10-K—ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Outlook and the Challenges in Managing the Business for each of Exelon, ComEd, PECO and Generation, (b) the Registrants’ 2004 Annual Report on Form 10-K—ITEM 8. Financial Statements and Supplementary Data: Exelon—Note 20, ComEd—Note 15, PECO—Note 14 and Generation—Note 16, (c) Exelon’s Current Report on Form 8-K filed on May 13, 2005, including those discussed in Exhibit 99.2, “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and Exhibit 99.3, “Financial Statements and Supplementary Data,” (d) Generation’s Current Report on Form 8-K filed on May 13, 2005, including those discussed in Exhibit 99.5, “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and Exhibit 99.6, “Financial Statements and Supplementary Data” and (e) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXELON CORPORATION
PECO ENERGY COMPANY
EXELON GENERATION COMPANY, LLC
 

/s/ John F. Young  

John F. Young 

Executive Vice President, Finance and Markets,
and Chief Financial Officer
Exelon Corporation 

COMMONWEALTH EDISON COMPANY
 

/s/ Robert K. McDonald  

Robert K. McDonald 

Senior Vice President and Chief Financial Officer
Commonwealth Edison Company 

January 25, 2006

EX-99

Contact:	Marybeth Flater	FOR IMMEDIATE RELEASE
	Exelon Investor Relations
	312-394-8354
	Jennifer Medley
	Exelon Corporate Communications
	312-394-7189

Exelon Announces Strong Operating Results;
Records $1.2 Billion Charge against Goodwill;
Illinois Commerce Commission Approves Electricity Procurement Plan

CHICAGO (Jan. 25, 2006) – Exelon Corporation’s (Exelon) fourth quarter 2005 consolidated loss prepared in accordance with GAAP was $844 million, or $1.26 per share, compared with earnings of $363 million, or $0.54 per diluted share, in the fourth quarter of 2004. Full year 2005 consolidated earnings prepared in accordance with GAAP were $916 million, or $1.35 per diluted share, compared with $1,864 million, or $2.78 per diluted share in 2004.

The fourth quarter loss in reported earnings was driven by an impairment of the goodwill at Commonwealth Edison Company (ComEd), resulting in a non-cash charge of $1,207 million, or $1.81 per share. The current fair value of ComEd does not support the carrying value of its goodwill, in part, driven by the impending termination of a nine-year transition period to competition in Illinois and associated transition revenues at ComEd. This fourth quarter charge was greater than ComEd’s net income for 2004 and 2005 combined, exclusive of the goodwill impairment. For full year 2005, ComEd reported a net loss of $685 million, compared with net income of $676 million in 2004, primarily reflecting the impairment charge.

Full Year Operating Results

Full year 2005 adjusted (non-GAAP) operating earnings were $3.09 per diluted share, up 11 percent over 2004 adjusted (non-GAAP) operating earnings of $2.78 per diluted share. The full year adjusted (non-GAAP) operating earnings improvement was due to higher margins at Exelon Generation Company, LLC (Generation) and increased retail kWh deliveries at ComEd and PECO Energy Company (PECO), mostly attributable to favorable weather conditions that accounted for an estimated positive $0.12 per share.

“Our strong operating results in 2005 reflect the ongoing benefits of owning a large fleet of well-run, low-cost, low-emissions nuclear plants in today’s market environment,” said John W. Rowe, Exelon’s

chairman, president and CEO. “With $3.09 of operating earnings per share in 2005, Exelon has achieved nearly 10 percent average annual operating EPS growth since its formation in late 2000. Improving power market fundamentals, along with stable growth in our delivery businesses, will further drive earnings growth in 2006 and beyond.”

Fourth Quarter Operating Results

Exelon’s adjusted (non-GAAP) operating earnings for the fourth quarter of 2005 were $488 million, or $0.72 per diluted share, compared with $416 million, or $0.62 per diluted share, for the same period in 2004. The 16 percent year-over-year increase in adjusted (non-GAAP) operating earnings per share was the result of higher margins on wholesale market sales at Generation and increased retail deliveries at ComEd and PECO.

A non-GAAP financial measure, adjusted (non-GAAP) operating earnings for the fourth quarter of 2005 do not include the following items that are included in reported GAAP earnings (all after tax):

• Charge of $1,207 million, or $1.81 per share, related to the impairment of ComEd’s goodwill.

• Unrealized mark-to-market losses of $88 million, or $0.13 per diluted share, from non-trading activities at Exelon (primarily Generation).

• Losses of $42 million, or $0.06 per diluted share, for the cumulative effect of adopting FIN No. 47, “Accounting for Conditional Asset Retirement Obligations” (FIN 47).

• Earnings of $10 million, or $0.02 per diluted share, resulting from investments in synthetic fuel-producing facilities.

• Costs of $8 million, or $0.01 per diluted share, related to certain integration costs associated with the proposed merger with Public Service Enterprise Group Incorporated (PSEG).

Adjusted (non-GAAP) operating earnings for the fourth quarter of 2004 did not include the following items that were included in reported GAAP earnings (all after tax):

• Unrealized mark-to-market losses of $25 million, or $0.04 per diluted share, from non-trading activities at Generation.

• Earnings of $23 million, or $0.04 per diluted share, resulting from investments in synthetic fuel-producing facilities.

• Severance and severance-related costs of $19 million, or $0.03 per diluted share.

• Charges totaling $14 million, or $0.02 per diluted share, for premiums paid on and other costs associated with ComEd debt repurchases.

• Charges of $11 million, or $0.02 per diluted share, associated with Generation’s investment in Sithe Energies, Inc. (Sithe).

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• Costs of $4 million, or $0.01 per diluted share, related to certain integration costs associated with the proposed merger with PSEG.

Illinois Commerce Commission (ICC) Approves Electricity Procurement Plan

The ICC yesterday approved ComEd’s procurement case, authorizing ComEd to procure power after 2006 through a “reverse-auction” competitive bidding process and to recover the costs from retail customers with no markup. The auction will be administered by an independent auction manager, with oversight by the ICC staff. The first auction is scheduled to take place during the fall at which time ComEd’s entire load will be up for bid. To mitigate the effects of changes in future prices, the load will be staggered in three-year contracts. To further mitigate the impact on its residential customers of transitioning to this process, ComEd has pledged to develop a “cap and deferral” proposal to keep residential rates at or below 1995 levels through the end of 2009. The company plans to work with interested stakeholders to ease the transition from frozen rates.

“Opposition to ComEd’s procurement proposal had put a cloud of uncertainty over both ComEd’s financial future and its ability to supply reliable electricity at a reasonable price to residents of northern Illinois,” said Rowe. “Yesterday’s decision by the Illinois Commerce Commission to approve that proposal is an important milestone for ComEd as it lifts much of the uncertainty about its financial future. Now ComEd can get on with managing the normal business risks that any electric utility faces. The ICC decision is also an important victory for Illinois consumers because the ICC recognizes that a competitive procurement process will help ensure the lowest available market prices for the energy ComEd delivers.”

2006 Earnings Outlook

“We are reaffirming our 2006 guidance range of $3.00 to $3.30 per share,” said Rowe, “which reflects our expectations for continued strength in our core businesses.” Exelon’s 2006 guidance is for adjusted (non-GAAP) operating earnings.

Exelon’s outlook for 2006 adjusted (non-GAAP) operating earnings excludes unrealized mark-to-market adjustments from non-trading activities, income resulting from investments in synthetic fuel-producing facilities, significant impairments of intangible assets, certain severance costs, and costs associated with the proposed merger with PSEG. Giving consideration to these factors, Exelon estimates GAAP earnings will fall in the range of $3.05 to $3.35 per share in 2006. These estimates do not include any impact of future changes to GAAP. Earnings guidance is based on the assumption of normal weather.

Fourth Quarter Highlights

•

Proposed Merger with PSEG: On December 20, 2004, Exelon entered into a merger agreement with PSEG, and shareholders of both companies approved the transaction in July 2005. The merger also received approval from regulatory agencies in New York and Connecticut, in addition to the Federal Energy Regulatory Commission (FERC) approval in June. On September 13, 2005, Exelon announced that PECO had reached a settlement, subject to approval, with some but not all of the parties related to the Pennsylvania review of the proposed merger. The Pennsylvania Public Utility Commission is expected to vote on the case on January 27.

In New Jersey, hearings for the merger review have been extended; they are expected to conclude February 27. Settlement discussions began in December and are expected to resume after the

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	hearings conclude. Scheduled dates for the Administrative Law Judge’s (ALJ) initial decision and final order from the New Jersey Board of Public Utilities (NJBPU) also may be extended, but no firm dates have been set.
	Other remaining regulatory reviews include the U.S. Department of Justice (DOJ). Exelon still expects to complete all of the regulatory reviews and close the merger late in the second quarter of 2006. It may occur earlier if a settlement is concluded and accepted by the NJBPU. Rowe said, “We are eager to finish the regulatory process with DOJ and in New Jersey. We will finish substantially all of our merger integration planning work by the middle of February, so we will be ready to close the deal as soon as we get the necessary regulatory approvals.”
•	Circuit Court Case: In ComEd’s procurement case, various intervenors, including the Illinois Attorney General (AG) and the Citizens’ Utility Board (CUB), unsuccessfully challenged the ICC’s authority to approve the procurement process and associated cost recovery. On September 1, 2005, these same intervenors and others (the Plaintiffs) filed a complaint in the Circuit Court of Cook County against the ICC raising similar arguments and seeking an injunction prohibiting ICC approval of the procurement case proposals. On January 20, 2006 the court issued its decision dismissing Plantiffs’ case.
•	ComEd Rate Case: On August 31, 2005, ComEd filed a proposal with the Illinois Commerce Commission (ICC) seeking approval of its first general rate case since January 1995. The rate case filing seeks to allocate the costs of supplying electricity and to adjust ComEd’s rates for delivering electricity to users in its service area, effective January 2007, in order to reflect ComEd’s rising costs and significant capital investment in its delivery system. The ICC staff has expressed opposition to the rate proposal. Hearings in the case are scheduled for late March, and an ALJ proposed order is expected in early June. An ICC order on the rate increase request is expected in late July 2006.
•	ComEd Organizational Changes: On November 28, 2005, ComEd announced several actions intended to affirm the fact that ComEd is an independent entity, separate and distinct from its parent, Exelon, and to strengthen the company’s ability to successfully manage financial and strategic issues as Illinois completes its transition to restructuring after 2006. The actions included the election of a new five-member board of directors and a slate of senior officers. These senior officers no longer have responsibilities at Exelon.
•	ComEd Goodwill: ComEd and Exelon completed their required annual assessment of goodwill impairment. The assessment compares the carrying value of goodwill to the estimated fair value of goodwill as of a point in time (November 1). The estimated fair value incorporates management’s assessment of current events and expected future cash flows. The 2005 test indicated that ComEd’s and Exelon’s goodwill was impaired and a non-cash charge of $1,207 million was recorded by both companies. This impairment occurred because ComEd’s projected cash flows do not support the carrying value of ComEd’s goodwill, and was driven by the upcoming end of ComEd’s transition period and related transition revenues, regulatory uncertainty in Illinois as of November 1, 2005, anticipated increases in capital expenditures in future years, decreases in market valuations of comparable companies that are utilized to estimate the fair value of ComEd and changes in the fair value of ComEd’s power purchase agreement with Generation.

Page 4

After reflecting the impairment, ComEd and Exelon have $3,475 million of goodwill as of December 31, 2005.

•

Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station operated by PSEG and co-owned by Generation, produced 34,887 GWhs in the fourth quarter of 2005, compared with 33,653 GWhs in the fourth quarter of 2004. The Exelon Nuclear-operated plants completed four scheduled refueling outages (two began in the third quarter) with 73 refueling outage days occurring in the fourth quarter of 2005 compared with four scheduled refueling outages (one began in the third quarter) with 90 refueling outage days in the fourth quarter of 2004. Operating expenses associated with the planned refueling outages were approximately $2 million after-tax higher in the fourth quarter of 2005 compared with the fourth quarter of 2004. Total non-refueling outage days for the Exelon Nuclear-operated plants in the fourth quarter of 2005 were 28 versus 45 in the fourth quarter of 2004. Also in the fourth quarter of 2005, the Salem Generating Station completed a 25-day scheduled refueling outage compared to having no scheduled refueling outages in the fourth quarter of 2004. For the full year 2005, the Exelon Nuclear-operated plants achieved a 93.5 percent capacity factor, consistent with the prior year.

BUSINESS UNIT RESULTS

ComEd consists of the retail and wholesale electricity transmission and distribution operations in northern Illinois. ComEd’s net loss in the fourth quarter of 2005 was $1,088 million compared with net income of $164 million in the fourth quarter of 2004. The fourth quarter 2005 net loss included (all after tax) a non-cash charge of $1,207 million related to the impairment of ComEd’s goodwill, losses of $9 million for the cumulative effect of adopting FIN 47, expenses of $2 million related to certain integration costs associated with the proposed merger with PSEG and a reduction in severance and severance-related reserves of $1 million. Fourth quarter 2004 net income at ComEd included (all after tax) charges of $14 million related to costs associated with ComEd’s debt retirements and severance and severance-related costs of $4 million. Excluding the impact of these items, ComEd’s net income decreased $53 million compared with the same quarter last year, primarily due to higher purchased power expense attributable to a contractual increase in prices associated with ComEd’s power purchase agreement with Generation, and higher operating and maintenance expenses, partially offset by increased retail kWh deliveries and lower interest expense.

Heating degree-days for the fourth quarter of 2005 in the ComEd service territory were up 11 percent relative to the same period in 2004 and close to normal. Retail kWh deliveries increased 4 percent in 2005 as compared with 2004 for ComEd, with a 10 percent increase in deliveries to the residential customer class. ComEd’s fourth quarter 2005 revenues were $1,442 million, up 7 percent from $1,344 million in 2004. For ComEd, weather had a favorable after-tax impact of $16 million on fourth quarter 2005 earnings relative to 2004 and had a favorable after-tax impact of $7 million relative to the normal weather that was incorporated in earnings guidance.

PECO consists of the retail electricity transmission and distribution operations and the retail and wholesale natural gas distribution business in southeastern Pennsylvania. PECO’s net income in the fourth quarter of 2005 was $101 million compared with net income of $84 million in the fourth quarter of 2004. Fourth quarter 2005 net income included (all after tax) costs of $4 million related to certain integration costs associated with the proposed merger with PSEG and losses of $3 million for the cumulative effect of adopting FIN 47. Fourth quarter 2004 net income included after-tax severance and

Page 5

severance-related costs of $3 million. Excluding the impact of these items, PECO’s net income increased $21 million compared with the same quarter last year, primarily due to increased retail kWh deliveries and lower interest expense, partially offset by higher competitive transition cost (CTC) amortization.

In the PECO service territory, heating degree-days were up 3 percent compared with 2004 and were 2 percent below normal. PECO’s retail kWh deliveries increased 3 percent, with residential deliveries up 10 percent. PECO’s fourth quarter 2005 revenues were $1,249 million, up 14 percent from $1,092 million in 2004. For PECO, weather had a favorable after-tax impact of $5 million on fourth quarter 2005 earnings relative to 2004 and was neutral relative to the normal weather that was incorporated in earnings guidance.

Exelon Generation consists of Exelon’s electric generation operations, competitive retail sales and power marketing and trading functions. Fourth quarter 2005 net income was $151 million compared with $74 million in the fourth quarter of 2004. Fourth quarter 2005 net income included (all after tax) unrealized mark-to-market losses of $86 million from non-trading activities, losses of $30 million for the cumulative effect of adopting FIN 47, expenses of $3 million related to certain integration costs associated with the proposed merger with PSEG and income of $2 million associated with its previous investment in Sithe. Fourth quarter 2004 net income included (all after tax) unrealized mark-to-market losses of $25 million from non-trading activities, expenses of $11 million associated with its previous investment in Sithe, severance-related costs of $9 million and expenses of $3 million associated with its previous investment in Boston Generating. Excluding the impact of these items, Generation’s net income increased $146 million compared with the same quarter last year, primarily due to higher revenue, net of purchased power and fuel expense.

Generation’s revenue, net of purchased power and fuel expense, increased by $213 million in the fourth quarter of 2005 compared with the fourth quarter of 2004 excluding the mark-to-market impact in both years. The quarter-over-quarter increase in revenue, net of purchased power and fuel expense, was driven by higher average margins on wholesale market sales due to having previously re-priced forward hedges at higher prices, combined with higher spot market prices, the contractual increase in prices associated with Generation’s power sales agreement with ComEd and the impact of higher nuclear output.

Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $22.03 per MWh in the fourth quarter of 2005 compared with $17.91 per MWh in the fourth quarter of 2004.

Adjusted (non-GAAP) Operating Earnings

Adjusted (non-GAAP) operating earnings, which generally exclude significant one-time charges or credits that are not normally associated with ongoing operations and unrealized mark-to-market adjustments from non-trading activities, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-GAAP) operating earnings measures internally to evaluate the company’s performance and manage its operations. Reconciliations of GAAP to adjusted (non-GAAP) operating earnings for historical periods are attached. Additional earnings release attachments, which include these reconciliations on pages 7 and 8, are posted on Exelon’s Web site: www.exeloncorp.com and have been filed with the Securities and Exchange Commission on Form 8-K on January 25, 2006.

Note: In 2005, prior to the fourth quarter, Exelon operated in two business segments – Energy Delivery (ComEd and PECO) and Generation. As a result of the regulatory and organizational changes described

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in this release, ComEd and PECO are no longer reported as a combined Energy Delivery segment and are presented as separate segments.

Conference call information: Exelon has scheduled a conference call for 11 AM ET (10 AM CT) on January 25, 2006. The call-in number in the U.S. is 888-802-8581, and the international call-in number is 973-935-8515. No password is required. Media representatives are invited to participate on a listen-only basis. The call will be web-cast and archived on Exelon’s Web site: www.exeloncorp.com. (Please select the Investor Relations page.)

Telephone replays will be available until February 10. The U.S. call-in number for replays is 877-519-4471, and the international call-in number is 973-341-3080. The confirmation code is 6888714.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from these forward-looking statements include those discussed herein as well as those discussed in (1) Exelon Corporation’s 2004 Annual Report on Form 10-K in (a) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Business Outlook and the Challenges in Managing the Business for each of Exelon, ComEd, PECO and Generation and (b) ITEM 8. Financial Statements and Supplementary Data: Exelon-Note 20, ComEd-Note 15, PECO-Note 14 and Generation-Note 16 and (2) Exelon’s Current Report on Form 8-K filed on May 13, 2005 in (a) Exhibit 99.2 Management’s Discussion and Analysis of Financial Condition and Results of Operations — Exelon — Business Outlook and the Challenges in Managing the Business and (b) Exhibit 99.3 Financial Statements and Supplementary Data — Exelon Corporation and (3) other factors discussed in filings with the Securities and Exchange Commission (SEC) by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company and Exelon Generation Company, LLC (Companies). A discussion of risks associated with the proposed merger of Exelon and Public Service Enterprise Group, Incorporated (PSEG) is included in the joint proxy statement/prospectus that Exelon filed with the SEC pursuant to Rule 424(b)(3) on June 3, 2005 (Registration No. 333-122704). Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. None of the Companies undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this news release.

###

Exelon Corporation is one of the nation’s largest electric utilities with approximately 5.2 million customers and more than $15 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5.2 million customers in Illinois and Pennsylvania and gas to approximately 460,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.

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EXELON CORPORATION
Earnings Release Attachments
Table of Contents

Consolidating Statements of Income — Three Months Ended December 31, 2005 and 2004 (a)	1
Consolidating Statements of Income — Twelve Months Ended December 31, 2005 and 2004 (a)	2
Business Segment Comparative Income Statements — ComEd and PECO — Three and Twelve Months Ended December 31, 2005 and 2004 (a)	3
Business Segment Comparative Income Statements — Generation and Other — Three and Twelve Months Ended December 31, 2005 and 2004 (a)	4
Consolidated Balance Sheets — December 31, 2005 and 2004	5
Consolidated Statements of Cash Flows — Twelve Months Ended December 31, 2005 and 2004	6
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income — Three Months Ended December 31, 2005 and 2004 (a)	7
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income — Twelve Months Ended December 31, 2005 and 2004 (a)	8
Reconciliation of Adjusted (non-GAAP) Operating Earnings Per Diluted Share to GAAP Earnings Per Diluted Share — Three Months Ended December 31, 2005 and 2004	9
Reconciliation of Adjusted (non-GAAP) Operating Earnings Per Diluted Share to GAAP Earnings Per Diluted Share — Twelve Months Ended December 31, 2005 and 2004	10
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income — ComEd — Three and Twelve Months Ended December 31, 2005 and 2004	11
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income — PECO — Three and Twelve Months Ended December 31, 2005 and 2004	12
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income — Generation — Three and Twelve Months Ended December 31, 2005 and 2004 (a)	13
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income — Other — Three and Twelve Months Ended December 31, 2005 and 2004 (a)	14
Electric Sales Statistics — Three and Twelve Months Ended December 31, 2005 and 2004	15
ComEd and PECO Sales Statistics — Three Months Ended December 31, 2005 and 2004	16
ComEd and PECO Sales Statistics — Twelve Months Ended December 31, 2005 and 2004	17
Exelon Generation Power Marketing Statistics — Three Months Ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004	18
Exelon Generation Power Marketing Statistics — Twelve Months Ended December 31, 2005 and 2004	19

(a) Certain reclassifications have been made in Exelon’s and Generation’s 2004 Statements of Income related to the presentation of discontinued operations in order to conform to the current year’s presentation. In addition, certain reclassifications have been made in Exelon’s 2004 and 2005 segment presentation in order to conform to the current presentation. These reclassifications had no effect on 2004 or 2005 net income as previously reported.

EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)

	Three Months Ended December 31, 2005
													Exelon
	ComEd			PECO			Generation			Other			Consolidated
Operating revenues	$	1,442		$	1,249		$	2,210		$	(1,063	)	$	3,838
Operating expenses
Purchased power		759			464			555			(1,057	)		721
Fuel		—			224			686			3			913
Operating and maintenance		219			153			533			3			908
Impairment of goodwill		1,207			—			—			—			1,207
Depreciation and amortization		105			135			65			26			331
Taxes other than income		71			59			48			6			184
Total operating expenses		2,361			1,035			1,887			(1,019	)		4,264
Operating income (loss)		(919	)		214			323			(44	)		(426	)
Other income and deductions
Interest expense		(73	)		(69	)		(37	)		(36	)		(215	)
Equity in losses of unconsolidated affiliates		(3	)		(3	)		(3	)		(18	)		(27	)
Other, net		6			3			13			4			26
Total other income and deductions		(70	)		(69	)		(27	)		(50	)		(216	)
Income (loss) from continuing operations before income taxes		(989	)		145			296			(94	)		(642	)
Income taxes		90			41			117			(87	)		161
Income (loss) from continuing operations		(1,079	)		104			179			(7	)		(803	)
Income (loss) from discontinued operations		—			—			2			(1	)		1
Income (loss) before cumulative effect of a change in accounting principle		(1,079	)		104			181			(8	)		(802	)
Cumulative effect of a change in accounting principle, net of income taxes		(9	)		(3	)		(30	)		—			(42	)
Net income (loss)	$	(1,088	)	$	101		$	151		$	(8	)	$	(844	)

	Three Months Ended December 31, 2004
													Exelon
	ComEd			PECO			Generation			Other			Consolidated
Operating revenues	$	1,344		$	1,092		$	1,726		$	(850	)	$	3,312
Operating expenses
Purchased power		575			388			445			(843	)		565
Fuel		—			160			427			(4	)		583
Operating and maintenance		228			159			597			20			1,004
Depreciation and amortization		101			123			74			23			321
Taxes other than income		71			55			32			4			162
Total operating expenses		975			885			1,575			(800	)		2,635
Operating income (loss)		369			207			151			(50	)		677
Other income and deductions
Interest expense		(81	)		(74	)		(24	)		(17	)		(196	)
Equity in losses of unconsolidated affiliates		(7	)		(6	)		(7	)		(36	)		(56	)
Other, net		(12	)		10			12			7			17
Total other income and deductions		(100	)		(70	)		(19	)		(46	)		(235	)
Income (loss) from continuing operations before income taxes and minority interest		269			137			132			(96	)		442
Income taxes		105			53			47			(154	)		51
Income from continuing operations before minority interest		164			84			85			58			391
Minority interest		—			—			2			—			2
Income from continuing operations		164			84			87			58			393
Loss from discontinued operations		—			—			(13	)		(17	)		(30	)
Net income	$	164		$	84		$	74		$	41		$	363

1

EXELON CORPORATION
Consolidating Statements of Income
(unaudited)
(in millions)

	Twelve Months Ended December 31, 2005
													Exelon
	ComEd			PECO			Generation			Other			Consolidated
Operating revenues	$	6,264		$	4,910		$	9,046		$	(4,863	)	$	15,357
Operating expenses
Purchased power		3,520			1,918			2,569			(4,845	)		3,162
Fuel		—			597			1,913			(26	)		2,484
Operating and maintenance		833			549			2,281			48			3,711
Impairment of goodwill		1,207			—			—			—			1,207
Depreciation and amortization		413			566			254			101			1,334
Taxes other than income		303			248			170			24			745
Total operating expenses		6,276			3,878			7,187			(4,698	)		12,643
Operating income (loss)		(12	)		1,032			1,859			(165	)		2,714
Other income and deductions
Interest expense		(295	)		(281	)		(128	)		(126	)		(830	)
Equity in losses of unconsolidated affiliates		(14	)		(16	)		(1	)		(103	)		(134	)
Other, net		8			14			95			17			134
Total other income and deductions		(301	)		(283	)		(34	)		(212	)		(830	)
Income (loss) from continuing operations before income taxes		(313	)		749			1,825			(377	)		1,884
Income taxes		363			240			712			(375	)		940
Income (loss) from continuing operations		(676	)		509			1,113			(2	)		944
Income (loss) from discontinued operations		—			—			19			(5	)		14
Income (loss) before cumulative effect of a change in accounting principle		(676	)		509			1,132			(7	)		958
Cumulative effect of a change in accounting principle, net of income taxes		(9	)		(3	)		(30	)		—			(42	)
Net income (loss)	$	(685	)	$	506		$	1,102		$	(7	)	$	916

	Twelve Months Ended December 31, 2004
													Exelon
	ComEd			PECO			Generation			Other			Consolidated
Operating revenues	$	5,803		$	4,487		$	7,703		$	(3,860	)	$	14,133
Operating expenses
Purchased power		2,588			1,644			2,307			(3,830	)		2,709
Fuel		—			528			1,704			(12	)		2,220
Operating and maintenance		897			547			2,201			55			3,700
Depreciation and amortization		410			518			286			81			1,295
Taxes other than income		291			236			166			17			710
Total operating expenses		4,186			3,473			6,664			(3,689	)		10,634
Operating income (loss)		1,617			1,014			1,039			(171	)		3,499
Other income and deductions
Interest expense		(369	)		(303	)		(103	)		(53	)		(828	)
Equity in losses of unconsolidated affiliates		(19	)		(25	)		(14	)		(96	)		(154	)
Other, net		(96	)		18			130			8			60
Total other income and deductions		(484	)		(310	)		13			(141	)		(922	)
Income (loss) from continuing operations before income taxes and minority interest		1,133			704			1,052			(312	)		2,577
Income taxes		457			249			401			(394	)		713
Income from continuing operations before minority interest		676			455			651			82			1,864
Minority interest		—			—			6			—			6
Income from continuing operations		676			455			657			82			1,870
Loss from discontinued operations		—			—			(16	)		(13	)		(29	)
Income from before cumulative effect of changes in accounting principles		676			455			641			69			1,841
Cumulative effect of changes in accounting principles, net of income taxes		—			—			32			(9	)		23
Net income	$	676		$	455		$	673		$	60		$	1,864

2

EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)

	ComEd
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2005			2004			Variance			2005			2004			Variance
Operating revenues	$	1,442		$	1,344		$	98		$	6,264		$	5,803		$	461
Operating expenses
Purchased power		759			575			184			3,520			2,588			932
Operating and maintenance		219			228			(9	)		833			897			(64	)
Impairment of goodwill		1,207			—			1,207			1,207			—			1,207
Depreciation and amortization		105			101			4			413			410			3
Taxes other than income		71			71			—			303			291			12
Total operating expenses		2,361			975			1,386			6,276			4,186			2,090
Operating income (loss)		(919	)		369			(1,288	)		(12	)		1,617			(1,629	)
Other income and deductions
Interest expense		(73	)		(81	)		8			(295	)		(369	)		74
Equity in losses of unconsolidated affiliates		(3	)		(7	)		4			(14	)		(19	)		5
Other, net		6			(12	)		18			8			(96	)		104
Total other income and deductions		(70	)		(100	)		30			(301	)		(484	)		183
Income (loss) before income taxes		(989	)		269			(1,258	)		(313	)		1,133			(1,446	)
Income taxes		90			105			(15	)		363			457			(94	)
Income (loss) before cumulative effect of a change in accounting principle		(1,079	)		164			(1,243	)		(676	)		676			(1,352	)
Cumulative effect of a change in accounting principle, net of income taxes		(9	)		—			(9	)		(9	)		—			(9	)
Net income (loss)	$	(1,088	)	$	164		$	(1,252	)	$	(685	)	$	676		$	(1,361	)

	PECO
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2005			2004			Variance			2005			2004			Variance
Operating revenues	$	1,249		$	1,092		$	157		$	4,910		$	4,487		$	423
Operating expenses
Purchased power		464			388			76			1,918			1,644			274
Fuel		224			160			64			597			528			69
Operating and maintenance		153			159			(6	)		549			547			2
Depreciation and amortization		135			123			12			566			518			48
Taxes other than income		59			55			4			248			236			12
Total operating expenses		1,035			885			150			3,878			3,473			405
Operating income		214			207			7			1,032			1,014			18
Other income and deductions
Interest expense		(69	)		(74	)		5			(281	)		(303	)		22
Equity in losses of unconsolidated affiliates		(3	)		(6	)		3			(16	)		(25	)		9
Other, net		3			10			(7	)		14			18			(4	)
Total other income and deductions		(69	)		(70	)		1			(283	)		(310	)		27
Income before income taxes		145			137			8			749			704			45
Income taxes		41			53			(12	)		240			249			(9	)
Income before cumulative effect of a change in accounting principle		104			84			20			509			455			54
Cumulative effect of a change in accounting principle, net of income taxes		(3	)		—			(3	)		(3	)		—			(3	)
Net income	$	101		$	84		$	17		$	506		$	455		$	51

3

EXELON CORPORATION
Business Segment Comparative Income Statements
(unaudited)
(in millions)

	Generation
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2005			2004			Variance			2005			2004			Variance
Operating revenues	$	2,210		$	1,726		$	484		$	9,046		$	7,703		$	1,343
Operating expenses
Purchased power		555			445			110			2,569			2,307			262
Fuel		686			427			259			1,913			1,704			209
Operating and maintenance		533			597			(64	)		2,281			2,201			80
Depreciation and amortization		65			74			(9	)		254			286			(32	)
Taxes other than income		48			32			16			170			166			4
Total operating expenses		1,887			1,575			312			7,187			6,664			523
Operating income		323			151			172			1,859			1,039			820
Other income and deductions
Interest expense		(37	)		(24	)		(13	)		(128	)		(103	)		(25	)
Equity in losses of unconsolidated affiliates		(3	)		(7	)		4			(1	)		(14	)		13
Other, net		13			12			1			95			130			(35	)
Total other income and deductions		(27	)		(19	)		(8	)		(34	)		13			(47	)
Income from continuing operations before income taxes and minority interest		296			132			164			1,825			1,052			773
Income taxes		117			47			70			712			401			311
Income from continuing operations before minority interest		179			85			94			1,113			651			462
Minority interest		—			2			(2	)		—			6			(6	)
Income from continuing operations		179			87			92			1,113			657			456
Income (loss) from discontinued operations		2			(13	)		15			19			(16	)		35
Income before cumulative effect of a change in accounting principle		181			74			107			1,132			641			491
Cumulative effect of a change in accounting principle, net of income taxes		(30	)		—			(30	)		(30	)		32			(62	)
Net income	$	151		$	74		$	77		$	1,102		$	673		$	429

	Other (a)
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2005			2004			Variance			2005			2004			Variance
Operating revenues	$	(1,063	)	$	(850	)	$	(213	)	$	(4,863	)	$	(3,860	)	$	(1,003	)
Operating expenses
Purchased power		(1,057	)		(843	)		(214	)		(4,845	)		(3,830	)		(1,015	)
Fuel		3			(4	)		7			(26	)		(12	)		(14	)
Operating and maintenance		3			20			(17	)		48			55			(7	)
Depreciation and amortization		26			23			3			101			81			20
Taxes other than income		6			4			2			24			17			7
Total operating expenses		(1,019	)		(800	)		(219	)		(4,698	)		(3,689	)		(1,009	)
Operating loss		(44	)		(50	)		6			(165	)		(171	)		6
Other income and deductions
Interest expense		(36	)		(17	)		(19	)		(126	)		(53	)		(73	)
Equity in losses of unconsolidated affiliates		(18	)		(36	)		18			(103	)		(96	)		(7	)
Other, net		4			7			(3	)		17			8			9
Total other income and deductions		(50	)		(46	)		(4	)		(212	)		(141	)		(71	)
Loss from continuing operations before income taxes		(94	)		(96	)		2			(377	)		(312	)		(65	)
Income taxes		(87	)		(154	)		67			(375	)		(394	)		19
Income (loss) from continuing operations		(7	)		58			(65	)		(2	)		82			(84	)
Loss from discontinued operations		(1	)		(17	)		16			(5	)		(13	)		8
Income (loss) before cumulative effect of a change in accounting principle		(8	)		41			(49	)		(7	)		69			(76	)
Cumulative effect of a change in accounting principle, net of income taxes		—			—			—			—			(9	)		9
Net income (loss)	$	(8	)	$	41		$	(49	)	$	(7	)	$	60		$	(67	)

(a) Other includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, Enterprises and other financing and investment activities, including investments in synthetic fuel-producing facilities.

4

EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)

	December 31,			December 31,
	2005			2004
Current assets
Cash and cash equivalents	$	140		$	499
Restricted cash and investments		49			60
Accounts receivable, net
Customers		1,858			1,649
Other		343			409
Mark-to-market derivative assets		916			403
Inventories — fossil fuel		311			230
Inventories — materials and supplies		351			312
Deferred income taxes		77			68
Other		595			250
Total current assets		4,640			3,880
Property, plant and equipment, net		21,981			21,482
Deferred debits and other assets
Regulatory assets		4,386			4,790
Nuclear decommissioning trust funds		5,585			5,262
Investments		813			804
Goodwill		3,475			4,705
Mark-to-market derivative assets		311			383
Pension asset		377			—
Other		824			1,418
Total deferred debits and other assets		15,771			17,362
Total assets	$	42,392		$	42,724
Liabilities and shareholders’ equity
Current liabilities
Notes payable	$	1,290		$	490
Long-term debt due within one year		407			427
Long-term debt to ComEd Transitional Funding Trust and PECO Energy Transition Trust due within one year		507			486
Accounts payable		1,467			1,255
Mark-to-market derivative liabilities		1,282			598
Accrued expenses		1,014			1,097
Other		605			483
Total current liabilities		6,572			4,836
Long-term debt		7,759			7,292
Long-term debt to ComEd Transitional Funding
Trust and PECO Energy Transition Trust		3,456			4,311
Long-term debt to other financing trusts		545			545
Deferred credits and other liabilities
Deferred income taxes		4,816			4,488
Unamortized investment tax credits		262			275
Asset retirement obligations		4,157			3,981
Pension obligations		268			1,993
Non-pension postretirement benefits obligations		1,014			1,065
Spent nuclear fuel obligation		906			878
Regulatory liabilities		2,170			2,204
Mark-to-market derivative liabilities		462			323
Other		798			915
Total deferred credits and other liabilities		14,853			16,122
Total liabilities		33,185			33,106
Minority interest of consolidated subsidiaries		1			42
Preferred securities of subsidiaries		87			87
Shareholders’ equity
Common stock		7,987			7,664
Treasury stock, at cost		(444	)		(82	)
Retained earnings		3,200			3,353
Accumulated other comprehensive loss		(1,624	)		(1,446	)
Total shareholders’ equity		9,119			9,489
Total liabilities and shareholders’ equity	$	42,392		$	42,724

5

EXELON CORPORATION
Consolidated Statements of Cash Flows
(in millions)

	Twelve Months Ended
	December 31,
	2005			2004
Cash flows from operating activities
Net income	$	916		$	1,864
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization and accretion, including nuclear fuel		1,967			1,933
Cumulative effect of changes in accounting principles (net of income taxes)		42			(23	)
Impairment of goodwill		1,207			—
Impairment of long-lived assets		—			1
Impairment of investments		—			10
Deferred income taxes and amortization of investment tax credits		496			202
Provision for uncollectible accounts		77			87
Equity in losses of unconsolidated affiliates		134			153
Gains on sales of investments and wholly owned subsidiaries		(22	)		(162	)
Net realized gains on nuclear decommissioning trust funds		(49	)		(72	)
Other decommissioning-related activities		(15	)		169
Other non-cash operating activities		76			(24	)
Changes in assets and liabilities:
Accounts receivable		(279	)		(123	)
Inventories		(118	)		(60	)
Other current assets		(412	)		88
Accounts payable, accrued expenses and other current liabilities		240			164
Income taxes		130			293
Net realized and unrealized mark-to-market and hedging transactions		(30	)		49
Pension and non-pension postretirement benefit obligations		(2,003	)		(270	)
Other noncurrent assets and liabilities		(211	)		119
Net cash flows provided by operating activities		2,146			4,398
Cash flows from investing activities
Capital expenditures		(2,165	)		(1,921	)
Proceeds from sale of nuclear decommissioning trust fund assets		5,274			2,320
Investment in nuclear decommissioning trust funds		(5,501	)		(2,587	)
Acquisition of Sithe Energies, Inc.		(97	)		—
Proceeds from sales of investments and wholly owned subsidiaries, net of $32 million of cash sold during the twelve months ended December 31, 2005		105			329
Proceeds from sales of long-lived assets		2			52
Investment in synthetic fuel-producing facilities		(102	)		(56	)
Change in restricted cash		21			52
Collection of other notes receivable		—			59
Net cash increase from consolidation of Sithe Energies, Inc.		—			19
Other investing activities		(9	)		(6	)
Net cash flows used in investing activities		(2,472	)		(1,739	)
Cash flows from financing activities
Issuance of long-term debt		1,788			232
Retirement of long-term debt		(508	)		(1,629	)
Retirement of long-term debt to financing affiliates		(835	)		(728	)
Issuance of short-term debt		2,500			—
Retirement of short-term debt		(2,200	)		—
Change in other short-term debt		500			164
Payment on acquisition note payable to Sithe Energies, Inc.		—			(27	)
Dividends paid on common stock		(1,069	)		(831	)
Proceeds from employee stock plans		222			240
Purchase of treasury stock		(362	)		(82	)
Other financing activities		(69	)		34
Net cash flows used in financing activities		(33	)		(2,627	)
Increase (decrease) in cash and cash equivalents		(359	)		32
Cash and cash equivalents at beginning of period		499			467
Cash and cash equivalents at end of period	$	140		$	499

6

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income
(unaudited)
(in millions, except per share data)

	Three Months Ended December 31, 2005										Three Months Ended December 31, 2004
								Adjusted										Adjusted
	GAAP (a)			Adjustments				Non-GAAP			GAAP (a)			Adjustments				Non-GAAP
Operating revenues	$	3,838		$	—			$	3,838		$	3,312		$	—			$	3,312
Operating expenses
Purchased power		721			(1	)	(b)		720			565			14		(b)		579
Fuel		913			(143	)	(b)		770			583			(56	)	(b)		527
Operating and maintenance		908			(28	)	(c),(d),(e)		880			1,004			(63	)	(c),(d),(e),(j)		941
Impairment of goodwill		1,207			(1,207	)	(f)		—			—			—				—
Depreciation and amortization		331			(21	)	(c),(e)		310			321			(16	)	(c)		305
Taxes other than income		184			—				184			162			—				162
Total operating expenses		4,264			(1,400	)			2,864			2,635			(121	)			2,514
Operating income (loss)		(426	)		1,400				974			677			121				798
Other income and deductions
Interest expense		(215	)		3		(c)		(212	)		(196	)		4		(c)		(192	)
Equity in losses of unconsolidated affiliates		(27	)		18		(c)		(9	)		(56	)		36		(c)		(20	)
Other, net		26			—				26			17			24		(k)		41
Total other income and deductions		(216	)		21				(195	)		(235	)		64				(171	)
Income (loss) from continuing operations before income taxes and minority interest		(642	)		1,421				779			442			185				627
Income taxes		161			129		(b),(c),(d),(e)		290			51			143		(b),(c),(d),(e),(j),(k)		194
Income (loss) from continuing operations before minority interest		(803	)		1,292				489			391			42				433
Minority interest		—			—				—			2			—				2
Income (loss) from continuing operations		(803	)		1,292				489			393			42				435
Income (loss) from discontinued operations		1			(2	)	(g)		(1	)		(30	)		11		(l)		(19	)
Income (loss) before cumulative effect of a change in accounting principle		(802	)		1,290				488			363			53				416
Cumulative effect of a change in accounting principle, net of income taxes		(42	)		42		(h)		—			—			—				—
Net income (loss)	$	(844	)	$	1,332			$	488		$	363		$	53			$	416
Earnings per average common share
Basic:
Income (loss) from continuing operations	$	(1.20	)	$	1.93			$	0.73		$	0.59		$	0.06			$	0.65
Income (loss) from discontinued operations		—			—				—			(0.04	)		0.02				(0.02	)
Income (loss) before cumulative effect of changes in accounting principles		(1.20	)		1.93				0.73			0.55			0.08				0.63
Cumulative effect of a change in accounting principle, net of income taxes		(0.06	)		0.06				—			—			—				—
Net income (loss)	$	(1.26	)	$	1.99			$	0.73		$	0.55		$	0.08			$	0.63
Diluted:
Income (loss) from continuing operations	$	(1.20	)	$	1.92			$	0.72		$	0.58		$	0.06			$	0.64
Income (loss) from discontinued operations		—			—				—			(0.04	)		0.02				(0.02	)
Income before cumulative effect of changes in accounting principles		(1.20	)		1.92				0.72			0.54			0.08				0.62
Cumulative effect of a change in accounting principle, net of income taxes		(0.06	)		0.06				—			—			—				—
Net income (loss)	$	(1.26	)	$	1.98			$	0.72		$	0.54		$	0.08			$	0.62
Average common shares outstanding
Basic		668							668			664							664
Diluted		668							674			672							672
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market (b)				$	(0.13	)								$	(0.04	)
Investments in synthetic fuel-producing facilities (c)					0.02										0.04
Severance charges (d)					—										(0.03	)
PSEG merger costs (e)					(0.01	)									(0.01	)
Impairment of goodwill (f)					(1.81	)									—
Cumulative effect pursuant to FIN 47 (h)					(0.06	)									—
Share differential due to net loss for GAAP purposes (i)					0.01										—
Losses associated with debt retirements (k)					—										(0.02	)
Charges associated with Generation’s investment in Sithe (l)					—										(0.02	)
Total adjustments				$	(1.98	)								$	(0.08	)

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude the mark-to-market impact of Exelon’s non-trading activities (primarily at Generation).
(c)	Adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel-producing facilities.
(d)	Adjustment to exclude severance charges and adjustments to previously recorded severance reserves.
(e)	Adjustment to exclude certain costs associated with Exelon’s anticipated merger with Public Service Enterprise Group, Inc. (PSEG).
(f)	Adjustment to exclude the impairment of ComEd’s goodwill.
(g)	Adjustment to exclude the 2005 financial impact of Generation’s investment in Sithe Energies, Inc. (Sithe).
(h)	Adjustment for the cumulative effect of adopting FIN 47.
(i)	Adjustment for the impact of using basic shares in the calculation of diluted earnings per share on Exelon’s net loss for the period in accordance with GAAP.
(j)	Adjustment to exclude the financial impact of Boston Generating, LLC (Boston Generating).
(k)	Adjustment to exclude the losses associated with debt retirements at ComEd.
(l)	Adjustments for impairments and other charges associated with Generation’s investment in Sithe.

7

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Income
(unaudited)
(in millions, except per share data)

	Twelve Months Ended December 31, 2005										Twelve Months Ended December 31, 2004
								Adjusted										Adjusted
	GAAP (a)			Adjustments				Non-GAAP			GAAP (a)			Adjustments				Non-GAAP
Operating revenues	$	15,357		$	—			$	15,357		$	14,133		$	(248	)	(i)	$	13,885
Operating expenses
Purchased power		3,162			(12	)	(b)		3,150			2,709			20		(b),(i)		2,729
Fuel		2,484			20		(b)		2,504			2,220			(249	)	(b),(i)		1,971
Operating and maintenance		3,711			(106	)	(c),(d),(e)		3,605			3,700			(199	)	(c),(d),(e),(i),(j)		3,501
Impairment of goodwill		1,207			(1,207	)	(f)		—			—			—				—
Depreciation and amortization		1,334			(77	)	(c),(e)		1,257			1,295			(57	)	(c),(i)		1,238
Taxes other than income		745			—				745			710			(9	)	(i)		701
Total operating expenses		12,643			(1,382	)			11,261			10,634			(494	)			10,140
Operating income		2,714			1,382				4,096			3,499			246				3,745
Other income and deductions
Interest expense		(830	)		14		(c)		(816	)		(828	)		23		(c),(i)		(805	)
Equity in losses of unconsolidated affiliates		(134	)		104		(c)		(30	)		(154	)		84		(c)		(70	)
Other, net		134			—				134			60			40		(i),(k)		100
Total other income and deductions		(830	)		118				(712	)		(922	)		147				(775	)
Income from continuing operations before income taxes and minority interest		1,884			1,500				3,384			2,577			393				2,970
Income taxes		940			350		(b),(c),(d),(e)		1,290			713			373		(b),(c),(d),(e),(i),(j),(k)		1,086
Income from continuing operations before minority interest		944			1,150				2,094			1,864			20				1,884
Minority interest		—			—				—			6			—				6
Income from continuing operations		944			1,150				2,094			1,870			20				1,890
Income (loss) from discontinued operations		14			(18	)	(g)		(4	)		(29	)		11		(l)		(18	)
Income before cumulative effect of changes in accounting principles		958			1,132				2,090			1,841			31				1,872
Cumulative effect of changes in accounting principles, net of income taxes		(42	)		42		(h)		—			23			(32	)	(m)		(9	)
Net income	$	916		$	1,174			$	2,090		$	1,864		$	(1	)		$	1,863
Earnings per average common share
Basic:
Income from continuing operations	$	1.41		$	1.73			$	3.14		$	2.83		$	0.03			$	2.86
Income (loss) from discontinued operations		0.02			(0.03	)			(0.01	)		(0.04	)		0.02				(0.02	)
Income before cumulative effect of changes in accounting principles		1.43			1.70				3.13			2.79			0.05				2.84
Cumulative effect of changes in accounting principles, net of income taxes		(0.06	)		0.06				—			0.03			(0.05	)			(0.02	)
Net income	$	1.37		$	1.76			$	3.13		$	2.82		$	—			$	2.82
Diluted:
Income from continuing operations	$	1.39		$	1.71			$	3.10		$	2.79		$	0.03			$	2.82
Income (loss) from discontinued operations		0.02			(0.03	)			(0.01	)		(0.04	)		0.02				(0.02	)
Income before cumulative effect of changes in accounting principles		1.41			1.68				3.09			2.75			0.05				2.80
Cumulative effect of changes in accounting principles, net of income taxes		(0.06	)		0.06				—			0.03			(0.05	)			(0.02	)
Net income	$	1.35		$	1.74			$	3.09		$	2.78		$	—			$	2.78
Average common shares outstanding
Basic		669							669			661							661
Diluted		676							676			669							669
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Investments in synthetic fuel-producing facilities (c)				$	0.10									$	0.10
Severance charges (d)					—										(0.07	)
PSEG merger costs (e)					(0.03	)									(0.01	)
Impairment of goodwill (f)					(1.78	)									—
2005 financial impact of Generation’s investment in Sithe (g)					0.03										—
Cumulative effect pursuant to FIN 47 (h)					(0.06	)									—
Financial impact of Boston Generating (i)					—										0.03
Settlement associated with the storage of spent fuel (j)					—										0.04
Losses associated with debt retirements (k)					—										(0.12	)
Charges associated with Generation’s investment in Sithe (l)					—										(0.02	)
Cumulative effect pursuant to FIN 46-R (m)					—										0.05
Total adjustments				$	(1.74	)								$	—

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude the mark-to-market impact of Exelon’s non-trading activities (primarily at Generation).
(c)	Adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel-producing facilities.
(d)	Adjustment to exclude severance charges and adjustments to previously recorded severance reserves.
(e)	Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG.
(f)	Adjustment to exclude the impairment of ComEd’s goodwill.
(g)	Adjustment to exclude the 2005 financial impact of Generation’s investment in Sithe.
(h)	Adjustment for the cumulative effect of adopting FIN 47.
(i)	Adjustment to exclude the 2004 financial impact of Boston Generating.
(j)	Adjustment for a settlement gain related to the storage of spent nuclear fuel.
(k)	Adjustment to exclude the losses associated with debt retirements at ComEd.
(l)	Adjustments for impairments and other charges associated with Generation’s investment in Sithe.
(m)	Adjustment for the cumulative effect of adopting FIN 46-R.

8

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings
Per Diluted Share to GAAP Earnings Per Diluted Share
Three Months Ended December 31, 2005 and 2004

2004 GAAP Earnings per Diluted Share	$	0.54
2004 Adjusted (non-GAAP) Operating Earnings Adjustments:
Mark-to-Market (1)		0.04
Investments in Synthetic Fuel-Producing Facilities (2)		(0.04	)
Charges Associated with Exelon’s Anticipated Merger with PSEG (3)		0.01
Severance Charges (4)		0.03
Losses Associated with Debt Retirements (5)		0.02
Charges Associated with Generation’s Investment in Sithe (6)		0.02
2004 Adjusted (non-GAAP) Operating Earnings		0.62
Year Over Year Effects on Earnings:
ComEd Energy Margins:
Weather (7)		0.02
Other Energy Delivery (8)		0.02
Ancillary PJM Costs (9)		(0.03	)
PECO Energy Margins:
Weather (10)		0.01
Generation Energy Margins, Excluding Mark-to-Market (11)		0.08
Pension Expense (12)		0.01
Other Operating and Maintenance Expense (13)		0.01
Depreciation and Amortization (14)		(0.04	)
Interest Expense (15)		(0.02	)
Enterprises and Other (16)		0.04
2005 Adjusted (non-GAAP) Operating Earnings		0.72
2005 Adjusted (non-GAAP) Operating Earnings Adjustments:
Mark-to-Market (1)		(0.13	)
Investments in Synthetic Fuel-Producing Facilities (2)		0.02
Charges Associated with Exelon’s Anticipated Merger with PSEG (3)		(0.01	)
Impairment of ComEd’s Goodwill (17)		(1.81	)
Cumulative Effect Pursuant to Adopting FIN 47 (18)		(0.06	)
Share Differential in GAAP EPS Calculation (19)		0.01
2005 GAAP Loss per Diluted Share	$	(1.26	)

(1)	Reflects the mark-to-market impact of Exelon’s non-trading activities (primarily at Generation).
(2)	Reflects the financial impact of Exelon’s investments in synthetic fuel-producing facilities.
(3)	Reflects certain costs incurred in connection with Exelon’s proposed merger with PSEG.
(4)	Reflects severance charges recorded during the period.
(5)	Reflects losses associated with debt retirements at ComEd.
(6)	Reflects the financial impact of impairments and other charges associated with Generation’s investment in Sithe.
(7)	Reflects favorable weather conditions in the ComEd service territory.
(8)	Reflects increased sales at ComEd primarily due to customers switching back to ComEd. Excludes the impact of the 2005 change in the purchase power agreement with Generation.
(9)	Reflects ancillary service costs ComEd paid to PJM which, prior to January 1, 2005, were included in the purchase power agreement with Generation.
(10)	Reflects favorable weather conditions in the PECO service territory.
(11)	Reflects higher realized prices on market sales at Generation, partially offset by higher costs to serve affiliates. Excludes the effects of Sithe, Tamuin International, mark-to-market and the impact of the 2005 change in the purchase power agreement with ComEd.
(12)	Reflects lower pension expense as a result of discretionary pension contributions of $2 billion made during the first quarter of 2005.
(13)	Reflects the impact on net income of decreased operating and maintenance expense.
(14)	Reflects increased depreciation and amortization, including increased CTC amortization at PECO.
(15)	Reflects interest expense associated with the debt issued to fund Exelon’s pension contribution that was made in the first quarter of 2005. Excludes the effects of Boston Generating, Sithe and investments in synthetic fuel-producing facilities.
(16)	Reflects the positive impact on net income due to lower losses at Enterprises in 2005, and losses in 2004 associated with Generation’s previous investment in Sithe, and other items.
(17)	Reflects impairment of ComEd’s goodwill.
(18)	Reflects the impact on net income of the cumulative effect of adopting FIN 47.
(19)	Reflects the impact of using basic shares in the calculation of diluted earnings per share on Exelon’s net loss for the period in accordance with GAAP.

9

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings
Per Diluted Share to GAAP Earnings Per Diluted Share
Twelve Months Ended December 31, 2005 and 2004

2004 GAAP Earnings per Diluted Share	$	2.78
2004 Adjusted (non-GAAP) Operating Earnings Adjustments:
Investments in Synthetic Fuel-Producing Facilities (1)		(0.10	)
Severance Charges (2)		0.07
Charges Associated with Exelon’s Anticipated Merger with PSEG (3)		0.01
Financial Impact of Boston Generating (4)		(0.03	)
Settlement Associated with the Storage of Spent Fuel (5)		(0.04	)
Losses Associated with Debt Retirements (6)		0.12
Charges Associated with Generation’s Investment in Sithe (7)		0.02
Cumulative Effect Pursuant to Adopting FIN 46-R (8)		(0.05	)
2004 Adjusted (non-GAAP) Operating Earnings		2.78
Year Over Year Effects on Earnings:
ComEd Energy Margins:
Weather (9)		0.19
Other Energy Delivery (10)		(0.05	)
Transmission Revenue (SECA) (11)		(0.01	)
Ancillary PJM Costs (12)		(0.10	)
PECO Energy Margins:
Weather (13)		0.03
Other Energy Delivery (14)		0.05
Transmission Revenue (SECA) (11)		(0.01	)
Generation Energy Margins, Excluding Mark-to-Market (15)		0.31
Asbestos Reserve (16)		(0.04	)
Planned Nuclear Refueling Outages (17)		(0.02	)
Pension Expense (18)		0.04
Other Operating and Maintenance Expense (19)		(0.02	)
Depreciation and Amortization (20)		(0.07	)
Nuclear Decommissioning Trust Fund Rebalancing (21)		0.03
Enterprises and Other (22)		0.01
Share Dilution (23)		(0.03	)
2005 Adjusted (non-GAAP) Operating Earnings		3.09
2005 Adjusted (non-GAAP) Operating Earnings Adjustments:
Investments in Synthetic Fuel-Producing Facilities (1)		0.10
Charges Associated with Exelon’s Anticipated Merger with PSEG (3)		(0.03	)
Impairment of ComEd’s Goodwill (24)		(1.78	)
2005 Financial Impact of Generation’s Investment in Sithe (25)		0.03
Cumulative Effect Pursuant to Adopting FIN 47 (26)		(0.06	)
2005 GAAP Earnings per Diluted Share	$	1.35

(1)	Reflects the financial impact of Exelon’s investments in synthetic fuel-producing facilities.
(2)	Reflects severance charges recorded during the period.
(3)	Reflects certain costs incurred in connection with Exelon’s proposed merger with PSEG.
(4)	Reflects the 2004 financial impact of Boston Generating.
(5)	Reflects a settlement gain related to the storage of spent nuclear fuel.
(6)	Reflects losses associated with debt retirements at ComEd.
(7)	Reflects the financial impact of impairments and other charges associated with Generation’s investment in Sithe.
(8)	Reflects the impact on net income of the cumulative effect of adopting FIN 46-R.
(9)	Reflects favorable weather conditions in the ComEd service territory.
(10)	Reflects decreased sales at ComEd primarily due to customers switching back to ComEd. Excludes the impact of the 2005 change in the purchase power agreement with Generation.
(11)	Reflects a decrease in net collections of through and out rates and SECA rates.
(12)	Reflects ancillary service costs ComEd paid to PJM which, prior to January 1, 2005, were included in the purchase power agreement with Generation.
(13)	Reflects favorable weather conditions in the PECO service territory.
(14)	Reflects increased margins at PECO due to an increased number of customers and increased electric usage per customer across all customer classes.
(15)	Reflects higher realized prices on market sales at Generation, partially offset by higher costs to serve affiliates. Excludes the effects of Sithe, Tamuin International, mark-to-market and the impact of the 2005 change in the purchase power agreement with ComEd.
(16)	Reflects the impact on net income of increasing a reserve by Generation in 2005 for estimated future asbestos-related bodily injury claims.
(17)	Reflects the impact on net income of increased planned refueling outage days.
(18)	Reflects lower pension expense as a result of discretionary pension contributions of $2 billion made during the first quarter of 2005.
(19)	Reflects the impact on net income of increased operating and maintenance expense, primarily due to unplanned substation maintenance costs and increased contractor costs at ComEd and PECO.
(20)	Reflects increased depreciation and amortization, including increased CTC amortization at PECO.
(21)	Reflects the impact on net income of the gains realized on AmerGen’s decommissioning trust fund investments due to the rebalancing of the portfolio in the second quarter of 2005.
(22)	Reflects the positive impact on net income due to lower losses at Enterprises in 2005, and losses in 2004 associated with Generation’s investment in Sithe, and other items.
(23)	Reflects dilution of earnings per share due to increased diluted common shares outstanding.
(24)	Reflects impairment of ComEd’s Goodwill.
(25)	Reflects the 2005 financial impact of Generation’s investment in Sithe.
(26)	Reflects the impact on net income of the cumulative effect of adopting FIN 47.

10

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Income
(unaudited)
(in millions)

	ComEd
	Three Months Ended December 31, 2005										Three Months Ended December 31, 2004
								Adjusted Non-										Adjusted Non-
	GAAP (a)			Adjustments				GAAP			GAAP (a)			Adjustments				GAAP
Operating revenues	$	1,442		$	—			$	1,442		$	1,344		$	—			$	1,344
Operating expenses
Purchased power		759			—				759			575			—				575
Operating and maintenance		219			(2	)	(b),(c)		217			228			(7	)	(b)		221
Impairment of goodwill		1,207			(1,207	)	(d)		—			—			—				—
Depreciation and amortization		105			—				105			101			—				101
Taxes other than income		71			—				71			71			—				71
Total operating expenses		2,361			(1,209	)			1,152			975			(7	)			968
Operating income (loss)		(919	)		1,209				290			369			7				376
Other income and deductions
Interest expense		(73	)		—				(73	)		(81	)		—				(81	)
Equity in losses of unconsolidated affiliates		(3	)		—				(3	)		(7	)		—				(7	)
Other, net		6			—				6			(12	)		24		(f)		12
Total other income and deductions		(70	)		—				(70	)		(100	)		24				(76	)
Income (loss) before income taxes		(989	)		1,209				220			269			31				300
Income taxes		90			1		(b),(c)		91			105			13		(b),(f)		118
Income (loss) before cumulative effect of a change in accounting principle		(1,079	)		1,208				129			164			18				182
Cumulative effect of a change in accounting principle, net of income taxes		(9	)		9		(e)		—			—			—				—
Net income (loss)	$	(1,088	)	$	1,217			$	129		$	164		$	18			$	182

	Twelve Months Ended December 31, 2005										Twelve Months Ended December 31, 2004
								Adjusted Non-										Adjusted Non-
	GAAP (a)			Adjustments				GAAP			GAAP (a)			Adjustments				GAAP
Operating revenues	$	6,264		$	—			$	6,264		$	5,803		$	—			$	5,803
Operating expenses
Purchased power		3,520			—				3,520			2,588			—				2,588
Operating and maintenance		833			6		(b),(c)		839			897			(37	)	(b)		860
Impairment of goodwill		1,207			(1,207	)	(d)		—			—			—				—
Depreciation and amortization		413			—				413			410			—				410
Taxes other than income		303			—				303			291			—				291
Total operating expenses		6,276			(1,201	)			5,075			4,186			(37	)			4,149
Operating income (loss)		(12	)		1,201				1,189			1,617			37				1,654
Other income and deductions
Interest expense		(295	)		—				(295	)		(369	)		—				(369	)
Equity in losses of unconsolidated affiliates		(14	)		—				(14	)		(19	)		—				(19	)
Other, net		8			—				8			(96	)		130		(f)		34
Total other income and deductions		(301	)		—				(301	)		(484	)		130				(354	)
Income (loss) before income taxes		(313	)		1,201				888			1,133			167				1,300
Income taxes		363			(2	)	(b),(c)		361			457			67		(b),(f)		524
Income (loss) before cumulative effect of a change in accounting principle		(676	)		1,203				527			676			100				776
Cumulative effect of a change in accounting principle, net of income taxes		(9	)		9		(e)		—			—			—				—
Net income (loss)	$	(685	)	$	1,212			$	527		$	676		$	100			$	776

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude severance charges and adjustments to previously recorded severance reserves.
(c)	Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG.
(d)	Adjustment to exclude the impairment of ComEd’s goodwill.
(e)	Adjustment for the cumulative effect of adopting FIN 47.
(f)	Adjustment to exclude the losses associated with debt retirements at ComEd.

11

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Income
(unaudited)
(in millions)

	PECO
	Three Months Ended December 31, 2005										Three Months Ended December 31, 2004
								Adjusted Non-										Adjusted Non-
	GAAP (a)			Adjustments				GAAP			GAAP (a)			Adjustments				GAAP
Operating revenues	$	1,249		$	—			$	1,249		$	1,092		$	—			$	1,092
Operating expenses
Purchased power		464			—				464			388			—				388
Fuel		224			—				224			160			—				160
Operating and maintenance		153			(2	)	(b)		151			159			(5	)	(d)		154
Depreciation and amortization		135			(4	)	(b)		131			123			—				123
Taxes other than income		59			—				59			55			—				55
Total operating expenses		1,035			(6	)			1,029			885			(5	)			880
Operating income		214			6				220			207			5				212
Other income and deductions
Interest expense		(69	)		—				(69	)		(74	)		—				(74	)
Equity in losses of unconsolidated affiliates		(3	)		—				(3	)		(6	)		—				(6	)
Other, net		3			—				3			10			—				10
Total other income and deductions		(69	)		—				(69	)		(70	)		—				(70	)
Income before income taxes		145			6				151			137			5				142
Income taxes		41			2		(b)		43			53			2		(d)		55
Income before cumulative effect of a change in accounting principle		104			4				108			84			3				87
Cumulative effect of a change in accounting principle, net of income taxes		(3	)		3		(c)		—			—			—				—
Net income	$	101		$	7			$	108		$	84		$	3			$	87

	Twelve Months Ended December 31, 2005										Twelve Months Ended December 31, 2004
								Adjusted Non-										Adjusted Non-
	GAAP (a)			Adjustments				GAAP			GAAP (a)			Adjustments				GAAP
Operating revenues	$	4,910		$	—			$	4,910		$	4,487		$	—			$	4,487
Operating expenses
Purchased power		1,918			—				1,918			1,644			—				1,644
Fuel		597			—				597			528			—				528
Operating and maintenance		549			(7	)	(b),(d)		542			547			(15	)	(d)		532
Depreciation and amortization		566			(13	)	(b)		553			518			—				518
Taxes other than income		248			—				248			236			—				236
Total operating expenses		3,878			(20	)			3,858			3,473			(15	)			3,458
Operating income		1,032			20				1,052			1,014			15				1,029
Other income and deductions
Interest expense		(281	)		—				(281	)		(303	)		—				(303	)
Equity in losses of unconsolidated affiliates		(16	)		—				(16	)		(25	)		—				(25	)
Other, net		14			—				14			18			—				18
Total other income and deductions		(283	)		—				(283	)		(310	)		—				(310	)
Income before income taxes		749			20				769			704			15				719
Income taxes		240			7		(b),(d)		247			249			6		(d)		255
Income before cumulative effect of a change in accounting principle		509			13				522			455			9				464
Cumulative effect of a change in accounting principle, net of income taxes		(3	)		3		(c)		—			—			—				—
Net income	$	506		$	16			$	522		$	455		$	9			$	464

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG.
(c)	Adjustment for the cumulative effect of adopting FIN 47.
(d)	Adjustment to exclude severance charges.

12

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Income
(unaudited)
(in millions)

	Generation
	Three Months Ended December 31, 2005										Three Months Ended December 31, 2004
								Adjusted Non-										Adjusted Non-
	GAAP (a)			Adjustments				GAAP			GAAP (a)						Adjustments	GAAP
Operating revenues	$	2,210		$	—			$	2,210		$	1,726		$	—			$	1,726
Operating expenses
Purchased power		555			(1	)	(b)		554			445			14		(b)		459
Fuel		686			(139	)	(b)		547			427			(56	)	(b)		371
Operating and maintenance		533			(4	)	(c)		529			597			(20	)	(f),(g)		577
Depreciation and amortization		65			—				65			74			—				74
Taxes other than income		48			—				48			32			—				32
Total operating expenses		1,887			(144	)			1,743			1,575			(62	)			1,513
Operating income		323			144				467			151			62				213
Other income and deductions
Interest expense		(37	)		—				(37	)		(24	)		—				(24	)
Equity in losses of unconsolidated affiliates		(3	)		—				(3	)		(7	)		—				(7	)
Other, net		13			—				13			12			—				12
Total other income and deductions		(27	)		—				(27	)		(19	)		—				(19	)
Income from continuing operations before income taxes and minority interest		296			144				440			132			62				194
Income taxes		117			55		(b),(c)		172			47			25		(b),(f),(g)		72
Income from continuing operations before minority interest		179			89				268			85			37				122
Minority interest		—			—				—			2			—				2
Income from continuing operations		179			89				268			87			37				124
Income (loss) from discontinued operations		2			(2	)	(d)		—			(13	)		11		(i)		(2	)
Income before cumulative effect of a change in accounting principle		181			87				268			74			48				122
Cumulative effect of a change in accounting principle, net of income taxes		(30	)		30		(e)		—			—			—				—
Net income	$	151		$	117			$	268		$	74		$	48			$	122

	Twelve Months Ended December 31, 2005										Twelve Months Ended December 31, 2004
								Adjusted Non-										Adjusted Non-
	GAAP (a)			Adjustments				GAAP			GAAP (a)			Adjustments				GAAP
Operating revenues	$	9,046		$	—			$	9,046		$	7,703		$	(248	)	(g)	$	7,455
Operating expenses
Purchased power		2,569			(12	)	(b)		2,557			2,307			20		(b),(g)		2,327
Fuel		1,913			(4	)	(b)		1,909			1,704			(249	)	(b),(g)		1,455
Operating and maintenance		2,281			(9	)	(c),(f)		2,272			2,201			(46	)	(f),(g),(h)		2,155
Depreciation and amortization		254			—				254			286			(4	)	(g)		282
Taxes other than income		170			—				170			166			(9	)	(g)		157
Total operating expenses		7,187			(25	)			7,162			6,664			(288	)			6,376
Operating income		1,859			25				1,884			1,039			40				1,079
Other income and deductions
Interest expense		(128	)		—				(128	)		(103	)		5		(g)		(98	)
Equity in losses of unconsolidated affiliates		(1	)		—				(1	)		(14	)		—				(14	)
Other, net		95			—				95			130			(90	)	(g)		40
Total other income and deductions		(34	)		—				(34	)		13			(85	)			(72	)
Income from continuing operations before income taxes and minority interest		1,825			25				1,850			1,052			(45	)			1,007
Income taxes		712			10		(b),(c),(f)		722			401			(19	)	(b),(f),(g),(h)		382
Income from continuing operations before minority interest		1,113			15				1,128			651			(26	)			625
Minority interest		—			—				—			6			—				6
Income from continuing operations		1,113			15				1,128			657			(26	)			631
Income (loss) from discontinued operations		19			(18	)	(d)		1			(16	)		11		(i)		(5	)
Income before cumulative effect of a change in accounting principle		1,132			(3	)			1,129			641			(15	)			626
Cumulative effect of a change in accounting principle, net of income taxes		(30	)		30		(e)		—			32			(32	)	(j)		—
Net income	$	1,102		$	27			$	1,129		$	673		$	(47	)		$	626

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude the mark-to-market impact of Generation’s non-trading activities, including, for fuel expense $1 million and $4 million in amortization of the premium on a hedge on tax credits generated from the operation of synthetic fuel-producing facilities for the three and twelve months ended December 31, 2005, respectively.
(c)	Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG.
(d)	Adjustment to exclude the 2005 financial impact of Generation’s investment in Sithe.
(e)	Adjustment for the cumulative effect of adopting FIN 47.
(f)	Adjustment to exclude severance charges.
(g)	Adjustment to exclude the 2004 financial impact of Boston Generating.
(h)	Adjustment for a settlement gain related to the storage of spent nuclear fuel.
(i)	Adjustments for impairments and other charges associated with Generation’s investment in Sithe.
(j)	Adjustment for the cumulative effect of adopting FIN 46-R.

13

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Income
(unaudited)
(in millions)

	Other
	Three Months Ended December 31, 2005										Three Months Ended December 31, 2004
								Adjusted Non-										Adjusted Non-
	GAAP (a)			Adjustments				GAAP			GAAP (a)			Adjustments				Non-GAAP
Operating revenues	$	(1,063	)	$	—			$	(1,063	)	$	(850	)	$	—			$	(850	)
Operating expenses
Purchased power		(1,057	)		—				(1,057	)		(843	)		—				(843	)
Fuel		3			(4	)	(b)		(1	)		(4	)		—				(4	)
Operating and maintenance		3			(20	)	(c)		(17	)		20			(31	)	(c),(d),(e)		(11	)
Depreciation and amortization		26			(17	)	(c)		9			23			(16	)	(c)		7
Taxes other than income		6			—				6			4			—				4
Total operating expenses		(1,019	)		(41	)			(1,060	)		(800	)		(47	)			(847	)
Operating loss		(44	)		41				(3	)		(50	)		47				(3	)
Other income and deductions
Interest expense		(36	)		3		(c)		(33	)		(17	)		4		(c)		(13	)
Equity in losses of unconsolidated affiliates		(18	)		18		(c)		—			(36	)		36		(c)		—
Other, net		4			—				4			7			—				7
Total other income and deductions		(50	)		21				(29	)		(46	)		40				(6	)
Loss from continuing operations before income taxes		(94	)		62				(32	)		(96	)		87				(9	)
Income taxes		(87	)		71		(b),(c)		(16	)		(154	)		103		(c),(d),(e)		(51	)
Income (loss) from continuing operations		(7	)		(9	)			(16	)		58			(16	)			42
Loss from discontinued operations		(1	)		—				(1	)		(17	)		—				(17	)
Net income (loss)	$	(8	)	$	(9	)		$	(17	)	$	41		$	(16	)		$	25

	Twelve Months Ended December 31, 2005										Twelve Months Ended December 31, 2004
								Adjusted Non-										Adjusted Non-
	GAAP (a)			Adjustments				GAAP			GAAP (a)			Adjustments				GAAP
Operating revenues	$	(4,863	)	$	—			$	(4,863	)	$	(3,860	)	$	—			$	(3,860	)
Operating expenses
Purchased power		(4,845	)		—				(4,845	)		(3,830	)		—				(3,830	)
Fuel		(26	)		24		(b)		(2	)		(12	)		—				(12	)
Operating and maintenance		48			(96	)	(c)		(48	)		55			(101	)	(c),(d),(e)		(46	)
Depreciation and amortization		101			(64	)	(c)		37			81			(53	)	(c)		28
Taxes other than income		24			—				24			17			—				17
Total operating expenses		(4,698	)		(136	)			(4,834	)		(3,689	)		(154	)			(3,843	)
Operating loss		(165	)		136				(29	)		(171	)		154				(17	)
Other income and deductions
Interest expense		(126	)		14		(c)		(112	)		(53	)		18		(c)		(35	)
Equity in losses of unconsolidated affiliates		(103	)		104		(c)		1			(96	)		84		(c)		(12	)
Other, net		17			—				17			8			—				8
Total other income and deductions		(212	)		118				(94	)		(141	)		102				(39	)
Loss from continuing operations before income taxes		(377	)		254				(123	)		(312	)		256				(56	)
Income taxes		(375	)		335		(b),(c)		(40	)		(394	)		319		(c),(d),(e)		(75	)
Income (loss) from continuing operations		(2	)		(81	)			(83	)		82			(63	)			19
Loss from discontinued operations		(5	)		—				(5	)		(13	)		—				(13	)
Income (loss) before a cumulative effect of a change in accounting principle		(7	)		(81	)			(88	)		69			(63	)			6
Cumulative effect of a change in accounting principle, net of income taxes		—			—				—			(9	)		—				(9	)
Net income (loss)	$	(7	)	$	(81	)		$	(88	)	$	60		$	(63	)		$	(3	)

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)	Adjustment to exclude the mark-to-market impact of certain non-trading activities.
(c)	Adjustment to exclude the financial impact of Exelon’s investments in synthetic fuel-producing facilities.
(d)	Adjustment to exclude severance charges and adjustments to previously recorded severance reserves.
(e)	Adjustment to exclude certain costs associated with Exelon’s anticipated merger with PSEG.

14

EXELON CORPORATION
Electric Sales Statistics

	Three Months Ended December 31,
	2005			2004			% Change
(in GWhs)
Supply
Nuclear		34,887			33,653			3.7	%
Purchased Power — Generation (a)		8,623			11,810			(27.0	%)
Fossil and Hydro		3,074			2,646			16.2	%
Power Team Supply		46,584			48,109			(3.2	%)
Purchased Power — Other		271			159			70.4	%
Total Electric Supply Available for Sale		46,855			48,268			(2.9	%)
Less: Line Loss and Company Use		(1,617	)		(2,541	)		(36.4	%)
Total Supply		45,238			45,727			(1.1	%)
Energy Sales
Retail Sales		33,434			31,512			6.1	%
Power Team Market Sales (a)		15,876			19,824			(19.9	%)
Interchange Sales and Sales to Other Utilities		768			570			34.7	%
		50,078			51,906			(3.5	%)
Less: Distribution Only Sales		(4,840	)		(6,179	)		(21.7	%)
Total Energy Sales		45,238			45,727			(1.1	%)

	Twelve Months Ended December 31,
	2005			2004			% Change
(in GWhs)
Supply
Nuclear		137,936			136,621			1.0	%
Purchased Power — Generation (a)		42,623			48,968			(13.0	%)
Fossil and Hydro		13,778			17,010			(19.0	%)
Power Team Supply		194,337			202,599			(4.1	%)
Purchased Power — Other		878			585			50.1	%
Total Electric Supply Available for Sale		195,215			203,184			(3.9	%)
Less: Line Loss and Company Use		(10,368	)		(9,264	)		11.9	%
Total Supply		184,847			193,920			(4.7	%)
Energy Sales
Retail Sales		137,348			130,945			4.9	%
Power Team Market Sales (a)		66,049			86,049			(23.2	%)
Interchange Sales and Sales to Other Utilities		2,854			2,470			15.5	%
		206,251			219,464			(6.0	%)
Less: Distribution Only Sales		(21,404	)		(25,544	)		(16.2	%)
Total Energy Sales		184,847			193,920			(4.7	%)

(a) Purchased power and market sales do not include trading volume of 8,756 GWhs and 6,432 GWhs for the three months ended December 31, 2005 and 2004, respectively, and 26,924 GWhs and 24,001 GWhs for the twelve months ended December 31, 2005 and 2004, respectively.

15

EXELON CORPORATION
ComEd and PECO Sales Statistics
Three Months Ended December 31, 2005 and 2004

	ComEd									PECO
Electric Deliveries (in GWhs)	2005			2004			% Change			2005		2004		% Change
Full Service (a)
Residential		6,849			6,224			10.0	%		3,105		2,427		27.9	%
Small Commercial & Industrial		5,296			5,356			(1.1	%)		1,626		1,568		3.7	%
Large Commercial & Industrial		1,997			1,905			4.8	%		3,776		3,639		3.8	%
Public Authorities & Electric Railroads		585			52			1025.0	%		309		228		35.5	%
Total Full Service		14,727			13,537			8.8	%		8,816		7,862		12.1	%
PPO (ComEd Only)
Small Commercial & Industrial		1,466			921			59.2	%
Large Commercial & Industrial		1,361			1,556			(12.5	%)
		2,827			2,477			14.1	%
Delivery Only (b)
Residential		(d	)		(d	)					61		452		(86.5	%)
Small Commercial & Industrial		1,123			1,617			(30.6	%)		219		385		(43.1	%)
Large Commercial & Industrial		3,360			3,534			(4.9	%)		77		191		(59.7	%)
		4,483			5,151			(13.0	%)		357		1,028		(65.3	%)
Total PPO and Delivery Only		7,310			7,628			(4.2	%)		357		1,028		(65.3	%)
Total Retail Deliveries		22,037			21,165			4.1	%		9,173		8,890		3.2	%
Gas Deliveries (mmcf) (PECO only)											24,424		25,557		(4.4	%)
Revenue (in millions)
Full Service (a)
Residential	$	557		$	515			8.2	%	$	382	$	296		29.1	%
Small Commercial & Industrial		395			390			1.3	%		175		169		3.6	%
Large Commercial & Industrial		100			94			6.4	%		302		272		11.0	%
Public Authorities & Electric Railroads		36			8			350.0	%		26		21		23.8	%
Total Full Service		1,088			1,007			8.0	%		885		758		16.8	%
PPO (ComEd Only) (c)
Small Commercial & Industrial		101			61			65.6	%
Large Commercial & Industrial		79			83			(4.8	%)
		180			144			25.0	%
Delivery Only (b)
Residential		(d	)		(d	)					4		34		(88.2	%)
Small Commercial & Industrial		17			30			(43.3	%)		10		19		(47.4	%)
Large Commercial & Industrial		37			49			(24.5	%)		2		5		(60.0	%)
		54			79			(31.6	%)		16		58		(72.4	%)
Total PPO and Delivery Only		234			223			4.9	%		16		58		(72.4	%)
Total Retail Electric Revenue		1,322			1,230			7.5	%		901		816		10.4	%
Wholesale and Miscellaneous Revenue (e)		120			114			5.3	%		59		52		13.5	%
Gas Revenue (PECO only)		n/a			n/a						289		224		29.0	%
Total Revenues	$	1,442		$	1,344			7.3	%	$	1,249	$	1,092		14.4	%

Heating and Cooling Degree-Days	2005		2004		Normal		2005		2004		Normal
Heating Degree-Days		2,302		2,077		2,311		1,643		1,588		1,671
Cooling Degree-Days		43		5		10		34		2		19

(a)	Full service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy and the cost of the transmission and distribution of the energy. PECO’s tariffed rates also include a competitive transition charge (CTC).
(b)	Delivery only service reflects customers electing to receive electric generation service from an alternative energy supplier. Revenue from customers choosing an alternative energy supplier includes a distribution charge and a CTC.
(c)	Revenue from customers choosing ComEd’s PPO includes an energy charge at market rates, transmission and distribution charges and a CTC.
(d)	All ComEd residential customers are eligible to choose their supplier of electricity. As of December 31, 2005, one alternative supplier was approved to serve residential customers in the ComEd service territory. However, no residential customers have selected this alternative supplier.
(e)	Wholesale and miscellaneous revenue includes transmission revenue from PJM.

n/a — not applicable

16

EXELON CORPORATION
ComEd and PECO Sales Statistics
Twelve Months Ended December 31, 2005 and 2004

	ComEd									PECO
Electric Deliveries (in GWhs)	2005			2004			% Change			2005		2004		% Change
Full Service (a)
Residential		30,042			26,463			13.5	%		13,135		10,349		26.9	%
Small Commercial & Industrial		21,378			21,662			(1.3	%)		7,263		6,728		8.0	%
Large Commercial & Industrial		7,904			6,913			14.3	%		15,205		14,908		2.0	%
Public Authorities & Electric Railroads		2,133			1,893			12.7	%		962		914		5.3	%
Total Full Service		61,457			56,931			7.9	%		36,565		32,899		11.1	%
PPO (ComEd Only)
Small Commercial & Industrial		5,591			4,110			36.0	%
Large Commercial & Industrial		6,004			5,377			11.7	%
		11,595			9,487			22.2	%
Delivery Only (b)
Residential		(d	)		(d	)					334		2,158		(84.5	%)
Small Commercial & Industrial		5,677			6,305			(10.0	%)		1,257		1,687		(25.5	%)
Large Commercial & Industrial		13,633			14,634			(6.8	%)		503		760		(33.8	%)
		19,310			20,939			(7.8	%)		2,094		4,605		(54.5	%)
Total PPO and Delivery Only		30,905			30,426			1.6	%		2,094		4,605		(54.5	%)
Total Retail Deliveries		92,362			87,357			5.7	%		38,659		37,504		3.1	%
Gas Deliveries (mmcf) (PECO only)											85,061		87,097		(2.3	%)
Revenue (in millions)
Full Service (a)
Residential	$	2,584		$	2,295			12.6	%	$	1,705	$	1,317		29.5	%
Small Commercial & Industrial		1,671			1,649			1.3	%		818		756		8.2	%
Large Commercial & Industrial		408			380			7.4	%		1,173		1,113		5.4	%
Public Authorities & Electric Railroads		132			126			4.8	%		84		80		5.0	%
Total Full Service		4,795			4,450			7.8	%		3,780		3,266		15.7	%
PPO (ComEd Only) (c)
Small Commercial & Industrial		385			274			40.5	%
Large Commercial & Industrial		345			304			13.5	%
		730			578			26.3	%
Delivery Only (b)
Residential		(d	)		(d	)					25		164		(84.8	%)
Small Commercial & Industrial		95			128			(25.8	%)		63		86		(26.7	%)
Large Commercial & Industrial		156			204			(23.5	%)		13		20		(35.0	%)
		251			332			(24.4	%)		101		270		(62.6	%)
Total PPO and Delivery Only		981			910			7.8	%		101		270		(62.6	%)
Total Retail Electric Revenue		5,776			5,360			7.8	%		3,881		3,536		9.8	%
Wholesale and Miscellaneous Revenue (e)		488			443			10.2	%		212		203		4.4	%
Gas Revenue (PECO only)		n/a			n/a						817		748		9.2	%
Total Revenues	$	6,264			5,803			7.9	%	$	4,910	$	4,487		9.4	%

Heating and Cooling Degree-Days	2005		2004		Normal		2005		2004		Normal
Heating Degree-Days		6,083		6,053		6,498		4,758		4,646		4,759
Cooling Degree-Days		1,166		615		830		1,539		1,272		1,235

(a)	Full service reflects deliveries to customers taking electric service under tariffed rates, which include the cost of energy and the cost of the transmission and distribution of the energy. PECO’s tariffed rates also include a competitive transition charge (CTC).
(b)	Delivery only service reflects customers electing to receive electric generation service from an alternative energy supplier. Revenue from customers choosing an alternative energy supplier includes a distribution charge and a CTC.
(c)	Revenue from customers choosing ComEd’s PPO includes an energy charge at market rates, transmission and distribution charges and a CTC.
(d)	All ComEd residential customers are eligible to choose their supplier of electricity. As of December 31, 2005, one alternative supplier was approved to serve residential customers in the ComEd service territory. However, no residential customers have selected this alternative supplier.
(e)	Wholesale and miscellaneous revenue includes transmission revenue from PJM and, prior to ComEd’s full integration into PJM on May 1, 2004, ComEd’s transmission charges received from alternative energy suppliers.

n/a—not applicable

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EXELON CORPORATION
Exelon Generation Power Marketing Statistics

	Three Months Ended
	December 31, 2005		September 30, 2005		June 30, 2005		March 31, 2005		December 31, 2004
GWh Sales
ComEd		19,749		24,331		19,625		19,093		18,312
PECO		9,404		11,442		8,957		9,360		8,516
Market and Retail Sales		17,431		19,525		18,410		17,010		21,281
Total Sales (a)		46,584		55,298		46,992		45,463		48,109
Average Margin ($/MWh)
Average Realized Revenue
ComEd	$	32.56	$	39.87	$	38.47	$	38.60	$	39.81
PECO		42.32		44.84		42.20		40.71		26.54
Market and Retail Sales (b)		49.34		53.16		42.53		38.80		34.11
Total Sales — without trading		40.81		45.61		40.77		39.11		32.24
Average Purchased Power and Fuel Cost — without trading (c)	$	18.78	$	27.09	$	17.71	$	15.22	$	14.33
Average Margin — without trading (c)	$	22.03	$	18.52	$	23.06	$	23.89	$	17.91
Around-the-clock Market Prices ($/MWh)
PECO — PJM West Hub	$	73.87	$	75.33	$	47.30	$	47.18	$	38.84
ComEd — NIHUB		52.81		54.75		38.35		39.68		29.99

(a)	Total sales do not include trading volume of 8,756 GWhs, 6,757 GWhs, 5,660 GWhs, 5,751 GWhs and 6,432 GWhs for the three months ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004, respectively.
(b)	Market and retail sales exclude revenues related to tolling agreements of $52 million, $34 million and $58 million for the three months ended September 30, 2005, June 30, 2005 and September 30, 2004, respectively.
(c)	Adjustments have been made to historical periods for consistency with current year presentation, including the exclusion of mark-to-market adjustments from operating earnings and the classification of Sithe’s and All Energy’s results as discontinued operations.

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EXELON CORPORATION
Exelon Generation Power Marketing Statistics

	Twelve Months Ended December 31,
	2005		2004
GWh Sales
ComEd		82,798		75,092
PECO		39,163		35,373
Market and Retail Sales		72,376		92,134
Total Sales (a)		194,337		202,599
Average Margin ($/MWh)
Average Realized Revenue
ComEd	$	37.50	$	30.66
PECO		42.64		40.91
Market and Retail Sales (b)		46.16		35.03
Total Sales — without trading		41.76		34.43
Average Purchased Power and Fuel Cost — without trading (c)	$	20.05	$	17.59
Average Margin — without trading (c)	$	21.71	$	16.84
Around-the-clock Market Prices ($/MWh)
PECO — PJM West Hub	$	60.92	$	42.34
ComEd — NIHUB		46.39		31.15
2006 Forward market prices — January through December
Around-the-clock Market Prices ($/MWh)
PECO — PJM West Hub	$	73.70
ComEd — NIHUB		52.60
Gas Prices ($/Mmbtu)
Henry Hub	$	10.80

(a)	Total sales do not include trading volume of 26,924 GWhs and 24,001 GWhs for the twelve months ended December 31, 2005 and 2004, respectively.
(b)	Market and retail sales exclude revenues related to tolling agreements of $86 million and $97 million for the twelve months ended December 31, 2005 and 2004, respectively.
(c)	Adjustments have been made to historical periods for consistency with current year presentation, including the exclusion of mark-to-market adjustments from operating earnings and the classification of Sithe’s and All Energy’s results as discontinued operations.

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