EX-99.2 3 dex992.htm EARNINGS CONFERENCE CALL PRESENTATION SLIDES Earnings conference call presentation slides
Earnings Conference Call
2   Quarter 2008
July 23, 2008
EXHIBIT 99.2
nd

2
Forward-Looking Statements
This presentation 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’s
2007
Annual
Report
on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and
Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial
Statements and Supplementary Data: Note 19; (2) Exelon’s Second Quarter 2008 Quarterly
Report on Form 10-Q (to be filed on July 23, 2008) in (a) Part II, Other Information, ITEM 1A.
Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 12; and
(3) other factors discussed in filings with the Securities and Exchange Commission by Exelon
Corporation,
Exelon
Generation
Company,
LLC,
Commonwealth
Edison
Company,
and
PECO
Energy Company (Companies).  Readers are cautioned not to place undue reliance on these
forward-looking statements, which apply only as of the date of this presentation.  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 presentation.
This presentation includes references to adjusted (non-GAAP) operating earnings that exclude
the impact of certain factors. We believe that these adjusted operating earnings are
representative of the underlying operational results of the Companies. Please refer to the
attachments to the earnings release and the appendix to this presentation for a reconciliation of
adjusted (non-GAAP) operating earnings to GAAP earnings.

3
Protect Today’s Value
•
Deliver superior operating
performance
•
Advance competitive markets
•
Protect the value of our generation
•
Build healthy, self-sustaining
delivery companies
Grow Long-Term Value
•
Drive the organization to the next
level of performance
•
Set the industry standard for low
carbon energy generation and
delivery through reductions,
displacement and offsets
•
Pursue and rigorously evaluate
new growth opportunities
+
Strategic Direction

4
$1.77
$1.74
$0.33
$0.23
$0.07
$0.12
2007
2008
$0.87
$1.01
$0.14
$0.09
$0.06
$0.05
2007
2008
Exelon Operating EPS
$1.13
HoldCo/Other
ExGen
PECO
ComEd
2nd Quarter (Q2)
$2.06
$1.03
Year-to-Date (YTD)
Exelon’s increase in Q2 2008 earnings was driven by higher earnings at Generation, partially
offset by lower earnings at PECO
Refer
to
Earnings
Release
Attachments
for
additional
details
on
Q2
earnings
and
to
the
Appendix
for
a
reconciliation
of
adjusted
(non-GAAP)
operating EPS to GAAP EPS.
$1.03
$1.13
$2.05
$2.01
$2.10
GAAP EPS

5
Exelon Generation Operating EPS
Contribution
2Q
YTD
$0.87
$1.01
$1.74
$1.77
2008
2007
Key Drivers –
Q2 ’08 vs. Q2 ’07*
Higher nuclear output and wholesale
energy margins –
$0.09
Proprietary trading activities –
$0.04
Uranium contract settlement –
$0.04
Inflationary pressures on labor and
contracting –
($0.01)
Other, including higher depreciation
and amortization and interest expense
–
($0.02)
*Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP)
operating EPS to GAAP EPS

6
6
Market Price Snapshot
Rolling 12 months, as of July 18, 2008. Source: OTC quotes and electronic trading system. Quotes are daily.
Forward NYMEX Natural Gas
PJM-West and Ni-Hub On-Peak 
Forward Prices
Ni-Hub On-Peak Implied Heat Rate
2010
2009
2009 PJM-West
2010 PJM-West
2010 Ni-Hub
2009 Ni-Hub
2009
2010
PJM-West On-Peak Implied Heat Rate
2009
2010
7.7
8.2
8.7
9.2
9.7
10.2
10.7
11.2
11.7
12.2
12.7
7/07
8/07
9/07
10/07
11/07
12/07
1/08
2/08
3/08
4/08
5/08
6/08
7/08
8.8
9
9.2
9.4
9.6
9.8
10
10.2
10.4
7/07
8/07
9/07
10/07
11/07
12/07
1/08
2/08
3/08
4/08
5/08
6/08
7/08
60
70
80
90
100
110
7/07
8/07
9/07
10/07
11/07
12/07
1/08
2/08
3/08
4/08
5/08
6/08
7/08
6
6.5
7
7.5
8
8.5
7/07
8/07
9/07
10/07
11/07
12/07
1/08
2/08
3/08
4/08
5/08
6/08
7/08

7
7
Market Price Snapshot
2009
2010
2009
2010
Rolling 12 months, as of July 18, 2008. Source: OTC quotes and electronic trading system. Quotes are daily.
2009
2010
Houston Ship Channel Natural Gas
Forward Prices
ERCOT North ATC Forward Prices
ERCOT North ATC v. Houston Ship Channel
Implied Heat Rate
7.5
8
8.5
9
9.5
10
10.5
11
11.5
12
12.5
7/07
8/07
9/07
10/07
11/07
12/07
1/08
2/08
3/08
4/08
5/08
6/08
7/08
60
65
70
75
80
85
90
7/07
8/07
9/07
10/07
11/07
12/07
1/08
2/08
3/08
4/08
5/08
6/08
7/08
6.8
7
7.2
7.4
7.6
7.8
8
8.2
8.4
7/07
8/07
9/07
10/07
11/07
12/07
1/08
2/08
3/08
4/08
5/08
6/08
7/08

8
2Q
YTD
Key Drivers –
Q2 ’08 vs. Q2 ’07*
Weather –
($0.02)
Storm costs –
($0.01)
Inflationary pressures on labor and
contracting –
($0.01)
Transmission revenue –
$0.02
Other –
$0.01
ComEd Operating EPS Contribution
2008
2007
*Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP)
operating EPS to GAAP EPS
$0.06
$0.05
$0.12
$0.07

9
2Q
YTD
PECO Operating EPS Contribution
Key Drivers –
Q2 ’08 vs. Q2 ’07*
Uncollectible accounts expense –
($0.05)
CTC amortization –
($0.02)
Taxes other than income –
$0.01
Other –
$0.01
2008
2007
*Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP)
operating EPS to GAAP EPS
$0.14
$0.09
$0.23
$0.33

10
Financial Take-Aways from the Quarter
Q2 operating results of $1.13/share indicative of strong Generation
fundamentals:
Exceptional
nuclear
operations
–
95.8%
capacity
factor
Higher average realized energy margins
O&M and capital on plan for the year, but facing inflationary pressures
Strong cash flows from operations
(1)
-
approximately $5 billion in 2008
Balance sheet and credit ratings are strong –
ample liquidity
Reaffirming 2008 operating guidance of $4.00-$4.40/share
Strong Generation performance expected to offset slower load growth and higher
reserves for uncollectible accounts at utilities
Expect Q3 2008 to be 26% to 29% of full year earnings
Q2
2008
was
another
solid
quarter,
keeping
us
on
track
for
the
year
Refer to Earnings Release Attachments for additional details on Q2 earnings and to the Appendix for a reconciliation of adjusted
(non-GAAP) operating EPS to GAAP EPS.
(1) Primarily includes net cash flows provided by operating activities, excluding counterparty collateral activity, and including net cash flows used in investing activities other
than capital expenditures.

11
Appendix

12
ComEd Rate Case Update
Comparison
of
ComEd’s
revenue
increase
of
$345
million
(1)
to
ALJ
Proposed Order of $218 million:
$218
656
331
356
$6,150
10.30% ROE /
45.04% Equity
ALJ
Proposed Order
(7/10/08)
($23)
($92)
$6,951
Rate Base
($2)
358
Depreciation and Amortization
($127)
($2)
($8)
Impact on
Proposed
Revenue
Increase
$345
Proposed Revenue Increase
658
Other O&M Expenses
339
A&G Expenses
10.75% ROE /
45.04% Equity
ROE/Cap Structure
ComEd Position
(1)
($ in millions)
(Docket No. 07-566)
ICC decision is expected in mid-September
(1)
Reflects
ComEd
position
if
the
Illinois
Commerce
Commission
does
not
accept
the
stipulation.

13
Q2 GAAP EPS Reconciliation
$1.03
-
$0.14
$0.04
$0.85
Q2 2007 GAAP Earnings (Loss) Per Share
$1.03
($0.04)
$0.14
$0.06
$0.87
2007 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share
(0.02)
-
-
(0.02)
-
2007 Illinois Electric Rate Settlement
0.04
0.04
-
-
-
Investments in synthetic fuel-producing facilities
(0.02)
-
-
-
(0.02)
Mark-to-market adjustments from economic hedging activities
Exelon
Other
PECO
ComEd
ExGen
Three
Months
Ended
June
30,
2007
NOTE:  All amounts shown are per Exelon share and represent contributions to Exelon's EPS.
$1.13
-
$0.09
$0.05
$0.99
Q2 2008 GAAP Earnings (Loss) Per Share
$1.13
$(0.02)
$0.09
$0.05
$1.01
2008 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share
(0.07)
-
-
-
(0.07)
2007 Illinois Electric Rate Settlement
0.09
0.02
-
-
0.07
Mark-to-market adjustments from economic hedging activities
(0.02)
-
-
-
(0.02)
Unrealized gains and losses related to nuclear decommissioning trust funds
Exelon
Other
PECO
ComEd
ExGen
Three
Months
Ended
June
30,
2008

14
YTD GAAP EPS Reconciliation
(0.02)
-
-
(0.02)
-
2007 Illinois Electric Rate Settlement
0.01
-
-
-
0.01
Investments in Synthetic Fuel-Producing Facilities
$2.05
-
$0.33
$0.05
$1.67
YTD 2007 GAAP Earnings (Loss) Per Share
$2.10
$(0.07)
$0.33
$0.07
$1.77
2007 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share
0.01
-
-
-
0.01
Sale of Generation's investments in TEG and TEP
$0.07
$0.07
-
-
-
Investments in synthetic fuel-producing facilities
(0.12)
-
-
-
(0.12)
Mark-to-market adjustments from economic hedging activities
Exelon
Other
PECO
ComEd
ExGen
Six
Months
Ended
June
30,
2007
NOTE:  All amounts shown are per Exelon share and represent contributions to Exelon's EPS.
$2.01
$0.01
$0.23
$0.12
$1.65
YTD 2008 GAAP Earnings (Loss) Per Share
2.06
$(0.03)
$0.23
$0.12
$1.74
2008 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share
(0.14)
-
-
-
(0.14)
2007 Illinois Electric Rate Settlement
0.17
0.04
-
-
0.13
Mark-to-market adjustments from economic hedging activities
(0.08)
-
-
-
(0.08)
Unrealized gains and losses related to nuclear decommissioning trust funds
Exelon
Other
PECO
ComEd
ExGen
Six
Months
Ended
June
30,
2008