Slide 1: Earnings Conference Call 1st Quarter 2014
Exhibit 99.2 Earnings Conference Call st 1 Quarter 2014 April 30, 2014
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This presentation contains certain 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 mat
Slide 3: Q1 2014 In Review
Q1 2014 In Review Q1 Highlights Adjusted Operating EPS Results(1,2) $0.62 • Signs of Power Market Recovery • Winter Storms BGE $0.10 • Nuclear capacity factor: 94.1% PECO $0.10 • CENG License Transfer • ProLiance Acquisition ComEd $0.11 Regulatory Advocacy ExGen $0.30 • PJM Capacity Market Reforms o
Slide 4: Spot and Forward Market Volatility
Spot and Forward Market Volatility Q1 2014 Saw Increased Volatility Forward Markets Reacted To Spot Prices 12.0 • The spot market so far in 2014 has been very volatile • Polar vortex resulted in extreme conditions: 11.5 11.0 10.5 Whub On Peak HR 2015 - 10.0 Whub On Peak HR 2016 - NiHub On Peak HR 20
Slide 5: Capacity Market Developments
Capacity Market Developments New England Duringfirst quarter, Forward CapacityAuction (FCA)#8 for planning year 17/18 cleared significantly higher than last auction. Restof Pool cleared $7.025/kw-month and NEMA cleared $15.00/kw-month Clearing results are indicative of a tighter supply/demand situat
Slide 6: Hedging Activity and Market Fundamentals
Hedging Activity and Market Fundamentals Fundamental View vs.Market - 2015 2015: Rotating into a Large Heat Rate Strategy 2015-Actual $60 Fundamental View NiHub 80% 2015-Ratable Market NiHub 70% $55 2015-Actual (excl NG hedges) Fundamental View PJMW $50 60% Market PJMW 50% $45 40% $40 30% $35 20% $1
Slide 7: Exelon Generation: Gross Margin Update
Exelon Generation: Gross Margin Update March 31, 2014 Change from Dec 31, 2013 Gross Margin Category ($M)(1) 2014 2015 2016 2014 2015 2016 (3) Open Gross Margin (including South, West, Canada hedged gross 7,350 6,350 6,250 1,500 650 600 margin) (3,4) Mark-to-Market of Hedges (700) 100 100 (1,450) (4
Slide 8: Key Financial Messages
Key Financial Messages Adjusted Operating EPS Results(1,3) • Delivered adjusted (non-GAAP) operating earnings in Q1 of $0.70 $0.62/share within guidance range BGE $0.09 provided of $0.60-$0.70/share $0.62 PECO $0.14 $0.10 Q1 2014 vs. Q1 2013: ComEd $0.10 $0.10 • Utilities – Increased distribution re
Slide 9: Exelon Utilities Adjusted Operating EPS Contribution
Exelon Utilities Adjusted Operating EPS Contribution(1) BGE PECO ComEd Key Drivers – Q1 2014 vs. Q1 2013: BGE(+0.01): $0.33 $0.31 • Increased distribution revenue due to rate cases: $0.03 • Increased storm costs: $(0.01) $0.09 $0.10 PECO(-0.04): • Increased storm costs, primarily due to the February
Slide 10: ExGen Adjusted Operating EPS Contribution
ExGen Adjusted Operating EPS Contribution (1) Key Drivers – Q1 2014 vs. Q1 2013 • Lower realized energy prices and higher procurement costs for replacement power $(0.09) • Decrease in nuclear and fossil output in 2014, primarily due to outage days $(0.05) • Higher nuclear fuel amortization and fossi
Slide 11: 2014 Projected Sources and Uses of Cash
2014 Projected Sources and Uses of Cash (7,8) Projected Sources & Uses Key Messages(7) ($ in millions) BGE ComEd PECO ExGen Exelon (6) As of 4Q13 Variance • Cash from Operations is projected to be $6,200M vs Plan of $6,100M for a $100M variance. This variance is driven by: 1,475 1,475 $150M Reclassi
Slide 12: Exelon Generation Disclosures
Exelon Generation Disclosures March 31, 2014 11 20141Q 2014 1QEarnings EarningsRelease ReleaseSlides Slides
Slide 13: Portfolio Management Strategy
Portfolio Management Strategy Strategic Policy Alignment Three-Year Ratable Hedging Bull / Bear Program • Aligns hedging program with • Ensure stability in near-term cash • Ability to exercise fundamental financial policies and financial flows and earnings market views to create value within outlook
Slide 14: Components of Gross Margin Categories
Components of Gross Margin Categories Gross margin from Gross margin linked to power production and sales other business activities Open Gross MtM of “Power” New “Non Power” “Non Power” Margin Hedges(2) Business Executed New Business Generation Gross Mark to Market Retail, Wholesale Retail, Wholesal
Slide 15: ExGen Disclosures
ExGen Disclosures Gross Margin Category ($M)(1) 2014 2015 2016 (3) Open Gross Margin(including South, West & Canada hedged GM) 7,350 6,350 6,250 (3,4) Mark to Market of Hedges (700) 100 100 Power New Business / To Go 250 600 650 Non-Power Margins Executed 250 100 50 Non-Power New Business / To Go 15
Slide 16: ExGen Disclosures
ExGen Disclosures Generation and Hedges 2014 2015 2016 Exp. Gen (GWh) (1) 210,200 203,500 204,600 Midwest 97,300 96,700 97,700 Mid-Atlantic(2) 75,000 70,800 71,800 ERCOT 16,400 19,000 19,200 New York(2) 12,700 9,400 9,300 New England 8,800 7,600 6,600 (3) % of Expected Generation Hedged 91-94% 64-67
Slide 17: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin Sensitivities Gross Margin Sensitivities (With Existing Hedges) (1, 2) 2014 2015 2016 Henry Hub Natural Gas ($/Mmbtu) + $1/Mmbtu $60 $285 $490 - $1/Mmbtu $(55) $(230) $(455) NiHub ATC Energy Price + $5/MWh $20 $250 $380 - $5/MWh $(20) $(245) $(375) PJM-W ATC Energy Price +
Slide 18: Exelon Generation Hedged Gross Margin Upside/Risk
Exelon Generation Hedged Gross Margin Upside/Risk $9,500 $9,200 $9,000 $8,500 $8,500 $8,000 $7,550 $7,500 $7,000 $7,000 $6,500 $6,550 $6,000 $5,950 $5,500 $5,000 2014 2015 2016 (1) Represents an approximate range of expected gross margin, taking into account hedges in place, between the 5th and 95th
Slide 19: Illustrative Example of Modeling Exelon Generation 2015 Gross Margin
Illustrative Example of Modeling Exelon Generation 2015 Gross Margin South, Mid- New Row Item Midwest ERCOT New York West & Atlantic England Canada (A) Start with fleet-wide open gross margin $6.35 billion (B) Expected Generation (TWh) 96.7 70.8 19.0 9.4 7.6 (C) Hedge % (assuming mid-point of range)
Slide 20: Additional Disclosures
Additional Disclosures 19 2014 1Q Earnings Release Slides
Slide 21: Exelon Utilities Weather-Normalized Load
Exelon Utilities Weather-Normalized Load All Customers Residential Small C&I Large C&I ComEd PECO BGE 2.0% 2.1% 1.6% 2.0% 1.5% 0.6% 0.5% 0.6% 0.2% 0.3% 0.3% 0.2% 0.1% 0.0% 0.0% -0.1% -0.2% -0.5% -0.3% -0.4% -0.6% -1.1% -1.7% -3.2% 2013 2014E 2013 2014E 2013 2014E Chicago GMP 2.4% Philadelphia GMP 1.
Slide 22: ComEd April 2014 Distribution Formula Rate
ComEd April 2014 Distribution Formula Rate The 2014 distribution formula rate filing establishes the net revenue requirement used to set the rates that will take effect in January 2015 after the ICC’s review. There are two components to the annual distribution formula rate filing: * Filing Year: Bas
Slide 23: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures 22 2014 1Q Earnings Release Slides
Slide 24: Q1 2014 GAAP EPS Reconciliation
Q1 2014 GAAP EPS Reconciliation Three Months Ended March 31, 2013 ExGen ComEd PECO BGE Other Exelon 2013 Adjusted (non-GAAP) Operating Earnings Per Share $0.39 $0.10 $0.14 $0.09 $(0.02) $0.70 Mark-to-market impact of economic hedging activities (0.29) - - - 0.01 (0.27) Unrealized gains related to nu
Slide 25: GAAP to Operating Adjustments
GAAP to Operating Adjustments • Exelon’s 2014 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: Mark-to-market adjustments from economic hedging activities Unrealized gains and losses from NDT fund investments to the extent not offset by contractual accounting as
Slide 26: ExGen Total Gross Margin Reconciliation to GAAP
ExGen Total Gross Margin Reconciliation to GAAP Total Gross Margin Reconciliation (in $M) (5) 2014 2015 2016 Revenue Net of Purchased Power and Fuel Expense(1)(6) $7,800 $8,050 $8,050 Non-cash amortization of intangible assets, net, related to $50 - - commoditycontracts recorded at fair value at the