Slide 1: Earnings Conference Call 4th Quarter 2018
Earnings Conference Call 4th Quarter 2018 February 8, 2019
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: Non-GAAP Financial Measures
Non-GAAP Financial Measures Exelon reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). Exelon supplements the reporting of financial information determined in accordance with GAAP with certain non-GAAP financial measures, including:
Slide 4: Non-GAAP Financial Measures Continued
Non-GAAP Financial Measures Continued This information is intended to enhance an investor’s overall understanding of period over period financial results and provide an indication of Exelon’s baseline operating performance by excluding items that are considered by management to be not directly relat
Slide 5: 2018 Business Priorities and Commitments
2018 Business Priorities and Commitments ✓ Maintain industry leading operational excellence • First Quartile SAIFI performance at all utilities and First Quartile CAIDI performance at BGE, ComEd and PHI • Record nuclear output of 159 TWhs, best ever average refueling days, and capacity factor of 94.
Slide 6: Operating Highlights
Operating Highlights At CEG Merger (2012) 2015 YTD 2018 Operations Metric BGE ComEd PECO PHI BGE ComEd PECO PHI OSHA Recordable Rate Electric 2.5 Beta SAIFI (Outage Operations Frequency) 2.5 Beta CAIDI (Outage Duration) Customer Satisfaction N/A Customer Service Level % of Calls Operations Answered
Slide 7: Best in Class at ExGen and Constellation
Best in Class at ExGen and Constellation Exelon Generation Operational Metrics Constellation Metrics • Continued best in class performance across our Nuclear fleet:(1) 78% retail power 30% power new customer renewal − Capacity factor for Exelon (owned and customer win rate rate operated units) was 9
Slide 8: 2018 Financial Results
2018 Financial Results Q4 2018 EPS Results Full Year 2018 EPS Results $3.12 • Adjusted (non-GAAP) operating earnings $0.58 drivers versus full year guidance: $0.23 $1.39 Exelon Utilities $0.16 $2.07 – Favorable weather $0.07 $0.07 $0.38 – Higher distribution and $0.13 $0.13 $0.32 $0.33 transmission
Slide 9: Exelon Utilities' 2018 Distribution Rate Case Results
Exelon Utilities’ 2018 Distribution Rate Case Results August 2018 December 2018 Pepco Electric DC ComEd February 2018 (8/9/2018) (12/4/2018) Delmarva MD Delmarva Electric DE PECO Electric (2/9/2018) (8/21/2018) (12/20/2018) May 2018 November 2018 January 2019 Pepco Electric MD Delmarva Gas DE BGE Ga
Slide 10: Trailing Twelve Month Earned ROEs vs Allowed ROE
Trailing Twelve Month Earned ROEs* vs Allowed ROE Trailing Twelve Month Earned ROEs* Allowed ROE Q4 2017 TTM Earned ROE Q4 2018 TTM Earned ROE 9.9% 9.9% 9.7% 10.3% 10.1% 9.7% 9.5% 8.8% 8.7% 8.1% 7.7% 7.0% 5.6% ACE Delmarva Pepco Legacy Exelon Consolidated Utilities Exelon Utilities Note: Represents
Slide 11: Our Capital Plan Drives Leading Rate Base Growth
Our Capital Plan Drives Leading Rate Base Growth Capital Expenditures ($M) Rate Base ($B)(1) 5,925 5,875 5,750 50.7 5,325 950 +7.8% 1,250 1,075 47.3 44.2 8.7 1,100 41.2 8.1 975 7.7 1,000 975 37.6 6.9 9.7 975 6.3 9.1 8.4 1,550 7.9 1,525 1,550 7.1 13.1 1,375 12.1 11.4 10.8 10.0 2,425 2,150 2,175 18.0
Slide 12: Utility Adjusted Operating Earnings
Exelon Utilities EPS* Growth of 6-8% to 2022 Exelon Utilities Operating Earnings* $2.50 $2.45 $2.40 $2.30 $2.25 $2.20 $2.15 Utility Adjusted Operating Earnings* $2.15 $2.10 $2.05 $2.00 $1.90 $1.95 $1.80 $1.85 $1.80 $1.70 $1.74 $1.75 $1.60 $1.50 $1.50 $0.00 2018A 2019E 2020E 2021E 2022E Rate base gro
Slide 13: Exelon Generation: Gross Margin Update
Exelon Generation: Gross Margin Update Change from December 31, 2018 September 30, 2018 (1) Gross Margin Category ($M) 2019 2020 2021 2019 2020 Open Gross Margin (2,5) $4,350 $4,050 $3,750 $50 $150 (including South, West, New England, Canada hedged gross margin) Capacity and ZEC Revenues(2,5) $2,050
Slide 14: Driving Costs and Capital Out of the Generation Business
Driving Costs and Capital Out of the Generation Business Adjusted O&M* ($M)(1) Capital Expenditures ($M)(1,2,3) 1,900 1,925 -1.0% 4,325 150 200 1,750 4,250 4,200 4,200 150 1,525 125 900 900 775 625 875 825 825 775 2019E 2020E 2021E 2022E 2019E 2020E 2021E 2022E Committed Growth Nuclear Fuel Base Cos
Slide 15: ExGen's Strong Available Cash Flow Supports Utility Growth and Debt Reduction
ExGen’s Strong Available Cash Flow* Supports Utility Growth and Debt Reduction 2019-2022 Exelon Generation Available Cash*(1) and Uses of Cash ($B) ~$7.8 ~($0.6) ($4.0-$4.4) ($0.3-$0.5) ($2.2-$2.8) ExGen Cumulative Committed ExGen Utility Investment External Dividend Debt Reduction Available Cash* G
Slide 16: Maintaining Strong Investment Grade Credit Ratings is a Top Financial Priority
Maintaining Strong Investment Grade Credit Ratings is a Top Financial Priority Exelon S&P FFO/Debt %*(1,4) ExGen Debt/EBITDA Ratio*(5) 25% 4.0 20% 18%-20% 20% 3.0x 3.0 15% 2.4x S&P Threshold 2.0 1.9x 10% Book Excluding Non-Recourse 5% 1.0 0% 0.0 2019 Target 2019 Target Credit Ratings by Operating Co
Slide 17: 2019 Adjusted Operating Earnings Guidance
2019 Adjusted Operating Earnings* Guidance $3.12(1) $3.00 - $3.30(2) Key Year-Over-Year Drivers • ExGen: Lower realized energy prices, absence of NDT gains and IL ZEC timing, partially offset by NJ ZEC uplift $1.20 - $1.30 $1.39 • BGE: Higher distribution and transmission revenue, partially offset b
Slide 18: 2019 Business Priorities and Commitments
2019 Business Priorities and Commitments Maintain industry leading operational excellence Meet or exceed our financial commitments Effectively deploy ~$5.3B of utility capex Advocate for policies to enable the utility of the future Advance PJM energy market price formation reforms Preserve authority
Slide 19: The Exelon Value Proposition
The Exelon Value Proposition ▪ Regulated Utility Growth with utility EPS rising 6-8% annually from 2018- 2022 and rate base growth of 7.8%, representing an expanding majority of earnings ▪ ExGen’s strong free cash generation will provide ~$4.2B for utility growth and reduce debt by ~$2.5B over the n
Slide 20: Additional Disclosures
Additional Disclosures 20 Q4 2018 Earnings Release Slides
Slide 21: Exelon Utilities EPS Growth of 6-8% to 2022
Exelon Utilities EPS Growth of 6-8% to 2022 Q4 2017 Operating Earnings* Q4 2018 Operating Earnings* $2.50 $2.50 $2.45 $2.40 $2.40 $2.30 $2.30 $2.25 $2.20 $2.20 $2.20 $2.15 $2.10 $2.10 $2.15 $2.10 $2.05 $2.00 $2.00 $2.00 $1.90 $1.90 $1.90 $1.95 $1.80 $1.80 $1.80 $1.80 $1.85 $1.70 $1.70 $1.75 $1.70 $1
Slide 22: Utility Capex and Rate Base vs. Previous Disclosure
Utility Capex and Rate Base vs. Previous Disclosure Q4 2017 Capital Expenditures ($M) Q4 2018 Capital Expenditures ($M) Gas Delivery Electric Transmission Electric Distribution 5,925 5,750 5,875 5,400 5,225 5,525 5,325 5,100 5,150 800 700 675 675 775 725 750 725 700 1,275 1,075 1,100 1,100 1,100 1,0
Slide 23: ComEd Capital Expenditure and Rate Base Forecast
ComEd Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) Q4 2018 Capital Expenditures ($M) 2,425 2,125 2,150 2,150 2,175 425 375 1,850 1,850 400 1,875 450 325 1,725 350 375 300 325 1,875 2,000 1,750 1,775 1,575 1,725 1,400 1,500 1,475 2018E 2019E 2020E 2021E 2018A 2019E 202
Slide 24: PECO Capital Expenditure and Rate Base Forecast
PECO Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) Q4 2018 Capital Expenditures ($M) 850 975 1,000 800 825 825 975 975 850 250 300 225 275 300 250 275 250 225 50 125 125 50 125 100 75 75 100 600 575 600 650 450 475 450 475 500 2018E 2019E 2020E 2021E 2018A 2019E 2020E
Slide 25: BGE Capital Expenditure and Rate Base Forecast
BGE Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) Q4 2018 Capital Expenditures ($M) 1,250 1,100 1,050 1,100 1,025 1,075 1,000 1,000 450 950 425 425 400 375 425 400 400 375 275 225 200 200 225 175 200 225 175 475 450 450 475 525 400 375 400 400 2018E 2019E 2020E 2021E 2
Slide 26: PHI Consolidated Capital Expenditure and Rate Base Forecast
PHI Consolidated Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) Q4 2018 Capital Expenditures ($M) 1,500 1,500 1,500 1,525 1,550 1,550 1,500 1,400 1,375 75 75 50 50 50 50 50 50 50 425 400 425 475 425 375 475 475 300 1,025 975 975 950 1,050 1,025 1,025 1,000 1,075 2018E 2
Slide 27: ACE Capital Expenditure and Rate Base Forecast
ACE Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) Q4 2018 Capital Expenditures ($M) 375 400 350 325 300 300 325 175 150 125 125 150 250 225 150 150 75 100 200 200 200 225 200 150 175 175 150 2018E 2019E 2020E 2021E 2018A 2019E 2020E 2021E 2022E Q4 2017 Rate Base ($B) Q
Slide 28: Delmarva Capital Expenditure and Rate Base Forecast
Delmarva Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) Q4 2018 Capital Expenditures ($M) 400 375 400 50 350 325 75 325 50 325 350 325 50 50 50 50 50 150 75 150 100 125 100 100 100 100 75 200 200 200 200 175 200 175 175 175 2018E 2019E 2020E 2021E 2018A 2019E 2020E 2021
Slide 29: Pepco Capital Expenditure and Rate Base Forecast
Pepco Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) Q4 2018 Capital Expenditures ($M) 950 950 850 900 800 225 725 750 300 725 725 250 175 250 125 150 100 75 750 600 575 600 625 625 650 625 625 2018E 2019E 2020E 2021E 2018A 2019E 2020E 2021E 2022E Q4 2017 Rate Base ($B)
Slide 30: Mechanisms Cover Bulk of Rate Base Growth
Mechanisms Cover Bulk of Rate Base Growth Rate Base Growth Breakout 2019–2022 ($B) 3.5 13.1 Base Rate Case 1.1 Tracker/Formula Rate 2.4 4.8 3.0 1.2 1.9 3.0 1.1 1.9 3.6 8.3 1.4 2.1 2019E 2020E 2021E 2022E Total Of the ~$13.1B of rate base growth Exelon Utilities forecasts over the next 4 years, ~63%
Slide 31: Exelon Utilities Trailing Twelve Month Earned ROEs
Exelon Utilities Trailing Twelve Month Earned ROEs* Q4 2018: Trailing Twelve Month Earned ROEs* 12.0% Legacy Exelon Utilities Consolidated Exelon Utilities 11.0% 10.0% Delmarva $2.9/8.8% 9.0% $27.6/10.1% 8.0% Pepco $37.6/9.7% $4.9/8.7% Earned ROE (%) 7.0% ACE 6.0% $2.3/7.0% 5.0% 4.0% 3.0% 2.0% 1.0%
Slide 32: ExGen O&M and Capex vs. Previous Disclosure
ExGen O&M and Capex vs. Previous Disclosure Adjusted O&M* - Q3 2018 ($M)(1) Adjusted O&M* - Q4 2018 ($M)(1) -3.7% -1.0% 4,625 4,250 4,175 4,125 4,325 4,250 4,200 4,200 2018E 2019E 2020E 2021E 2019E 2020E 2021E 2022E CapEx – Q4 2017 ($M)(1,2) CapEx – Q4 2018 ($M)(1,2,3) 2,275 375 1,850 1,825 1,825 75
Slide 33: Adjusted O&M Forecast
Adjusted O&M* Forecast • Expect Compound Annual Growth Rate of -0.3% for 2019–2022 ($ in millions) 8,300 7,975 $775 $750 $825 $800 Key Year-over-Year Drivers $1,025 • BGE: Return to normal storm (historical average) $1,000 • PECO: Return to normal storm (historical $1,300 average) • PHI: Decrease dr
Slide 34: 2019 Projected Sources and Uses of Cash
2019 Projected Sources and Uses of Cash Total Exelon Cash ($M)(1) BGE ComEd PECO PHI ExGen Corp(8) Utilities 2019E Balance Beginning Cash Balance* (2) 1,825 (1) All amounts rounded to the nearest Adjusted Cash Flow from Operations* (2) 700 1,425 850 1,125 4,075 4,025 (225) 7,875 $25M. Figures may no
Slide 35: Exelon Debt Maturity Profile
Exelon Debt Maturity Profile(1) As of 12/31/18 ($M) LT Debt Balances (as of 12/31/18) (1,2) BGE 2.9B 500 ComEd 8.3B PECO 3.3B PHI 6.3B ExGen recourse 6.7B ExGen non-recourse 2.1B 910 HoldCo 6.3B Consolidated 35.8B 2,512 1,023 1,225 850 500 600 700 1,189 175 1,850 312 1,430 1,400 1,150 997 975 900 90
Slide 36: EPS Sensitivities
EPS Sensitivities* 2019E 2020E 2021E Henry Hub Natural Gas + $1/MMBtu $0.10 $0.29 $0.44 - $1/MMBtu ($0.08) ($0.26) ($0.41) ExGen EPS Impact* (1) NiHub ATC Energy Price + $5/MWh $0.03 $0.17 $0.26 - $5/MWh ($0.03) ($0.17) ($0.26) PJM-W ATC Energy Price + $5/MWh ($0.00) $0.06 $0.12 - $5/MWh $0.01 ($0.0
Slide 37: Historical Nuclear Capital Investment
Historical Nuclear Capital Investment Nuclear Non-Fuel Capital Expenditures(1) ($M) Nuclear Baseline CAGR Cancelled Growth Fukushima Growth(4) Nuclear Baseline (excluding Fuel) (2,3) 1,000 975 -1.2% 50 50 925 825 850 150 775 325 250 25 175 650 50 25 675 175 175 600 600 25 100 25 550 550 50 75 625 65
Slide 38: Exelon Recognition and Partnerships
Exelon Recognition and Partnerships SUSTAINABILITY DIVERSITY & INCLUSION Sustainability Diversity and Inclusion Dow Jones Sustainability Index HeforShe Exelon named to Dow Jones Sustainability Index for 13th consecutive Exelon joined U.N. Women’s HeForShe campaign, which is focused on year. gender e
Slide 39: Climate Leadership Council - Founding Members
Climate Leadership Council - Founding Members Exelon is a founding member of the Climate Leadership Council (CLC) – an effort to promote a carbon fee-and-dividend program. The Four Pillars of a Carbon Dividends Plan: • Gradually Increasing Carbon Tax: Fee would be applied at the point where fossil f
Slide 40: Exelon Utilities
Exelon Utilities 40 Q4 2018 Earnings Release Slides
Slide 41: Exelon Utilities' Distribution Rate Case Updates
Exelon Utilities’ Distribution Rate Case Updates Rate Case Schedule and Key Terms Requested Revenue Expected Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep ROE / Requirement Order Equity Ratio (1,6) 8.69% / ComEd FO ($24.1M) Dec 4, 2018 47.11% Delmarva (1,2) 9.70% / FO ($3.5M) 50.52% Nov 8, 2018 Ga
Slide 42: ACE Distribution Rate Case Filing
ACE Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. ER-18080925 • August 21 2018, ACE filed a distribution base rate case with the New Jersey Board of Public Utilities Test Year January 1, 2018 – December 31, 2018 (BPU) to increase distribution base rates Test Period 9 months
Slide 43: BGE (Gas) Distribution Rate Case Filing
BGE (Gas) Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. Case No. 9484 • Case filed on June 8, 2018 seeking an increase in gas distribution revenues only Test Year August 1, 2017 – July 31, 2018 • The increase is primarily driven by infrastructure Test Period investments sin
Slide 44: ComEd Distribution Rate Case Filing
ComEd Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. 18-0808 • April 16, 2018, ComEd filed its annual distribution formula rate update with the Illinois Test Year January 1, 2017 – December 31, 2017 Commerce Commission seeking a decrease to Test Period 2017 Actual Costs + 20
Slide 45: Delmarva DE (Gas) Distribution Rate Case Filing
Delmarva DE (Gas) Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. 17-0978 - Per Settlement (Black Box) • August 17, 2017, Delmarva DE filed an application with the Delaware Public Service Test Year January 1, 2017 – December 31, 2017 Commission (DPSC) seeking an increase in g
Slide 46: PECO Distribution Rate Case Filing
PECO Distribution Rate Case Filing Rate Case Settlement Details Notes Docket No. R-2018-3000164 • PECO filed an electric distribution base rate case on March 29, 2018 Test Year January 1, 2019 – December 31, 2019 • On December 20, 2018, the PaPUC voted 5-0 to Test Period 12 Months Budget (Fully proj
Slide 47: Pepco MD (Electric) Distribution Rate Case Filing
Pepco MD (Electric) Distribution Rate Case Filing Rate Case Filing Details Notes Case No. 9602 • Pepco MD filed an application with the Maryland Public Service Commission (MDPSC) Test Year February 1, 2018 – January 31, 2019 on January 15, 2019, seeking an increase in Test Period 8 months actual and
Slide 48: Exelon Generation Disclosures
Exelon Generation Disclosures December 31, 2018 48 Q4 2018 Earnings Release Slides
Slide 49: Portfolio Management Strategy
Portfolio Management Strategy Align Hedging & Financials Portfolio Management Over Time Exercising Market Views Establishing Minimum Hedge Targets % Hedged High End of Profit % Hedged Low End of Profit Purely ratable Capital Credit Rating Structure Actual hedge % Capital & Market views on timing, pr
Slide 50: 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 Capacity and ZEC MtM of “Power” New “Non Power” “Non Power” Margin Revenues Hedges(2) Business Executed New Business •Generation Gross •Expected capacity •M
Slide 51: ExGen Disclosures
ExGen Disclosures December 31, 2018 Gross Margin Category ($M) (1) 2019 2020 2021 Open Gross Margin (including South, West, New England & Canada hedged GM) (2,5) $4,350 $4,050 $3,750 (2,5) Capacity and ZEC Revenues $2,050 $1,900 $1,850 (2,3) Mark-to-Market of Hedges $250 $250 $100 Power New Business
Slide 52: ExGen Disclosures: Generation and Hedges
ExGen Disclosures December 31, 2018 Generation and Hedges 2019 2020 2021 Exp. Gen (GWh) (1) 193,200 185,100 180,700 Midwest 96,900 96,400 95,300 Mid-Atlantic(2,6) 54,000 48,500 48,700 ERCOT 25,700 24,500 20,100 New York(2) 16,600 15,700 16,600 % of Expected Generation Hedged (3) 89%-92% 56%-59% 32%-
Slide 53: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin* Sensitivities December 31, 2018 Gross Margin* Sensitivities (with existing hedges) (1) 2019 2020 2021 Henry Hub Natural Gas ($/MMBtu) + $1/MMBtu $135 $385 $580 - $1/MMBtu $(105) $(340) $(540) NiHub ATC Energy Price + $5/MWh $45 $225 $345 - $5/MWh $(45) $(220) $(345) PJM-W
Slide 54: ExGen Hedged Gross Margin Upside/Risk
ExGen Hedged Gross Margin* Upside/Risk 9,000 8,500 Approximate Gross Margin* ($ million)(1) $8,100 8,000 $7,950 $7,800 7,500 $7,400 7,000 $7,000 6,500 $6,550 6,000 2019 2020 2021 (1) Represents an approximate range of expected gross margin, taking into account hedges in place, between the 5th and 95
Slide 55: Illustrative Example of Modeling Exelon Generation 2020 Total Gross Margin
Illustrative Example of Modeling Exelon Generation 2020 Total Gross Margin* South, Mid- Row Item Midwest ERCOT New York West, NE & Atlantic Canada (A) Start with fleet-wide open gross margin $4.05 billion (B) Capacity and ZEC $1.9 billion (C) Expected Generation (TWh) 96.4 48.5 24.5 15.7 (D) Hedge %
Slide 56: Additional ExGen Modeling Data
Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2019 2020 2021 Revenue Net of Purchased Power and Fuel Expense*(2,3) $8,075 $7,825 $7,550 Other Revenues(4) $(175) $(175) $(150) Direct cost of sales incurred to generate revenues for certain $(250) $(250) $(250) Constellati
Slide 57: 2018A Earnings Waterfalls
2018A Earnings Waterfalls 57 Q4 2018 Earnings Release Slides
Slide 58: QTD Adjusted Operating Earnings Waterfall
QTD Adjusted Operating Earnings* Waterfall $0.01 Distribution Investment $0.01 Other $0.58 $0.56 $0.00 ($0.01) $0.02 ($0.04) $0.03 $0.02 $0.01 Favorable Load $0.03 Income Taxes(4) $0.01 Tax Repairs Deduction $0.02 Rate Increases $0.01 Other ($0.03) Other (5) ($0.01) Other ($0.18) Market and Portfoli
Slide 59: YTD Adjusted Operating Earnings Waterfall
YTD Adjusted Operating Earnings* Waterfall $0.05 Distribution/Transmission Investment $0.01 Energy Efficiency Investment $0.01 Other $3.12 $0.07 $0.00 $0.07 $0.03 $0.00 $0.35 $2.62 $0.09 Rate Increases $0.02 Favorable Weather $0.07 Favorable Weather and Load ($0.04) Other (5) $0.02 Tax Repairs Deduc
Slide 60: 2019E Earnings Waterfalls
2019E Earnings Waterfalls 60 Q4 2018 Earnings Release Slides
Slide 61: ComEd Adjusted Operating EPS Bridge 2018 to 2019
ComEd Adjusted Operating EPS* Bridge 2018 to 2019 $0.06 ($0.12) $0.70 - $0.80 $0.12 $0.04 Mutual Assistance $0.69 $0.02 Other ($0.07) D&A $0.10 Distribution & Transmission ($0.02) Energy Efficiency Amortization $0.04 Energy Efficiency ($0.01) Interest ($0.04) Mutual Assistance ($0.02) Other $0.02 Ot
Slide 62: PECO Adjusted Operating EPS Bridge 2018 to 2019
PECO Adjusted Operating EPS* Bridge 2018 to 2019 $0.02 $(0.03) $0.45 - $0.55 $0.04 $0.48 $0.02 Storm ($0.02) D&A ($0.01) Interest Expense $0.06 Higher Transmission and Distribution Revenues/Other ($0.02) Weather RNF 2018A(3) RNF(1) O&M(2) Taxes/Other 2019E(3,4) Note: Drivers add up to mid-point of 2
Slide 63: BGE Adjusted Operating EPS Bridge 2018 to 2019
BGE Adjusted Operating EPS* Bridge 2018 to 2019 $0.05 ($0.04) $0.33 $0.30 - $0.40 $0.03 Distribution ($0.02) D&A $0.02 Transmission ($0.02) Taxes/Interest Expense 2018A(3) RNF(1) Taxes/Other(2) 2019E(3,4) Note: Drivers add up to mid-point of 2019 adjusted operating EPS range (1) Revenue net fuel (RN
Slide 64: PHI Adjusted Operating EPS Bridge 2018 to 2019
PHI Adjusted Operating EPS* Bridge 2018 to 2019 $0.02 ($0.06) $0.45 - $0.55 $0.11 $0.43 ($0.04) D&A $0.01 Cost Mgmt Initiatives ($0.02) Other $0.01 Reduction in one-time items in 2018 $0.07 Distribution $0.04 Transmission 2018A(3) RNF(1) O&M(2) Other 2019E(3,4) Note: Drivers add up to mid-point of 2
Slide 65: ExGen Adjusted Operating EPS Bridge 2018 to 2019
ExGen Adjusted Operating EPS* Bridge 2018 to 2019 $0.09 Cost Optimization $0.09 Nuclear Retirements $0.07 Outages ($0.02) Everett Marine Terminal ($0.08) NDTF Realized Gains ($0.01) Other ($0.01) Share Dilution ($0.03) Other $1.39 $0.00 ($0.12) $1.20 - $1.30 ($0.24) $0.22 $0.05 Nuclear Retirements (
Slide 66: Appendix Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures 66 Q4 2018 Earnings Release Slides
Slide 67: Q4 QTD GAAP EPS Reconciliation
Q4 QTD GAAP EPS Reconciliation Three Months Ended December 31, 2018 ExGen ComEd PECO BGE PHI Other Exelon 2018 GAAP Earnings (Loss) Per Share ($0.18) $0.15 $0.13 $0.07 $0.06 ($0.07) $0.16 Mark-to-market impact of economic hedging activities 0.18 - - - - - 0.19 Unrealized losses related to NDT funds
Slide 68: Q4 QTD GAAP EPS Reconciliation (continued)
Q4 QTD GAAP EPS Reconciliation (continued) Three Months Ended December 31, 2017 ExGen ComEd PECO BGE PHI Other Exelon 2017 GAAP Earnings (Loss) Per Share(1) $2.30 $0.12 $0.11 $0.08 $0.00 ($0.66) $1.94 Mark-to-market impact of economic hedging activities 0.01 - - - - - 0.01 Unrealized gains related t
Slide 69: Q4 YTD GAAP EPS Reconciliation
Q4 YTD GAAP EPS Reconciliation Twelve Months Ended December 31, 2018 ExGen ComEd PECO BGE PHI Other Exelon 2018 GAAP Earnings (Loss) Per Share $0.38 $0.69 $0.47 $0.32 $0.41 ($0.20) $2.07 Mark-to-market impact of economic hedging activities 0.25 - - - - 0.01 0.26 Unrealized losses related to NDT fund
Slide 70: Q4 YTD GAAP EPS Reconciliation (continued)
Q4 YTD GAAP EPS Reconciliation (continued) Twelve Months Ended December 31, 2017 ExGen ComEd PECO BGE PHI Other Exelon 2017 GAAP Earnings (Loss) Per Share(1) $2.86 $0.60 $0.46 $0.32 $0.38 ($0.63) $3.99 Mark-to-market impact of economic hedging activities 0.11 - - - - - 0.11 Unrealized gains related
Slide 71: Projected GAAP to Operating Adjustments
Projected GAAP to Operating Adjustments • Exelon’s projected 2019 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: − Mark-to-market adjustments from economic hedging activities; − Unrealized gains and losses from NDT funds to the extent not offset by contractual
Slide 72: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) (2) Exelon FFO/Debt = FFO (a) Adjusted Debt (b) Exelon FFO Calculation(2) GAAP Operating Income + Depreciation & Amortization = EBITDA - GAAP Interest Expense +/- GAAP Current Income Tax (Expense)/Benefit + Nuclear Fuel Amortization +/- GAAP to Operating Adjustmen
Slide 73: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) ExGen Debt/EBITDA = Net Debt (a) ExGen Debt/EBITDA = Net Debt (c) Operating EBITDA (b) Excluding Non-Recourse Operating EBITDA (d) ExGen Net Debt Calculation ExGen Net Debt Calculation Excluding Non-Recourse Long-Term Debt (including current maturities) Long-Term
Slide 74: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Legacy Consolidated Q4 2018 Operating ROE Reconciliation ($M) ACE Delmarva Pepco EXC EU Net Income (GAAP) $75 $120 $210 $1,437 $1,842 Operating Exclusions $1 $5 $19 $7 $32 Adjusted Operating Earnings $76 $125 $229 $1,444 $1,874 Average Equity $1,084 $1,422 $2,636 $14
Slide 75: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2019 Adjusted Cash from Ops Calculation ($M)(1) BGE ComEd PECO PHI ExGen Other Exelon Net cash flows provided by operating activities (GAAP) $700 $1,425 $850 $1,125 $4,200 ($225) $8,050 Other cash from investing activities - - - - ($275) - ($275) Counterparty collate
Slide 76: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ExGen Adjusted O&M Reconciliation ($M)(1) 2018 2019 2020 2021 2022 GAAP O&M $5,475 $5,025 $4,925 $4,825 $4,850 Decommissioning(2) 50 50 50 50 50 Oyster Creek Retirement(4) (100) - - - - Direct cost of sales incurred to generate revenues for certain Constellation and