Slide 1: Earnings Conference Call 3rd Quarter 2008
EXHIBIT 99.2 Earnings Conference Call 3rd Quarter 2008 October 24, 2008
Slide 2: Forward-Looking Statements
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 statem
Slide 3: Strong Cash Flows and Value Return
Strong Cash Flows and Value Return Announcing 5% increase in annual $6,000 dividend to $2.10 $2.50 Maintaining Focus in Challenging Times $5,000 $2.00 Operate well $4,000 Maintain sufficient liquidity $1.50 Limit risk $3,000 $1.00 Manage the political/regulatory $2,000 environment $0.50 $1,000 $0 $0
Slide 4: Key Financial Messages
Key Financial Messages Q3 operating results of $1.07/share powered by strong Generation fundamentals: Nuclear capacity factor of 97.2% 12% increase in average realized energy margins in 3Q08 compared to 3Q07 Diversified and well-managed counterparty exposure – no single counterparty represented more
Slide 5: Exelon Operating EPS
Exelon Operating EPS 3rd Quarter (Q3) Year-to-Date (YTD) $1.21 $3.31 $0.17 $3.13 $0.10 $1.07 $0.17 $0.05 $0.58 $0.37 $0.25 $0.14 $2.67 $2.66 $0.90 $0.92 ComEd PECO ExGen HoldCo/Other 2007 2008 2007 2008 $1.15 $1.06 GAAP EPS $3.20 $3.06 Lower operating earnings at ComEd and PECO more than offset high
Slide 6: Exelon Generation Operating EPS Contribution
Exelon Generation Operating EPS Contribution Key Drivers – Q3 ’08 vs. Q3 ’07* Favorable portfolio/market conditions $2.67 $2.66 +$0.08 Nuclear volume +$0.02 Higher O&M costs, reflecting both inflationary pressures and other O&M costs – ($0.04) Reserve associated with Lehman bankruptcy – ($0.02) $0.9
Slide 7: Exelon Generation Has Limited Counterparty Exposure
Exelon Generation Has Limited Counterparty Exposure Net Exposure After Credit Collateral (1) Net Exposure by Type of Counterparty (1) (in millions) Investment grade $582 Non-investment grade 59 Coal No external ratings 42 Producers 13% Total $683 Investor-Owned Utilities, Marketers, and Power Produc
Slide 8: ComEd Operating EPS Contribution
ComEd Operating EPS Contribution Key Drivers – Q3 ’08 vs. Q3 ’07* $0.17 $0.17 Weather – ($0.03) Write-offs associated with final distribution rate order – ($0.02) Uncollectible accounts expense – $0.10 ($0.02) Transmission revenues +$0.01 $0.05 3Q YTD 2007 2008 *Refer to the Earnings Release Attachm
Slide 9: PECO Operating EPS Contribution
PECO Operating EPS Contribution Key Drivers – Q3 ’08 vs. Q3 ’07* $0.58 Uncollectible accounts expense – ($0.04) 2007 reduction in reserve for property taxes – ($0.03) $0.37 Weather – ($0.02) $0.25 CTC amortization – ($0.02) $0.14 3Q YTD 2007 2008 *Refer to the Earnings Release Attachments for additi
Slide 10: Well-Positioned in These Challenging Times
Well-Positioned in These Challenging Times Exelon Position World-class nuclear operations – 94% capacity factor YTD 2008 Constructive rate cases at ComEd and PECO Final ComEd rate order provides for $273.6 million increase in annual Strong Operations distribution revenues PAPUC approval of PECO gas
Slide 11: Generating Strong Cash Flows from Operations…
Generating Strong Cash Flows from Operations… 2008 Projected Sources and Uses of Cash $ Millions Exelon Our operations are expected to Cash Flow from Operations (1) $5,200 generate over $5 billion of cash Capital Expenditures ($3,250) flow this year Net Financing (excluding Dividend)(2) ($500) 2008
Slide 12: …with Sufficient Liquidity…
…with Sufficient Liquidity… Available Capacity Under Bank Facility as of October 20, 2008 ($ in Millions) Exelon (3) Aggregate Bank Commitments(1) $952 $574 $4,834 $7,317 Outstanding Facility Draws ($160) -- -- ($160) Outstanding Letters of Credit ($166) -- ($175) ($347) Available Capacity Under Fac
Slide 13: …and Minimal Debt Maturities
…and Minimal Debt Maturities $600 4Q2008 - FY2009 Debt Maturities $29 $500 No debt maturities $400 remaining in 2008 Excluding securitization $300 debt, only $29 million of $495 debt maturities in 2009 $483 $200 $100 Securitized Nonsecuritized $17 $12 $12 $0 Exelon ComEd PECO Exelon Generation Note:
Slide 14: Appendix
Appendix Exelon 14
Slide 15: ComEd and PECO Facing Lower than Forecasted Load Growth
ComEd and PECO Facing Lower than Forecasted Load Growth Residential Load Growth Statistics ComEd PECO Q3 YTD Q3 YTD Customer Growth 0.3% 0.7% 0.5% 0.4% Utilization (UPC Growth) (1.1%) 0.1% 1.9% 2.1% Weather (9.0%) (4.9%) (4.7%) (3.7%) Change in Residential Deliveries (9.8%) (4.1%) (2.3%) (1.2%) ComE
Slide 16: Constructive Outcome in ComEd Distribution Rate Case
Constructive Outcome in ComEd Distribution Rate Case The ICC issued a final Order in ComEd’s distribution rate case – granting a revenue increase of $273.6 million that took effect on September 16, 2008: ComEd Impact on Original Revenue ($ in millions) Request ICC Order Increase Rate Base $7,071 $6,
Slide 17: Market Price Snapshot
Market Price Snapshot Rolling 12 months, as of October 20, 2008. Source: OTC quotes and electronic trading system. Quotes are daily. 12 150 Forward NYMEX Natural Gas Forward NYMEX Coal 11.5 140 11 130 10.5 120 2010 $81.25 10 110 9.5 100 9 90 8.5 80 8 2010 $7.83 70 2011 $76.50 7.5 2011 $7.83 60 7 50
Slide 18: Market Price Snapshot
Market Price Snapshot Rolling 12 months, as of October 20, 2008. Source: OTC quotes and electronic trading system. Quotes are daily. 12 100 Houston Ship Channel Natural Gas ERCOT North On-Peak Forward Prices 11.5 Forward Prices 95 11 10.5 90 10 85 9.5 80 2011 $65.97 9 2011 $7.50 8.5 75 8 70 2010 7.5
Slide 19: Large and Diverse Bank Group
Large and Diverse Bank Group Banks Committed to Exelon’s Facilities (1) • Bank of America, N.A. / Merrill Lynch USA(2) • UBS Loan Finance LLC • The Royal Bank of Scotland PLC (RBS) • The Bank of New York / Mellon Bank, N.A. • Barclays Bank PLC • Mizuho Corporate Bank, LTD • JP Morgan Chase Bank, N.A
Slide 20: Projected 2008 Key Credit Measures
Projected 2008 Key Credit Measures Moody’s S&P Credit With PPA & Pension Without PPA & Credit / OPEB (1) Pension / OPEB (2) Ratings (3) Ratings (3) Exelon FFO / Interest 5.4x 6.7x Baa1 BBB- Consolidated: FFO / Debt 28% 38% Rating Agency Debt Ratio 69% 64% ComEd: FFO / Interest 3.1x 2.9x Baa2 BBB+ FF
Slide 21: FFO Calculation and Ratios
FFO Calculation and Ratios FFO Calculation FFO Interest Coverage Net Income FFO + Adjusted Interest Add back non-cash items: Adjusted Interest + Depreciation, amortization(including nucl fuel amortization),AFUDC/Cap. Interest Net Interest Expense (Before AFUDC & Cap. Interest) + Change in Deferred T
Slide 22: Q3 GAAP EPS Reconciliation
Q3 GAAP EPS Reconciliation Three Months Ended September 30, 2007 ExGen ComEd PECO Other Exelon 2007 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $0.90 $0.10 $0.25 ($0.04) $1.21 2007 Illinois Electric Rate Settlement (0.12) - - - (0.12) Investments in synthetic fuel-producing facilities -
Slide 23: YTD GAAP EPS Reconciliation
YTD GAAP EPS Reconciliation Nine Months Ended September 30, 2007 ExGen ComEd PECO Other Exelon 2007 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $2.67 $0.17 $0.58 $(0.11) $3.31 Mark-to-market adjustments from economic hedging activities (0.12) - - - (0.12) 2007 Illinois Electric Rate Sett