Exelon Corporation · NASDAQ:EXC
Exelon — Investor Day (August 2016)
171 slides from Exelon's investor day presentation, Aug 10, 2016
Slide 1: Exelon: Building Enduring Value
Exhibit 99.1 Exelon Building Enduring Value
Slide 2: Welcome and Agenda
Welcome and Agenda Dan Eggers Senior Vice President, Investor Relations
Slide 3: 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 4: 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 a
Slide 5: 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 6: Agenda
Agenda Time (ET) Presentation Topic Presenter Total Time 8:45 – 8:50 Welcome & Introductions Dan Eggers 5 minutes 8:50 – 9:10 Exelon Overview Chris Crane 20 minutes 9:10 – 10:25 Exelon Utilities Denis O’Brien Anne Pramaggiore Calvin Butler Craig Adams Dave Velazquez Q&A 75 minutes 10:25 – 10:40 BREA
Slide 7: Exelon Overview
Exelon Overview Chris Crane President & Chief Executive Officer
Slide 8: Exelon: An Industry Leader
Exelon: An Industry Leader Note: All numbers reflect year-end 2015; 2015 revenue number is Exelon and PHI combined
Slide 9: The Exelon Value Proposition
The Exelon Value Proposition Regulated Utility Growth with utility EPS rising 7-9% annually from 2016-2020 and rate base growth of 6.1%, representing an expanding majority of earnings ExGen’s strong free cash generation will support utility growth while also reducing debt by ~$3B over the next 5 yea
Slide 10: Capital Investment Concentrated on Exelon Utilities
Capital Investment Concentrated on Exelon Utilities Note: ExGen reflects cash capital expenditures with CENG at 100% and excludes Nuclear Fuel and merger commitments Cumulative Capital Expenditures 2016-2020 ($B) Utilities make up ~80% of capital investment from 2016-2020
Slide 11: Driving Strong Rate Base Growth
Driving Strong Rate Base Growth Exelon Utilities Rate Base 2012-2020 ($B) Exelon Utilities delivering strong rate base growth of 6.1% annually over planning period Note: All numbers denote year-end rate base and may not add due to rounding
Slide 12: Exelon Utilities EPS Growth of 7-9% to 2020
Exelon Utilities EPS Growth of 7-9% to 2020 $1.60 $1.50 $1.15 Utility Adjusted Operating Earnings Rate base growth combined with PHI ROE improvement drives EPS growth $1.35 Note: Reflects GAAP operating earnings except for 2016. 2016 GAAP EPS range would be $0.65 to $0.95. 2016 adjusted (non-GAAP) o
Slide 13: ExGen's Strong Free Cash Flow Supports Utility Growth and Debt Reduction
ExGen’s Strong Free Cash Flow Supports Utility Growth and Debt Reduction 2016-2020 Exelon Generation Free Cash Flow(1,2,3) and Uses of Cash ($B) Free Cash Flow is a non-GAAP Measure. See slide 168 for a reconciliation of free cash flow to the most comparable GAAP measures. Cumulative Free Cash Flow
Slide 14: Taking Steps to Improve ExGen's Earnings Consistency
Taking Steps to Improve ExGen’s Earnings Consistency Improving Our Generation to Load Match Impact of State Nuclear Outcomes(1) Locked-in PJM Capacity Revenues(3) Opportunistically Monetize Assets New York: $0.08-0.10 per share annually and ~$350M in additional after-tax cash(2) through 2020 from im
Slide 15: Maintaining Investment Grade Credit Ratings is a Top Financial Priority
Maintaining Investment Grade Credit Ratings is a Top Financial Priority Current Ratings (2)(3) ExCorp ExGen ComEd PECO BGE ACE DPL Pepco Moody’s Baa2 Baa2 A2 Aa3 A3 A3 A2 A2 S&P BBB- BBB A- A- A- A A A Fitch BBB+ BBB A- A A- A- A A- Due to ring-fencing, S&P deconsolidates BGE from Exelon and analyze
Slide 16: Delivering Value Through Capital Allocation Policy
Delivering Value Through Capital Allocation Policy Our strong balance sheet underpins our capital allocation policy and capital decisions are made to maximize value to our customers and shareholders We are returning capital to shareholders by growing our dividend, targeting 2.5% annual increases thr
Slide 17: Diverging Paths for Economically Challenged Nuclear Plants
Diverging Paths for Economically Challenged Nuclear Plants Source: January 5, 2015 Response to the IL General Assembly Concerning House Resolution 1146 prepared by Illinois Commerce Commission, Illinois Power Agency, Illinois Environmental Protection Agency, and Illinois Department of Commerce and E
Slide 18: Fostering a Culture of Innovation
Fostering a Culture of Innovation
Slide 19: Exelon Utilities
Exelon Utilities Denis O’Brien Chief Executive Officer, Exelon Utilities
Slide 20: Exelon Utilities Overview
Exelon Utilities Overview Note: Rate base number is Exelon and PHI combined and denotes year-end
Slide 21: Exelon Utilities is an Industry Leader
Exelon Utilities (EU) is an Industry Leader Total Utility Rate Base ($B) Total Regulated Capital Expenditures 2016-2018 ($B) US Utility Customers (millions) Source: Company Filings Note: Denotes 2015 year end rate base figures. Exelon figures include PHI.
Slide 22: Deploying Significant Capital for Our Customers
Deploying Significant Capital for Our Customers Capital Expenditures 2012-2020 ($M) More than $25B of capital is being invested in utilities from 2016-2020 Note: Numbers rounded to nearest $25M; Numbers may not add due to rounding; 2012 Includes a full year of capital spend for BGE; 2016 includes a
Slide 23: Driving Strong Rate Base Growth
Driving Strong Rate Base Growth Exelon Utilities Rate Base 2012-2020 ($B) Exelon Utilities delivering strong rate base growth of 6.1% annually over planning period Note: All numbers denote year-end rate base and may not add due to rounding
Slide 24: Formulaic Mechanisms Cover Bulk of Rate Base Growth
Formulaic Mechanisms Cover Bulk of Rate Base Growth 10.8 2.6 Of the approximately $10.8 billion of rate base growth Exelon Utilities forecast over the next 5 years, more than 70% will be recovered through existing formula and tracker mechanisms Rate Base Growth Breakout 2016-2020 ($B) 7.8 2.9 (1) As
Slide 25: Exelon Utilities EPS Growth of 7-9% to 2020
Exelon Utilities EPS Growth of 7-9% to 2020 $1.60 $1.50 $1.15 Utility Adjusted Operating Earnings Rate base growth combined with PHI ROE improvement drives EPS growth $1.35 Note: Reflects GAAP operating earnings except for 2016. 2016 GAAP EPS range would be $0.65 to $0.95. 2016 adjusted (non-GAAP) o
Slide 26: Proven Track Record of Improving Operational Performance
Proven Track Record of Improving Operational Performance Operations Metric At CEG Merger (2012) 2015 2015 BGE PECO ComEd BGE PECO ComEd PHI Electric Operations OSHA Recordable Rate 2.5 Beta SAIFI (Outage Frequency) 2.5 Beta CAIDI (Outage Duration) Customer Operations Customer Satisfaction N/A Servic
Slide 27: BGE: A Proven Track Record of Enhancing Utility Value
BGE: A Proven Track Record of Enhancing Utility Value Note: 2012 ROE normalized by excluding one-time $112M rate credit as part of EXC-CEG merger. For a reconciliation of operating ROE, which is derived from adjusted operating earnings, which is a non-GAAP measure please refer to slide 171 in the ap
Slide 28: Wide Gaps in Earned vs Allowed Distribution ROEs at PHI
Wide Gaps in Earned vs Allowed Distribution ROEs at PHI (2) (2) 2015 Earned ROE(1) Significant opportunity for earned ROE improvement at PHI Utilities Impact of a 50 bps increase in Earned Distribution ROE on Operating Earnings Pepco - MD Pepco - DC DPL – DE Electric DPL - MD DPL – DE - Gas ACE - NJ
Slide 29: Near-Term PHI Regulatory Strategy
Near-Term PHI Regulatory Strategy 6 distribution rate case filings and 3 transmission formula rate filings completed, seeking $465M total revenue increase Rate cases include various initiatives including grid resiliency programs, economic incentive tariffs, and a Pay as You Go pre-paid metering prog
Slide 30: Long-Term PHI Regulatory Opportunity
Long-Term PHI Regulatory Opportunity Pursuing Existing Mechanisms Legislative Initiatives Pursuing alternative rate recovery mechanisms for significant capital investment programs: PowerAhead resiliency program of $176 million included in NJ rate case Continuation of Grid Resiliency Program of $40 m
Slide 31: Exelon Employees Support Their Communities
Exelon Employees Support Their Communities Note: Legacy Exelon data only
Slide 32: ComEd
ComEd Anne Pramaggiore President & Chief Executive Officer, ComEd
Slide 33: ComEd Overview
ComEd Overview Note: Equity Ratio for distribution only. Rate base number denotes year-end.
Slide 34: ComEd Capital Expenditure Forecast
Note: Numbers rounded to nearest $25M and may not add due to rounding ComEd Capital Expenditure Forecast Capital Expenditures 2012-2020 ($M) ~$10B of Capital being invested from 2016-2020
Slide 35: Energy Infrastructure Modernization Act (EIMA)
In October 2011, the Illinois General Assembly enacted the Energy Infrastructure Modernization Act (EIMA), setting in motion a $2.6 billion, ten-year investment by ComEd to strengthen and modernize the state’s electric grid Investment Plan had two primary components: Reliability-Related Investments
Slide 36: EIMA Investments
EIMA Investments ComEd System SAIFI (IEEE Standard) Frequency EIMA Begins 800 storm hardening and grid resiliency engineering solutions completed 6,700 avoided underground cable faults and 1 million avoided customer interruptions 43% improvement in SAIFI compared to 2011 Significant improvement in s
Slide 37: Substation/Resiliency & Grand Prairie Gateway Investments
Substation/Resiliency & Grand Prairie Gateway Investments Includes proactive replacement of substation power transformers, breakers, relays, transmission underground cable and pumping plants, rebuilding overhead lines and replacing wood structures with more resilient steel Projected spend of ~$825M
Slide 38: ComEd Rate Base Growth
ComEd Rate Base Growth Rate Base 2012-2020 ($B) ComEd Rate Base Growing at 4.8% CAGR from 2016-2020 Note: All numbers denote year-end rate base and may not add due to rounding
Slide 39: Formula Rate Mechanism Covers All Rate Base Growth
Formula Rate Mechanism Covers All Rate Base Growth Of the approximately $4.2 billion of rate base growth at ComEd over the next 5 years, we will seek 100% recovery through existing formula mechanisms Rate Base Additions Breakdown 2016-2020 ($B)(1) Tracker/Formula Rate Recovery Mechanisms Electric Di
Slide 40: ComEd Operational Performance
ComEd Operational Performance Secured passage of the Energy Infrastructure Modernization Act (EIMA) in 2011, ComEd has consistently delivered continuous operational improvement Delivered best on record performance in safety in 2015; recognized as one of America’s Safest Companies in 2015 by Environm
Slide 41: Utility of the Future
Utility of the Future 1 2 3 Customers are increasingly digital Climate change is requiring action Technology innovation is accelerating Customer segments of “one” Pervasive connectivity Installation base of solar is growing Costs of solar/ storage are declining Clean energy legislation (renewables,
Slide 42: Utility of the Future framework
Build and maintain the distribution grid on time, on budget, and with optimal reliability Enable a liquid, efficient, and transparent exchange for commodity transactions Transactive commodity exchange Plan, operate and maintain an evolving, open, & reliable system at the lowest total cost over the m
Slide 43: Utility of the Future – Projects
Utility of the Future – Projects Community of the Future Infrastructure Convergence AMI Water Meters Smart Streetlights
Slide 44: Utility of the Future – Projects
Utility of the Future – Projects Superconductor Energy Marketplace
Slide 45: BGE
BGE Calvin Butler Chief Executive Officer, BGE
Slide 46: BGE Overview
BGE Overview Note: Rate base number denotes year-end
Slide 47: BGE 200th anniversary
BGE celebrated its 200th anniversary as the first gas utility in the country and our continued position as an innovator and regional force
Slide 48: BGE Capital Expenditure Forecast
Note: Numbers rounded to nearest $25M and may not add due to rounding BGE Capital Expenditure Forecast Capital Expenditures 2012-2020 ($M) $4.5B of Capital being invested from 2016-2020
Slide 49: Northeast Transmission System Improvement (NETSI) Project
Northeast Transmission System Improvement (NETSI) Project Key Facts Driver: PJM identified thermal overloads based on NERC/PJM planning criteria during the Regional Transmission Expansion Planning (RTEP) process in 2009 and 2010 on the Graceton to Bagley 230 kV circuit and the Bagley to Raphael Road
Slide 50: Strategic Infrastructure Development and Enhancement (STRIDE)
Strategic Infrastructure Development and Enhancement (STRIDE) Key Facts Project: BGE’s gas system infrastructure replacement plan is projected to be completed over a 30 year period and includes the accelerated replacement of five classes of assets: all pre-1982 plastic “Ski-Bar” service risers (13,1
Slide 51: BGE Rate Base Growth
BGE Rate Base Growth Rate Base 2012-2020 ($B) BGE Rate Base growing at 7.4% CAGR from 2016-2020 6.2 Note: All numbers denote year-end rate base and may not add due to rounding
Slide 52: Formulaic Mechanisms Cover Half of Rate Base Growth
Formulaic Mechanisms Cover Half of Rate Base Growth Of the approximately $2 billion of rate base growth at BGE over the next 5 years, ~50% will be recovered through existing formula and tracker mechanisms BGE Rate Base Additions Breakdown 2016-2020 ($B) 1.0 1.0 Base Rate Case Recovery Mechanism Elec
Slide 53: BGE Operational Performance
BGE Operational Performance Since the merger in 2012, BGE has dramatically improved all aspects of operational performance Top decile safety performance for employee safety Top decile performance in gas odor response Top quartile in operating performance for electric reliability (frequency of interr
Slide 54: PECO
PECO Craig Adams President & Chief Executive Officer, PECO
Slide 55: PECO Overview
PECO Overview Note: Rate base number denotes year-end
Slide 56: PECO Capital Expenditure Forecast
Note: Numbers rounded to nearest $25M PECO Capital Expenditure Forecast Capital Expenditures 2012-2020 ($M) Growth in Capex driven primarily by investments in electric reliability and acceleration of gas pipeline replacement program Note: Numbers rounded to nearest $25M and may not add due to roundi
Slide 57: Accelerated Gas Pipeline Replacement Program
Accelerated Gas Pipeline Replacement Program Key Facts Scope: Accelerating Gas Pipeline Replacement Program from 88 year program in 2010 to 20 year program Cost: Increase in annual pipeline replacement capex from $18M in 2009 to $102M in 2020. Qualifies for Tax Repairs benefits. Recovery Mechanism:
Slide 58: Electric System 2020 Plan
Electric System 2020 Plan Key Facts Scope: 5 year LTIIP plan focused on enhancing storm hardening and addressing aging infrastructure Underground Cable Replacement Storm Hardening Programs Substation Upgrades Budgeted Cost: $275 million Regulatory Approval: Filed LTIIP on March 27, 2015 (with Electr
Slide 59: Post Substation, Marcus Hook, PA
Post Substation, Marcus Hook, PA Key Facts Scope: Construct new 220kV-13kV, 62MVA Triplex substation in Marcus Hook PA. Budgeted Cost: $43.3 million Recovery Mechanism: Base rates In Service Dates: (220kV ring bus- 5/27/16) (13kV Bus #3 & Bus #2- 9/1/16) Benefits: Provides electric capacity necessar
Slide 60: PECO Rate Base Growth
PECO Rate Base Growth Rate Base 2012-2020 ($B) PECO Rate Base growing at 6.7% CAGR from 2016-2020 Note: All numbers denote year-end rate base and may not add due to rounding
Slide 61: Recovery Mechanisms Evolving to be More Formulaic
Recovery Mechanisms Evolving to be More Formulaic Of the approximately $2 billion of rate base growth at PECO over the next 5 years, ~60% will be recovered through existing formula and tracker mechanisms Rate Base Additions Breakdown 2016-2020 ($B) 1.2 0.8 Base Rate Case Recovery Mechanism Electric
Slide 62: PECO Operational Performance
PECO Operational Performance Forbes named PECO Best Employer in the Nation in the Midsize Utility category Four-time recipient of the ENERGY STAR Partner of the Year Award from the U.S. Environmental Protection Agency Celebrated Leadership in Energy & Environmental Design (LEED) certification of 12
Slide 63: Pepco Holdings
Pepco Holdings Dave Velazquez President & Chief Executive Officer, Pepco Holdings
Slide 64: Pepco Holdings Overview
Pepco Holdings Overview Note: All-time peak load is the sum of peak load at each PHI utility. Rate base number denotes year-end.
Slide 65: Pepco Holdings Capital Expenditure Forecast
Note: Numbers rounded to nearest $25M and may not add due to rounding Pepco Holdings Capital Expenditure Forecast Capital Expenditures 2016-2020 ($M) $7B of Capital being invested from 2016-2020
Slide 66: PHI Reliability Commitments and Investment
PHI Reliability Commitments and Investment Merger agreements in all jurisdictions contain commitments to continue to improve reliability They also contain projected capital expenditures needed to meet those commitments Represents ~49% of total PHI distribution spending that is to be recovered throug
Slide 67: Pepco – Waterfront Substation
Key Facts Project: Project consists of constructing a new 230kV/138kV/13kV substation with an initial firm capacity of 140 MVA and an ultimate capacity of 350 MVA; installing 3 new underground transmission feeders 0.25 mile from Buzzard Pt Substation; and installing the initial 12 out of 72 feeders
Slide 68: DPL – Transmission Upgrades
DPL – Transmission Upgrades Key Facts – Piney Grove to Wattsville Project: New 30.9 mile 138kV line from Piney Grove Sub to Wattsville Sub, built as double circuit along with Circuit 6712 (Kenney to Wattsville Substations) and with rebuild of existing 69kV Circuit 6729 (Piney Grove to Kenney Substat
Slide 69: ACE – Transmission Upgrades
Key Facts Project: RTEP Projects to rebuild ~ 50 miles of transmission lines, modification of 7 substations, expansion of 3 substations and a rebuild of 1 substation Cost: $163 million Recovery Mechanism: Transmission portion will be recovered through ACE's FERC regulated transmission rate. Current
Slide 70: Pepco Holdings Rate Base Growth
Pepco Holdings Rate Base Growth PHI Rate Base growing at 6.6% CAGR from 2016-2020 Rate Base 2016-2020 ($B) Note: All numbers denote year-end rate base and may not add due to rounding
Slide 71: Rate Base Growth by Mechanism
Rate Base Growth by Mechanism Of the approximately $2.7 billion of rate base growth at PHI over the next 5 years, ~52% will be recovered through existing formula and tracker mechanisms Rate Base Additions Breakdown 2016-2020 ($B) 1.4 1.3 Base Rate Case Recovery Mechanism Electric and Gas Distributio
Slide 72: Integration Update
Integration Update Since merger close, we have been executing integration plans, which include standardizing processes to the Exelon management model, complying with merger commitments, and early capture of synergy value. Below are highlights: Completed 100% of Day 1-100 requirement; now focus is on
Slide 73: Utility Appendix
Utility Appendix = Exelon.
Slide 74: Exelon Regulatory Jurisdictions
Exelon Regulatory Jurisdictions The District of Columbia PSC allows rates to be developed using a partially forecasted test period. The Company is required to update the test period to actual within 180 days of the completion of the rate proceeding The statutory deadline for NJBPU decisions has not
Slide 75: Exelon Utilities Distribution Rate Case Schedule
Q1 2016 Q2 2016 Q3 2016 ACE Electric Distribution Rates ComEd Electric Distribution Formula Rate Q4 2016 Pepco Electric Distribution Rates - DC Delmarva Electric and Gas Distribution Rates - DE Delmarva Electric Distribution Rates - MD Pepco Electric Distribution Rates - MD Exelon Utilities Distribu
Slide 76: BGE Rate Case
BGE Rate Case Electric Gas Docket # 9406 Test Year December 2014 – November 2015 Common Equity Ratio 51.9% Authorized Returns ROE: 9.75%; ROR: 7.28% ROE: 9.65%; ROR: 7.23% Requested Rate of Return 7.95% 7.90% Rate Base $2.9B $1.2B Revenue Requirement Increase $41.7M $47.8M Distribution Increase as %
Slide 77: ACE Electric Distribution Rate Case
ACE Electric Distribution Rate Case Docket # ER16030252 Test Year 2015 Calendar Year Test Period 12 months actual Requested Common Equity Ratio 49.5% Requested Rate of Return ROE: 10.60%; ROR: 8.06% Proposed Rate Base (Adjusted) $1.3B Requested Revenue Requirement Increase (Updated on May 10, 2016)
Slide 78: ComEd April 2016 Distribution Formula Rate
ComEd April 2016 Distribution Formula Rate Docket # 16-0259 Filing Year 2015 Calendar Year Actual Costs and 2016 Projected Net Plant Additions are used to set the rates for calendar year 2017. Rates currently in effect (docket 15-0287) for calendar year 2016 were based on 2014 actual costs and 2015
Slide 79: Pepco MD Electric Distribution Rate Case
Pepco MD Electric Distribution Rate Case Case No. 9418 Test Year 2015 Calendar Year Test Period 12 months actual Requested Common Equity Ratio 49.6% Requested Rate of Return ROE: 10.60%; ROR: 8.01% Proposed Rate Base (Adjusted) $1.8B Requested Revenue Requirement Increase (Updated on May 27, 2016) $
Slide 80: DPL DE (Electric) Distribution Rate Case
DPL DE (Electric) Distribution Rate Case Docket # 16-0649 Test Year 2015 Calendar Year Test Period 12 months actual Requested Common Equity Ratio 49.4% Requested Rate of Return ROE: 10.60%; ROR: 7.19% Proposed Rate Base (Adjusted) $846M Requested Revenue Requirement Increase $62.8M(1) Residential To
Slide 81: DPL DE (Gas) Distribution Rate Case
DPL DE (Gas) Distribution Rate Case Docket # 16-0650 Test Year 2015 Calendar Year Test Period 12 months actual Requested Common Equity Ratio 49.4% Requested Rate of Return ROE: 10.60%; ROR: 7.19% Proposed Rate Base (Adjusted) $362M Requested Revenue Requirement Increase $21.5M(1) Residential Total B
Slide 82: Pepco DC Distribution Rate Case
Pepco DC Distribution Rate Case Formal Case No. 1139 Test Year April 1, 2015 – March 31, 2016 Test Period 12 months actual Requested Common Equity Ratio 49.14% Requested Rate of Return ROE: 10.60%; ROR: 8.00% Proposed Rate Base (Adjusted) $1.8B Requested Revenue Requirement Increase $85.5M Residenti
Slide 83: DPL MD Distribution Rate Case
DPL MD Distribution Rate Case Case No. 9424 Test Year April 1, 2015 – March 31, 2016 Test Period 12 months actual Requested Common Equity Ratio 49.1% Requested Rate of Return ROE: 10.60%; ROR: 7.24% Proposed Rate Base $744M Requested Revenue Requirement Increase $66.2M Residential Total Bill % Incre
Slide 84: Pepco Holdings Capital Expenditures
Pepco Holdings Capital Expenditures Note: Numbers rounded to nearest $25M and may not add due to rounding
Slide 85: Pepco Holdings Rate Base Outlook
Note: All numbers denote year-end rate base and may not add due to rounding Pepco Holdings Rate Base Outlook Electric Distribution Electric Transmission Gas Delivery
Slide 86: Exelon Utilities Load
BGE Exelon Utilities Load ComEd Baltimore GMP 1.1% Baltimore Unemployment 4.3% PECO 2016 load growth is driven by improving economic conditions coupled with solid Residential customer growth, partially offset by weak Non-Petroleum sector Industrial sales & EE Philadelphia GMP 1.6% Philadelphia Unemp
Slide 87: Exelon Utilities Load (cont'd)
Pepco Exelon Utilities Load (cont’d) Delmarva C&I ACE 2016E 2015 2016 load is driven by the impacts of energy efficiency and continued economic weakness, partially offset by improving customer growth driven by improvement in economic conditions outside of Atlantic City 2016 load is driven by the imp
Slide 88: Utility Capital Spend Profile (2016–2020)
Utility Capital Spend Profile (2016–2020) (1) Assumes renewal of ComEd formula rate in 2019 (2) Assumes PECO FERC transmission formula rate beginning in 2018 Of the approximately $25 billion of capital Exelon Utilities is expected to spend over the next 5 years, 60% will be recovered through existin
Slide 89: Exelon's Policy Priorities
Exelon’s Policy Priorities Bill Von Hoene Senior Executive Vice President & Chief Strategy Officer Kathleen Barrón Senior Vice President Federal Regulatory Affairs and Wholesale Market Policy
Slide 90: Exelon Policy Priorities
Exelon Policy Priorities Create support for current challenged plants through federal and state initiatives Support the ultimate pricing of carbon in the market on a national level Modernize Utility Ratemaking to Ensure Appropriate Recovery Secure Proper Policies to Enable Innovative Technologies Re
Slide 91: Our Carbon Policy Principles
Our Carbon Policy Principles Exelon believes in our nation’s ability to transition the generation fleet to a zero-carbon future while maintaining affordable and reliable electric service for consumers For the foreseeable future, the most cost-effective carbon solution for our customers will be the c
Slide 92: Existing Nuclear is the Most Cost Effective Zero Carbon Choice
Existing Nuclear is the Most Cost Effective Zero Carbon Choice Carbon Price Needed (1) $16 <$20 $54 $58 $121 $286 (1) $/MWh above-market converted to carbon price needed using PJM marginal emission rate of 1,590 lbs/MWh Estimated Carbon Price Needed to Preserve Existing Nuclear, Coal to Gas Redispat
Slide 93: New York Zero Emission Credit Program Mechanics
New York Zero Emission Credit Program Mechanics Pricing for each tranche to be administratively determined based on the USIWG Social Cost of Carbon (escalating over the term), less a fixed baseline for carbon pricing already captured through the RGGI program ($10.41/short ton) Tranche 1 yields $17.4
Slide 94: ZECs are Like Renewable Energy Credits
Zero Emission Credits (ZECs) are Like Renewable Energy Credits (RECs) Both credits are for environmental attributes to meet a state environmental goal While legal challenges are likely, we believe that ZECs, like RECs, will withstand legal challenge: No affiliate contracts (Ohio) No attempt to alter
Slide 95: Presidential Politics Policy Outlook
Presidential Politics Policy Outlook: Key Issues Facing the Next President Climate Change including Clean Power Plan Implementation Budget & Entitlement Reform Comprehensive Tax Reform Appointees to Supreme Court, DOE, EPA, FERC and NRC Federal Nuclear Waste Policy TRUMP CLINTON
Slide 96: Commitment to Diversity & Inclusion
Commitment to Diversity & Inclusion Exelon is focused on attracting, retaining and advancing employees who will best serve and represent our customers, partners and communities In 2015, Exelon surpassed its goals for the inclusion of diverse suppliers: Purchasing almost $1.4 billion in goods and ser
Slide 97: Exelon's Policies Priorities Appendix
Exelon’s Policies Priorities Appendix
Slide 98: Overview of New York Zero Emission Credit Program
Overview of New York Zero Emission Credit Program On August 1, the New York Public Service Commission (NY PSC) approved the New York Clean Energy Standard which creates a Zero Emission Credit (ZEC) program The objective of the program is to preserve the environmental attributes of zero-emissions nuc
Slide 99: ZEC Price Determination
ZEC Price Determination Tranche Date US SCC "Central Value" Baseline RGGI Estimate Net CO2 Externality Short Ton to MWh Adjusted SCC Zone A Reference Price Energy and Capacity Forecast Adjustment Upstate ZEC Price $ /Short Ton $ /Short Ton $ /Short Ton Conversion Factor $/MWh $/MWh $/MWh $/MWh Tranc
Slide 100: Exelon Generation Overview
Exelon Generation Overview Ken Cornew President & Chief Executive Officer, Exelon Generation
Slide 101: Exelon Generation Overview
Exelon Generation Overview #1 195 TWh Retail electricity | Customer Load provider in the Served Capacity 93.7% 98.6% Nuclear Galen elisy Gas and Hydro: Factor in 2015 DispatchyMatch in 2015 < 8th 195 TWh Largest Gas Generation Output = Provider
Slide 102: Exelon Generation is an Industry Leader
Exelon Generation is an Industry Leader Retail Load Served (TWhs)(2) Carbon Intensity (lb/MWh)(1) (3) Total Generation Output (TWh)(1) (1) Includes regulated and non-regulated generation. Source: Benchmarking Air Emissions, July 2015; http://mjbradley.com/sites/default/files/Benchmarking-Air-Emissio
Slide 103: Generation to Load Matching Model Pursued Across the Sector
2012: Exelon and Constellation Merger 2002: Constellation New Energy created from purchase of AES New Energy Gen to Load Matching Model being Pursued Across the Sector 2011: Energy Plus 2014: Dominion Retail Electric 2013: Ameren Energy Resources 2015: Duke Midwest Retail Book 2015: Champion Energy
Slide 104: The Cleanest Fleet in the Most Functional Markets
The Cleanest Fleet in the Most Functional Markets 2015 Generation Output by Fuel Type 2015 Generation Output by ISO ~90% of Exelon’s generation is carbon-free and 93% in RTOs with a capacity construct
Slide 105: Best in Class Operational Performance
Best in Class Operational Performance Nuclear Capacity Factor (1) Gas & Hydro Dispatch Match Our leading nuclear capacity factor produced 6 TWh more power than if at industry average Average Nuclear Refueling Days Wind/Solar Energy Capture (1) Includes CENG beginning in April 2014, excludes Salem an
Slide 106: Driving Cost and Capital Out of the Business
Driving Cost and Capital Out of the Business ExGen Base Capital Spend ($M)(2) ExGen Adjusted O&M Spend ($M)(1) Disciplined approach to cost management drove 2015 Nuclear fleet-wide average total generating cost of $31.58 per MWh, which is top quartile in the industry Nuclear Fuel Spend ($M) (1) Refe
Slide 107: Growth CapEx Slowing
Growth CapEx Slowing Growth Project In-Service Date Contracted Asset Blue Stem Wind 2016 Yes Albany Green Energy 2017 Yes Texas CCGTs 2017 No Michigan Wind 3 2017 Yes West Medway(2) 2018 No Exelon Generation Growth Capital Expenditures 2015-2020 ($B)(1) (1) Includes cash CapEx with CENG at 100%, exc
Slide 108: Disciplined Portfolio Management to Optimize Value
Disciplined Portfolio Management to Optimize Value Demonstrated ability to monetize assets to improve the value of Exelon Generation Opportunistically Sell Assets Sold 3,000 MWs at an average price of $600/kW – raised $1.8B (pre-tax) in asset sales in 2014 Extract Value Through Project Finance Raise
Slide 109: ExGen's Strong Free Cash Flow Supports Utility Growth and Debt Reduction
ExGen’s Strong Free Cash Flow Supports Utility Growth and Debt Reduction 2016-2020 Exelon Generation Free Cash Flow(1,2,3) and Uses of Cash ($B) Free Cash Flow is a non-GAAP Measure. See slide 168 for a reconciliation of free cash flow to the most comparable GAAP measures. Cumulative Free Cash Flow
Slide 110: Diverging Paths for Economically Challenged Nuclear Plants
Diverging Paths for Economically Challenged Nuclear Plants Source: January 5, 2015 Response to the IL General Assembly Concerning House Resolution 1146 prepared by Illinois Commerce Commission, Illinois Power Agency, Illinois Environmental Protection Agency, and Illinois Department of Commerce and E
Slide 111: Investing in Our Future Employees through STEM Education
Investing in Our Future Employees through STEM Education Exelon is making significant investments in science, technology, engineering and math (STEM) education because it is key to the success of our businesses and communities $8M to support STEM education programs in 2015 Reaching more than 150,000
Slide 112: Constellation
Constellation Joe Nigro Chief Executive Officer, Constellation
Slide 113: Constellation Overview
Constellation Overview (1) As calculated based on the same generation supply mix used in EPA eGRID 2012
Slide 114: Constellation is an Industry Leader
Constellation is an Industry Leader Non-Residential Market Share(1) Retail Electric Load Served (TWh)(1) (1) Source: DNV GL Retail Landscape April 2016. Numbers reflect annualized customer load under contract. Residential Market Share(1)
Slide 115: Load Serving Business Growing through Multiple Channels
Load Serving Business Growing through Multiple Channels Constellation remains number one in C&I load served and is number five in Residential customers served Total Load Served Volume Growth from 2014 to 2016 at 16.4% CAGR 140-150 130 100 60-70 65 55 Wholesale Load (TWh)(2) Residential Customers (in
Slide 116: Retail Gas Complements our Electric Load Serving Business
Retail Gas Complements our Electric Load Serving Business Retail Gas Volumes Projections (Bcf) Constellation has grown its gas business through disciplined M&A and strong customer retention rates Note: Volumes rounded to nearest 25 Bcf
Slide 117: Loyalty of Constellation Customers
Loyalty of Constellation Customers Constellation’s retail business has helped drive consistent earnings over the years Retail Power More than 130 TWh retail load under contract in 2015 Retail Gas More than 700 Bcf natural gas under contract in 2015 Solar 275 MW customer sited, completed or under con
Slide 118: Our Generation to Load Strategy Delivers Durable Earnings
Our Generation to Load Strategy Delivers Durable Earnings 2016 Generation Load Match (TWh)(1,2,3) High volatility: During periods of high volatility, generation availability is of utmost importance. During the polar vortex of 2014, our 2 GW of peaking capability created significant value in the ener
Slide 119: Exelon Generation Appendix
Exelon Generation Appendix
Slide 120: Nuclear Output and Refueling Outages
Nuclear Output and Refueling Outages Nuclear Refueling Cycle 2017 Planned Refueling Cycle Planned Unit Retirements Impacting Production 2018 Refueling Outage Impact All Exelon-owned units are on a 24 month cycle except: For Braidwood U1/U2, Byron U1/U2, Ginna, and Salem U1/U2, which are on 18 month
Slide 121: Additional License Extension for Peach Bottom Station
Additional License Extension for Peach Bottom Station On June 7, 2016, Exelon announced it is seeking an additional 20-year operating license for Peach Bottom from the Nuclear Regulatory Commission (NRC) The current operating licenses will expire in 2033 and 2034 If the license extensions are approv
Slide 122: Process for Decommissioning a Nuclear Plant
Process for Decommissioning a Nuclear Plant Sites must be decommissioned within 60 years of plant ceasing operations Exelon must submit a cost estimate for decommissioning the plants to the NRC within 2 years of permanent cessation of operations Within 2 years of permanent cessation of operations, E
Slide 123: Clinton and Quad Cities Nuclear Decommissioning Trust Funds
Clinton and Quad Cities Nuclear Decommissioning Trust Funds It is currently estimated that Clinton will no longer meet the NRC minimum funding requirements due to the earlier commencement of decommissioning activities and a shorter time period over which the nuclear decommissioning trust fund (NDTF)
Slide 124: CENG Operating Service Agreement Terms
Constellation Energy Nuclear Group (CENG) Operating Service Agreement Terms Nuclear Operating services agreement Integrated CENG and its 3 plants into Exelon Nuclear with transfer of operating licenses Loan to CENG and distributions to EDF/Exelon Generation CENG $400M special distribution paid to ED
Slide 125: PJM Capacity Revenues
PJM Capacity Revenues(1,2,3) (1) Revenues reflect capacity cleared in Base, CP transitional & incremental auctions and are for calendar years (2) Revenues reflect owned and contracted generation (3) Reflects 50.01% ownership at CENG (4) Volumes at ownership and rounded Revenues ($M) Capacity Price (
Slide 126: Capacity Markets: ISO-NE, NYISO, MISO
Capacity Markets: ISO-NE, NYISO, MISO ISO-NE: ISO New England; NEMA: Northeastern Massachusetts and Boston; SEMA: Southeastern Massachusetts NYISO: New York Independent System Operator Represents offered capacity at ownership AMIL: Ameren Illinois AMIL capacity price represents PRA auction clearing
Slide 127: Exelon Nuclear Fleet Overview
Exelon Nuclear Fleet Overview (including CENG and Salem) Plant Location Type/ Containment Net Generation Capacity (MW)(1) License Extension Status / License Expiration(1) Ownership Spent Fuel Storage/ Date to lose full core discharge capacity(3) Braidwood, IL (Units 1 and 2) PWR Concrete/Steel Lined
Slide 128: Exelon Oil & Gas Generation Fleet Overview
Exelon Oil & Gas Generation Fleet Overview 100%, unless otherwise indicated Oil & Gas Capacity values shown represent summer ratings as of June 2016. Net Generation Capacity (MW) is stated at proportionate ownership share. New Boston Jet (16 MW) will retire in Q4 2016 ERCOT Mid-Atlantic Station Loca
Slide 129: Exelon Renewable Generation Fleet Overview
Exelon Renewable Generation Fleet Overview ERCOT/SPP Mid-Atlantic Station Location Number of Units Primary Fuel Type Percent Owned(1) Net Generation Capacity (MW)(2) AgriWind Bureau Co., IL 4 Wind 99 8 Beebe 1A & 1B Gratiot, MI 55 Wind 131 Blue Breezes/Moore Blue Earth, MN 2 Wind 3 Cisco Jackson Co.
Slide 130: Exelon Generation Disclosures
Exelon Generation Disclosures June 30, 2016
Slide 131: Portfolio Management Strategy
Portfolio Management Strategy Protect Balance Sheet Ensure Earnings Stability Create Value Exercising Market Views % Hedged Purely ratable Actual hedge % Market views on timing, product allocation and regional spreads reflected in actual hedge % High End of Profit Low End of Profit % Hedged Open Gen
Slide 132: Components of Gross Margin
Components of Gross Margin Categories Margins move from new business to MtM of hedges over the course of the year as sales are executed(5) Margins move from “Non power new business” to “Non power executed” over the course of the year Gross margin linked to power production and sales Gross margin fro
Slide 133: ExGen Disclosures
ExGen Disclosures Gross margin categories rounded to nearest $50M Total Gross Margin (Non-GAAP) is defined as operating revenues less purchased power and fuel expense, excluding revenue related to decommissioning, gross receipts tax, Exelon Nuclear Partners, operating services agreement with Fort Ca
Slide 134: ExGen Disclosures
ExGen Disclosures Expected generation is the volume of energy that best represents our commodity position in energy markets from owned or contracted for capacity based upon a simulated dispatch model that makes assumptions regarding future market conditions, which are calibrated to market quotes for
Slide 135: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin Sensitivities Based on June 30, 2016 market conditions and hedged position; Gas price sensitivities are based on an assumed gas-power relationship derived from an internal model that is updated periodically; Power prices sensitivities are derived by adjusting the power pric
Slide 136: ExGen Hedged Gross Margin Upside/Risk
ExGen Hedged Gross Margin Upside/Risk Approximate Gross Margin ($ million)(1,2,3,4) $7,900 $7,700 $8,100 $7,150 Represents an approximate range of expected gross margin, taking into account hedges in place, between the 5th and 95th percent confidence levels assuming all unhedged supply is sold into
Slide 137: Illustrative Example of Modeling Exelon Generation 2017 Gross Margin
Illustrative Example of Modeling Exelon Generation 2017 Gross Margin Mark-to-market rounded to the nearest $5 million Total Gross Margin (Non-GAAP) is defined as operating revenues less purchased power and fuel expense, excluding revenue related to decommissioning, gross receipts tax, Exelon Nuclear
Slide 138: Additional ExGen Modeling Data
Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2016 2017 2018 Revenue Net of Purchased Power and Fuel Expense(2)(3) $8,475 $8,325 $8,175 Other Revenues(4) $(325) $(325) $(325) Direct cost of sales incurred to generate revenues for certain Constellation businesses(5) $(35
Slide 139: Financial Update
Financial Update Jack Thayer Senior Executive Vice President & Chief Financial Officer
Slide 140: Q2 2016 Financial Results
Q2 2016 Financial Results Refer to slides 158 and 159 in the appendix for additional details and to slides 163 and 164 for a reconciliation of adjusted (non-GAAP) operating EPS to GAAP EPS Amounts may not add due to rounding 2016 earnings guidance is based on expected average outstanding shares of 9
Slide 141: The Exelon Value Proposition
The Exelon Value Proposition Regulated Utility Growth with utility EPS rising 7-9% annually from 2016-2020 and rate base growth of 6.1%, representing an expanding majority of earnings ExGen’s strong free cash generation will support utility growth while also reducing debt by ~$3B over the next 5 yea
Slide 142: Aggressively Managing Costs
Aggressively Managing Costs All amounts rounded to the nearest $25M Refer to slide 169 in the appendix for a reconciliation of adjusted (non-GAAP) O&M to GAAP O&M. Utilities adjusted O&M excludes regulatory O&M costs that are P&L neutral. ExGen adjusted O&M excludes direct cost of sales for certain
Slide 143: Optimizing the Value of Our Generation Fleet
Optimizing the Value of Our Generation Fleet ZEC program in New York recognizes the value of carbon free attributes of our fleet and provides annual EPS benefit of $0.08-0.10 per share and $350M of additional after-tax cash through 2020(1) Pursuing recognition for entire fleet Retired 1,350 MWs of f
Slide 144: ExGen's Strong Free Cash Flow Supports Utility Growth and Debt Reduction
ExGen’s Strong Free Cash Flow Supports Utility Growth and Debt Reduction 2016-2020 Exelon Generation Free Cash Flow(1,2,3) and Uses of Cash ($B) Free Cash Flow is a non-GAAP Measure. See slide 168 for a reconciliation of free cash flow to the most comparable GAAP measures. Cumulative Free Cash Flow
Slide 145: Maintaining Investment Grade Credit Ratings is a Top Financial Priority
Maintaining Investment Grade Credit Ratings is a Top Financial Priority Current Ratings (2)(3) ExCorp ExGen ComEd PECO BGE ACE DPL Pepco Moody’s Baa2 Baa2 A2 Aa3 A3 A3 A2 A2 S&P BBB- BBB A- A- A- A A A Fitch BBB+ BBB A- A A- A- A A- Due to ring-fencing, S&P deconsolidates BGE from Exelon and analyze
Slide 146: Building Enduring Value
$1.70 Projected Capital Spend 2016-2020(1) Rate Base Growth ($B)(2) Building Enduring Value Exelon Utilities Operating Net Income ($M)(3) +7-9% ExGen capital represents cash CapEx with CENG 100%; excludes Nuclear Fuel and merger commitments All numbers denote year-end rate base Reflects GAAP operati
Slide 147: Theoretical Dividend Affordability from Utility less HoldCo
Theoretical Dividend Affordability from Utility less HoldCo(1) Utility less HoldCo payout ratio falling consistently even as dividend grows Chart is illustrative and shows theoretical payout ratio if utilities supported 100% of the external dividend and interest expense at HoldCo. Currently, the uti
Slide 148: Delivering Value Through Capital Allocation Policy
Delivering Value Through Capital Allocation Policy Our strong balance sheet underpins our capital allocation policy and capital decisions are made to maximize value to our customers and shareholders We are returning capital to shareholders by growing our dividend, targeting 2.5% annual increases thr
Slide 149: Financial Appendix
Financial Appendix
Slide 150: Economic Impacts of Nuclear Plant Retirements and ZEC Program
Economic Impacts of Nuclear Plant Retirements and ZEC Program $350M is solely from implementation of CES program and does not include additional cash benefits from CENG loan repayment and special distribution Gross margin categories rounded to nearest $50M. Total Gross Margin (Non-GAAP) is defined a
Slide 151: Capital Allocation Evolution
Capital Allocation Evolution (1) Numbers rounded to nearest $25M and may not add due to rounding (2) ExGen Figures from 2012-2014 are accrual. CENG CapEx is included beginning April 1, 2014. ExGen figures from 2015-2020 are cash and 100% of total CENG fleet. Nuclear fuel not included. Excludes merge
Slide 152: 2016 Projected Sources and Uses of Cash
2016 Projected Sources and Uses of Cash All amounts rounded to the nearest $25M. Figures may not add due to rounding. Excludes counterparty collateral activity. Adjusted Cash Flow from Operations (non-GAAP) primarily includes net cash flows from operating activities and net cash flows from investing
Slide 153: Exelon Debt Maturity Profile
Exelon Debt Maturity Profile(1) ExCorp debt includes $1,150M mandatory convertible units remarketing in 2017; ExGen debt includes legacy CEG debt; Excludes securitized debt and non-recourse debt As of 6/30/16 ($M) Exelon’s weighted average LTD maturity is approximately 13 years
Slide 154: Pension and OPEB – Funded Status and Performance
Pension and OPEB – Funded Status and Performance Year to date investment returns of 8.7% or $1.4 billion have offset more than 60% of the pension liability increase due to lower discount rates Based on estimates from Goldman Sachs, the aggregate funded status for pension plans in S&P 500 companies i
Slide 155: Exelon Pension Investment Approach
Exelon Pension Investment Approach Investment Strategy Exelon has developed and implemented an actively managed liability hedging based investment strategy that has reduced the volatility of the pension assets relative to pension liabilities The overall objective is to achieve attractive risk adjust
Slide 156: Pension and OPEB Contributions and Expense
Discount rates changes of +/- 50 bps result in -/+ $65M - $85M change in pension and OPEB combined 2015 expense (EPS impact of ~$0.05) Pension and OPEB Contributions and Expense 2016 (1) 2017 (in $M) Pre-Tax Expense(2) Contributions Pre-Tax Expense(2) Contributions Qualified Pension (3) (4)(5) $410
Slide 157: EPS Sensitivities
EPS Sensitivities Based on June 30, 2016 market conditions and hedged position. Gas price sensitivities are based on an assumed gas-power relationship derived from an internal model that is updated periodically. Power prices sensitivities are derived by adjusting the power price assumption while kee
Slide 158: Exelon Utilities Adjusted Operating EPS Contribution
Exelon Utilities Adjusted Operating EPS Contribution(1) Key Drivers – 2Q 2016(2) vs. 2Q 2015: BGE (-0.02): Impairment charges resulting from certain disallowances contained in the June and July rate case orders: ($0.03) Increased transmission and distribution revenue: $0.01 PECO (+0.03): Increased e
Slide 159: ExGen Adjusted Operating EPS Contribution
ExGen Adjusted Operating EPS Contribution(1) Q2 2016 2015 Numbers may not add due to rounding Refer to slides 163 and 164 for a reconciliation of adjusted (non-GAAP) operating EPS to GAAP EPS (excludes Salem) Q2 2015 Actual Q2 2016 Actual Planned Refueling Outage Days 71 87 Non-refueling Outage Days
Slide 160: Concluding Remarks
Concluding Remarks
Slide 161: The Exelon Value Proposition
The Exelon Value Proposition Regulated Utility Growth with Utility EPS rising 7-9% annually from 2016-2020 and rate base growth of 6.1%, representing an expanding majority of earnings ExGen’s strong free cash generation will support utility growth while also reducing debt by ~$3B over the next 5 yea
Slide 162: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures
Slide 163: 2Q QTD GAAP EPS Reconciliation
2Q QTD GAAP EPS Reconciliation Three Months Ended June 30, 2016 ExGen ComEd PECO BGE PHI Other Exelon 2Q 2016 GAAP Earnings (Loss) Per Share $0.00 $0.16 $0.11 $0.03 $0.06 ($0.06) $0.29 Mark-to-market impact of economic hedging activities 0.20 - - - - - 0.20 Unrealized gains related to NDT fund inves
Slide 164: 2Q YTD GAAP EPS Reconciliation
2Q YTD GAAP EPS Reconciliation Six Months Ended June 30, 2016 ExGen ComEd PECO BGE PHI Other Exelon 2Q 2016 GAAP Earnings (Loss) Per Share $0.31 $0.28 $0.25 $0.14 $(0.28) $(0.23) $0.48 Mark-to-market impact of economic hedging activities 0.12 - - - - - 0.12 Unrealized gains related to NDT fund inves
Slide 165: GAAP to Operating Adjustments
GAAP to Operating Adjustments Exelon’s Q2 2016 and forecasted 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 contractu
Slide 166: FFO/Debt Reconciliation Notes
All amounts rounded to the nearest $25M 2016 estimate normalized to include a full year for PHI Calculated using S&P Methodology. Due to ring-fencing, S&P deconsolidates BGE from Exelon and analyzes solely as an equity investment Reflects impact operating adjustments on GAAP EBITDA. Refer to slide 1
Slide 167: YE 2016 ExGen Net Debt Calculation
YE 2016 ExGen Net Debt Calculation ($M)(1) Long-Term Debt (including current maturities) $10,150 Short-Term Debt $950 - Surplus Cash Adjustment ($300) = Net Debt (a) $10,800 YE 2016 Debt / EBITDA Net Debt (a) = 3.4x Operating EBITDA (b) All amounts rounded to the nearest $25M Reflects impact operati
Slide 168: ExGen Adjusted O&M Reconciliation
ExGen Adjusted O&M Reconciliation ($M)(1) 2016 2017 2018 2019 2020 GAAP O&M $5,625 $5,225 $5,050 $5,100 $5,150 Decommissioning(2) 125 150 100 50 50 Costs associated with early nuclear plant retirements (125) - - - - Long-lived asset impairment costs (150) - - - - Direct cost of sales incurred to gen
Slide 169: 2020 Adjusted O&M Reconciliation
2020 Adjusted O&M Reconciliation ($M)(1) ExGen Utility/HoldCo Exelon GAAP O&M $5,150 $4,175 $9,325 Regulatory O&M(2) - (525) (525) Decommissioning(2) 50 - 50 Direct cost of sales incurred to generate revenues for certain Constellation and Power businesses(3) (425) - (425) O&M for managed plants that
Slide 170: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2016 Adjusted Cash from Ops Calculation ($M)(1) ComEd PECO BGE PHI ExGen Other Exelon Net cash flows provided by operating activities (GAAP) $1,700 $750 $600 $800 $4,000 ($400) $7,425 Other cash from investing activities - - - ($25) ($125) - ($150) Intercompany recei
Slide 171: BGE Operating ROE Reconciliation
GAAP to Non-GAAP Reconciliations Operating exclusions represent adjustments for merger commitments and costs to achieve BGE Operating ROE Reconciliation 2011 2012 2013 2014 2015 Net Income (GAAP) $123 ($9) $197 $198 $275 Operating exclusions(1) $18 $96 ($2) $1 $3 Adjusted Operating Earnings $141 $87