Slide 1: Earnings Conference Call 4th Quarter 2015
Exhibit 99.2 Earnings Conference Call 4 th Quarter 2015 February 3, 2016
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: Delivering Value to Shareholders Through a Defined Capital Allocation Policy
Delivering Value to Shareholders Through a Defined Capital Allocation Policy • Our strong balance sheet underpins our capital allocation policy • Capitaldecisions are made to maximize value to our customers and shareholders • We are harvesting free cash flow from Exelon Generation to: – First, inves
Slide 4: Exelon Utilities – Operational Excellence Driving Strong Financial Performance
Exelon Utilities – Operational Excellence Driving Strong Financial Performance and Positive Regulatory Outcomes 2015 Results 2016 Goals • 1 st Quartile SAIFI performance • 1 st Quartile SAIFI performance Leading • 1 st Quartile CAIDI performance • 1 st Quartile CAIDI performance Operational • 1 st Q
Slide 5: Exelon Generation Delivered Strong Operational and Financial Performance in 2015
Exelon Generation Delivered Strong Operational and Financial Performance in 2015 World Class Operational Performance 2016 Goals • Full-year Nuclear Capacity Factor: 93.7% • Continue to be best in class in operational performance across the generation fleet • Best average refueling outage duration si
Slide 6: 2016 Adjusted Operating Earnings Guidance
2016 Adjusted Operating Earnings Guidance $2.49 (1) $2.40 - $2.70 (2) BGE $0.31 $0.25 - $0.35 BGE Key Year-Over-Year Drivers PECO $0.43 $0.40 - $0.50 PECO • BGE: higher O&M for storms and bad debt, partially offset ComEd $0.48 by higher distribution rates $0.50 - $0.60 ComEd • PECO: higher distribut
Slide 7: Key Financial Metrics Impacted by Bonus Depreciation
Key Financial Metrics Impacted by Bonus Depreciation Standalone Bonus Depreciation Impacts 2016 2017 2018 • Bonus Depreciation reduces earnings in 2016-2018 primarily due to its impact on ExGen’s ability to take Earnings per the Domestic Production Activities Deduction and ($0.09) ($0.11) ($0.06) Sh
Slide 8: Maintaining Investment Grade Credit Ratings is a Top Financial Priority
Maintaining Investment Grade Credit Ratings is a Top Financial Priority Exelon and ExGenS&P FFO/Debt %(1) ExGenDebt/EBITDA Ratio(5) Exelon Exelon Target (22%) ExGen ExGen Target (27%) 3.5 3.2x 3.0x 50% 3.0 40% 2.5 2.3x 30% 2.0 1.5 20% 1.0 10% 0.5 0% 0.0 2016 2017 2018 2016 2017 2018 Credit Ratings b
Slide 9: Cost Management Initiative Update
Cost Management Initiative Update • Cost savings of $350M have been identified and incorporated into current long range plan, reflecting our high level of confidence in achieving the reductions • Additional $50 million of nuclear fuel savings already reflected in the hedge disclosure • Savings to be
Slide 10: Adjusted O&M Forecast
Adjusted O&M Forecast(2) • 2016 forecast of $7.18B (1) • Expect CAGR of ~(0.5)% for 2015-2018 $7,250 $7,175 BGE $675 $750 BGE PECO $675 $775 PECO ComEd $1,300 $1,275 ComEd Key Year-over-Year Drivers (2) • Inflation: $150M • PECO & BGE Storm Costs: $50M • Utility Bad Debt Costs: $50M (3): $25M • Balt
Slide 11: Exelon Generation: Gross Margin Update
Exelon Generation: Gross Margin Update December 31, 2015 Change from Sept. 30, 2015 (1) Gross Margin Category ($M) 2016 2017 2018 2016 2017 2018 (3) Open Gross Margin (including South, West, Canada hedged gross $5,200 $5,800 $6,150 $(450) - $50 margin) (3,4) Mark-to-Market of Hedges $1,700 $800 $250
Slide 12: Exelon Generation Disclosures
Exelon Generation Disclosures December 31, 2015 12 Q4 2015 Earnings Release Slides
Slide 13: Portfolio Management Strategy
Portfolio Management Strategy Strategic Policy Alignment Three-Year Ratable Hedging Bull / Bear Program •Aligns hedging program with •Ensure stability in near-term cash •Ability to exercise fundamental financial policies and financial flows and earnings market views to create value within outlook •D
Slide 14: Components of Gross Margin Categories
Components of Gross Margin Categories Gross margin linked to power production and sales Gross margin from other business activities Open Gross MtM of “Power” New “Non-Power” “Non-Power” Margin Hedges(2) Business Executed New Business •Generation Gross •Mark-to-Market •Retail, Wholesale •Retail, Whol
Slide 15: ExGen Disclosures
ExGen Disclosures (1) Gross Margin Category ($M) 2016 2017 2018 (3) Open Gross Margin(including South, West & Canada hedged GM) $5,200 $5,800 $6,150 (3,4) Mark-to-Market of Hedges $1,700 $800 $250 Power New Business / To Go $450 $800 $1,000 Non-Power Margins Executed $250 $150 $100 Non-Power New Bus
Slide 16: ExGen Disclosures
ExGen Disclosures Generation and Hedges 2016 2017 2018 (1) 199,900 206,500 207,400 Exp. Gen (GWh) Midwest 97,300 96,400 96,800 Mid-Atlantic(2) 63,600 61,600 60,700 ERCOT 17,400 26,500 31,500 New York(2) 9,300 9,200 9,100 New England 12,300 12,800 9,300 (3) 90%-93% 60%-63% 28%-31% % of Expected Gener
Slide 17: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin Sensitivities Gross Margin Sensitivities (With Existing Hedges)(1) 2016 2017 2018 Henry Hub Natural Gas ($/Mmbtu) + $1/Mmbtu $10 $380 $695 - $1/Mmbtu $(5) $(380) $(695) NiHub ATC Energy Price + $5/MWh $55 $225 $380 - $5/MWh $(50) $(220) $(380) PJM-W ATC Energy Price + $5/MW
Slide 18: ExGen Hedged Gross Margin Upside/Risk
ExGen Hedged Gross Margin Upside/Risk 11,000 10,500 10,000 $9,750 9,500 9,000 $8,800 8,500 $8,050 8,000 7,500 $7,500 7,000 $7,100 6,500 $6,550 6,000 5,500 5,000 2016 2017 2018 (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 2017 Gross Margin
Illustrative Example of Modeling Exelon Generation 2017 Gross Margin South, West & Row Item Midwest Mid-Atlantic ERCOT New York New England Canada (A) Start with fleet-wide open gross margin $5.8 billion (B) Expected Generation (TWh) 96.4 61.6 26.5 9.2 12.8 (C) Hedge % (assuming mid-point of range)
Slide 20: Additional Disclosures
Additional Disclosures 20 Q4 2015 Earnings Release Slides
Slide 21: Exelon Utilities Adjusted Operating EPS Contribution
Exelon Utilities Adjusted Operating EPS Contribution(1) BGE PECO ComEd Key Drivers –4Q15(2) vs. 4Q14: $0.26 $0.26 BGE(+0.02): • Increased revenues due to increased distribution rates and transmission earnings: $0.02 $0.06 $0.08 PECO (-0.02): • Unfavorable weather (RNF): $(0.03) $0.11 • Decreased unc
Slide 22: ExGen Adjusted Operating EPS Contribution
(1) ExGen Adjusted Operating EPS Contribution Key Drivers –Q4 2015 vs. Q4 2014 2014 2015 ExGen(-0.12): $0.27 • Increased costs primarily due to timing of nuclear projects: $(0.03) • Unfavorable impact associated with nuclear refueling outages: $(0.05) • Higher depreciation costs primarily due to inc
Slide 23: ComEd Adjusted Operating EPS Bridge 2015 to 2016
ComEd Adjusted Operating EPS Bridge 2015 to 2016 $0.01 Pension/OPEB $0.07 Distribution $0.01 Storm Costs $0.06 Transmission ($0.01) Inflation $0.01 Weather $0.01 ($0.05) ($0.01) $0.50 - $0.60 $0.14 ($0.02) $0.48 2015(1) RNF(2) O&M(3) Depreciation & Interest Other 2016(4)(5) Amortization Note: Driver
Slide 24: PECO Adjusted Operating EPS Bridge 2015 to 2016
PECO Adjusted Operating EPS Bridge 2015 to 2016 ($0.04) $0.40 - $0.50 $0.07 ($0.01) $0.43 $0.08 Electric Distribution Rate Case ($0.01) Weather ($0.01) Weather Normal RNF ($0.02) Weather Related (Storm ($0.01, Bad Debt ($0.01)) ($0.01) Rate Case Related (Veg. Mgmt. & Cap Settlement) ($0.01) Inflatio
Slide 25: BGE Adjusted Operating EPS Bridge 2015 to 2016
BGE Adjusted Operating EPS Bridge 2015 to 2016 $0.02 Pricing/Mix $0.02 Transmission $0.31 $0.04 $(0.06) $0.25 - $0.35 $0.01 ($0.02) Storm Costs ($0.02) Bad Debt ($0.02) Baltimore City Conduit Fee 2015 (1) RNF(2) O&M(3) Other 2016 (4)(5) Note: Drivers add up to mid-point of 2016 adjusted operating EP
Slide 26: ExGen Adjusted Operating EPS Bridge 2015 to 2016
ExGen Adjusted Operating EPS Bridge 2015 to 2016 ($0.13) Normalized load optimization in 2016 $0.05 Unplanned Generation Outages $0.02 Capacity Revenues ($0.06) Capital placed in service $0.02 Higher Load Volumes ($0.03) Decom Asset Retirement Cost Depreciation $1.40 ($0.09) ($0.04) $0.11 ($0.08) $1
Slide 27: 2016 Projected Sources and Uses of Cash
2016 Projected Sources and Uses of Cash Total Exelon Cash ($ in millions)(1) BGE ComEd PECO ExGen Corp(8) Utilities 2016E Balance Beginning Cash Balance (2) 7,750 (1) All amounts rounded to the nearest (2,3) Adjusted Cash Flow from Operations 650 1,575 700 2,925 3,725 (425) 6,225 $25M. Figures may n
Slide 28: Pension and OPEB Contributions and Expense
Pension and OPEB Contributions and Expense 2015 2016 (in $M) Pre-TaxExpense(1) Contributions Pre-TaxExpense(1) Contributions(2) Qualified $425 $450 $370 $250 Pension(3)(4) Non-Qualified 15 15 15 20 Pension OPEB(3)(4) 30 40 5 35 Total $470 $505 $390 $305 (1) Pension and OPEB expenses assume a ~26% an
Slide 29: 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 $8,475 $8,525 Other Revenues(4) $(325) $(325) $(325) Direct cost of sales incurred to generate revenues for certain $(350) $(300) $(300) Constellati
Slide 30: Exelon Utilities Load
Exelon Utilities Load All Customers Residential Small C&I Large C&I ComEd PECO BGE 1.3% 0.6% 0.4% 0.1% 0.3% (0.9%) (0.3%) (0.1%) (0.2%) (0.3%) (0.4%) (0.5%) 2.0% (0.8%) 1.5% 1.1% (1.4%) (1.5%) 1.0% 1.1% 0.7% 0.7% (2.0%) 0.5% 2015 2016E 2015 2016E 2015 2016E Chicago GMP 2.3% Philadelphia GMP 1.4% Bal
Slide 31: ComEd April 2015 Distribution Formula Rate
ComEd April 2015 Distribution Formula Rate The 2015 distribution formula rate filing established the net revenue requirement used to set the rates that took effect in January 2016 after the Illinois Commerce Commission's (ICC’s) review. There are two components to the annual distribution formula rat
Slide 32: PECO Electric Distribution Rate Case & Settlement
PECO Electric Distribution Rate Case & Settlement Docket # R-2015-2468981 Test Year 2016 Calendar Year RequestedRevenue Requirement $190M RequestedCommon Equity Ratio(1) 53.36% Requested Rate of Return ROE: 10.95%; ROR: 8.19% Proposed Rate Base $4.1B Revenue Requirement Settlement Increase $127M Aut
Slide 33: BGE Electric and Gas Distribution Rate Case
BGE Electric and Gas Distribution Rate Case Electric Gas Docket # 9406 Test Year December 2014-November 2015 Common Equity Ratio(1) 53.7% Requested ROE 10.60% 10.50% Requested Rate of Return 7.95% 7.90% Rate Base (adjusted) $3.0B $1.2B RevenueRequirementIncrease (1) $120.9M $79.5M ProposedDistributi
Slide 34: Appendix Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures 34 Q4 2015 Earnings Release Slides
Slide 35: 4Q GAAP EPS Reconciliation
4Q GAAP EPS Reconciliation Three Months Ended December 31, 2014 ExGen ComEd PECO BGE Other Exelon 2014 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $0.27 $0.09 $0.11 $0.06 $(0.04) $0.48 Mark-to-market impact of economic hedging activities (0.08) - - - - (0.08) Unrealized gains related to
Slide 36: 4Q YTD GAAP EPS Reconciliation
4Q YTD GAAP EPS Reconciliation Year Ended December 31,2014 ExGen ComEd PECO BGE Other Exelon 2014 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $1.34 $0.47 $0.41 $0.23 $(0.06) $2.39 Mark-to-market impact of economic hedging activities (0.42) - - - - (0.42) Unrealized gains related to NDT f
Slide 37: 4Q YTD GAAP EPS Reconciliation (continued)
4Q YTD GAAP EPS Reconciliation (continued) Year Ended December 31, 2015 ExGen ComEd PECO BGE Other Exelon 2015 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $1.40 $0.48 $0.43 $0.31 $(0.13) $2.49 Mark-to-market impact of economic hedging activities 0.18 - - - - 0.18 Unrealized losses relate
Slide 38: GAAP to Operating Adjustments
GAAP to Operating Adjustments • Exelon’s 2016 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 accountin
Slide 39: Adjusted O&M Reconciliations to GAAP
Adjusted O&M Reconciliations to GAAP 2015 AdjustedO&MReconciliation(in $M)(3) ExGen ComEd PECO BGE Other Exelon GAAP O&M $5,300 $1,575 $800 $675 $(25) $8,325 PHI Acquisition Costs (25) - - - (25) (50) Long-Lived Asset Impairment - - - - (25) (25) RegulatoryO&M(1) - (275) (125) - - (400) Decommission
Slide 40: Adjusted O&M Reconciliations to GAAP
Adjusted O&M Reconciliations to GAAP 2016 AdjustedO&MReconciliation(in $M)(3) ExGen ComEd PECO BGE Other Exelon GAAP O&M $5,175 $1,600 $875 $750 $(100) $8,300 RegulatoryO&M(1) - (300) (100) - - (400) Decommissioning(1) 50 - - - - 50 Direct cost of sales incurred to generate revenues for certain (300