Exelon Corporation · NASDAQ:EXC
Exelon — Merrill Lynch 2008 Power & Gas Leaders Conference
17 slides from Exelon's conference presentation, Sep 23, 2008
Slide 1: Sustainable Value
Exhibit 99.1 Sustainable Value Matthew Hilzinger Senior Vice President & Chief Financial Officer Merrill Lynch 2008 Power & Gas Leaders Conference New York, NY September 23, 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: Key Messages
Key Messages • Rock solid in these turbulent financial times – Operations are stronger than ever – Strong balance sheet and ample access to liquidity – Fiscally disciplined with rigorous risk management and hedging programs • 2009 operating EPS range is expected to be generally flat relative to 2008
Slide 4: Rock Solid in These Turbulent Times
Rock Solid in These Turbulent Times Exelon Position st • World-class nuclear operations – 92.4% capacity factor in 1 half 2008 • Constructive rate cases at ComEd and PECO Strong Operations – Final ComEd rate order provides for $273.6 million increase in annual distribution revenues – Preliminary PEC
Slide 5: Exelon Generation Credit Exposure
Exelon Generation Credit Exposure Net Exposure After Credit Collateral (1) Net Exposure by Type of Counterparty (1) (in millions) Investment grade $341 Non-investment grade 108 No external ratings 53 Total $502 Coal 29% Investor-Owned Utilities, Exelon Generation - Ample Liquidity Marketers, and Pow
Slide 6: 2008 - 2009 Operating EPS Drivers
2008 - 2009 Operating EPS Drivers 2009 Earnings Drivers Exelon $4.15 - $4.30 ++ Market conditions ComEd $0.30 - $0.35 ComEd distribution revenue ComEd PECO $0.45 - $0.50 PECO gas revenue PECO O&M and other Cost initiatives Pension/OPEB Exelon $3.45 - $3.55 Inflation Exelon Generation Generation High
Slide 7: Well Positioned to Provide Sustainable Value
Well Positioned to Provide Sustainable Value Macro Trends Market Response Exelon’s Position Continued strong financial and operating Environmental / climate Massive capital performance, and long-term earnings growth change concerns investment driven by unregulated generation Slowing US economy Tight
Slide 8: Appendix
Exelon. Appendix
Slide 9: ComEd Executing on Regulatory Recovery Plan
ComEd Executing on Regulatory Recovery Plan The ICC issued a final Order in ComEd’s distribution rate case – granting a revenue increase of $273.6 million to take effect on September 16, 2008: ComEd Impact on Original Revenue ($ in millions) Request ICC Order Increase Rate Base $7,071 $6,694 $(43) 1
Slide 10: Illinois Power Agency Proposes ComEd Procurement Plan
Illinois Power Agency Proposes ComEd Procurement Plan In September 2008, the Illinois Power Agency proposed its first ComEd procurement plan, which will provide for base-load energy procurement for up to a three-year period Future Procurement by Illinois Power Agency 3/08 RFP 2009 2010 2011 2012 200
Slide 11: PECO Pursuing Regulatory Path
PECO Pursuing Regulatory Path PECO’s procurement plan for obtaining default service Post 2010 Default Service includes a portfolio of full requirements and spot products competitively procured through multiple RFP solicitations Procurement and Mitigation plan includes early staggered procurement, po
Slide 12: Large and Diverse Bank Group
Large and Diverse Bank Group Banks Committed to Exelon’s Facilities (1) (2) • Bank of America, N.A. / Merrill Lynch USA • 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.
Slide 13: 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 5.3x 6.5x Baa1 BBB Consolidated: FFO / Debt 25% 32% Rating Agency Debt Ratio 71% 65% ComEd: FFO / Interest 3.2x 3.2x Baa2 BBB+ FFO
Slide 14: 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 Ta
Slide 15: Market Price Snapshot
Market Price Snapshot Rolling 12 months, as of September 17, 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 10 110 9.5 2010 100 9 90 2011 8.5 2011 80 8 70 7.5 60 7 50 9/07 10/07 11/07 12/07 1
Slide 16: Market Price Snapshot
Market Price Snapshot Rolling 12 months, as of September 17, 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 2011 10 85 9.5 80 9 2010 8.5 75 8 70 2010 2011 7.5 7 65
Slide 17: 2008/2009 Earnings Outlook
2008/2009 Earnings Outlook • Exelon’s outlook for 2008/2009 adjusted (non-GAAP) operating earnings excludes the earnings impacts of the following: • Mark-to-market adjustments from economic hedging activities • Unrealized gains and losses from nuclear decommissioning trust fund investments • Signifi
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