Exelon Corporation · NASDAQ:EXC
Exelon — Q4 2016 Earnings Presentation
78 slides from Exelon's earnings presentation, Feb 8, 2017
Slide 1: Earnings Conference Call 4th Quarter 2016
Earnings Conference Call 4th Quarter 2016 February 8, 2017 Exhibit 99.2
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 a
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: 2016 Milestone Accomplishments
2016 Milestone Accomplishments Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP) operating EPS to GAAP EPS Financial Delivered FY 2016 GAAP earnings of $1.22 and adjusted operating earnings of $2.68 per share, within our
Slide 6: Best in Class Utility Operations
Best in Class Utility Operations Comments Operationally, the utilities ended the year with strong results across key metrics BGE, ComEd, and PECO achieved 1st decile performance in Customer Satisfaction Index (CSI) that was the best ever performance for each utility PECO achieved 1st decile performa
Slide 7: Best in Class at ExGen and Constellation
Best in Class at ExGen and Constellation Exelon Generation Operational Metrics Continued best in class performance across our Nuclear fleet: Capacity Factor of 94.6% is the highest ever for Exelon Most power ever generated at 153M MWh(1) All-time shortest refueling outage duration average of 22 days
Slide 8: Strong 2016 Financial Results
Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP) operating EPS to GAAP EPS Amounts may not add due to rounding Strong 2016 Financial Results 2016 EPS Results(1,2) Adjusted (non-GAAP) operating earnings full year drivers
Slide 9: 2017 Adjusted Operating Earnings Guidance
$2.50 - $2.80(2) ~($0.20) $1.05 - $1.15 $0.60 - $0.70 $0.40 - $0.50 $0.30 - $0.40 $0.25 - $0.35 $2.68(1) 2017 Adjusted Operating Earnings Guidance 2016 results based on 2016 average outstanding shares of 927M. Refer to Earnings Release Attachments for additional details and to the Appendix for a rec
Slide 10: Our Capital Plan Drives Stable Earnings Growth
Our Capital Plan Drives Stable Earnings Growth Capital Expenditures ($M) Over $20B of capital is being invested at utilities from 2017-2020 to improve reliability Note: CapEx numbers are rounded to nearest $25M and numbers may not add due to rounding. Rate base reflects year-end estimates. Rate Base
Slide 11: Formulaic Mechanisms Cover Bulk of Rate Base Growth
Formulaic Mechanisms Cover Bulk of Rate Base Growth Of the approximately $9.0 billion of rate base growth Exelon Utilities forecasts over the next 4 years, ~75% will be recovered through existing formula and tracker mechanisms Rate Base Growth Breakout 2017-2020 ($B)(1) 6.7 2.3 Note: Numbers may not
Slide 12: Weighted Average Allowed vs Earned ROE Comparison
Weighted Average Allowed vs Earned ROE Comparison Twelve Month Trailing Earned ROEs(1,2) Operating ROE is calculated using operating net income divided by simple average equity for the period 12/31/15 – 12/31/16. The operating net income is reflective of all lines of business (Electric Distribution,
Slide 13: Exelon Utilities Distribution Rate Case Summary
Exelon Utilities Distribution Rate Case Summary ACE Electric Final Order Pepco MD Final Order Requested Revenue Requirement Increase(1) $52.5M Requested ROE 9.55% Requested Common Equity Ratio 49.55% Order Received 11/15/16 Delmarva DE Electric Filing Requested Revenue Requirement Increase(1) $60.2M
Slide 14: Exelon Utilities EPS Growth of 6-8% to 2020
Exelon Utilities EPS Growth of 6-8% to 2020 $1.60 $1.50 Utility Adjusted Operating Earnings Rate base growth combined with PHI ROE improvement drives EPS growth $1.40 $1.75 Exelon Utilities Operating Earnings 2017-2020 Note: Reflects GAAP operating earnings except for 2017. 2017 GAAP EPS range would
Slide 15: Exelon Generation: Gross Margin Update
Exelon Generation: Gross Margin Update Gross margin categories rounded to nearest $50M Total Gross Margin (Non-GAAP) is defined as operating revenues less purchased power and fuel expense, excluding revenue related to decommissioning, gross receipts tax, Exelon Nuclear Partners, operating services a
Slide 16: Driving Cost and Capital Out of the Generation Business
Adjusted O&M ($M)(1,2,3) Negative O&M CAGR reflects benefits of cost optimization program All amounts rounded to the nearest $25M O&M and Capital Expenditures reflect reversal of Quad Cities and Clinton retirement decisions and includes FitzPatrick Refer to slide 77 in the Appendix for a reconciliat
Slide 17: ExGen's Strong Free Cash Flow Supports Utility Growth and Debt Reduction
ExGen’s Strong Free Cash Flow Supports Utility Growth and Debt Reduction 2017-2020 Exelon Generation Free Cash Flow(1) and Uses of Cash ($B) Free Cash Flow is a non-GAAP Measure. See slide 77 for a reconciliation of free cash flow to the most comparable GAAP measures. Cumulative Free Cash Flow is a
Slide 18: 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 analyzes
Slide 19: The Exelon Value Proposition
The Exelon Value Proposition Regulated Utility Growth with utility EPS rising 6-8% annually from 2017-2020 and rate base growth of 6.5%, 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 4 yea
Slide 20: Additional Disclosures
Additional Disclosures 20 Q4 2016 Earnings Release Slides = Exelon
Slide 21: Key Provisions of the Future Energy Jobs Bill
Key Provisions of the Future Energy Jobs Bill Zero Emission Standard: Requires the Illinois Power Agency to procure contracts with zero emission facilities for zero emission credits (ZECs) equal to 16% of the actual electricity delivered in 2014. Cost of the program is capped at 1.65% of rates (abou
Slide 22: Exelon Utilities EPS Growth of 6-8% from 2017-2020
Exelon Utilities EPS Growth of 6-8% from 2017-2020 $1.41 $1.60 $1.50 Utility growth rate is still at 6-8% despite higher earnings in 2017 $1.40 Note: Analyst day reflects GAAP operating earnings. Q4 Earnings reflects GAAP operating earnings except for 2016A and 2017. For 2016A please refer to the Ap
Slide 23: Utility Capex and Rate Base vs. Previous Disclosure
Utility Capex and Rate Base vs. Previous Disclosure Analyst Day Rate Base CapEx ($M) Over $20B of capital is being invested in utilities from 2017-2020 and rate base is growing at 6.5% from 2016-2020 Note: Numbers rounded to nearest $25M and may not add due to rounding. Rate base reflects year-end e
Slide 24: ComEd Capital Expenditure and Rate Base Forecast
Note: Numbers rounded to nearest $25M and may not add due to rounding Other includes long-term regulatory assets, which earn a return consistent with rate base, including Energy Efficiency and the Solar Rebate Program Rate base reflects year-end estimates ComEd Capital Expenditure and Rate Base Fore
Slide 25: PECO Capital Expenditure and Rate Base Forecast
Note: Numbers rounded to nearest $25M and may not add due to rounding. Rate base reflects year-end estimates. PECO Capital Expenditure and Rate Base Forecast Q4 2016 Capital Expenditures ($M) ~$3.1B of Capital being invested from 2017-2020 Q4 2016 Rate Base ($B) Analyst Day Capital Expenditures ($M)
Slide 26: BGE Capital Expenditure and Rate Base Forecast
Note: Numbers rounded to nearest $25M and may not add due to rounding. Rate base reflects year-end estimates. BGE Capital Expenditure and Rate Base Forecast Q4 2016 Capital Expenditures ($M) ~$3.7B of Capital being invested from 2017-2020 Q4 2016 Rate Base ($B) Analyst Day Capital Expenditures ($M)
Slide 27: PHI Consolidated Capital Expenditure and Rate Base Forecast
Note: Numbers rounded to nearest $25M and may not add due to rounding. Rate base reflects year-end estimates. PHI Consolidated Capital Expenditure and Rate Base Forecast Q4 2016 Capital Expenditures ($M) ~$5.5B of Capital being invested from 2017-2020 Q4 2016 Rate Base ($B) Analyst Day Capital Expen
Slide 28: Pepco Holdings Capital Expenditures
Pepco Holdings Capital Expenditures Note: Numbers rounded to nearest $25M and may not add due to rounding
Slide 29: Pepco Holdings Rate Base Outlook
Note: All numbers denote year-end rate base and may not add due to rounding. Rate base reflects year-end estimates. Pepco Holdings Rate Base Outlook Electric Distribution Electric Transmission Gas Delivery
Slide 30: Exelon Utilities Distribution Rate Case Schedule
1/17 2/17 3/17 ComEd Electric Distribution Formula Rate 4/17 Pepco Electric Distribution Rates - DC Delmarva Electric Distribution Rates - DE Delmarva Electric Distribution Rates - MD Exelon Utilities Distribution Rate Case Schedule 5/17 6/17 Note: Based on current schedules of Illinois Commerce Com
Slide 31: ExGen O&M and Capex vs. Previous Disclosure
Adjusted O&M – Q3 2016 ($M)(1,2) Adjusted O&M - Q4 2016 ($M)(2) Capital and O&M now reflect reversal of IL plant closures and addition of FitzPatrick O&M and capital reflect the retirement of Clinton and Quad Cities and does not include cost of FitzPatrick acquisition Refer to slide 77 in the append
Slide 32: 2016-2020 Exelon Generation Free Cash Flow and Uses of Cash
2016-2020 Exelon Generation Free Cash Flow and Uses of Cash Analyst Day(1) ($B) ($2.7 - $3.2) ($2.7 - $3.2) (~$2.3) (2) ~$8.2 Redeploying Exelon Generation’s free cash flow to maximize shareholder value Q4 2016(1) ($B) ($2.9 - $3.4) ($3.0 - $3.5) (~$2.3) (3) ~$8.7 Free Cash Flow is a non-GAAP Measur
Slide 33: Theoretical Dividend Affordability from Utility less HoldCo
Theoretical Dividend Affordability from Utility less HoldCo(1,2) 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 u
Slide 34: Adjusted O&M Forecast
Adjusted O&M Forecast 2017 forecast of $8.5B(1) Expect CAGR of ~0.5% for 2016-2020 All amounts rounded to the nearest $25M Refer to the Appendix for a reconciliation of adjusted (non-GAAP) O&M to GAAP O&M. The Utilities adjusted O&M excludes regulatory O&M costs that are P&L neutral. ExGen adjusted
Slide 35: 2017 Projected Sources and Uses of Cash
2017 Projected Sources and Uses of Cash Consistent and reliable free cash flows Enable growth & value creation Supported by a strong balance sheet Strong balance sheet enables flexibility to raise and deploy capital for growth ExGen plans to issue $0.8B of long-term debt to fund dividend to parent t
Slide 36: Exelon Debt Maturity Profile
Exelon Debt Maturity Profile Note: ExCorp debt includes $1,150M mandatory convertible units remarketing in 2017; ExGen debt includes legacy CEG debt; excludes securitized debt and non-recourse debt As of 12/31/16 ($M) Exelon’s weighted average LTD maturity is approximately 13 years
Slide 37: 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 $310
Slide 38: Pension and OPEB – Funded Status and Performance
Pension and OPEB – Funded Status and Performance Based on estimates from Goldman Sachs, the aggregate funded status for pension plans in S&P 500 companies is 82% at the end of 2016 Exelon is funded status for funding purposes (PPA) is significantly higher than PBO/GAAP funded status, which results i
Slide 39: EPS Sensitivities
EPS Sensitivities Based on December 31, 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 price sensitivities are derived by adjusting the power price assumption while
Slide 40: Historical Nuclear Capital Investment
Historical Nuclear Capital Investment -0.5% Significant historical investments have mitigated asset management issues and prepared sites for license extensions already received, reducing future capital needs. In addition, internal cost initiatives have found more cost efficient solutions to large Ca
Slide 41: Exelon Generation Disclosures
Exelon Generation Disclosures December 31, 2016
Slide 42: 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 43: Components of Gross Margin Categories
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 44: 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 45: ExGen Disclosures
ExGen Disclosures Gross margin categories rounded to nearest $50M Total Gross Margin (Non-GAAP) is defined as operating revenues less purchased power and fuel expense, excluding revenue related to decommissioning, gross receipts tax, Exelon Nuclear Partners, operating services agreement with Fort Ca
Slide 46: ExGen Disclosures
ExGen Disclosures Expected generation is the volume of energy that best represents our commodity position in energy markets from owned or contracted for capacity based upon a simulated dispatch model that makes assumptions regarding future market conditions, which are calibrated to market quotes for
Slide 47: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin Sensitivities Based on December 31, 2016 market conditions and hedged position; gas price sensitivities are based on an assumed gas-power relationship derived from an internal model that is updated periodically; power price sensitivities are derived by adjusting the power p
Slide 48: ExGen Hedged Gross Margin Upside/Risk
ExGen Hedged Gross Margin Upside/Risk Approximate Gross Margin ($ million)(1,2,3,4) $8,500 $7,850 $9,250 $7,500 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 49: Illustrative Example of Modeling Exelon Generation Total Gross Margin
Row Item Midwest Mid-Atlantic ERCOT New York New England South, West & Canada (A) Start with fleet-wide open gross margin (B) Capacity and ZEC (C) Expected Generation (TWh) 95.9 60.3 28.1 15.4 8.6 (D) Hedge % (assuming mid-point of range) 48.5% 68.5% 61.5% 52.5% 67.5% (E=C*D) Hedged Volume (TWh) 46.
Slide 50: Additional ExGen Modeling Data
Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2017 2018 2019 Revenue Net of Purchased Power and Fuel Expense(2,3) $8,850 $8,975 $8,575 Non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at merger date $50 - - Other Rev
Slide 51: 2016A Earnings Waterfalls
2016A Earnings Waterfalls 51 _Q4 2016 Earnings Release Slides = Exelon
Slide 52: FY Adjusted Operating Earnings Waterfall
FY Adjusted Operating Earnings Waterfall (1,2) $0.06 Distribution & Transmission Investment $0.03 Weather ($0.01) ROE (US Treasuries) $0.08 Increased rates ($0.01) O&M (Vegetation/Other) ($0.01) Weather ($0.01) D&A $0.05 Increased Distribution and Transmission rates ($0.04) Rate case disallowances (
Slide 53: Q4 Adjusted Operating Earnings Waterfall
Q4 Adjusted Operating Earnings Waterfall (1,2) $0.05 Nuclear outages (inc. Salem) ($0.01) Lower Realized Energy Pricing ($0.01) D&A ($0.01) NDT fund gains $0.02 Weather $0.01 Increase Rates ($0.01) Bad debt expense ($0.01) Other $0.02 Baltimore City Conduit fee settlement $0.01 Increased Distributio
Slide 54: 2017E Earnings Waterfalls
2017E Earnings Waterfalls 54 Q42016 Earnings Release Slides = Exelon
Slide 55: ComEd Adjusted Operating EPS Bridge 2016 to 2017
$0.60 - $0.70 (1) (4,5) (3) (2) ComEd Adjusted Operating EPS Bridge 2016 to 2017 Note: Drivers add up to mid-point of 2017 adjusted operating EPS range (1) Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP) operating EPS t
Slide 56: PECO Adjusted Operating EPS Bridge 2016 to 2017
(1) (2) (4,5) $0.40 - $0.50 (3) PECO Adjusted Operating EPS Bridge 2016 to 2017 Note: Drivers add up to mid-point of 2017 adjusted operating EPS range (1) Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP) operating EPS to
Slide 57: BGE Adjusted Operating EPS Bridge 2016 to 2017
2017(4,5) (3) (2) 2016(1) $0.25 - $0.35 BGE Adjusted Operating EPS Bridge 2016 to 2017 Note: Drivers add up to mid-point of 2017 adjusted operating EPS range (1) Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP) operating
Slide 58: PHI Adjusted Operating EPS Bridge 2016 to 2017
2017(5,6) (4) ($0.01) (3) (2) 2016(1) $0.30 - $0.40 PHI Adjusted Operating EPS Bridge 2016 to 2017 ($0.02) D&A ($0.03) Other $0.08 Distribution $0.03 Transmission Note: Drivers add up to mid-point of 2017 adjusted operating EPS range (1) Refer to the Earnings Release Attachments for additional detai
Slide 59: ExGen Adjusted Operating EPS Bridge 2016 to 2017
(5,6) (4) (3) (2) (1) $1.05 - $1.15 ExGen Adjusted Operating EPS Bridge 2016 to 2017 Note: Drivers add up to mid-point of 2017 adjusted operating EPS range. Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliation of adjusted (non-GAAP) operating EPS
Slide 60: Exelon Utilities Rate Case Filing Summaries
Exelon Utilities Rate Case Filing Summaries
Slide 61: 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 62: Pepco MD Electric Distribution Rate Case – Final Order
Pepco MD Electric Distribution Rate Case – Final Order Docket # 9418 Test Year 2015 Calendar Year Test Period 12 months actual Authorized Common Equity Ratio 49.55% Authorized Rate of Return ROE: 9.55%; ROR: 7.49% Authorized Rate Base Rate Base: $1.64B Authorized Revenue Requirement Increase Revenue
Slide 63: 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 49.44% Requested Rate of Return ROE: 10.60%; ROR: 7.19% Proposed Rate Base (Adjusted) $839M Requested Revenue Requirement Increase (Updated on January 11,
Slide 64: 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 49.44% Requested Rate of Return ROE: 10.60%; ROR: 7.19% Proposed Rate Base (Adjusted) $362M Requested Revenue Requirement Increase $21.5M(1)(2) Residential Tot
Slide 65: 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) $1.7B Requested Revenue Requirement Increase (Updated on Febr
Slide 66: DPL MD Distribution Rate Case
DPL MD Distribution Rate Case Case No. 9424 Company’s Filed Position Chief Public Utility Law Judge (CPULJ) Test Year April 1, 2015 – March 31, 2016 Test Period 12 months actual Requested Common Equity Ratio 49.1% 49.1% Requested Rate of Return ROE: 10.60%; ROR: 7.24% ROE: 9.48%; ROR: 6.69% Proposed
Slide 67: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures
Slide 68: 4Q QTD GAAP EPS Reconciliation
4Q QTD GAAP EPS Reconciliation NOTE: All amounts shown are per Exelon share and represent contributions to Exelon's EPS. Amounts may not add due to rounding. Three Months Ended December 31, 2015 ExGen ComEd PECO BGE PHI Other Exelon 2015 GAAP Earnings (Loss) Per Share $0.17 $0.09 $0.09 $0.08 $0.00 $
Slide 69: 4Q QTD GAAP EPS Reconciliation (continued)
4Q QTD GAAP EPS Reconciliation (continued) Three Months Ended December 31, 2016 ExGen ComEd PECO BGE PHI Other Exelon 2016 GAAP (Loss) Earnings Per Share $(0.04) $0.09 $0.10 $0.11 $0.03 $(0.06) $0.22 Mark-to-Market impact of economic hedging activities (0.05) - - - - - (0.05) Unrealized losses relat
Slide 70: 4Q YTD GAAP EPS Reconciliation
4Q YTD GAAP EPS Reconciliation NOTE: All amounts shown are per Exelon share and represent contributions to Exelon's EPS. Amounts may not add due to rounding. Twelve Months Ended December 31, 2015 ExGen ComEd PECO BGE PHI Other Exelon 2015 GAAP Earnings (Loss) Per Share $1.54 $0.48 $0.42 $0.31 $0.00
Slide 71: 4Q YTD GAAP EPS Reconciliation (continued)
4Q YTD GAAP EPS Reconciliation (continued) Twelve Months Ended December 31, 2016 ExGen ComEd PECO BGE PHI Other Exelon 2016 GAAP Earnings (Loss) Per Share $0.54 $0.41 $0.47 $0.31 ($0.07) ($0.44) $1.22 Mark-to-Market impact of economic hedging activities 0.03 - - - - - 0.03 Unrealized gains related t
Slide 72: GAAP to Operating Adjustments
GAAP to Operating Adjustments Exelon’s 2017 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 accounting as d
Slide 73: YE 2017 Exelon FFO Calculation
All amounts rounded to the nearest $25M Calculated using S&P Methodology. Due to ring-fencing, S&P deconsolidates BGE from Exelon and analyzes solely as an equity investment. Reflects impact of operating adjustments on GAAP EBITDA. Refer to slide 72 for a list of operating adjustments to GAAP. Inclu
Slide 74: YE 2017 ExGen Net Debt Calculation
YE 2017 ExGen Net Debt Calculation ($M)(1) Long-Term Debt (including current maturities) $9,525 Short-Term Debt $825 - Surplus Cash Adjustment ($375) = Net Debt (a) $9,975 YE 2017 Book Debt / EBITDA Net Debt (a) = 3.3x Operating EBITDA (b) All amounts rounded to the nearest $25M Reflects impact oper
Slide 75: 2016 Adjusted O&M Reconciliation
2016 Adjusted O&M Reconciliation ($M)(1) ExGen ComEd PECO BGE PHI(4) Other Exelon GAAP O&M $5,650 $1,525 $800 $725 $1,525 $100 $10,325 Regulatory O&M(2) - (225) (75) - (100) - (400) Long-lived asset impairment costs (175) - - - - - (175) Merger commitments and costs to achieve - - - - (475) (200) (6
Slide 76: GAAP to Non-GAAP Reconciliations: Cash Flow
GAAP to Non-GAAP Reconciliations 2017 Adjusted Cash from Ops Calculation ($M)(1) ComEd PECO BGE PHI ExGen Other Exelon Net cash flows provided by operating activities (GAAP) $950 $725 $700 $1,125 $3,475 ($300) $6,650 Other cash from investing activities - - $25 - ($275) - ($250) Intercompany receiva
Slide 77: ExGen Adjusted O&M Reconciliation
GAAP to Non-GAAP Reconciliations ExGen Adjusted O&M Reconciliation ($M)(1) 2017 2018 2019 2020 GAAP O&M $5,775 $5,525 $5,500 $5,575 Decommissioning(2) 25 50 50 50 Costs associated with early nuclear plant retirements - - - - Long-lived asset impairment costs - - - - Direct cost of sales incurred to
Slide 78: Operating ROE Reconciliation
GAAP to Non-GAAP Reconciliations ACE, Delmarva, and Pepco represents full year of earnings Operating ROE Reconciliation(1) ACE Delmarva Pepco Legacy EXC Consolidated EU Net Income (GAAP)(1) ($42) ($9) $50 $1,102 $1,103 Operating exclusions $99 $89 $127 $146 $461 Adjusted Operating Earnings(1) $57 $8