Slide 1: Earnings Conference Call 3rd Quarter 2014
Exhibit 99.2 Earnings Conference Call 3rd Quarter 2014 October 29, 2014
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: Q3 2014 in Review
Q3 2014 in Review • Delivered Q3 adjusted operating • Nuclearcapacityfactor of 96.5%(2) earnings of $0.78 per share, • Power dispatch match of 98.8% exceeding our guidance range (1) and renewables energy capture of • ExGen Texas Power, LLC financing 94.9% • Divested three power plants • Texas combin
Slide 4: Exelon Generation: Gross Margin Update
Exelon Generation: Gross Margin Update September 30, 2014 Change from June 30, 2014 Gross Margin Category ($M)(1) 2014 2015 2016 2014 2015 2016 Open Gross Margin (3,5) (including South, West, Canada hedged 7,300 6,750 6,500 (200) (50) (350) gross margin) Mark-to-Market of Hedges (3,4) (350) - 150 35
Slide 5: Key Financial Messages
Key Financial Messages 3Q 2014 Adjusted OperatingEPS(1,3) Narrowing 2014 Full-Year Guidance $0.78 $2.25 - $2.55 (1) $2.30 - $2.50 (1) BGE $0.05 BGE $0.20 - $0.30 $0.15 - $0.25 BGE PECO $0.09 PECO $0.40 - $0.50 $0.35 - $0.45 PECO ComEd $0.15 $0.45 - $0.55 ComEd ComEd $0.50 - $0.60 ExGen $0.50 ExGen $
Slide 6: Exelon Utilities Adjusted Operating EPS Contribution
Exelon Utilities Adjusted Operating EPS Contribution(1) BGE PECO ComEd KeyDrivers– 3Q14 vs.3Q13: BGE(-0.01): $0.32 • Increased O&M, primarily due to increased storm, labor, $0.29 and contracting costs: $(0.02) $0.06 $0.05 • Higher distribution revenue pursuant to increased rates effective December 2
Slide 7: 2014 Projected Sources and Uses of Cash
DRAFT 2014 Projected Sources and Uses of Cash Projected Sources & Uses(1) Key Messages(1) • Cash from Operations is projected to be $7,475M vs. 2Q14E of $6,975M for a $500M variance. This variance is driven by: - $625M Net proceeds from divestitures - $175M Income taxes - $125M Reclassification of P
Slide 8: Appendix
APPENDIX 7 2014 3Q Earnings Release Slides
Slide 9: PJM's Proposed Solution - Capacity Performance Proposal
PJM’s Proposed Solution -Capacity Performance Proposal • Exelon has been working with PJM and other stakeholders since the spring • PJM now recognizes that generation resources procured through its existing forward capacity market (RPM) may not be sufficient to meet future load conditions,especially
Slide 10: Exelon Generation Disclosures
Exelon Generation Disclosures September 30, 2014 9 2014 3Q Earnings Release Slides
Slide 11: Portfolio Management Strategy
Portfolio Management Strategy Strategic Policy Alignment Three-Year Ratable Hedging Bull / Bear Program •Aligns hedging program with •Ensure stability in near-term cash •Ability to exercise fundamental financial policies and financial flows and earnings market views to create value within outlook •D
Slide 12: Components of Gross Margin Categories
Components of Gross Margin Categories Gross margin from Gross margin linked to power production and sales other business activities Margins move from new business to MtM of hedges over Margins move from “Non power new business” to (5) the course of the year as sales are executed “Non power executed”
Slide 13: ExGen Disclosures
ExGen Disclosures Gross Margin Category ($M)(1,6) 2014 2015 2016 (3) Open Gross Margin(including South, West & Canada hedged GM) 7,300 6,750 6,500 (3,4) Mark to Market of Hedges (350) - 150 Power New Business / To Go 50 400 550 Non-Power Margins Executed 350 100 50 Non-Power New Business / To Go 50
Slide 14: ExGen Disclosures
ExGen Disclosures Generation and Hedges(6) 2014 2015 2016 (1) Expected Generation (GWh) 205,300 200,800 202,200 Midwest 97,000 96,600 97,500 Mid-Atlantic(2) 74,300 71,300 72,100 ERCOT 11,400 16,400 16,900 New York(2) 12,700 9,400 9,300 New England 9,900 7,100 6,400 (3) % of Expected Generation Hedge
Slide 15: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin Sensitivities Gross Margin Sensitivities (With Existing Hedges)(1,2,4) 2014 2015 2016 Henry Hub Natural Gas ($/Mmbtu) + $1/Mmbtu $15 $120 $440 - $1/Mmbtu $10 $(60) $(400) NiHub ATC Energy Price + $5/MWh $- $85 $265 - $5/MWh $- $(85) $(260) PJM-W ATC Energy Price + $5/MWh $(
Slide 16: ExGen Hedged Gross Margin Upside/Risk
ExGen Hedged Gross Margin Upside/Risk (1) Representsan approximaterangeof expectedgrossmargin,takinginto accounthedgesin place,betweenthe 5th and 95th percent confidencelevelsassumingall unhedgedsupplyis sold into the spot market. Approximategrossmarginrangesare basedupon an internalsimulationmodela
Slide 17: Illustrative Example of Modeling Exelon Generation 2015 Gross Margin
Illustrative Example of Modeling Exelon Generation 2015 Gross Margin South, Mid- New Row Item Midwest ERCOT New York West & Atlantic England Canada (A) Start with fleet-wide open gross margin $6.75 billion (B) Expected Generation (TWh) 97.0 71.3 16.4 9.4 7.1 (C) Hedge % (assuming mid-point of range)
Slide 18: Additional Disclosures
Additional Disclosures 17 2014 3Q Earnings Release Slides
Slide 19: Exelon Utilities Weather-Normalized Load
Exelon Utilities Weather-Normalized Load All Customers Residential Small C&I Large C&I ComEd PECO BGE 2.0% 2.1% 1.4% 1.5% 1.1% 0.7% 0.6% 0.1% 0.3% 0.3% 0.0% 0.0% 0.0% -0.2% -0.5% -0.3% -0.6% -0.6% -0.5% -1.1% -0.7% -1.2% -1.8% -3.2% 2013 2014E 2013 2014E 2013 2014E Chicago GMP 1.7% Philadelphia GMP
Slide 20: ComEd April 2014 Distribution Formula Rate
ComEd April 2014 Distribution Formula Rate The 2014 distribution formula rate filing establishes the net revenue requirement used to set the rates that will take effect in January 2015 after the ICC’s review. There are two components to the annual distribution formula rate filing: • Filing Year: Bas
Slide 21: BGE Rate Case Settlement
BGE Rate Case Settlement Electric Gas Docket # 9355 Test Year September2013 - August2014 CommonEquityRatio(1)(2) 52.3% Authorized Returns(1)(3) ROE: 9.75%; ROR: 7.46% ROE: 9.65%; ROR: 7.41% Requested Rate of Return 7.93% 7.88% ProposedRateBase(adjusted) $2.9B $1.2B (1)(4) RevenueRequirement Increase
Slide 22: Appendix Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures 21 2014 3Q Earnings Release Slides
Slide 23: 3Q GAAP EPS Reconciliation
3Q GAAP EPS Reconciliation Three Months Ended September 30, 2013 ExGen ComEd PECO BGE Other Exelon 2013 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $0.47 $0.15 $0.11 $0.06 $(0.02) $0.78 Mark-to-market impact of economic hedging activities 0.18 - - - - 0.17 Unrealized gains related to NDT
Slide 24: 3Q YTD GAAP EPS Reconciliation
3Q YTD GAAP EPS Reconciliation Nine Months Ended September 30, 2013 ExGen ComEd PECO BGE Other Exelon 2013 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $1.18 $0.36 $0.34 $0.16 $(0.06) $2.00 Mark-to-market impact of economic hedging activities 0.20 - - - (0.00) 0.21 Unrealized gains relate
Slide 25: GAAP to Operating Adjustments
GAAP to Operating Adjustments • Exelon’s 2014 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 26: ExGen Total Gross Margin Reconciliation to GAAP
ExGen Total Gross Margin Reconciliation to GAAP Total Gross Margin Reconciliation (in $M) (5) 2014 2015 2016 Revenue Net of Purchased Power and Fuel Expense(1)(6) $7,800 $8,150 $8,150 Non-cash amortization of intangible assets, net, related to (2) $100 - - commodity contracts recorded at fair value