Slide 1: Earnings Conference Call 4th Quarter 2008
Exhibit 99.2 Earnings Conference Call 4th Quarter 2008 January 22, 2009
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 Financial Messages
Key Financial Messages Q4 operating results of $1.07/share powered by strong Generation performance: 4Q08 nuclear capacity factor of 93.7% 7% increase in average realized energy margins in 4Q08 compared to 4Q07 Reaffirming 2009 operating earnings guidance of $4.00-$4.30/share Challenged by higher pe
Slide 4: Exelon Operating EPS
Exelon Operating EPS 4th Quarter (Q4) Full Year (FY) $4.32 $4.20 $0.30 $1.02 $1.07 $0.33 $0.75 $0.13 $0.16 $0.49 $0.17 $0.12 $3.45 $3.46 $0.78 $0.80 ComEd PECO ExGen HoldCo/Other 2007 2008 2007 2008 $0.84 $1.07 GAAP EPS $4.05 $4.13 ExGen and ComEd reported higher quarter-over-quarter earnings, parti
Slide 5: Exelon Generation Operating EPS Contribution
Exelon Generation Operating EPS Contribution Key Drivers – Q4 ’08 vs. Q4 ’07* Favorable portfolio/market conditions: $3.45 $3.46 +$0.02 Nuclear volume: +$0.02 Costs associated with possible nuclear construction project: +$0.04 Higher nuclear fuel costs: ($0.02) Higher O&M costs, reflecting both infl
Slide 6: ComEd Operating EPS Contribution
ComEd Operating EPS Contribution Key Drivers – Q4 ’08 vs. Q4 ’07* $0.33 Distribution rates: +$0.06 $0.30 ’08 tax method change: +$0.02 ’07 tax method change: ($0.06) $0.16 $0.13 4Q YTD 2007 2008 *Refer to the Earnings Release Attachments for additional details and to the Appendix for a reconciliatio
Slide 7: ComEd Load Growth Trends
ComEd Load Growth Trends ComEd Customer Usage by Revenue Class Small C&I Top 380 Customer Usage by Segment 36% Manufacturing 53% Government 13% 380 Large Health & Educational Services 12% C&I 18% Finance, Professional & 10% Business Services Residential 31% Trade, Transportation & Utilities 9% Other
Slide 8: PECO Operating EPS Contribution
PECO Operating EPS Contribution Key Drivers – Q4 ’08 vs. Q4 ’07* $0.75 CTC amortization: ($0.02) Weather: ($0.01) Bad debt expense: +$0.01 $0.49 ’07 tax method change: ($0.05) $0.17 $0.12 4Q YTD 2007 2008 *Refer to the Earnings Release Attachments for additional details and to the Appendix for a rec
Slide 9: PECO Load Growth Trends
PECO Load Growth Trends PECO Customer Usage by Revenue Class Top 150 Customer Usage by Segment Petroleum 21% Small C&I 22% Manufacturing 19% Health & Educational Services 18% Pharmaceuticals 13% Residential 150 Large 34% Finance, Insurance & Real 13% C&I 21% Estate Transportation, Communication 9% O
Slide 10: 2009 Operating Earnings Guidance
2009 Operating Earnings Guidance Exelon $4.20 2009 Earnings Drivers $4.00 - $4.30 (1) Exelon ComEd $0.33 $0.45 - $0.55 ComEd PECO $0.49 ComEd distribution revenue PECO gas revenue $0.45 - $0.55 PECO O&M and other Pension/OPEB Exelon $3.10 - $3.35 Inflation Generation Exelon $3.46 Generation Cost red
Slide 11: 2009 Pension and OPEB Expense and Contributions
2009 Pension and OPEB Expense and Contributions Pension and OPEB Plans Key Metrics – 12/31/08e (in millions) Pension OPEB Key Metrics Assets $6,650 Assets $1,200 2008 asset return -26% Obligations $10,800 Obligations $3,500 12/31/08 discount rate 6.09% 2009 L-T EROA 8.50% $250 Pre-Tax Expense $250 $
Slide 12: Exelon Cost and Capital Management
Exelon Cost and Capital Management Drive productivity and cost reduction (with continued superior operations) • Clearly define governance and oversight model • Optimize the Exelon operational structure to drive efficiency and accountability, reducing complexity and cost • Provide better visibility o
Slide 13: Well-Positioned in These Challenging Times
Well-Positioned in These Challenging Times Exelon Position World-class nuclear operations – 93.9% capacity factor FY 2008 with 10 refueling outages at Exelon-operated units and 2 outages at Salem Constructive rate cases at ComEd and PECO Strong Operations Final ComEd rate order provides for $273.6 m
Slide 14: Appendix
Appendix Exelon 14
Slide 15: Market Price Snapshot
Market Price Snapshot Rolling 12 months, as of January 16, 2009. Source: OTC quotes and electronic trading system. Quotes are daily. 12.5 150 Forward NYMEX Natural Gas Forward NYMEX Coal 140 11.5 130 120 10.5 110 9.5 100 2011 $7.12 90 2011 $62.50 8.5 2010 $6.70 80 2010 $61.38 70 7.5 60 6.5 50 1/08 2
Slide 16: Market Price Snapshot
Market Price Snapshot Rolling 12 months, as of January 16, 2009. Source: OTC quotes and electronic trading system. Quotes are daily. Houston Ship Channel Natural Gas ERCOT North On-Peak Forward Prices 95 Forward Prices 11 90 10 85 80 9 2011 $60.98 2011 $6.80 75 2010 $56.52 2010 $6.37 8 70 65 7 60 6
Slide 17: Hedging Targets
Hedging Targets Financial Hedging Range (1) Prompt Year Second Year Third Year Power Team utilizes various products and (2009) (2010) (2011) channels to market in order to optimize Target Ranges Exelon Generation’s earnings: 90% - 98% 70% - 90% 60% - 80% • Block product sales in power • Options in p
Slide 18: Exelon Generation Has Limited Counterparty Exposure
Exelon Generation Has Limited Counterparty Exposure Net Exposure After Credit Collateral (1) Net Exposure by Type of Counterparty (1) (in millions) Investment grade $1,113 Non-investment grade 3 Investor-Owned Utilities, No external ratings 27 Marketers, and Power Producers Total $1,143 62% Exelon G
Slide 19: 2009 Projected Sources and Uses of Cash
2009 Projected Sources and Uses of Cash ($ in Millions) Exelon (5) Cash Flow from Operations (1) $1,000 $950 $2,800 $4,750 Capital Expenditures (1,000) (400) (1,950) (3,400) Net Financing (excluding Dividend): (2) Planned Debt Issuances 200 200 350 750 Planned Debt Retirements (3) 0 (750) 0 (750) Ot
Slide 20: Sufficient Liquidity
Sufficient Liquidity Available Capacity Under Bank Facility as of January 16, 2009 ($ in Millions) Exelon (3) Aggregate Bank Commitments (1) $952 $574 $4,834 $7,317 Outstanding Facility Draws -- -- -- -- Outstanding Letters of Credit (141) (93) (157) (396) Available Capacity Under Facility (2) 811 4
Slide 21: Projected 2009 Key Credit Measures
Projected 2009 Key Credit Measures With PPA & Pension / Without PPA & Moody’s Credit S&P Credit Fitch Credit OPEB (1) Pension / OPEB (2) Ratings (3) Ratings (3) Ratings (3) Exelon FFO / Interest 5.2x 7.0x Baa1 BBB- BBB+ Consolidated: FFO / Debt 23% 39% Rating Agency Debt Ratio 64% 54% ComEd: FFO / I
Slide 22: 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
Slide 23: Q4 GAAP EPS Reconciliation
Q4 GAAP EPS Reconciliation Three Months Ended December 31, 2007 ExGen ComEd PECO Other Exelon 2007 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $0.78 $0.13 $0.17 ($0.06) $1.02 Mark-to-market adjustments from economic hedging activities (0.03) - - - (0.03) 2007 Illinois Electric Rate Settl
Slide 24: YTD GAAP EPS Reconciliation
YTD GAAP EPS Reconciliation Twelve Months Ended December 31, 2007 ExGen ComEd PECO Other Exelon 2007 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $3.45 $0.30 $0.75 ($0.18) $4.32 Mark-to-market adjustments from economic hedging activities (0.15) - - - (0.15) 2007 Illinois Electric Rate Set