Slide 1: Earnings Conference Call 4th Quarter 2016
Earnings Conference Call 4th Quarter 2016 February 8, 2017
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 Employees & Financial Growth Regulatory & Policy Community •Delivered FY 2016 •Completed the •IL and NY ZEC •Commitment to our GAAP earnings of acquisition of PHI, Programs will workforce through $1.22 and adjusted adding $8.3B of rate preserve five nuclear best in ind
Slide 6: Best in Class Utility Operations
Best in Class Utility Operations Exelon Utilities Operational Metrics Comments Operations Metric 2016 • Operationally, the utilities ended the year with BGE PECO ComEd PHI strong results across key metrics. OSHA Recordable Rate • BGE, ComEd, and PECO achieved 1st Electric 2.5 Beta SAIFI Operations (
Slide 7: Best in Class at ExGen and Constellation
Best in Class at ExGen and Constellation Exelon Generation Operational Metrics Constellation Metrics • Continued best in class performance across our Nuclear fleet: o Capacity Factor of 94.6% is the highest 77% retail power 28% power new ever for Exelon customer customer win renewal rate rate o Most
Slide 8: Strong 2016 Financial Results
Strong 2016 Financial Results 2016 EPS Results(1,2) • Adjusted (non-GAAP) operating earnings full $2.68 year drivers versus guidance: $0.31 $0.44 $0.25 $0.48 $0.11 Utilities $1.22 $0.05 Weather $0.22 $0.31 $0.57 Lower O&M $0.10 $0.11 $0.47 Exelon Generation $0.03 $0.09 $0.41 Lower cost to serve $1.2
Slide 9: 2017 Adjusted Operating Earnings Guidance
2017 Adjusted Operating Earnings Guidance $2.68(1) $2.50 - $2.80(2) BGE $0.31 Key Year-Over-Year Drivers $0.25 - $0.35 BGE PHI $0.25 • BGE: Higher D&A, partially offset $0.30 - $0.40 PHI by normalization of one time PECO $0.48 items and distribution revenue • PHI: Full year of earnings and $0.40 - $
Slide 10: Our Capital Plan Drives Stable Earnings Growth
Our Capital Plan Drives Stable Earnings Growth Capital Expenditures ($M) Rate Base ($B)(1) 5,275 5,175 +6.5% 40.8 38.6 4,775 4,825 36.6 1,375 34.4 10.5 1,400 9.9 31.7 1,350 1,425 9.4 8.9 775 8.3 800 7.8 7.4 775 750 7.0 6.6 925 6.2 950 6.9 6.5 975 875 6.1 5.7 5.3 2,200 2,025 15.5 1,775 13.2 14.0 14.8
Slide 11: Formulaic Mechanisms Cover Bulk of Rate Base Growth
Formulaic Mechanisms Cover Bulk of Rate Base Growth Rate Base Growth Breakout 2017-2020 ($B)(1) 2.1 9.0 Base Rate Case 0.8 Tracker/Formula Rate 1.3 2.3 2.0 0.9 2.1 1.1 9.0 2.3 2.8 6.7 (0.1) 0.7 2.1 2017E 2018E 2019E 2020E Total Of the approximately $9.0 billion of rate base growth Exelon Utilities f
Slide 12: Weighted Average Allowed vs Earned ROE Comparison
Weighted Average Allowed vs Earned ROE Comparison Twelve Month Trailing Earned ROEs(1,2) Allowed ROE Earned ROE 10.5% 10.0% 10.0% 9.7% 9.5% 7.5% 6.3% 5.6% ACE Delmarva Pepco Legacy EU Consolidated EU (1) Operating ROE is calculated using operating net income divided by simple average equity for the
Slide 13: Exelon Utilities Distribution Rate Case Summary
Exelon Utilities Distribution Rate Case Summary BGE Final Order Delmarva MD Filing Authorized Revenue Requirement Increase(1,3) $92M Requested Revenue Requirement Increase(1) $57M Authorized ROE 9.75% (9.65% Gas) Requested ROE 10.60% Common Equity Ratio 51.90% Requested Common Equity Ratio 49.10% Or
Slide 14: Exelon Utilities EPS Growth of 6-8% to 2020
Exelon Utilities EPS Growth of 6-8% to 2020 Exelon Utilities Operating Earnings 2017-2020 $2.10 $2.05 $2.00 $1.90 $1.90 $1.80 $1.80 Utility Adjusted Operating Earnings $1.70 $1.75 $1.70 $1.60 $1.60 $1.50 $1.50 $1.40 $1.40 $0.00 2017E 2018E 2019E 2020E Rate base growth combined with PHI ROE improveme
Slide 15: Exelon Generation: Gross Margin Update
Exelon Generation: Gross Margin Update December 31, 2016 Change from Sep 30, 2016(7) (1) Gross Margin Category ($M) 2017 2018 2019 2017 2018 2019 (3) Open Gross Margin $4,100 $4,200 $4,050 $300 $550 $450 (including South, West, Canada hedged gross margin) (3) Capacity and ZEC Revenues $1,850 $2,250
Slide 16: Driving Cost and Capital Out of the Generation Business
Driving Cost and Capital Out of the Generation Business Adjusted O&M ($M)(1,2,3) Capital Expenditures ($M)(1,4) -0.5% 2,850 4,850 4,725 4,725 4,775 325 525 575 625 850 2,075 1,975 175 1,850 125 125 950 900 925 850 4,525 4,200 4,150 4,150 1,050 1,000 925 875 2017E 2018E 2019E 2020E 2017E 2018E 2019E
Slide 17: ExGen's Strong Free Cash Flow Supports Utility Growth and Debt Reduction
ExGen’s Strong Free Cash Flow Supports Utility Growth and Debt Reduction 2017-2020 Exelon Generation Free Cash Flow(1) and Uses of Cash ($B) ~$6.8 (~$1.3) ($2.3 - $2.7) ($2.8 - $3.2) Cumulative ExGen Committed ExGen Growth CapEx Utility Investment ExGen/HoldCo Debt Reduction FCF 2017-2020(2) Redeplo
Slide 18: Maintaining Investment Grade Credit Ratings is a Top Financial Priority
Maintaining Investment Grade Credit Ratings is a Top Financial Priority Exelon S&P FFO/Debt %(1)(4) ExGen Debt/EBITDA Ratio(5) 25% 21% 4.0 18%-20% 3.3x 20% 3.0x 3.0 2.7x 15% S&P Threshold 2.0 Book 10% Excluding Non-Recourse 5% 1.0 0% 0.0 2017 Target 2017 Target Credit Ratings by Operating Company Cu
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
Slide 20: Additional Disclosures
Additional Disclosures 20 Q4 2016 Earnings Release Slides
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 (ab
Slide 22: Exelon Utilities EPS Growth of 6-8% from 2017-2020
Exelon Utilities EPS Growth of 6-8% from 2017-2020 Analyst Day Q4 Earnings $2.10 $2.10 $2.05 $2.00 $2.00 $2.00 $1.90 $1.90 $1.90 $1.90 $1.80 $1.80 $1.80 $1.80 $1.70 $1.70 $1.65 $1.70 $1.75 $1.70 $1.60 $1.60 $1.60 $1.60 $1.50 $1.45 $1.50 $1.41 $1.50 $1.50 $1.40 $1.40 $1.40 $1.30 $1.35 $1.30 $1.20 $1.
Slide 23: Utility Capex and Rate Base vs. Previous Disclosure
Utility Capex and Rate Base vs. Previous Disclosure Analyst Day Rate Base CapEx ($M) Q4 2016 CapEx ($M) 5,325 5,175 5,275 5,175 500 525 4,775 4,825 525 4,650 4,600 600 525 575 575 1,200 550 1,175 1,100 1,025 1,000 825 Gas Delivery 925 975 Electric Transmission Electric Distribution 3,625 3,550 3,575
Slide 24: ComEd Capital Expenditure and Rate Base Forecast
ComEd Capital Expenditure and Rate Base Forecast Analyst Day Capital Expenditures ($M) Q4 2016 Capital Expenditures ($M) 2,150 2,200 1,900 2,025 400 1,725 400 1,775 325 1,600 375 1,675 275 300 300 300 1,750 1,575 1,800 1,650 1,300 1,450 1,375 1,475 2017E 2018E 2019E 2020E 2017E 2018E 2019E 2020E Ana
Slide 25: PECO Capital Expenditure and Rate Base Forecast
PECO Capital Expenditure and Rate Base Forecast Analyst Day Capital Expenditures ($M) Q4 2016 Capital Expenditures ($M) 775 775 750 750 775 800 775 750 175 200 175 200 200 200 200 200 100 75 75 75 125 100 75 75 500 500 475 475 475 500 500 475 2017E 2018E 2019E 2020E 2017E 2018E 2019E 2020E Analyst D
Slide 26: BGE Capital Expenditure and Rate Base Forecast
BGE Capital Expenditure and Rate Base Forecast Analyst Day Capital Expenditures ($M) Q4 2016 Capital Expenditures ($M) 950 975 950 975 900 875 925 875 275 275 325 275 300 300 350 325 175 200 175 225 175 225 150 150 500 500 450 475 400 400 400 400 2017E 2018E 2019E 2020E 2017E 2018E 2019E 2020E Analy
Slide 27: PHI Consolidated Capital Expenditure and Rate Base Forecast
PHI Consolidated Capital Expenditure and Rate Base Forecast Analyst Day Capital Expenditures ($M) Q4 2016 Capital Expenditures ($M) 1,500 1,550 1,375 1,400 1,425 1,350 50 50 1,350 50 50 50 1,225 50 50 475 525 50 425 400 375 450 425 275 975 975 875 900 900 950 925 925 2017E 2018E 2019E 2020E 2017E 20
Slide 28: Pepco Holdings Capital Expenditures
Pepco Holdings Capital Expenditures 825 725 700 250 650 125 150 125 400 350 50 350 325 325 300 50 300 300 575 575 575 125 150 175 50 50 525 150 125 125 75 75 200 200 175 175 175 175 175 175 2017E 2018E 2019E 2020E 2017E 2018E 2019E 2020E 2017E 2018E 2019E 2020E Gas Delivery Electric Transmission Ele
Slide 29: Pepco Holdings Rate Base Outlook
Pepco Holdings Rate Base Outlook 5.2 +6.7% 4.8 4.6 0.9 4.4 0.8 4.0 0.9 0.9 0.7 +4.0% 2.8 2.7 2.7 +7.3% 2.5 2.5 0.4 2.4 0.3 0.4 2.3 0.3 2.1 0.3 2.0 1.9 1.0 0.8 0.8 4.3 0.9 0.8 4.0 0.7 0.7 3.7 0.8 3.5 0.7 0.7 3.3 1.5 1.5 1.5 1.6 1.7 1.3 1.4 1.4 1.4 1.2 2016E 2017E 2018E 2019E 2020E 2016E 2017E 2018E 2
Slide 30: Exelon Utilities Distribution Rate Case Schedule
Exelon Utilities Distribution Rate Case Schedule 1/17 2/17 3/17 4/17 5/17 6/17 7/17 ComEd Electric 2017 FRU Rebuttal Distribution Filing Testimory Formula Rate Mid-April Mid-July Commission Pepco Electric Rebuttal Evidentiary Final Reply Order Distribution Testimony Hearings Briefs Apr Expected Rate
Slide 31: ExGen O&M and Capex vs. Previous Disclosure
ExGen O&M and Capex vs. Previous Disclosure Adjusted O&M – Q3 2016 ($M)(1,2) Adjusted O&M - Q4 2016 ($M)(2) -3.0% -0.5% 4,575 4,850 4,725 4,725 4,775 4,250 4,175 4,175 325 525 575 625 4,525 4,200 4,150 4,150 2017E 2018E 2019E 2020E 2017E 2018E 2019E 2020E Reversals + FitzPatrick Adjusted Operating O
Slide 32: 2016-2020 Exelon Generation Free Cash Flow and Uses of Cash
2016-2020 Exelon Generation Free Cash Flow and Uses of Cash Analyst Day(1) ($B) Q4 2016(1) ($B) ~$8.7 ~$8.2 (~$2.3) (~$2.3) ($2.7 - $3.2) ($3.0 - $3.5) ($2.7 - $3.2) ($2.9 - $3.4) Cumulative Committed Utility Investment ExGen/HoldCo Cumulative Committed Utility Investment ExGen/HoldCo ExGen FCF ExGe
Slide 33: Theoretical Dividend Affordability from Utility less HoldCo
Theoretical Dividend Affordability from Utility less HoldCo(1,2) 95% Utility Earnings Payout Ratio (less HoldCo) Midpoint of Payout Ratio Range 90% 85% 84% 81% 80% 79% 75% 75% 70% 65% 60% 2017 2018 2019 2020 Utility less HoldCo payout ratio falling consistently even as dividend grows (1) Chart is il
Slide 34: Adjusted O&M Forecast
Adjusted O&M Forecast • 2017 forecast of $8.5B(1) • Expect CAGR of ~0.5% for 2016-2020 $8,475 $8,200 $725 BGE BGE $725 $975 PHI PHI(2) $975 $775 PECO PECO $725 Key Year-over-Year Drivers(2) $1,275 ComEd ComEd $1,300 • Nuclear Reversals + FitzPatrick: $225 • Nuclear Outages: $75M • PECO & BGE Storm C
Slide 35: 2017 Projected Sources and Uses of Cash
2017 Projected Sources and Uses of Cash Total Exelon Cash (1) All amounts rounded to the nearest $25M. ($ in millions) (1) BGE ComEd PECO PHI ExGen Corp(9) Figures may not add due to rounding. Utilities 2017E Balance (2) Gross of posted counterparty collateral Beginning Cash Balance(2) 1,025 (3) Exc
Slide 36: Exelon Debt Maturity Profile
Exelon Debt Maturity Profile As of 12/31/16 ($M) 900 1,700 2,262 741 300 750 523 750 788 700 807 1,594 1,430 623 1,189 833 1,200 1,225 910 850 900 800 833 763 465 258 675 700 650 700 600 500 500 312 295 350 185 175 81 10 16 53 78 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Slide 37: Pension and OPEB Contributions and Expense
Pension and OPEB Contributions and Expense 2016(1) 2017 (in $M) Pre-Tax Expense(2) Contributions Pre-Tax Expense(2) Contributions Qualified Pension $410 $310 $435 $310 (3,4,5) Non-Qualified 20 35 20 25 Pension • Discount rates changes of +/- 50 bps result in -/+ $65M - $85M change in pension and OPE
Slide 38: Pension and OPEB – Funded Status and Performance
Pension and OPEB – Funded Status and Performance OPEB Funded Status Pension 2016 Funded Status (PBO) Comparison ($B) December 31, 2016 ($B) 2.6 (1.9) 58% Funded (3.4) (1.2) (4.5) Assets Liabilities Deficit 81% Funded (0.5) 1.1 (4.3) (0.6) 0.3 80% Funded December Interest, Discount PHI Unfunded Contr
Slide 39: EPS Sensitivities
EPS Sensitivities 2017 2018 2019 Henry Hub Natural Gas ExGen EPS Impact(1,2) +$1/MMBtu $0.02 $0.16 $0.22 -$1/MMBtu $0.02 ($0.14) ($0.20) NiHub ATC Energy Price +$5/MWh $0.03 $0.16 $0.23 -$5/MWh ($0.03) ($0.16) ($0.23) PJM-W ATC Energy Price +$5/MWh $0.00 $0.05 $0.12 -$5/MWh $0.00 ($0.06) ($0.12) 30
Slide 40: Historical Nuclear Capital Investment
Historical Nuclear Capital Investment Nuclear Non-Fuel Capital Expenditures(1) ($M) Nuclear Baseline CAGR Cancelled Growth Fukushima -0.5% Growth(4) Nuclear Baseline (excluding Fuel) (2,3,5) 1,000 975 900 50 50 925 25 800 850 150 775 325 250 25 250 175 650 75 25 675 25 175 175 25 625 600 100 25 25 7
Slide 41: Exelon Generation Disclosures
Exelon Generation Disclosures December 31, 2016 41 Q4 2016 Earnings Release Slides
Slide 42: 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 43: Components of Gross Margin Categories
Components of Gross Margin Categories Gross margin from Gross margin linked to power production and sales other business activities Open Gross Capacity and ZEC MtM of “Power” New “Non Power” “Non Power” Margin Revenues Hedges(2) Business Executed New Business •Generation Gross •Expected capacity •Ma
Slide 44: ExGen Disclosures
ExGen Disclosures Change from Sep 30, December 31, 2016 September 30, 2016 2016 (1) Gross Margin Category ($M) 2017 2018 2019 2017 2018 2019 (3) Open Gross Margin $4,100 $4,200 $4,050 $3,800 $3,650 $3,600 $300 $550 $450 (including South, West, Canada hedged gross margin) (3) Capacity and ZEC Revenue
Slide 45: ExGen Disclosures
ExGen Disclosures Previous Format New Format September 30, 2016 September 30, 2016 (1) Gross Margin Category ($M) 2017 2018 2019 2017 2018 2019 (3) Open Gross Margin $5,250 $5,350 $5,050 $3,800 $3,650 $3,600 (including South, West, Canada hedged gross margin) (3) Capacity and ZEC Revenues $0 $0 $0 $
Slide 46: ExGen Disclosures
ExGen Disclosures Generation and Hedges 2017 2018 2019 (1) 204,800 208,300 211,700 Exp. Gen (GWh) Midwest 95,400 95,900 96,900 Mid-Atlantic (2,6) 60,200 60,300 60,000 ERCOT 23,000 28,100 29,100 New York (2) 14,500 15,400 16,600 New England 11,700 8,600 9,100 % of Expected Generation Hedged (3) 91%-9
Slide 47: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin Sensitivities (1) Gross Margin Sensitivities (with Existing Hedges) 2017 2018 2019 Henry Hub Natural Gas ($/Mmbtu) + $1/Mmbtu $35 $250 $345 - $1/Mmbtu $25 $(225) $(310) NiHub ATC Energy Price + $5/MWh $45 $250 $360 - $5/MWh $(45) $(245) $(360) PJM-W ATC Energy Price + $5/MW
Slide 48: ExGen Hedged Gross Margin Upside/Risk
ExGen Hedged Gross Margin Upside/Risk 10,000 $9,500 9,500 $9,250 Approximate Gross Margin ($ million)(1,2,3,4) 9,000 $8,500 8,500 8,000 $7,850 7,500 $7,500 7,000 6,500 $6,700 6,000 2017 2018 2019 (1) Represents an approximate range of expected gross margin, taking into account hedges in place, betwe
Slide 49: Illustrative Example of Modeling Exelon Generation 2018 Gross Margin
Illustrative Example of Modeling Exelon Generation 2018 Gross Margin South, West & Row Item Midwest Mid-Atlantic ERCOT New York New England Canada (A) Start with fleet-wide open gross margin $4.2 billion (B) Capacity and ZEC $2.25 billion (C) Expected Generation (TWh) 95.9 60.3 28.1 15.4 8.6 (D) Hed
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 $50 - - commodity contracts recorded at fair value at merger date Other Rev
Slide 51: 2016A Earnings Waterfalls
2016A Earnings Waterfalls 51 Q4 2016 Earnings Release Slides
Slide 52: FY Adjusted Operating Earnings Waterfall
FY Adjusted Operating Earnings Waterfall (1,2) $0.05 Increased Distribution $0.06 Distribution & and Transmission rates Transmission Investment ($0.04) Rate case $0.03 Weather disallowances ($0.06) $2.68 ($0.01) ROE (US Treasuries) ($0.01) Storms $0.25 $2.49 $0.00 $0.05 ($0.13) $0.08 $0.08 Increased
Slide 53: Q4 Adjusted Operating Earnings Waterfall
Q4 Adjusted Operating Earnings Waterfall (1,2) $0.02 Weather $0.01 Increase Rates ($0.01) Bad debt expense ($0.01) Other $0.05 ($0.04) $0.44 $0.03 $0.00 $0.01 $0.38 $0.02 $0.02 Baltimore City Conduit fee settlement $0.05 Nuclear outages (inc. Salem) $0.01 Increased Distribution rates ($0.01) Lower R
Slide 54: 2017E Earnings Waterfalls
2017E Earnings Waterfalls 54 Q4 2016 Earnings Release Slides
Slide 55: ComEd Adjusted Operating EPS Bridge 2016 to 2017
ComEd Adjusted Operating EPS Bridge 2016 to 2017 $0.08 Distribution $0.03 Transmission ($0.05) Depreciation & $0.04 Energy Efficiency Amortization $0.02 ROE (US Treasury yields) ($0.03) Energy Efficiency ($0.01) Weather/Load Amortization $0.01 ($0.08) $0.60 - $0.70 $0.14 $0.01 $0.57 2016(1) RNF(2) O
Slide 56: PECO Adjusted Operating EPS Bridge 2016 to 2017
PECO Adjusted Operating EPS Bridge 2016 to 2017 $0.48 $0.00 ($0.02) $0.40 - $0.50 ($0.01) ($0.01) Inflation ($0.01) Storm 2016(1) RNF(2) O&M(3) Depreciation & 2017(4,5) Amortization Note: Drivers add up to mid-point of 2017 adjusted operating EPS range (1) Refer to the Earnings Release Attachments f
Slide 57: BGE Adjusted Operating EPS Bridge 2016 to 2017
BGE Adjusted Operating EPS Bridge 2016 to 2017 $0.03 Pricing/Mix $0.01 Transmission $0.00 $0.04 ($0.05) $0.31 $0.25 - $0.35 $0.04 Rate Case disallowances ($0.01) Storm Costs ($0.01) Bad Debt ($0.01) Baltimore City Conduit Fee ($0.03) D&A ($0.01) Other ($0.01) TOTI ($0.01) Other 2016(1) RNF(2) O&M(3)
Slide 58: PHI Adjusted Operating EPS Bridge 2016 to 2017
PHI Adjusted Operating EPS Bridge 2016 to 2017 ($0.01) ($0.05) $0.11 $0.30 - $0.40 $0.06 ($0.02) D&A $0.25 $0.08 Distribution ($0.03) Other $0.03 Transmission 2016(1) Stub Period RNF(3) O&M(4) Other 2017(5,6) Earnings(2) Note: Drivers add up to mid-point of 2017 adjusted operating EPS range (1) Refe
Slide 59: ExGen Adjusted Operating EPS Bridge 2016 to 2017
ExGen Adjusted Operating EPS Bridge 2016 to 2017 $0.32 NY + IL Legislation, including FitzPatrick $0.16 Capacity + New Builds ($0.29) Unfavorable Market Conditions ($0.02) FitzPatrick + Clinton + Quad ($0.03) Other Cities ($0.03) Power Growth Projects ($0.02) Other $1.27 $0.16 ($0.17) ($0.07) ($0.09
Slide 60: Exelon Utilities Rate Case Filing Summaries
Exelon Utilities Rate Case Filing Summaries 60 Q4 2016 Earnings Release Slides
Slide 61: ComEd April 2016 Distribution Formula Rate
ComEd April 2016 Distribution Formula Rate The 2016 distribution formula rate filing established the net revenue requirement used to set the rates that took effect in January 2017 after the Illinois Commerce Commission's (ICC’s) review. There are two components to the annual distribution formula rat
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 $60.2M(1)(2) (Updated o
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 $76.8M(1) (Updat
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 67 Q4 2016 Earnings Release Slides
Slide 68: 4Q QTD GAAP EPS Reconciliation
4Q QTD GAAP EPS Reconciliation 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 $(0.09) $0.33 Unrealized gains related to NDT fund investments (0.05) - - - - - (0.05) Merger and integration costs - - - - - 0.
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 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 $(0.20) $2.54 Mark-to-Market impact of economic hedging activities (0.18) - - - - - (0.18) Unrealized losses related to NDT fun
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) $1.22 Mark-to-Market impact of economic hedging activities 0.03 - - - - - 0.03 Unrealized gains related t
Slide 72: GAAP to Operating Adjustments
GAAP to Operating Adjustments • Exelon’s 2017 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: − Mark-to-Market adjustments from economic hedging activities − Unrealized gains and losses from NDT fund investments to the extent not offset by contractual accountin
Slide 73: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations (1) (1) YE 2017 Exelon FFO Calculation ($M) YE 2017 Exelon Adjusted Debt Calculation ($M) GAAP Operating Income $4,400 Long-Term Debt (including current maturities) $32,700 Depreciation & Amortization $2,875 Short-Term Debt $1,875 EBITDA $7,275 + PPA Imputed Debt(5)
Slide 74: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations (1) (1) YE 2017 ExGen Net Debt Calculation ($M) YE 2017 ExGen Net Debt Calculation ($M) Long-Term Debt (including current maturities) $9,525 Long-Term Debt (including current maturities) $9,525 Short-Term Debt $825 Short-Term Debt $825 - Surplus Cash Adjustment ($375
Slide 75: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2016 Adjusted O&M Reconciliation ($M)(1) ExGen ComEd PECO BGE PHI(4) Other Exelon GAAP O&M $5,650 $1,525 $800 $725 $1,525 $100 $10,325 Regulatory O&M(2) - (225) (75) - (100) - (400) Long-lived asset impairment costs (175) - - - - - (175) Merger commitments and costs
Slide 76: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2017 Adjusted Cash from Ops Calculation ($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) - ($250) Intercompany receiva
Slide 77: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ExGen Adjusted O&M Reconciliation ($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: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Legacy Consolidated Operating ROE Reconciliation(1) ACE Delmarva Pepco EXC EU (1) Net Income (GAAP) ($42) ($9) $42 $1,102 $1,103 Operating exclusions $99 $89 $127 $146 $461 (1) Adjusted Operating Earnings $57 $80 $170 $1,258 $1,564 Average Equity $1,017 $1,282 $2,270