Exelon Corporation · NASDAQ:EXC
Exelon — Morgan Stanley Global Electricity & Energy Conference 2008
17 slides from Exelon's conference presentation, Apr 3, 2008
Slide 1: Matthew F. Hilzinger, Chief Financial Officer
Exhibit 99.1 Matthew F. Hilzinger Chief Financial Officer Morgan Stanley Global Electricity & Energy Conference April 3, 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 • 2007 was exceptional – financially and operationally • Platform for continued strong performance in 2008 and beyond • Substantial incremental cash flow and balance sheet capacity over next five years • Executing on Value Return Policy • Generation benefiting from continued improvement
Slide 4: Exelon Is Uniquely Positioned for Sustainable Value Creation – 12/07 View
Exelon Is Uniquely Positioned for Sustainable Value Creation – 12/07 View 2011 2007 2011 Assumptions Used for 12/07 Presentation Henry Hub Gas Price ($/mmBtu) 8.00 Coal (NAPP 3.0) ($/ton) 49.75 PJM W-Hub Implied Heat Rate (mmBtu/MWh) (2) 7.85 ComEd ExGen NI-Hub Implied Heat Rate (mmBtu/MWh) (2) 6.20
Slide 5: Positively Exposed to Market Dynamics
Positively Exposed to Market Dynamics 10 Henry Hub Gas Price 90 Coal Prices 85 9.5 80 9 As of 3/27/08 75 As of 3/27/08 70 8.5 12/07 Investor 65 Conference 8 60 55 12/07 Investor Conference 7.5 50 7 45 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 9 8.5 Implied ATC Heat Rates 2011 Capacity Prices
Slide 6: ComEd – Rate Case Summary
ComEd – Rate Case Summary • ComEd and ICC Staff are in virtual agreement with respect to proper capital structure ~45% equity • Relatively small difference between ComEd’s requested ROE (10.75%) and Staff’s recommendation (10.30%) • ComEd and ICC Staff are much closer on administrative and general (
Slide 7: ComEd - Interim Procurement Process
ComEd - Interim Procurement Process ComEd procured ~14% of its energy needs for June 2008 through May 2009 through the procurement of 24 block products for on-peak and off-peak energy 100% 3/08 RFP Future Procurement by Illinois 67% Power Agency Auction Contracts 33% Financial Swap NOTE: For illustr
Slide 8: Pennsylvania Snapshot
Pennsylvania Snapshot Current State of Play • Governor Rendell’s “Energy Independence Strategy”, PECO Actions introduced in February 2007, continues to be focus of legislative activity. Legislation aimed at reducing energy costs, increasing • Stakeholder outreach clean energy resources, reducing rel
Slide 9: Exelon's Strategic Direction
Exelon’s Strategic Direction Protect Today’s Value + Grow Long-Term Value • Deliver superior operating performance • Drive the organization to the next level of – Assure safety at all times performance – Keep the lights on – Continuously improve productivity – Maintain nuclear excellence – Insist on
Slide 10: Sustainable Value
Sustainable Value • Continued strong financial and operating performance, and long- term earnings growth driven by unregulated generation • Largest, lowest-cost nuclear fleet in competitive markets • Executing regulatory recovery plan to put ComEd on a path toward appropriate returns and solid credi
Slide 11: Appendix
Appendix Exelon. 11
Slide 12: ComEd – Rate Case Summary
ComEd – Rate Case Summary Comparison of ComEd revenue request to ICC Staff recommendation: Impact on ComEd Revenue ($ in millions) Request ICC Staff Increase Rate Base: 2006 Test Year $5,573 $5,348 ($26) Pro Forma Adjustments 1,498 358 (130) Total Rate Base 7,071 5,706 (156) 10.75% ROE / 10.30% ROE
Slide 13: ComEd Interim Procurement Results
ComEd Interim Procurement Results On-Peak Off-Peak MWs (1) Avg. Price (2) MWs (1) Avg. Price (2) June 2008 1,060 $81.13 630 $42.15 July 2008 1,640 94.92 960 47.46 August 2008 1,450 94.64 840 47.46 September 2008 870 76.80 470 42.65 October 2008 620 76.01 290 43.70 November 2008 750 74.89 460 44.31 D
Slide 14: PECO Average Electric Rates
PECO Average Electric Rates PPL Procurement Results ($/MWh) Residential Small C&I Projected Rate Increase Based on Round 1, 7/2007 $101.77 $105.11 Electric Restructuring Average PPL Procurement Results Settlement Round 2, 10/2007 $105.08 $105.75 (Illustrative) Round 3, 3/2008 $108.80 $108.76 Average
Slide 15: Pennsylvania Legislative Update
Pennsylvania Legislative Update • More than 100 bills have been introduced since Governor Rendell launched his Energy Independence Initiative in February 2007. • H.B. 2200 - Energy Efficiency (EE), Demand Response (DR) & Smart Meters: – Passed by House on 2/20/08 – Establishes Program Administrator
Slide 16: GAAP EPS Reconciliation Year Ended December 31, 2007
GAAP EPS Reconciliation Year Ended December 31, 2007 ExGen (1) ComEd (1) PECO (1) Other (1) Exelon 2007 GAAP Earnings Per Share $3.01 $0.25 $0.75 $0.04 $4.05 Mark-to-market adjustments from economic hedging activities 0.15 - - - 0.15 2007 Illinois electric rate settlement 0.38 0.03 - - 0.41 Investme
Slide 17: Exelon Investor Relations Contacts
Exelon Investor Relations Contacts Inquiries concerning this presentation Investor Relations Contacts: should be directed to: Chaka Patterson, Vice President Exelon Investor Relations 312-394-7234 10 South Dearborn Street Chaka.Patterson@ExelonCorp.com Chicago, Illinois 60603 312-394-2345 Karie Ande
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