Exelon Corporation · NASDAQ:EXC
Exelon — Q4 2017 Earnings Presentation
83 slides from Exelon's earnings presentation, Feb 7, 2018
Slide 1: Earnings Conference Call 4th Quarter 2017
Earnings Conference Call 4th Quarter 2017 February 7, 2018
Slide 2: Cautionary Statements Regarding Forward-Looking Information
2 Q4 2017 Earnings Release Slides 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
Slide 3: Non-GAAP Financial Measures
3 Q4 2017 Earnings Release Slides 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-GA
Slide 4: Non-GAAP Financial Measures Continued
4 Q4 2017 Earnings Release Slides 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 m
Slide 5: Milestones and Accomplishments
5 Q4 2017 Earnings Release Slides Milestones and Accomplishments Financial • Delivered FY 2017 GAAP earnings per share of $3.97 and adjusted operating earnings per share* of $2.60, within our guidance range • Updated dividend policy to 5% growth annually through 2020 • Tax reform legislation will be
Slide 6: Proven Track Record of Improving Operational Performance
6 Q4 2017 Earnings Release Slides Proven Track Record of Improving Operational Performance Operations Metric At CEG Merger (2012) 2015 Q4 2017 BGE ComEd PECO PHI BGE ComEd PECO PHI Electric Operations OSHA Recordable Rate 2.5 Beta SAIFI (Outage Frequency) 2.5 Beta CAIDI (Outage Duration) Customer Op
Slide 7: Best in Class at ExGen and Constellation
7 Q4 2017 Earnings Release Slides Best in Class at ExGen and Constellation 74% retail power customer renewal rate 24% power new customer win rate 90% natural gas customer retention rate 25 month average power contract term Average customer duration of more than 5 years Stable Retail Margins Exelon G
Slide 8: 2017 Financial Results
8 Q4 2017 Earnings Release Slides (1) Amounts may not add due to rounding 2017 Financial Results 2017 EPS Results(1) • Adjusted (non-GAAP) operating earnings* full year drivers versus $2.55 - $2.75 guidance: Utilities Reduced storm activity Lower O&M FAS 109 Reg. Asset Impairment Exelon Generation I
Slide 9: 2018 Adjusted Operating Earnings Guidance
9 Q4 2017 Earnings Release Slides ($0.19) $0.62 $0.36 $0.45 $0.33 BGE ExGen HoldCo PHI ExGen $0.25 - $0.35 2017 Actual $1.03 $2.60(1) PECO BGE PHI ComEd PECO ComEd $2.90 - $3.20(2) 2018 Guidance ~($0.20) $1.35 - $1.45 $0.40 - $0.50 HoldCo $0.60 - $0.70 $0.40 - $0.50 2018 Adjusted Operating Earnings*
Slide 10: Our Capital Plan Drives Leading Rate Base Growth
10 Q4 2017 Earnings Release Slides Our Capital Plan Drives Leading Rate Base Growth Capital Expenditures ($M) $21B of capital will be invested at Exelon utilities from 2018-2021 for grid modernization and customer satisfaction 2,125 1,725 1,850 1,850 1,000 1,100 1,050 1,000 800 850 825 825 1,500 1,4
Slide 11: Mechanisms Cover Bulk of Rate Base Growth
11 Q4 2017 Earnings Release Slides Mechanisms Cover Bulk of Rate Base Growth 3.0 1.8 1.8 1.5 11.51.1 1.0 1.1 2018E 0.2 3.2 Total 2021E 11.5 2.5 2.8 2019E 2020E 2.9 Of the approximately $11.5 billion of rate base growth Exelon Utilities forecasts over the next 4 years, ~70% will be recovered through
Slide 12: Trailing Month ROEs vs Allowed ROE
12 Q4 2017 Earnings Release Slides Q4 2017 Trailing 12 Month ROEs* vs Allowed ROE Twelve Month Trailing Earned ROEs* 9.7%9.9%9.9% Delmarva Consolidated Exelon Utilities Legacy Exelon Utilities Pepco ACE Allowed ROE* Note: Represents the 12-month periods ending 12/31/2016 and 12/31/2017, respectively
Slide 13: Exelon Utilities' Distribution Rate Case Updates
13 Q4 2017 Earnings Release Slides Exelon Utilities’ Distribution Rate Case Updates Pepco MD Order Authorized Revenue Requirement Increase(1) $32.4M Authorized ROE 9.50% Common Equity Ratio 50.15% Order Received 10/20/17 ACE NJ Order Authorized Revenue Requirement Increase(1) $43.0M Authorized ROE 9
Slide 14: Exelon Utilities EPS Growth of 6-8% to 2021
14 Q4 2017 Earnings Release Slides Exelon Utilities EPS* Growth of 6-8% to 2021 $1.80 $2.00 $1.60 $2.10 $0.00 $1.70 $2.20 $1.50 $1.90 $2.00 2021E $2.20 2020E $2.10 2019E 2018E $1.80 $1.80 $1.70 U ti lit y A dju st ed O p erat in g E a rnin g s* Rate base growth combined with PHI ROE improvement driv
Slide 15: Exelon Generation: Gross Margin Update
15 Q4 2017 Earnings Release Slides Gross Margin Category ($M) (1) 2018 2019 2020 2018 2019 Open Gross Margin (2,5) (including South, West, Canada hedged gross margin) $4,350 $3,900 $3,750 $450 $200 Capacity and ZEC Revenues (2,5,6) $2,300 $2,000 $1,850 - - Mark-to-Market of Hedges (2,3) $350 $400 $2
Slide 16: Driving Costs and Capital Out of the Generation Business
16 Q4 2017 Earnings Release Slides Adjusted O&M* ($M)(1,2) 4,3004,2754,300 4,550 2018E 2020E 2019E 2021E -1.9% Cost optimization programs and planned nuclear plant closures drive lower total O&M (1) All amounts rounded to the nearest $25M (2) O&M and Capital Expenditures reflect removal of Oyster Cr
Slide 17: ExGen's Strong Available Cash Flow Supports Utility Growth and Debt Reduction
17 Q4 2017 Earnings Release Slides ExGen’s Strong Available Cash Flow* Supports Utility Growth and Debt Reduction (~$0.4-$0.6) Utility Investment ($3.3-$3.7) Committed ExGen Growth CapEx (~$0.7) ExGen/HoldCo Debt Reduction External Dividend ExGen Cumulative Available Cash Flow 2018-2021(1) ~$7.6 ($2
Slide 18: Impacts from Tax Reform
18 Q4 2017 Earnings Release Slides Impacts from Tax Reform (1) Due to ring-fencing, S&P deconsolidates BGE from Exelon and analyzes solely as an equity investment (2) Exelon Corp downgrade threshold (red dotted line) is based on the S&P Exelon Corp Summary Report; represents minimum level to maintai
Slide 19: Maintaining Strong Investment Grade Credit Ratings
19 Q4 2017 Earnings Release Slides Maintaining Strong 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 A1 Aa3 A3 A3 A2 A2 S&P BBB- BBB A- A- A- A A A Fitch BBB BBB A A A- A- A A- (1) Due to ring-fencing, S&P
Slide 20: Raising Dividend Growth Rate to 5% Annually
20 Q4 2017 Earnings Release Slides Raising Dividend Growth Rate to 5% Annually through 2020 2018E $1.38 $1.53 2019E 2020E 5% $1.31 2017A $1.45 Implied ExGen(2) Dividend Implied Exelon Utilities less HoldCo(2) Dividend Assuming a steady 70% payout ratio on Utility less HoldCo earnings, ExGen’s contri
Slide 21: Resiliency and Energy Market Reform
21 Q4 2017 Earnings Release Slides Resiliency and Energy Market Reform Price Formation Resiliency • PJM has stated that it is committed to advancing its proposal to allow all resources to set LMP and to improving scarcity pricing • PJM issued “Proposed Enhancements to Energy Price Formation” whitepa
Slide 22: ZEC Updates
22 Q4 2017 Earnings Release Slides ZEC Updates New York ZEC Legal Challenges Illinois ZEC Legal Challenges Federal Case: • Case dismissed on July 25 and judgment entered on July 27 • “The ZEC program does not thwart the goal of an efficient energy market; rather, it encourages through financial ince
Slide 23: The Exelon Value Proposition
23 Q4 2017 Earnings Release Slides The Exelon Value Proposition Regulated Utility Growth with utility EPS rising 6-8% annually from 2017- 2021 and rate base growth of 7.4%, representing an expanding majority of earnings ExGen’s strong free cash generation will support utility growth while also r
Slide 24: 2018 Business Priorities and Commitments
24 Q4 2017 Earnings Release Slides 2018 Business Priorities and Commitments Maintain industry leading operational excellence Effectively deploy $5.4B of 2018 utility capex Advance PJM power price formation changes in 2018 Prevail on legal challenges to the NY and IL ZEC programs Seek fair compensati
Slide 25: Additional Disclosures
25 Q4 2017 Earnings Release Slides Additional Disclosures
Slide 26: Exelon Utilities EPS Growth of 6-8% from 2018-2021
26 Q4 2017 Earnings Release Slides Exelon Utilities EPS Growth of 6-8% from 2018-2021 $0.00 $1.30 $0.10 $1.90 $1.80 $1.70 $2.20 $1.40 $2.10 $1.60 $1.50 $1.20 $1.10 $2.00 2019E $1.90 2018E 2020E $2.05 $1.80 2017E 2016A $1.70 $1.60 $1.50 Utility growth rate remains 6-8%, driven by rate base growth and
Slide 27: Utility Capex and Rate Base vs. Previous Disclosure
27 Q4 2017 Earnings Release Slides Utility Capex and Rate Base vs. Previous Disclosure We will invest $21B of capital in utilities from 2018-2021, supporting rate base growth of 7.4% from 2017-2021 Note: Numbers rounded to nearest $25M and may not add due to rounding. Rate base reflects year-end est
Slide 28: ComEd Capital Expenditure and Rate Base Forecast
28 Q4 2017 Earnings Release Slides Note: Numbers rounded to nearest $25M and may not add due to rounding. Rate base reflects year-end estimates. (1) Other includes long-term regulatory assets, which earn a return consistent with rate base, including Energy Efficiency and the Solar Rebate Program Com
Slide 29: PECO Capital Expenditure and Rate Base Forecast
29 Q4 2017 Earnings Release Slides Note: Numbers rounded to nearest $25M and may not add due to rounding. Rate base reflects year-end estimates. PECO Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) 450 450 475 450 475 100 125 100 200 225 275 275 250 825 2019E 850 2021E 8
Slide 30: BGE Capital Expenditure and Rate Base Forecast
30 Q4 2017 Earnings Release Slides Note: Numbers rounded to nearest $25M and may not add due to rounding. Rate base reflects year-end estimates. BGE Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) 375 400 475 450 375 225 175 225 200 200 325 400 425 425 400 1,100 2018E 20
Slide 31: PHI Consolidated Capital Expenditure and Rate Base Forecast
31 Q4 2017 Earnings Release Slides PHI Consolidated Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) 925 1,025 975 975 950 475 425 375 475 475 2021E 1,500 50 2020E 1,500 50 2019E 1,400 50 1,425 1,500 50 50 2018E 2017A ~$5.9B of Capital being invested from 2018-2021 6.5 7.
Slide 32: ACE Capital Expenditure and Rate Base Forecast
32 Q4 2017 Earnings Release Slides ACE Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) 175 200 200 200 150 125 175 125 125 75 300 2021E 2020E 225 2018E 375 2017A 2019E 325 300 ~$1.2B of Capital being invested from 2018-2021 1.3 1.5 1.6 1.7 1.8 0.8 0.8 0.9 1.0 1.1+8.0% 20
Slide 33: Delmarva Capital Expenditure and Rate Base Forecast
33 Q4 2017 Earnings Release Slides Delmarva Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) 200 200 175 175 175 200 150 100 100 100 50 50 50 50 50 350 2019E 325 2020E 2021E 450 325 2018E 2017A 400 ~$1.4B of Capital being invested from 2018-2021 1.5 1.6 1.7 1.7 1.8 0.8 0.
Slide 34: Pepco Capital Expenditure and Rate Base Forecast
34 Q4 2017 Earnings Release Slides Pepco Capital Expenditure and Rate Base Forecast Q4 2017 Capital Expenditures ($M) 550 600 575 600 625 125 125 150 250 300 2021E 950 2020E 850 2017A 2018E 675 750 725 2019E ~$3.3B of Capital being invested from 2018-2021 3.6 3.9 4.2 4.5 4.8 0.8 0.9 0.9 0.9 1.0 2021
Slide 35: ExGen O&M and Capex vs. Previous Disclosure
35 Q4 2017 Earnings Release Slides Adjusted O&M* – Q4 2017 ($M)(1) Adjusted O&M* - Q4 2016 ($M) 4,3004,2754,3004,550 -1.9% 2021E 2020E 2018E 2019E Capital and O&M now reflect removal of EGTP(4), Oyster Creek, and TMI (1) O&M and Capital Expenditures reflect removal of Oyster Creek and TMI in 2018 an
Slide 36: Adjusted O&M Forecast
36 Q4 2017 Earnings Release Slides Adjusted O&M* Forecast • Expect Compound Annual Growth Rate of -1.1% for 2018-2021 (1) All amounts rounded to the nearest $25M and may not add due to rounding $4,550 $1,250 $775 $975 $750 $4,800 $1,300 $725 $1,000 $700 2018 Guidance(1) -$175 ComEd -$150 BGE $8,125
Slide 37: Comparing Winter 2017/2018 and the 2014 Polar Vortex
37 Q4 2017 Earnings Release Slides Comparing Winter 2017/2018 and the 2014 Polar Vortex 2014 Polar Vortex vs. 2017/2018 Winter Generation Forced Outages(1) +23,000MW Improvement Generation Fuel Mix (MW)(2) Key Takeaways • PJM power prices cleared at times over ~$200/MWh during the 2017/2018 winter,
Slide 38: ExGen Forward Total Gross Margin Walk: Q4 2017 vs. Q3 2017
38 Q4 2017 Earnings Release Slides ExGen Forward Total Gross Margin* Walk: Q4 2017 vs. Q3 2017 $50 $8,050 Oyster Creek Handley $8,050 Q3 Q4 ($50) $50 $7,500 $7,550 Q3 Handley Energy Prices Q4 ($100) Oyster Creek $100 $7,250 2020 Energy Prices Capacity Revenues(2) $7,550 ($50) TMI ($100) ($150) 2019
Slide 39: 2018 Projected Sources and Uses of Cash
39 Q4 2017 Earnings Release Slides 2018 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 $1.4B of long-term debt at the utili
Slide 40: Exelon Debt Maturity Profile
40 Q4 2017 Earnings Release Slides Exelon Debt Maturity Profile(1) 1,594 312 500 910 800 833 500 850 360 763 295 175 1,430 675 700 600 650 1,200 185 788 350 900 258 1,023 2,512 623 750741 833 750 807 1,150 300 900 1,275 2047 1,225 2043 1,400 2042 2041 2040 2039 2044 2046 2045 2032 2031 78 2030 2029
Slide 41: Pension and OPEB Contributions and Expense
41 Q4 2017 Earnings Release Slides • 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 2017 2018 (in $M) Pre-Tax Expense(1) Contributions Pre-Tax Expense (Benefit) (1) Cont
Slide 42: Pension – Funded Status and Performance
42 Q4 2017 Earnings Release Slides Pension – Funded Status and Performance (3.8) (1.2) (1.2) (4.3) 2.6 Interest, Service & Other Costs Asset Investment Returns 16.1% Discount Rate 3.62% from 4.05% Contribution 0.3 80% Funded 83% Funded Pension 2017 Funded Status (PBO) Comparison ($B) December 31, 20
Slide 43: EPS Sensitivities
43 Q4 2017 Earnings Release Slides 2018 2019 2020 Henry Hub Natural Gas + $1/MMBtu $0.15 $0.32 $0.50 - $1/MMBtu ($0.15) ($0.31) ($0.47) NiHub ATC Energy Price + $5/MWh $0.06 $0.16 $0.26 - $5/MWh ($0.05) ($0.16) ($0.26) PJM-W ATC Energy Price + $5/MWh $0.02 $0.08 $0.13 - $5/MWh ($0.01) ($0.07) ($0.12
Slide 44: Historical Nuclear Capital Investment
44 Q4 2017 Earnings Release Slides Historical Nuclear Capital Investment 625 625 650 575 575 600 550 700 650 600 600 575 250 325 250 175 175 150 175 100 -0.8% 2021E 575 2020E 600 2019E 600 2018E 650 2017A 775 50 25 2016A 650 75 25 2015A 925 2014A 850 2013A 825 50 25 2012A 975 25 50 2011A 1,000 50 20
Slide 45: 2017 Exelon Recognition and Partnerships
45 Q4 2017 Earnings Release Slides 2017 Exelon Recognition and Partnerships Sustainability Corporate & Foundation Giving Corporate Recognition Diversity & Inclusion Workforce Dow Jones Sustainability Index Exelon named to Dow Jones Sustainability Index for 12th consecutive year Newsweek Magazine’s G
Slide 46: Exelon Generation Disclosures December 31, 2017
46 Q4 2017 Earnings Release Slides Exelon Generation Disclosures December 31, 2017
Slide 47: Portfolio Management Strategy
47 Q4 2017 Earnings Release Slides Portfolio Management Strategy Protect Balance Sheet Ensure Earnings Stability Create Value Exercising Market Views % H e d ge d Purely ratable Actual hedge % Market views on timing, product allocation and regional spreads reflected in actual hedge % High End of Pro
Slide 48: Components of Gross Margin Categories
48 Q4 2017 Earnings Release Slides Components of Gross Margin Categories Open Gross Margin •Generation Gross Margin at current market prices, including ancillary revenues, nuclear fuel amortization and fossils fuels expense •Power Purchase Agreement (PPA) Costs and Revenues •Provided at a consolidat
Slide 49: Gross Margin Categories and Reference Prices
49 Q4 2017 Earnings Release Slides Gross Margin Category ($M) (1) 2018 2019 2020 Open Gross Margin (including South, West & Canada hedged GM) (2,5) $4,350 $3,900 $3,750 Capacity and ZEC Revenues (2,5,6) $2,300 $2,000 $1,850 Mark-to-Market of Hedges (2,3) $350 $400 $250 Power New Business / To Go $55
Slide 50: Generation and Hedges
50 Q4 2017 Earnings Release Slides Generation and Hedges 2018 2019 2020 Exp. Gen (GWh) (1) 201,500 201,200 191,400 Midwest 95,900 97,200 96,700 Mid-Atlantic (2,6) 59,600 54,200 48,600 ERCOT 24,200 24,500 22,000 New York (2,6) 15,400 16,600 15,500 New England 6,400 8,700 8,600 % of Expected Generatio
Slide 51: ExGen Hedged Gross Margin Sensitivities
51 Q4 2017 Earnings Release Slides ExGen Hedged Gross Margin* Sensitivities (1) Based on December 31, 2017, 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 sensitivi
Slide 52: ExGen Hedged Gross Margin Upside/Risk
52 Q4 2017 Earnings Release Slides ExGen Hedged Gross Margin* Upside/Risk 6,000 6,500 7,000 7,500 8,000 8,500 9,000 2018 2019 2020 A p p ro xima te G ro ss Margin* ( $ m illion )( 1 ,2 ,3 ) $8,250 $7,800 $8,150 $7,150 (1) Represents an approximate range of expected gross margin, taking into account
Slide 53: Illustrative Example of Modeling Exelon Generation Total Gross Margin
53 Q4 2017 Earnings Release Slides 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) 97.2 54.2 24.5 16.6 8.7 (D) Hedge % (assuming mid-point of range) 52.5% 66.5% 55.5% 58.5% 36
Slide 54: Additional ExGen Modeling Data
54 Q4 2017 Earnings Release Slides Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2018 2019 2020 Revenue Net of Purchased Power and Fuel Expense*(2,3) $8,500 $8,025 $7,700 Non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair va
Slide 55: 2017A Earnings Waterfalls
55 Q4 2017 Earnings Release Slides 2017A Earnings Waterfalls
Slide 56: QTD Adjusted Operating Earnings Waterfall
56 Q4 2017 Earnings Release Slides QTD Adjusted Operating Earnings* Waterfall $0.04 $0.08 $0.00 Corp $0.02 $0.00 BGE PHI ExGen(3) ($0.03) Q4 2017 $0.55 Q4 2016 PECO $0.44 ComEd $0.08 Zero Emission Credit Revenue(1) $0.05 Capacity Pricing $0.02 NEIL Insurance Refund ($0.07) Market and Portfolio Condi
Slide 57: FY Adjusted Operating Earnings Waterfall
57 Q4 2017 Earnings Release Slides FY Adjusted Operating Earnings* Waterfall $0.11 $0.05 ComEd $2.60 ($0.24) 2017 Corp PHI $0.02 BGE PECO ($0.03) ExGen(4) $0.01 $2.68 2016 ($0.42) Market and Portfolio Conditions(1) ($0.07) O&M Impact of Outages(2) ($0.03) Interest Expense $0.20 Zero Emission Credit
Slide 58: 2018E Earnings Waterfalls
58 Q4 2017 Earnings Release Slides 2018E Earnings Waterfalls
Slide 59: ComEd Adjusted Operating EPS Bridge 2017 to 2018
59 Q4 2017 Earnings Release Slides ComEd Adjusted Operating EPS* Bridge 2017 to 2018 $0.04 Distribution & Transmission $0.03 Energy Efficiency ($0.01) ROE (US Treasury yields) ($0.03) Depreciation & Amortization ($0.02) Energy Efficiency Amortization Note: Drivers add up to mid-point of 2018 adjuste
Slide 60: PECO Adjusted Operating EPS Bridge 2017 to 2018
60 Q4 2017 Earnings Release Slides $0.05 $0.40 - $0.50 2018E(3,4) $0.45 Taxes/Other(5) RNF(1,5) ($0.02) 2017A O&M(2) ($0.03) PECO Adjusted Operating EPS* Bridge 2017 to 2018 Note: Drivers add up to mid-point of 2018 adjusted operating EPS range (1) Revenue net fuel (RNF) is defined as operating reve
Slide 61: BGE Adjusted Operating EPS Bridge 2017 to 2018
61 Q4 2017 Earnings Release Slides $0.25 - $0.35 $0.33 ($0.04) 2017A RNF(1,5) O&M(2,5) $0.01 2018E(3,4) BGE Adjusted Operating EPS* Bridge 2017 to 2018 Note: Drivers add up to mid-point of 2018 adjusted operating EPS range (1) Revenue net fuel (RNF) is defined as operating revenues less purchased po
Slide 62: PHI Adjusted Operating EPS Bridge 2017 to 2018
62 Q4 2017 Earnings Release Slides $0.09 $0.40 - $0.50 2018E(3,4) Other(5) ($0.01) O&M(2) RNF(1,5) $0.01 2017A $0.36 PHI Adjusted Operating EPS* Bridge 2017 to 2018 $0.03 FAS 109 ($0.02) D&A ($0.02) Other Note: Drivers add up to mid-point of 2018 adjusted operating EPS range (1) Revenue net fuel (RN
Slide 63: ExGen Adjusted Operating EPS Bridge 2017 to 2018
63 Q4 2017 Earnings Release Slides $0.10 Other $1.35 - $1.45 2018E(1,2) Gross Margin* 2017A O&M* Depreciation & Amortization $0.06 $0.24 $1.03 ($0.03) ExGen Adjusted Operating EPS* Bridge 2017 to 2018 Note: Drivers add up to mid-point of 2018 adjusted operating EPS range (1) Shares Outstanding (dilu
Slide 64: Exelon Utilities Rate Case Filing Summaries
64 Q4 2017 Earnings Release Slides Exelon Utilities Rate Case Filing Summaries
Slide 65: Exelon Utilities' Distribution Rate Case Schedule
65 Q4 2017 Earnings Release Slides 12/17 1/18 2/18 Delmarva – DE Electric Distribution Rates Delmarva – MD Electric Distribution Rates Exelon Utilities’ Distribution Rate Case Schedule 3/18 4/18 Note: Based on current schedules of Illinois Commerce Commission, Maryland Public Service Commission, and
Slide 66: Pepco MD (Electric) Distribution Rate Case Filing
66 Q4 2017 Earnings Release Slides Pepco MD (Electric) Distribution Rate Case Filing Formal Case No. 9472 Test Year January 1, 2017 – December 31, 2017 Test Period 8 months actual and 4 months estimated Requested Common Equity Ratio 50.28% Requested Rate of Return ROE: 10.10%; ROR: 7.74% Proposed Ra
Slide 67: Pepco DC (Electric) Distribution Rate Case Filing
67 Q4 2017 Earnings Release Slides Pepco DC (Electric) Distribution Rate Case Filing Formal Case No. 1150 Test Year January 1, 2017 – December 31, 2017 Test Period 8 months actual and 4 months estimated Requested Common Equity Ratio 50.28% Requested Rate of Return ROE: 10.10%; ROR: 7.74% Proposed Ra
Slide 68: Delmarva DE (Gas) Distribution Rate Case Filing
68 Q4 2017 Earnings Release Slides Delmarva DE (Gas) Distribution Rate Case Filing 68 Docket No. 17-0978 Test Year January 1, 2017– December 31, 2017 Test Period 6 months actual and 6 months estimated Requested Common Equity Ratio 50.52% Requested Rate of Return ROE: 10.10%; ROR: 6.98% Proposed Rate
Slide 69: Delmarva DE (Electric) Distribution Rate Case Filing
69 Q4 2017 Earnings Release Slides Delmarva DE (Electric) Distribution Rate Case Filing 69 Docket No. 17-0977 Test Year January 1, 2017– December 31, 2017 Test Period 6 months actual and 6 months estimated Requested Common Equity Ratio 50.52% Requested Rate of Return ROE: 10.10%; ROR: 6.98% Proposed
Slide 70: Delmarva MD (Electric) Distribution Rate Case Filing
70 Q4 2017 Earnings Release Slides Delmarva MD (Electric) Distribution Rate Case Filing Formal Case No. 9455 Per Filed Settlement Test Year October 1, 2016 – September 30, 2017 Test Period 7 months actual and 5 months estimated (Updated to 12+0 on November 16, 2017) Requested Common Equity Ratio 50.
Slide 71: ComEd Distribution Rate Case Filing
71 Q4 2017 Earnings Release Slides ComEd Distribution Rate Case Filing Docket # 17-0196 Filing Year • 2016 Calendar Year Actual Costs and 2017 Projected Net Plant Additions are used to set the rates for calendar year 2018. Rates currently in effect (docket 16-0259) for calendar year 2017 were based
Slide 72: Appendix Reconciliation of Non-GAAP Measures
72 Q4 2017 Earnings Release Slides Appendix Reconciliation of Non-GAAP Measures
Slide 73: Q4 QTD GAAP EPS Reconciliation
73 Q4 2017 Earnings Release Slides Q4 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, 2016 ExGen ComEd PECO BGE PHI Other Exelon 2016 GAAP (Loss) Earnings Per Sh
Slide 74: Q4 QTD GAAP EPS Reconciliation (continued)
74 Q4 2017 Earnings Release Slides Q4 QTD GAAP EPS Reconciliation (continued) 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, 2017 ExGen ComEd PECO BGE PHI Other Exelon 2017 GAAP (Loss) Ear
Slide 75: Q4 YTD GAAP EPS Reconciliation
75 Q4 2017 Earnings Release Slides Q4 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, 2016 ExGen ComEd PECO BGE PHI Other Exelon 2016 GAAP Earnings (Loss) Per S
Slide 76: Q4 YTD GAAP EPS Reconciliation (continued)
76 Q4 2017 Earnings Release Slides Q4 YTD GAAP EPS Reconciliation (continued) 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, 2017 ExGen ComEd PECO BGE PHI Other Exelon 2017 GAAP Earnings
Slide 77: Projected GAAP to Operating Adjustments
77 Q4 2017 Earnings Release Slides Projected GAAP to Operating Adjustments • Exelon’s projected 2018 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 invest
Slide 78: YE 2018 Exelon FFO Calculation
78 Q4 2017 Earnings Release Slides (1) All amounts rounded to the nearest $25M and may not add due to rounding (2) Calculated using S&P Methodology. Due to ring-fencing, S&P deconsolidates BGE from Exelon and analyzes solely as an equity investment. (3) Reflects impact of operating adjustments on GA
Slide 79: YE 2018 ExGen FFO Calculation
79 Q4 2017 Earnings Release Slides (1) All amounts rounded to the nearest $25M and may not add due to rounding (2) Calculated using S&P Methodology (3) Reflects impact of operating adjustments on GAAP EBITDA (4) Reflects other adjustments as prescribed by S&P (5) Reflects present value of net capaci
Slide 80: YE 2018 ExGen Net Debt Calculation
80 Q4 2017 Earnings Release Slides YE 2018 ExGen Net Debt Calculation ($M) (1,2) Long-Term Debt (including current maturities) $8,850 Short-Term Debt $0 - Surplus Cash Adjustment ($950) = Net Debt (a) $7,900 YE 2018 Book Debt / EBITDA Net Debt (a) = 2.5x Operating EBITDA (b) (1) All amounts rounded
Slide 81: GAAP to Non-GAAP Reconciliations: Operating ROE
81 Q4 2017 Earnings Release Slides GAAP to Non-GAAP Reconciliations Note: Amounts may not sum due to rounding (1) ACE, Delmarva, and Pepco represents full year of earnings Q4 2017 Operating ROE Reconciliation ($M)(1) ACE Delmarva Pepco Legacy EXC Consolidated EU Net Income (GAAP) (1) $77 $121 $205 $
Slide 82: GAAP to Non-GAAP Reconciliations: Adjusted Cash from Ops
82 Q4 2017 Earnings Release Slides GAAP to Non-GAAP Reconciliations 2018 Adjusted Cash from Ops Calculation ($M)(1) ComEd PECO BGE PHI ExGen Other Exelon Net cash flows provided by operating activities (GAAP) $1,625 $600 $625 $1,125 $4,125 $275 $8,375 Other cash from investing activities - - - - ($2
Slide 83: GAAP to Non-GAAP Reconciliations: ExGen Available Cash Flow
83 Q4 2017 Earnings Release Slides GAAP to Non-GAAP Reconciliations 2018-2021 ExGen Available Cash Flow and Uses of Cash Calculation ($M)(1) Cash from Operations (GAAP) $15,975 Other Cash from Investing and Financing Activities ($1,200) Baseline Capital Expenditures (4) ($3,675) Nuclear Fuel Capital