Slide 1: Winter 2019 Investor Meetings
Winter 2019 Investor Meetings
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:
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: Exelon: An Industry Leader
Exelon: An Industry Leader 212 TWH 32,500 Customerload Megawatts of $23B $51 In 2018, Exelon gave= | Being invested approx. $51 million served total power in utilities to chafitable and #1 generation through 2022 community causes ee Res capacity energy fi provider i ral in America Naum avs (Approx.y
Slide 6: Exelon is an Industry Leader
Exelon is an Industry Leader US Utility Customers (millions) 10.0 9.9 9.3 9.1 8.3 6.0 6.0 5.4 5.1 5.0 4.0 3.7 2.9 EXC PCG SO DUK SRE FE D AEP XEL EIX PEG ED ETR Total Capital Expenditures 2018-2020 ($B)(1) 31.0 23.0 22.8 18.1 17.7 13.7 13.0 12.3 11.5 11.1 10.9 10.2 3.6 DUK SO EXC(2) PCG AEP EIX PEG
Slide 7: Exelon is an Industry Leader
Exelon is an Industry Leader Total Generation Output (TWh)(1) 219.8 187.0 186.9 180.5 134.3 133.0 108.8 107.7 103.2 100.4 85.0 82.0 74.4 52.6 DUK SO EXC(3) NEE ETR AEP D CPN NRG DYN FE VST XEL PEG Carbon Intensity (lb/MWh)(1) 1,925 1,429 1,534 1,622 1,280 1,386 968 1,094 738 805 479 499 567 105 EXC(
Slide 8: The Exelon Value Proposition
The Exelon Value Proposition ▪ Regulated Utility Growth with utility EPS rising 6-8% annually from 2018- 2022 and rate base growth of 7.8%, representing an expanding majority of earnings ▪ ExGen’s strong free cash generation will provide ~$4.2B for utility growth and reduce debt by ~$2.5B over the n
Slide 9: 2018 Business Priorities and Commitments
2018 Business Priorities and Commitments ✓ Maintain industry leading operational excellence • First Quartile SAIFI performance at all utilities and First Quartile CAIDI performance at BGE, ComEd and PHI • Record nuclear output of 159 TWhs, best ever average refueling days, and capacity factor of 94.
Slide 10: 2019 Business Priorities and Commitments
2019 Business Priorities and Commitments Maintain industry leading operational excellence Meet or exceed our financial commitments Effectively deploy ~$5.3B of utility capex Advocate for policies to enable the utility of the future Advance PJM energy market price formation reforms Preserve authority
Slide 11: Exelon Utilities Overview
Exelon Utilities Overview 11
Slide 12: Operating Highlights
Operating Highlights At CEG Merger (2012) 2015 YTD 2018 Operations Metric BGE ComEd PECO PHI BGE ComEd PECO PHI OSHA Recordable Rate Electric 2.5 Beta SAIFI (Outage Operations Frequency) 2.5 Beta CAIDI (Outage Duration) Customer Satisfaction N/A Customer Service Level % of Calls Operations Answered
Slide 13: Exelon Utilities' 2018 Distribution Rate Case Results
Exelon Utilities’ 2018 Distribution Rate Case Results August 2018 December 2018 Pepco Electric DC ComEd February 2018 (8/9/2018) (12/4/2018) Delmarva MD Delmarva Electric DE PECO Electric (2/9/2018) (8/21/2018) (12/20/2018) May 2018 November 2018 January 2019 Pepco Electric MD Delmarva Gas DE BGE Ga
Slide 14: Trailing Twelve Month Earned ROEs vs Allowed ROE
Trailing Twelve Month Earned ROEs* vs Allowed ROE Trailing Twelve Month Earned ROEs* Allowed ROE Q4 2017 TTM Earned ROE Q4 2018 TTM Earned ROE 9.9% 9.9% 9.7% 10.3% 10.1% 9.7% 9.5% 8.8% 8.7% 8.1% 7.7% 7.0% 5.6% ACE Delmarva Pepco Legacy Exelon Consolidated Utilities Exelon Utilities Note: Represents
Slide 15: Our Capital Plan Drives Leading Rate Base Growth
Our Capital Plan Drives Leading Rate Base Growth Capital Expenditures ($M) Rate Base ($B)(1) 5,925 5,875 5,750 50.7 5,325 950 +7.8% 1,250 1,075 47.3 44.2 8.7 1,100 41.2 8.1 975 7.7 1,000 975 37.6 6.9 9.7 975 6.3 9.1 8.4 1,550 7.9 1,525 1,550 7.1 13.1 1,375 12.1 11.4 10.8 10.0 2,425 2,150 2,175 18.0
Slide 16: Mechanisms Cover Bulk of Rate Base Growth
Mechanisms Cover Bulk of Rate Base Growth Rate Base Growth Breakout 2019–2022 ($B) 3.5 13.1 Base Rate Case 1.1 Tracker/Formula Rate 2.4 4.8 3.0 1.2 1.9 3.0 1.1 1.9 3.6 8.3 1.4 2.1 2019E 2020E 2021E 2022E Total Of the ~$13.1B of rate base growth Exelon Utilities forecasts over the next 4 years, ~63%
Slide 17: Utility Adjusted Operating Earnings
Exelon Utilities EPS* Growth of 6-8% to 2022 Exelon Utilities Operating Earnings* $2.50 $2.45 $2.40 $2.30 $2.25 $2.20 $2.15 Utility Adjusted Operating Earnings* $2.15 $2.10 $2.05 $2.00 $1.90 $1.95 $1.80 $1.85 $1.80 $1.70 $1.74 $1.75 $1.60 $1.50 $1.50 $0.00 2018A 2019E 2020E 2021E 2022E Rate base gro
Slide 18: Exelon Generation Overview
Exelon Generation Overview 18
Slide 19: Constellation Overview
Constellation Overview 2,400 Employees ———_ =+#1 Retail N= Electricity 1.6 TCE A= inthe U.S E 8 Mi i Among the Gas Delivered Approxj= —top 10 largest as providers in Customers Served le i S. . In 2018, procured 8 million RECs for customers, \ BP: enabling them to avoidjaAy— approximately A \ .6 mill
Slide 20: Best in Class at ExGen and Constellation
Best in Class at ExGen and Constellation Exelon Generation Operational Metrics Constellation Metrics • Continued best in class performance across our Nuclear fleet:(1) 78% retail power 30% power new customer renewal − Capacity factor for Exelon (owned and customer win rate rate operated units) was 9
Slide 21: Exelon Generation: Gross Margin Update
Exelon Generation: Gross Margin Update Change from December 31, 2018 September 30, 2018 (1) Gross Margin Category ($M) 2019 2020 2021 2019 2020 Open Gross Margin (2,5) $4,350 $4,050 $3,750 $50 $150 (including South, West, New England, Canada hedged gross margin) Capacity and ZEC Revenues(2,5) $2,050
Slide 22: Capacity Market: PJM
Capacity Market: PJM ComEd Cleared Volumes (MW) EMAAC Cleared Volumes (MW) 9,950 9,975 8,650 8,075 7,450 7,575 6,975 6,675 5,800 6,025 5,175 3,975 16/17 17/18 18/19 19/20 20/21 21/22 16/17 17/18 18/19 19/20 20/21 21/22 Auction Year Auction Year SWMAAC Cleared Volumes (MW) MAAC, BGE, and Rest of RTO
Slide 23: Driving Costs and Capital Out of the Generation Business
Driving Costs and Capital Out of the Generation Business Adjusted O&M* ($M)(1) Capital Expenditures ($M)(1,2,3) 1,900 1,925 -1.0% 4,325 150 200 1,750 4,250 4,200 4,200 150 1,525 125 900 900 775 625 875 825 825 775 2019E 2020E 2021E 2022E 2019E 2020E 2021E 2022E Committed Growth Nuclear Fuel Base Cos
Slide 24: Historical Nuclear Capital Investment
Historical Nuclear Capital Investment Nuclear Non-Fuel Capital Expenditures(1) ($M) Nuclear Baseline CAGR Cancelled Growth Fukushima Growth(4) Nuclear Baseline (excluding Fuel) (2,3) 1,000 975 -1.2% 50 50 925 825 850 150 775 325 250 25 175 650 50 25 675 175 175 600 600 25 100 25 550 550 50 75 625 65
Slide 25: Financial Overview
Financial Overview 25 = = Exelon.
Slide 26: 2019 Adjusted Operating Earnings Guidance
2019 Adjusted Operating Earnings* Guidance $3.12(1) $3.00 - $3.30(2) Key Year-Over-Year Drivers • ExGen: Lower realized energy prices, absence of NDT gains and IL ZEC timing, partially offset by NJ ZEC uplift $1.20 - $1.30 $1.39 • BGE: Higher distribution and transmission revenue, partially offset b
Slide 27: Cost Management is Integral to Our Business Strategy
Cost Management is Integral to Our Business Strategy ExGen and BSC Cost Reductions Since Constellation Merger 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CEG Merger Synergies of $170M in 2012, $350M in 2013, Announced Cost Reductions and $500M Run-Rate beginning in 2014 CENG Service Agreement
Slide 28: ExGen's Strong Available Cash Flow Supports Utility Growth and Debt Reduction
ExGen’s Strong Available Cash Flow* Supports Utility Growth and Debt Reduction 2019-2022 Exelon Generation Available Cash*(1) and Uses of Cash ($B) ~$7.8 ~($0.6) ($4.0-$4.4) ($0.3-$0.5) ($2.2-$2.8) ExGen Cumulative Committed ExGen Utility Investment External Dividend Debt Reduction Available Cash* G
Slide 29: Maintaining Strong Investment Grade Credit Ratings is a Top Financial Priority
Maintaining Strong Investment Grade Credit Ratings is a Top Financial Priority Exelon S&P FFO/Debt %*(1,4) ExGen Debt/EBITDA Ratio*(5) 25% 19%-21% 4.0 20% 20% 3.0x S&P Threshold 3.0 15% 2.4x 2.0 1.9x 10% Book Excluding Non-Recourse 5% 1.0 0% 0.0 2019 Target 2019 Target Credit Ratings by Operating Co
Slide 30: Raising Dividend Growth Rate to 5% Annually through 2020
Raising Dividend Growth Rate to 5% Annually through 2020 Dividends per Share(1) Implied Exelon Utilities less HoldCo(2) Dividend Implied ExGen(2) Dividend 5% $1.53 $1.45 $1.38 $1.31 2017A 2018A 2019E 2020E Assuming a steady 70% payout ratio on Utility less HoldCo earnings, ExGen’s contribution to th
Slide 31: Exelon Recognition and Partnerships
Exelon Recognition and Partnerships SUSTAINABILITY DIVERSITY & INCLUSION Sustainability Diversity and Inclusion Dow Jones Sustainability Index HeforShe Exelon named to Dow Jones Sustainability Index for 13th consecutive Exelon joined U.N. Women’s HeForShe campaign, which is focused on year. gender e
Slide 32: Climate Leadership Council - Founding Members
Climate Leadership Council - Founding Members Exelon is a founding member of the Climate Leadership Council (CLC) – an effort to promote a carbon fee-and-dividend program. The Four Pillars of a Carbon Dividends Plan: • Gradually Increasing Carbon Tax: Fee would be applied at the point where fossil f
Slide 33: Appendix
Appendix 33 = = Exelon.
Slide 34: 2019 Projected Sources and Uses of Cash
2019 Projected Sources and Uses of Cash Total Exelon Cash ($M)(1) BGE ComEd PECO PHI ExGen Corp(8) Utilities 2019E Balance Beginning Cash Balance* (2) 1,825 (1) All amounts rounded to the nearest Adjusted Cash Flow from Operations* (2) 700 1,425 850 1,125 4,075 4,025 (225) 7,875 $25M. Figures may no
Slide 35: Exelon Debt Maturity Profile
Exelon Debt Maturity Profile(1) As of 12/31/18 ($M) LT Debt Balances (as of 12/31/18) (1,2) BGE 2.9B 500 ComEd 8.3B PECO 3.3B PHI 6.3B ExGen recourse 6.7B ExGen non-recourse 2.1B 910 HoldCo 6.3B Consolidated 35.8B 2,512 1,023 1,225 850 500 600 700 1,189 175 1,850 312 1,430 1,400 1,150 997 975 900 90
Slide 36: EPS Sensitivities
EPS Sensitivities* 2019E 2020E 2021E Henry Hub Natural Gas + $1/MMBtu $0.10 $0.29 $0.44 - $1/MMBtu ($0.08) ($0.26) ($0.41) ExGen EPS Impact* (1) NiHub ATC Energy Price + $5/MWh $0.03 $0.17 $0.26 - $5/MWh ($0.03) ($0.17) ($0.26) PJM-W ATC Energy Price + $5/MWh ($0.00) $0.06 $0.12 - $5/MWh $0.01 ($0.0
Slide 37: Exelon Utilities Trailing Twelve Month Earned ROEs
Exelon Utilities Trailing Twelve Month Earned ROEs* Q4 2018: Trailing Twelve Month Earned ROEs* 12.0% Legacy Exelon Utilities Consolidated Exelon Utilities 11.0% 10.0% Delmarva $2.9/8.8% 9.0% $27.6/10.1% 8.0% Pepco $37.6/9.7% $4.9/8.7% Earned ROE (%) 7.0% ACE 6.0% $2.3/7.0% 5.0% 4.0% 3.0% 2.0% 1.0%
Slide 38: Exelon Utilities' Distribution Rate Case Updates
Exelon Utilities’ Distribution Rate Case Updates Rate Case Schedule and Key Terms Requested Revenue Expected Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep ROE / Requirement Order Equity Ratio (1,6) 8.69% / ComEd FO ($24.1M) Dec 4, 2018 47.11% Delmarva (1,2) 9.70% / FO ($3.5M) 50.52% Nov 8, 2018 Ga
Slide 39: Exelon Generation Disclosures
Exelon Generation Disclosures Data as of December 31, 2018 These disclosures were presented on February 8, 2019, and are not being updated at this time 39
Slide 40: Portfolio Management Strategy
Portfolio Management Strategy Align Hedging & Financials Portfolio Management Over Time Exercising Market Views Establishing Minimum Hedge Targets % Hedged High End of Profit % Hedged Low End of Profit Purely ratable Capital Credit Rating Structure Actual hedge % Capital & Market views on timing, pr
Slide 41: ExGen Disclosures
ExGen Disclosures December 31, 2018 Gross Margin Category ($M) (1) 2019 2020 2021 Open Gross Margin (including South, West, New England & Canada hedged GM) (2,5) $4,350 $4,050 $3,750 (2,5) Capacity and ZEC Revenues $2,050 $1,900 $1,850 (2,3) Mark-to-Market of Hedges $250 $250 $100 Power New Business
Slide 42: ExGen Disclosures
ExGen Disclosures December 31, 2018 Generation and Hedges 2019 2020 2021 Exp. Gen (GWh) (1) 193,200 185,100 180,700 Midwest 96,900 96,400 95,300 Mid-Atlantic(2,6) 54,000 48,500 48,700 ERCOT 25,700 24,500 20,100 New York(2) 16,600 15,700 16,600 % of Expected Generation Hedged (3) 89%-92% 56%-59% 32%-
Slide 43: ExGen Hedged Gross Margin Sensitivities
ExGen Hedged Gross Margin* Sensitivities December 31, 2018 Gross Margin* Sensitivities (with existing hedges) (1) 2019 2020 2021 Henry Hub Natural Gas ($/MMBtu) + $1/MMBtu $135 $385 $580 - $1/MMBtu $(105) $(340) $(540) NiHub ATC Energy Price + $5/MWh $45 $225 $345 - $5/MWh $(45) $(220) $(345) PJM-W
Slide 44: Additional ExGen Modeling Data
Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2019 2020 2021 Revenue Net of Purchased Power and Fuel Expense*(2,3) $8,075 $7,825 $7,550 Other Revenues(4) $(175) $(175) $(150) Direct cost of sales incurred to generate revenues for certain $(250) $(250) $(250) Constellati
Slide 45: Appendix Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures 45
Slide 46: Projected GAAP to Operating Adjustments
Projected GAAP to Operating Adjustments • Exelon’s projected 2019 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: − Mark-to-market adjustments from economic hedging activities; − Unrealized gains and losses from NDT funds to the extent not offset by contractual
Slide 47: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) (2) Exelon FFO/Debt = FFO (a) Adjusted Debt (b) Exelon FFO Calculation(2) GAAP Operating Income + Depreciation & Amortization = EBITDA - GAAP Interest Expense +/- GAAP Current Income Tax (Expense)/Benefit + Nuclear Fuel Amortization +/- GAAP to Operating Adjustmen
Slide 48: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations(1) ExGen Debt/EBITDA = Net Debt (a) ExGen Debt/EBITDA = Net Debt (c) Operating EBITDA (b) Excluding Non-Recourse Operating EBITDA (d) ExGen Net Debt Calculation ExGen Net Debt Calculation Excluding Non-Recourse Long-Term Debt (including current maturities) Long-Term
Slide 49: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2019 Adjusted Cash from Ops Calculation ($M)(1) BGE ComEd PECO PHI ExGen Other Exelon Net cash flows provided by operating activities (GAAP) $700 $1,425 $850 $1,125 $4,200 ($225) $8,050 Other cash from investing activities - - - - ($275) - ($275) Counterparty collate
Slide 50: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Legacy Consolidated Q4 2018 Operating ROE Reconciliation ($M) ACE Delmarva Pepco EXC EU Net Income (GAAP) $75 $120 $210 $1,437 $1,842 Operating Exclusions $1 $5 $19 $7 $32 Adjusted Operating Earnings $76 $125 $229 $1,444 $1,874 Average Equity $1,084 $1,422 $2,636 $14
Slide 51: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ExGen Adjusted O&M Reconciliation ($M)(1) 2018 2019 2020 2021 2022 GAAP O&M $5,475 $5,025 $4,925 $4,825 $4,850 Decommissioning(2) 50 50 50 50 50 Oyster Creek Retirement(4) (100) - - - - Direct cost of sales incurred to generate revenues for certain Constellation and