10-KPeriod: FY2014

EXELON CORP Annual Report, Year Ended Dec 31, 2014

Filed February 13, 2015For Securities:EXC

Summary

Exelon Corporation's 2014 10-K filing highlights a year of significant operational integration, including the full consolidation of CENG's nuclear fleet and the acquisition of Integrys Energy Services. The company is progressing with its proposed merger with Pepco Holdings, Inc. (PHI), having received several key regulatory approvals and anticipating closure in the second or third quarter of 2015. Exelon's utility businesses (ComEd, PECO, BGE) are focused on infrastructure modernization and smart grid deployments, supported by performance-based regulatory frameworks that allow for capital recovery and provide stable returns. Generation's diverse portfolio, with a strong emphasis on nuclear power, navigates competitive energy markets while managing commodity price risks through a robust hedging strategy. The company's financial performance in 2014 saw a slight decrease in net income attributable to common shareholders compared to 2013, primarily due to higher operating and maintenance expenses, including long-lived asset impairments, partially offset by gains on asset sales and the consolidation of CENG. Exelon remains committed to maintaining investment-grade credit metrics and returning value to shareholders through a sustainable dividend and earnings growth.

Financial Statements
Beta
Revenue$27.43B
Operating Expenses$25.04B
Operating Income$3.10B
Interest Expense$1.02B
Net Income$1.62B
EPS (Diluted)$1.88
Shares Outstanding (Basic)860.00M
Shares Outstanding (Diluted)864.00M

Key Highlights

  • 1Exelon is pursuing a merger with Pepco Holdings, Inc. (PHI), expecting closure in Q2 or Q3 2015, with several key regulatory approvals already obtained.
  • 2The company fully consolidated CENG's nuclear fleet operations starting April 1, 2014, impacting financial results and operational oversight.
  • 3Exelon acquired Integrys Energy Services, Inc. on November 1, 2014, expanding its competitive retail footprint.
  • 4Utility businesses (ComEd, PECO, BGE) are executing modernization plans, including significant investments in smart meter and smart grid technologies.
  • 5Generation's operational performance is strong, with its nuclear fleet achieving high capacity factors, while navigating competitive energy markets and commodity price risks.
  • 6The company is actively managing its hedging strategy to mitigate commodity price risk, with significant portions of expected generation hedged for 2015 and 2016.
  • 7Despite a slight decrease in net income attributable to common shareholders, Exelon's financial strategy emphasizes maintaining investment-grade credit metrics and returning value to shareholders.

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