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EXC · EXELON CORP

50 filings

10-Q

EXC 10-Q Quarterly Reports

EXELON CORP - 50 quarterly reports

Filing record · 2016–202610-K1110-Q328-K189

EXC filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 189 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · May ’17May ’17
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Impairment8-K · Apr ’21Apr ’21
  4. Material agreement8-K · May ’25May ’25
  1. 2026-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2026

    Exelon Corporation (EXC) reported a slight increase in net income attributable to common shareholders for the six months ended June 30, 2026, reaching $1.315 billion, a modest rise from $1.300 billion in the same period of 2025. Diluted earnings per share remained steady at $1.28 for both periods. The company's total operating revenues saw a significant increase to $13.209 billion for the first six months of 2026, up from $12.141 billion in the prior year, driven by higher electric operating revenues across its subsidiaries. Significant capital expenditures of $4.558 billion were made in investing activities during the first half of 2026, a notable increase from $3.962 billion in the same period of 2025, reflecting ongoing investments in property, plant, and equipment to support operations and grid modernization. Financially, Exelon managed its debt effectively, issuing $3.6 billion in long-term debt while retiring $1.6 billion. The company also successfully raised $382 million through the issuance of common stock under its at-the-market program. Cash flows from operating activities improved substantially, reaching $3.669 billion for the six months ended June 30, 2026, compared to $2.711 billion in the prior year, primarily due to higher net income and favorable changes in working capital. The company's financial position remains robust, with total assets growing to $120.505 billion, supported by substantial investments in its utility infrastructure.

    Jul 30, 2026
  2. 2026-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2026

    Exelon Corporation reported solid financial results for the first quarter of 2026, with net income attributable to common shareholders increasing to $919 million, or $0.90 per diluted share, compared to $908 million, or $0.90 per diluted share, in the first quarter of 2025. This growth was driven by favorable rate increases across several subsidiaries, including ComEd and BGE, and the absence of certain customer surcharges at PECO. The company also benefited from higher AFUDC at ComEd and favorable weather conditions. Despite these positive trends, the company experienced some headwinds. These included unfavorable impacts from the Pepco Maryland multi-year plan reconciliation, higher depreciation expenses at PECO and PHI, increased interest expenses, and higher credit loss expenses at BGE. Exelon's capital expenditures remain significant, reflecting ongoing investments in infrastructure upgrades across its service territories. The company's liquidity position remains strong, supported by operating cash flows and access to credit facilities, positioning it to continue funding its strategic initiatives.

    May 6, 2026
  3. 2025-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2025

    Exelon Corporation reported strong financial results for the nine months ended September 30, 2025, with net income attributable to common shareholders increasing by $361 million to $2,174 million compared to the same period in 2024. Diluted earnings per share also saw a significant rise to $2.15 from $1.81. This improvement was driven by favorable rate impacts across its key utility subsidiaries, including ComEd, PECO, BGE, and PHI, along with lower storm costs and improved regulatory asset returns. The company has also managed its debt effectively, issuing $4.9 billion in long-term debt while retiring $807 million. Looking ahead, Exelon continues to invest heavily in its infrastructure, with capital expenditures for plant additions and improvements estimated at $8.975 billion for 2025 across its various segments. The company maintains a robust liquidity position with access to significant credit facilities, and its dividend policy remains stable at $0.40 per share quarterly. While facing ongoing regulatory proceedings and potential environmental remediation costs, Exelon's management is focused on navigating these challenges and maintaining operational efficiency.

    Nov 4, 2025
  4. 2025-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2025

    Exelon Corporation (EXC) reported solid financial results for the six months ended June 30, 2025. Net income attributable to common shareholders increased to $1.300 billion from $1.106 billion in the same period of 2024, reflecting a favorable impact from rate increases across its utility segments, particularly ComEd, PECO, BGE, and PHI. These rate adjustments, coupled with timing benefits in distribution earnings and regulatory asset returns at ComEd, significantly contributed to the year-over-year improvement. Despite an increase in interest expenses and storm costs impacting some subsidiaries, overall operational performance was strong. The company also continued to invest heavily in its infrastructure, with capital expenditures for plant additions and improvements totaling $3.96 billion for the six months ended June 30, 2025. Exelon's liquidity position remains robust, supported by substantial credit facilities and positive operating cash flows, enabling continued investment in grid modernization and reliability. The company reaffirms its commitment to shareholder returns, having declared a quarterly dividend of $0.40 per share.

    Jul 31, 2025
  5. 2025-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2025

    Exelon Corporation reported a strong first quarter for 2025, with net income attributable to common shareholders increasing significantly to $908 million, or $0.90 per diluted share, compared to $658 million, or $0.66 per diluted share, in the first quarter of 2024. This represents a substantial year-over-year improvement driven by favorable regulatory rate increases across its utility segments, particularly at ComEd, PECO, BGE, and PHI, coupled with more normalized weather conditions compared to the prior year. Operating revenues also saw a healthy increase, reaching $6,714 million for the quarter, up from $6,043 million in the prior year's first quarter, reflecting the positive impact of rate adjustments and improved customer delivery volumes. The company's operational performance was robust across its subsidiaries, with ComEd, PECO, and Pepco showing notable revenue growth. Capital expenditures remained significant, totaling $1,942 million for the period, primarily directed towards infrastructure investments aimed at enhancing grid reliability and resilience. Exelon's liquidity position remains strong, supported by available credit facilities and robust operating cash flows, allowing for consistent dividend payments to shareholders and continued investment in its utility assets.

    May 1, 2025
  6. 2024-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2024

    Exelon Corporation reported solid financial results for the nine months ended September 30, 2024, with net income attributable to common shareholders increasing by $102 million to $1.81 billion compared to the same period in 2023. Diluted earnings per share also saw an increase to $1.81 from $1.72. This growth was driven by favorable impacts from rate increases across its utility segments, particularly at BGE and PHI, alongside improved regulatory asset returns at ComEd and a reduction in storm costs at PHI. Operationally, Exelon's core utility businesses, including ComEd, PECO, BGE, Pepco, DPL, and ACE, demonstrated resilience. While higher interest expenses and increased credit loss provisions presented headwinds, the company's strategic focus on infrastructure investment and regulatory proceedings appears to be paying off. Several key rate case filings were completed and pending, indicating ongoing efforts to manage costs and recover investments. Exelon also continued to pursue funding opportunities under the Infrastructure Investment and Jobs Act, securing significant grant recommendations for grid modernization and resilience projects.

    Oct 30, 2024
  7. 2024-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2024

    Exelon Corporation reported a net income of $448 million for the three months ended June 30, 2024, a notable increase from $343 million in the same period last year. Diluted earnings per share also improved to $0.45 from $0.34. For the six months ended June 30, 2024, net income was $1.106 billion, up from $1.012 billion in the prior year period, with diluted EPS rising to $1.10 from $1.02. The company's performance was driven by favorable rate increases across several operating segments, including BGE and PHI, improved weather conditions impacting PECO, and positive regulatory outcomes such as reconciliations at Pepco. Higher transmission peak loads, particularly at ComEd due to increased energy demand, also contributed to the improved results. These positive factors were partially offset by higher interest expenses across several subsidiaries and Exelon Corporate, as well as increased depreciation expenses at PECO and PHI. From a liquidity and capital resources perspective, Exelon maintained strong operating cash flows and had access to credit markets and revolving credit facilities, indicating a stable financial position. The company continues to make significant capital investments in infrastructure, with projected capital expenditures for 2024 totaling $7.425 billion across its operating companies, aimed at grid modernization and reliability.

    Aug 1, 2024
  8. 2024-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2024

    Exelon Corporation reported solid financial results for the first quarter of 2024, with net income attributable to common shareholders of $658 million, a slight decrease from $669 million in the prior year period. Diluted earnings per share were $0.66, consistent with the previous year. The company's operating revenues increased to $6,043 million from $5,563 million, driven by higher electric operating revenues across its subsidiaries, particularly ComEd. Despite increased interest expenses and storm costs impacting some subsidiaries, the company benefited from rate increases at BGE and PHI, and less unfavorable weather impacts at PECO. Capital expenditures remained significant, totaling $1,767 million, primarily for infrastructure improvements. The company maintained a strong liquidity position with substantial cash and cash equivalents. Exelon's regulatory filings indicate ongoing efforts to recover capital investments through rate cases, with several completed and pending proceedings across its operating territories. These regulatory actions are crucial for future earnings potential and managing the significant capital expenditure program.

    May 2, 2024
  9. 2023-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2023

    Exelon Corporation reported improved financial results for the nine months ended September 30, 2023, compared to the same period in the prior year, with net income attributable to common shareholders from continuing operations increasing by $89 million to $1.711 billion, or $1.72 per diluted share. This growth was driven by higher electric distribution formula rate earnings across its utility segments, particularly ComEd, attributed to increased allowed rates of return on equity (ROE) due to rising U.S. Treasury rates and higher rate bases. Favorable impacts from rate increases at PECO, BGE, and PHI, along with carrying costs for ComEd's Carbon Mitigation Credit (CMC) regulatory assets, also contributed positively. Despite these improvements, some subsidiaries, like PECO, BGE, and PHI, experienced increased operating expenses due to higher storm costs, depreciation, and interest expenses, partially offsetting the overall gains. Liquidity remains strong, supported by substantial capital expenditure programs focused on infrastructure improvements and grid resilience, funded through a combination of operating cash flows and access to capital markets. Exelon continues to manage its market risks through established policies and the use of derivative instruments, primarily for commodity price and interest rate risk mitigation. The company is actively engaged in various regulatory proceedings, including base rate case filings and transmission formula rate updates, which are critical for future revenue and earnings. The company also highlighted progress in securing federal funding for grid modernization and resilience initiatives under the Infrastructure Investment and Jobs Act.

    Nov 2, 2023
  10. 2023-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2023

    Exelon Corporation reported solid financial results for the second quarter and first half of 2023. For the three months ended June 30, 2023, net income attributable to common shareholders from continuing operations was $343 million, or $0.34 per diluted share, compared to $465 million, or $0.47 per diluted share, in the prior year period. This decrease was primarily attributed to higher interest expenses, unfavorable weather impacts at PECO, and increased depreciation at PECO, partially offset by favorable rate increases across several subsidiaries and higher electric distribution formula rate earnings. For the six months ended June 30, 2023, net income attributable to common shareholders from continuing operations increased to $1,012 million, or $1.02 per diluted share, compared to $946 million, or $0.96 per diluted share, in the prior year period. This improvement was driven by rate increases, higher electric distribution formula rate earnings, and lower Business Support Company (BSC) costs impacting continuing operations, with partial offsets from unfavorable weather, higher interest expenses, and increased environmental liabilities. Adjusted (non-GAAP) operating earnings provided a clearer view of ongoing operational performance, showing $0.41 per diluted share for Q2 2023 compared to $0.44 in Q2 2022, and $1.11 per diluted share for the first six months of 2023 compared to $1.08 in the same period last year. These figures exclude certain items such as mark-to-market impacts, environmental liability changes, SEC matter loss contingencies, and separation costs. Capital expenditures for the first six months of 2023 totaled $3.7 billion, largely in line with prior year investments, supporting infrastructure improvements across Exelon's utility operations.

    Aug 2, 2023
  11. 2023-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2023

    Exelon Corporation reported solid financial results for the first quarter of 2023, with a significant increase in net income attributable to common shareholders from continuing operations, rising to $669 million ($0.67 per diluted share) from $481 million ($0.49 per diluted share) in the same period last year. This growth was driven by higher electric distribution formula rate earnings at ComEd, benefiting from increased allowed ROE due to rising U.S. Treasury rates and higher rate base, as well as favorable rate impacts at PECO, BGE, and PHI. The company also benefited from lower corporate support service costs previously allocated to Constellation and carrying costs related to ComEd's Carbon Mitigation Credit (CMC) regulatory assets. Despite these positives, results were partially offset by unfavorable weather impacting PECO and PHI, higher interest expenses, increased environmental liabilities at Pepco, and higher depreciation and credit loss expenses at PECO. Operationally, the company continues to focus on infrastructure investment, with projected capital expenditures for 2023 estimated at $7.175 billion across its utility operations. Exelon is actively pursuing funding opportunities under the Infrastructure Investment and Jobs Act, having submitted multiple applications for smart grid and grid resilience grants, totaling nearly $700 million. The company's liquidity remains strong, supported by operating cash flows and access to credit facilities, with no outstanding amounts on its main revolving credit facilities as of March 31, 2023. Exelon also maintained its quarterly dividend at $0.36 per share.

    May 3, 2023
  12. 2022-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2022

    Exelon Corporation reported solid financial results for the nine months ended September 30, 2022, with net income attributable to common shareholders from continuing operations increasing to $1,622 million, or $1.65 per diluted share, compared to $1,307 million, or $1.33 per diluted share, in the same period of 2021. This improvement was driven by higher electric distribution earnings, favorable rate increases across its utility subsidiaries, and a reduction in certain corporate costs previously allocated to its discontinued generation business. Key operational highlights include continued investment in capital expenditures, totaling $4,952 million for the nine months ended September 30, 2022, to support infrastructure improvements and reliability. The company also strengthened its financial position by issuing common stock and managing its debt. Exelon's utility operations continue to benefit from regulatory rate approvals and performance-based mechanisms. While the company faces ongoing regulatory proceedings and potential impacts from new legislation like the Inflation Reduction Act, its diversified utility portfolio and disciplined financial management position it to navigate these factors effectively.

    Nov 3, 2022
  13. 2022-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2022

    Exelon Corporation's (EXC) Q2 2022 filing shows a solid performance driven by rate increases and improved operational efficiency across its utility segments. The company reported an increase in net income attributable to common shareholders from continuing operations to $465 million for the three months ended June 30, 2022, up from $326 million in the prior year. For the six months ended June 30, 2022, net income from continuing operations was $946 million, an increase from $851 million in the same period last year. This growth was primarily fueled by higher electric distribution earnings, particularly at ComEd, benefiting from increased allowed returns on equity due to rising treasury rates and expanded rate bases. PECO, BGE, and PHI also contributed positively through approved rate increases. While the company saw improvements in its core utility operations, the separation of Constellation (its former energy generation and marketing business) in February 2022 significantly altered its financial structure. The results of Constellation are now presented as discontinued operations. Exelon incurred separation costs impacting continuing operations but has largely stabilized its financial footing post-separation. Management remains focused on executing its capital expenditure plans, aimed at modernizing its infrastructure and enhancing grid reliability, while also managing market risks through established hedging programs. The company is also monitoring legislative developments such as the Inflation Reduction Act, which could have material impacts on its tax obligations.

    Aug 3, 2022
  14. 2022-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2022

    Exelon Corporation's (EXC) first quarter of 2022 filing reflects a significant transition with the completion of its separation from Constellation, its former generation and wholesale business, on February 1, 2022. While this separation resulted in Constellation's operations being classified as discontinued, Exelon's core utility business demonstrated resilience. Total operating revenues for the quarter increased to $5,327 million from $4,632 million in the prior year period, driven by higher electric and natural gas revenues across its utility operating companies. Despite an overall decrease in net income attributable to common shareholders from continuing operations, primarily due to separation-related costs and tax adjustments, the company's adjusted operating earnings (a non-GAAP measure) showed improvement. Key drivers for the adjusted earnings growth include favorable regulatory rate increases and higher electric distribution earnings at its utility subsidiaries, particularly ComEd and PECO. The company continues to invest in infrastructure and maintain a strong liquidity position, with significant capital expenditures planned for the remainder of the year.

    May 9, 2022
  15. 2021-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2021

    Exelon Corporation (EXC) reported solid financial results for the nine months ended September 30, 2021, demonstrating resilience despite challenging market conditions. The company's net income attributable to common shareholders saw a significant increase year-over-year, driven by a combination of factors including the absence of prior year impairment charges and one-time costs, higher mark-to-market gains, improved nuclear performance, and positive regulatory outcomes across its utility segments. The company successfully navigated the impacts of the February 2021 extreme cold weather event, which had a notable but manageable effect on its Texas generation assets, with mitigation strategies in place. Operationally, Exelon's utility segments benefited from rate increases and higher allowed returns, reflecting investments in infrastructure. The generation segment, while facing some headwinds from non-cash impairments and the reversal of previously planned plant retirements, also saw positive contributions from improved pricing and state-supported programs for its nuclear fleet. The company also made significant progress on its strategic plan to separate its utility and generation businesses, targeting completion in early 2022, which is expected to unlock further value for shareholders. Overall, Exelon's diversified business model and proactive management of market and regulatory dynamics positions it favorably for continued performance.

    Nov 3, 2021
  16. 2021-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2021

    Exelon Corporation reported mixed financial results for the second quarter of 2021 compared to the prior year. While consolidated net income attributable to common shareholders decreased by $120 million to $401 million ($0.41 per diluted share), primarily due to significant accelerated depreciation and amortization charges from planned nuclear facility retirements and asset impairments at its Generation segment, the Utility segment demonstrated resilience. ComEd, PECO, BGE, Pepco, DPL, and ACE collectively saw improved operating income, driven by higher allowed returns on equity, rate base growth, and the absence of significant storm restoration costs incurred in the prior year. The company is also progressing with its planned separation of the Utility and Generation businesses, targeting completion in the first quarter of 2022, which will create two distinct publicly traded entities. Despite the year-over-year decline in net income, the company's adjusted operating earnings presented a more favorable picture, increasing to $869 million ($0.89 per diluted share) from $536 million ($0.55 per diluted share) in the prior year. This adjustment primarily excludes the impact of mark-to-market activities, asset impairments, and costs related to the planned separation and early plant retirements. Exelon's utility operations continue to benefit from regulatory rate increases and favorable rate base growth, providing a stable foundation for future earnings.

    Aug 4, 2021
  17. 2021-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2021

    Exelon Corporation reported a net loss of $289 million for the first quarter of 2021, a significant decrease from a net income of $582 million in the same period of the previous year. This decline was primarily driven by the severe weather event in Texas in February 2021, which impacted Generation's Texas-based assets and resulted in substantial operating expenses. Additionally, accelerated depreciation and amortization related to planned nuclear plant retirements and the absence of a prior year's one-time tax settlement also contributed to the loss. The utility segments showed more stable performance, with increased operating revenues driven by higher rate base and allowed returns on equity. Despite the net loss, Exelon's adjusted operating earnings (non-GAAP) were $0.06 per diluted share, excluding the impact of the Texas weather event, plant retirements, and other non-recurring items. The company is actively managing its operations and has implemented cost-saving measures, including deferral of select maintenance and one-time cost savings to offset the impact of the weather event. Exelon also announced its plan to separate its utility and generation businesses into two publicly traded companies, a move anticipated to be completed in the first quarter of 2022, subject to regulatory approvals.

    May 5, 2021
  18. 2020-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2020

    Exelon Corporation reported a decrease in net income attributable to common shareholders for the nine months ended September 30, 2020, to $1.604 billion from $2.164 billion in the prior year. This decline was primarily driven by significant one-time charges and accelerated depreciation related to early retirement decisions for several nuclear and fossil fuel power plants, an impairment charge for the New England asset group, and the impact of COVID-19, including reduced load and direct costs. These factors, coupled with lower net unrealized gains on Nuclear Decommissioning Trust (NDT) funds and increased expenses from various regulatory and storm-related matters, weighed on earnings. Despite these challenges, Exelon's regulated utility segments demonstrated resilience, with several subsidiaries reporting increases in net income. The company actively managed its capital structure, issuing $5.3 billion in long-term debt and maintaining sufficient liquidity through its credit facilities. Exelon also continues to navigate regulatory landscapes, with several base rate case proceedings underway and a focus on recovering costs related to COVID-19 impacts through regulatory assets.

    Nov 3, 2020
  19. 2020-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2020

    Exelon's Q2 2020 10-Q shows a quarter that was profitable at the GAAP level but weaker than the prior year on a year-to-date basis. Q2 2020 GAAP net income attributable to common shareholders was $521 million ($0.53 diluted EPS), up from $484 million ($0.50) in Q2 2019. For the six months, net income attributable to common shareholders fell to $1,103 million ($1.13 per diluted share) from $1,391 million ($1.43). Adjusted (non-GAAP) operating earnings were $536 million ($0.55) for the quarter versus $583 million ($0.60) a year earlier, and $1,387 million ($1.42) year-to-date versus $1,429 million ($1.47). The quarterly GAAP increase was driven largely by higher NDT fund gains and mark-to-market gains, while the year-to-date decline reflects the $200 million Deferred Prosecution Agreement payment by ComEd, COVID-19 load reductions, credit loss expense, and storm costs. The most significant event in the filing is ComEd's July 17, 2020 Deferred Prosecution Agreement with the U.S. Attorney's Office for the Northern District of Illinois, which resolves the lobbying-related investigation. ComEd agreed to pay $200 million to the U.S. Treasury, and the payments are not recoverable from customers. Exelon itself was not charged, but the SEC investigation remains open and several putative class actions have been filed. Following the DPA, S&P lowered ComEd's long-term issuer rating from 'A-' to 'BBB+' on July 21, 2020. Investors should weigh this reputational and legal overhang alongside the financial charge. Liquidity appears adequate. Exelon issued $5.1 billion of long-term debt year-to-date, including $4.0 billion from April to July 2020, and states it has completed its planned 2020 long-term issuances. Generation's sale of customer receivables (about $1.2 billion derecognized for roughly $500 million cash plus a $650 million deferred purchase price) and its credit facilities support liquidity, and Generation would have needed $1.3 billion of incremental collateral had it lost investment-grade status. The Exelon dividend was maintained at $0.3825 per quarter. Key pending items include FERC action on the PJM Minimum Offer Price Rule, which could materially affect the state-supported nuclear plants, and the outcome of the Mystic and Conowingo proceedings.

    Aug 4, 2020
  20. 2020-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2020

    Exelon Corporation's Q1 2020 results show a notable decrease in net income attributable to common shareholders, falling to $582 million ($0.60 per diluted share) from $907 million ($0.93 per diluted share) in the prior year's first quarter. This decline was primarily driven by lower capacity revenues, reduced realized energy prices, increased nuclear outage days, and higher net unrealized and realized losses on Nuclear Decommissioning Trust (NDT) funds. Partially offsetting these decreases were higher mark-to-market gains, benefits from the New Jersey Zero Emission Certificate (ZEC) program, an income tax settlement at Generation, and regulatory rate increases at several utility subsidiaries. The company is actively managing the impacts of the COVID-19 pandemic, including implementing cost-saving measures and monitoring potential increases in credit loss expenses and reductions in energy demand. Despite market disruptions, Exelon's liquidity remains strong, supported by access to capital markets and credit facilities. The company is focused on operational efficiency and strategic investments, with significant capital expenditures planned across its utility and generation segments.

    May 8, 2020
  21. 2019-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2019

    Exelon's Q3 2019 Form 10-Q shows a quarter of steady earnings growth alongside a sharp nine-month improvement, driven largely by non-cash and one-time items. Q3 net income attributable to common shareholders rose to $772 million ($0.79 diluted EPS) from $733 million ($0.76) a year earlier, while nine-month GAAP net income reached $2,164 million ($2.22 diluted EPS) versus $1,858 million ($1.92). Management's adjusted (non-GAAP) operating earnings were $900 million ($0.92) for the quarter, up from $856 million ($0.88), and $2,329 million ($2.39) for nine months, down from $2,467 million ($2.55). The nine-month GAAP gain is therefore largely attributable to unrealized gains on nuclear decommissioning trust funds and realized gains on NDT sales, which management excludes from operating earnings. Operating revenues were $8.9 billion in the quarter, down about 5% year over year, reflecting lower competitive business revenues at Generation. Generation's results remain under pressure from lower capacity and realized energy prices, nuclear plant early retirements (Oyster Creek sold July 2019; TMI permanently ceased September 20, 2019), and the Antelope Valley solar facility's nonrecourse debt being reclassified as current after PG&E's bankruptcy filing. Q3 included a $164 million pre-tax impairment of distributed energy equity investments and a $113 million incremental TMI-related charge. Utility registrants (ComEd, PECO, BGE, Pepco, DPL, ACE) benefited from rate increases and transmission formula rate growth, with ComEd's net income up modestly for the nine months. Management announced about $100 million in additional annual Generation cost savings by 2022. Balance sheet and liquidity look adequate: total assets were $122.7 billion, long-term debt was $32.1 billion plus $4.2 billion due within one year, and cash and restricted cash totaled $2.2 billion. Exelon disclosed grand jury subpoenas and an SEC investigation (opened October 22, 2019) related to lobbying activities in Illinois, which is a material governance and legal risk to monitor.

    Oct 31, 2019
  22. 2019-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2019

    Exelon Corporation reported lower net income attributable to common shareholders for the second quarter of 2019 compared to the same period in the prior year, primarily due to lower realized energy prices and increased mark-to-market losses. However, for the first six months of 2019, net income attributable to common shareholders increased, driven by higher net unrealized and realized gains on Nuclear Decommissioning Trust (NDT) funds, decreased accelerated depreciation and amortization related to early plant retirements, a benefit from the remeasurement of the Three Mile Island Asset Retirement Obligation, and lower mark-to-market losses. The company's utilities saw positive impacts from regulatory rate increases across several jurisdictions, contributing to the improved six-month performance. Operationally, the company continues to manage its fuel procurement and hedging strategies to mitigate commodity price risk. The sale of the Oyster Creek nuclear facility was completed in July 2019, with an immaterial expected loss. The company is also navigating various regulatory proceedings and legislative proposals impacting clean energy and nuclear plant compensation, which could affect future financial performance. Despite some regional economic headwinds and early plant retirement impacts, Exelon's diversified business model and ongoing capital investments in its utility segments are expected to support long-term performance.

    Aug 1, 2019
  23. 2019-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2019

    Exelon Corporation reported a significant increase in net income attributable to common shareholders for the first quarter of 2019, reaching $907 million, a substantial rise from $585 million in the same period of 2018. This improvement was driven by several factors including favorable changes in Nuclear Decommissioning Trust (NDT) fund investments, reduced mark-to-market losses on economic hedging activities, a benefit from the remeasurement of the Three Mile Island Asset Retirement Obligation (ARO), and higher capacity prices. Additionally, regulatory rate increases at its utility subsidiaries (PECO, BGE, Pepco, and DPL) and lower storm costs at PECO and BGE contributed positively to the results. However, these positive developments were partially offset by lower realized energy prices and the absence of Zero Emission Credit (ZEC) revenues recognized in the prior year's first quarter. Exelon's management views adjusted operating earnings as a key indicator of ongoing operational performance, which stood at $846 million or $0.87 per diluted share for Q1 2019, compared to $925 million or $0.96 per diluted share for Q1 2018, highlighting the impact of non-operational items on GAAP net income. The company continues to focus on its integrated business model, balancing stable earnings from its regulated utility operations with the cash flow generation from its competitive businesses, while also managing costs and pursuing strategic policy alignment.

    May 2, 2019
  24. 2018-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2018

    Exelon Corporation reported a decrease in net income attributable to common shareholders for the third quarter of 2018 to $733 million ($0.76 per diluted share) from $823 million ($0.85 per diluted share) in the same period of 2017. This decline was primarily driven by lower operating revenues net of purchased power and fuel expenses, notably at the Generation segment due to the absence of prior-year revenues from deconsolidated entities and lower realized energy prices, as well as by increased operating and maintenance expenses across various segments, including charges related to the Oyster Creek Asset Retirement Obligation and higher nuclear refueling outage costs. For the nine months ended September 30, 2018, net income attributable to common shareholders was $1.86 billion ($1.92 per diluted share), a slight decrease from $1.91 billion ($2.02 per diluted share) in the prior year. While the utility segments experienced some benefits from rate increases and favorable weather, these were largely offset by the impact of the Tax Cuts and Jobs Act (TCJA), which required pass-through of tax savings to customers, reducing revenue. The company continues to manage its cost structure and execute its integrated business model, balancing regulated utility earnings growth with competitive business free cash flow generation.

    Nov 1, 2018
  25. 2018-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2018

    Exelon Corporation reported strong financial performance for the six months ended June 30, 2018, with net income attributable to common shareholders increasing to $1,125 million from $1,086 million in the prior year period. Diluted earnings per share remained stable at $1.16. The company's regulated utility businesses provided a stable earnings foundation, while its competitive generation segment, driven by favorable market conditions and improved operational performance, contributed significantly to the overall financial results. Key operational highlights include positive impacts from new regulatory initiatives in Illinois (Zero Emission Credits) and favorable weather conditions in several utility service territories which boosted revenues. The company continues to execute on its cost management program, achieving significant savings and reinvesting in infrastructure improvements across its utilities. Management remains focused on delivering shareholder value through dividends and strategic capital allocation, while navigating evolving industry dynamics and regulatory landscapes.

    Aug 2, 2018
  26. 2018-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2018

    Exelon Corporation reported a net income attributable to common shareholders of $585 million for the first quarter of 2018, down from $990 million in the prior year's first quarter. This decrease was primarily driven by higher depreciation and amortization expenses related to early plant retirements and a significant bargain purchase gain in the prior year from the FitzPatrick acquisition. While total operating revenues increased to $9,693 million from $8,747 million year-over-year, primarily due to favorable weather conditions, regulatory initiatives in New York and Illinois supporting nuclear plants, and increased capital expenditures across its utility segments, the company's net income was impacted by various factors. Notably, Generation's results were affected by mark-to-market losses on economic hedging activities and by the pass-through of Tax Cuts and Jobs Act (TCJA) savings to customers by the utility subsidiaries, which were largely offset by lower revenue. Despite the year-over-year decline in net income, the company's adjusted operating earnings saw a significant increase, signaling strong performance in core ongoing operations.

    May 2, 2018
  27. 2017-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2017

    Exelon Corporation reported solid financial results for the third quarter and first nine months of 2017, demonstrating a year-over-year improvement driven by strong performance across its utility and generation segments. The company saw increased net income attributable to common shareholders, reaching $824 million in Q3 2017 and $1,899 million year-to-date, compared to $490 million and $930 million, respectively, in the prior year periods. This growth was fueled by rate increases and higher capital investments in regulated utility businesses, alongside strategic operational improvements in the generation segment. The acquisition of Pepco Holdings, Inc. (PHI) continues to integrate well, contributing positively to earnings, and Exelon also completed the acquisition of the FitzPatrick nuclear generating station, which immediately added to earnings. Management reiterated its financial priorities, including maintaining investment-grade credit metrics and returning value to shareholders through dividends and earnings growth. Despite some challenges like unfavorable weather impacts on certain utility deliveries and lower mark-to-market gains on economic hedging activities, Exelon's overall financial health remains robust. The company's forward-looking strategy emphasizes continued investment in regulated utility infrastructure, enhancing customer experience, and optimizing its competitive generation portfolio to deliver stable free cash flow. Management is actively managing regulatory and market risks, including ongoing legal and regulatory matters related to environmental regulations and the future of nuclear power generation, which are being closely monitored for their potential impact.

    Nov 2, 2017
  28. 2017-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2017

    Exelon's Q2 2017 10-Q shows a sharp earnings contraction at the consolidated level, driven mainly by Generation. Net income attributable to common shareholders fell to $80 million ($0.09 per diluted share) for the quarter, versus $267 million ($0.29) a year earlier, and rose to $1,076 million ($1.15) for the six months, versus $440 million ($0.48) in 2016. Management's adjusted (non-GAAP) operating earnings were $509 million ($0.54 per share) for the quarter versus $604 million ($0.65) a year earlier, and $1,114 million ($1.19) for the six months versus $1,235 million ($1.33). The GAAP quarterly decline reflects a $418 million pre-tax impairment on the held-for-sale ExGen Texas Power (EGTP) assets, $71 million of one-time charges tied to the early retirement of Three Mile Island (TMI), and mark-to-market losses. Generation posted a net loss attributable to membership interest of $250 million for the quarter. The six-month GAAP result is flattered by a $226 million after-tax bargain purchase gain on the FitzPatrick nuclear acquisition and a $1.05 billion loss on reissuance of treasury stock recorded to retained earnings rather than the income statement. The regulated utilities were steadier. ComEd, PECO, BGE and the PHI utilities benefited from distribution rate increases, formula-rate and transmission-rate updates, and the merger-related regulatory outcomes, though ComEd's quarterly earnings fell to $118 million from $145 million because of a like-kind exchange tax and interest charge. Exelon's balance sheet grew to $117.1 billion in total assets, with a $1.25 billion IRS deposit on the like-kind exchange matter, and total equity rose to $29.3 billion after the equity-unit settlement that issued roughly 33 million shares. Operating cash flow for the six months fell to $2.9 billion from $4.6 billion, largely due to collateral postings and working-capital swings. Management also flagged upcoming obligations, including roughly $1.3 billion of like-kind exchange payments in the second half of 2017, and a pending Illinois tax rate increase effective July 1, 2017. Key risks for investors include Generation's exposure to flat-to-lower power prices and reduced hedging in 2018-2019 (71-74% hedged for 2018 and 39-42% for 2019), the impacts of Illinois and New York zero-emission credit programs and potential FERC MOPR challenges, the earnings and cash effects of further nuclear early retirements, and a potential material environmental liability at the West Lake Landfill and other Cotter-related sites.

    Aug 2, 2017
  29. 2017-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2017

    Exelon's first-quarter 2017 results show a sharp year-over-year improvement in reported earnings, but the quality of that improvement is mixed. Net income attributable to common shareholders rose to $995 million, or $1.07 per diluted share, from $173 million, or $0.19, in Q1 2016. That comparison is distorted by the prior-year PHI merger costs and merger commitment charges, and by a $226 million after-tax bargain purchase gain on the FitzPatrick nuclear plant acquisition in 2017. Management's adjusted (non-GAAP) operating earnings were $605 million, or $0.65 per share, down from $632 million, or $0.68 per share, a decline of about 4%. Revenue net of purchased power and fuel rose 11% to $4,858 million, driven by the inclusion of PHI's utilities for the full quarter, but Generation's revenue net of purchased power and fuel fell about 9% on mark-to-market losses and lower realized power and capacity prices. The balance sheet grew meaningfully. Total assets rose to $117.1 billion from $114.9 billion, and total debt increased, with short-term borrowings up to $2.0 billion and long-term debt due within one year up to $3.6 billion. Operating cash flow fell to $1.2 billion from $1.5 billion, mainly because of collateral postings and working-capital swings. Free cash flow after $2.1 billion of capital expenditures was negative, so the company relied on borrowings and an equity contribution-funded capital program. Capital spending for full-year 2017 is projected at about $8.2 billion. The most important forward-looking items for investors are the roughly $950 million net cash outflow for the like-kind exchange tax matter, with about $1.25 billion already deposited with the IRS and the balance due in Q3 2017, and the planned sale of EGTP's assets, which the company expects will produce a pre-tax impairment of $300 million to $400 million in Q2 2017. Generation's exposure to unhedged 2018 and 2019 power prices, along with the ZEC and capacity market (MOPR) challenges and the Illinois ZES litigation, also bear watching.

    May 3, 2017
  30. 2016-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2016

    Exelon's Q3 2016 10-Q (filed October 26, 2016) reflects its first full quarter-plus following the March 23, 2016 close of the Pepco Holdings (PHI) merger, which drives most of the year-over-year changes. Consolidated Q3 2016 operating revenues rose to $9.0 billion from $7.4 billion, and net income attributable to common shareholders fell to $490 million ($0.53 diluted EPS) from $629 million ($0.69). Nine-month net income attributable to common shareholders was $930 million ($1.00 diluted EPS) versus $1.96 billion ($2.22) a year earlier. The decline is driven largely by one-time items: merger commitment costs (about $513 million for the nine months), accelerated depreciation and one-time charges tied to the early retirement of the Clinton and Quad Cities nuclear plants, long-lived asset impairments, and a roughly $200 million after-tax charge in Q3 for the IRS like-kind exchange penalty and interest after the Tax Court's September 19, 2016 ruling. On an adjusted (non-GAAP) basis, Exelon reported Q3 operating earnings of $841 million ($0.91 per share) versus $757 million ($0.83) in 2015. The balance sheet expanded substantially. Total assets rose to $114.5 billion from $95.4 billion, driven by PHI's acquisition (goodwill of $6.7 billion, up from $2.7 billion) and higher PP&E. Long-term debt increased to $32.3 billion from $23.6 billion, and cash fell to $1.9 billion from $6.5 billion as the company funded the acquisition. Operating cash flow for the nine months was $7.4 billion, up from $5.7 billion, helped by $757 million of counterparty collateral received. Management is also preparing for a cash outflow of roughly $1.0 billion net (about $1.4 billion gross) for the like-kind exchange tax matter in early 2017, of which about $1.25 billion was deposited with the IRS in October 2016. Looking ahead, Generation's economic exposure remains significant: its nuclear fleet faces early retirements (Clinton in June 2017, Quad Cities in June 2018), and the outcome of New York's Clean Energy Standard (ZEC payments) and pending PJM/MISO capacity market matters will affect the earnings outlook. Management's stated priorities include maintaining investment-grade credit metrics, a dividend that rises 2.5% annually for three years, and roughly $350 million in O&M cost savings targeted over time.

    Oct 26, 2016
  31. 2016-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2016

    Exelon's Q2 2016 10-Q shows the first full quarter after closing its merger with Pepco Holdings (PHI), which closed March 23, 2016 and was accounted for with push-down accounting. Consolidated net income attributable to common shareholders fell to $267 million for the quarter (diluted EPS $0.29) from $638 million (EPS $0.74) a year earlier, and to $440 million for the six months (EPS $0.48) from $1,331 million. Adjusted (non-GAAP) operating earnings were $604 million, or $0.65 per diluted share, versus $508 million ($0.59) in the prior-year quarter, so the GAAP decline is driven largely by non-recurring items rather than weaker underlying operations. The main GAAP drags were merger commitments (about $508 million recorded in the six months), $141 million of one-time charges tied to the early retirement of the Clinton and Quad Cities nuclear plants, a mark-to-market loss of $304 million at Generation in the quarter, a $52 million BGE charge after Maryland regulators disallowed smart grid costs, and long-lived asset impairments (Upstream oil and gas and merger-era wind projects). Depreciation rose sharply to $941 million in the quarter, reflecting accelerated depreciation on the retiring plants and the added PHI assets. Interest expense, net more than doubled to $366 million as acquisition debt was issued. Balance sheet and cash flow changed materially. Total assets grew to $112.8 billion from $95.4 billion, largely from the $6.6 billion acquisition, $3.2 billion of new long-term debt issued in the first half, and goodwill rising to $6.7 billion. Cash and equivalents dropped to $1.6 billion from $6.5 billion as the acquisition was funded. Operating cash flow was still solid at $4.55 billion for the six months. Management kept the dividend growing (2.5% annual increases for three years) and is pursuing additional acquisitions, including ConEdison Solutions and the FitzPatrick nuclear plant.

    Aug 9, 2016
  32. 2016-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2016

    Exelon's first-quarter 2016 Form 10-Q reflects the close of its merger with Pepco Holdings (PHI) on March 23, 2016, which materially changed the balance sheet and reported results. Total assets rose to $111.7 billion from $95.4 billion at year-end 2015, driven largely by $6.7 billion of goodwill-related and acquisition-driven increases, property, plant and equipment growth to $69.4 billion, and higher regulatory assets. Total debt rose sharply: long-term debt reached $29.3 billion and short-term borrowings $3.6 billion, reflecting the merger financing and commercial paper use. Cash fell to $960 million from $6.5 billion as acquisition payments of roughly $6.6 billion were made. GAAP earnings fell sharply. Net income attributable to common shareholders was $173 million, or $0.19 per diluted share, versus $693 million, or $0.80, a year earlier. The decline was driven by $508 million of merger commitments charged at closing, $119 million of impairment on Generation's Upstream oil and gas assets, higher severance and merger/integration costs, and a 59.4% effective tax rate. Operating revenues declined 14% to $7.6 billion, reflecting lower competitive-business revenues and weaker realized energy prices at Generation, partially offset by utility growth. Management's adjusted (non-GAAP) operating earnings were $632 million, or $0.68 per diluted share, compared with $0.71 a year earlier, excluding merger, impairment, and mark-to-market items. Investors should weigh several forward-looking risks disclosed in the filing: the Generation nuclear fleet's economic viability (management announced intentions to close Clinton and Quad Cities absent Illinois legislation), the Upstream RBL borrowing-base default, a potential $460 million tax plus interest exposure from the like-kind exchange litigation, and ongoing merger-approval appeals. Management also announced a 2.5% annual dividend increase for each of the next three years, beginning June 2016.

    May 10, 2016
  33. 2015-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2015

    Exelon's Q3 2015 10-Q shows third-quarter net income attributable to common shareholders of $629 million ($0.69 diluted EPS), down from $993 million ($1.15) a year earlier, while adjusted (non-GAAP) operating earnings rose to $757 million ($0.83) from $676 million ($0.78). The GAAP decline reflects a $404 million swing in mark-to-market results at Generation (losses of $139 million versus gains of $267 million in 2014), a $64 million-plus NDT-related unrealized loss of $218 million at non-regulatory nuclear units, and the absence of the 2014 Safe Harbor sale gain. For the nine months, net income attributable to common shareholders rose to $1,959 million ($2.22 diluted) from $1,604 million ($1.86), helped by the April 2014 consolidation of CENG, which added fully consolidated revenues and earnings, and by favorable mark-to-market gains. The utilities performed steadily. ComEd, PECO and BGE each posted higher nine-month earnings, driven by formula-rate and distribution-rate increases, favorable weather at PECO, and higher transmission revenues at ComEd. Operating cash flow for Exelon rose to $5.67 billion for the nine months from $3.64 billion, largely because of lower collateral postings and a $376 million net collection of counterparty collateral at Generation. Cash and equivalents climbed to $7.27 billion, reflecting pre-funding of the pending $6.9 billion all-cash acquisition of Pepco Holdings (PHI), financed through $5.4 billion of debt, $1.9 billion of common stock and roughly $1.8 billion of asset-sale proceeds. The main investor overhangs are the PHI merger, which still requires approvals in the District of Columbia and Maryland litigation and has a outside date that could be extended to June 2016, and regulatory and policy risks at Generation, including PJM capacity-market reform, state subsidies for new generation, MISO zone 4 capacity-auction challenges, possible early nuclear retirements (Quad Cities, Byron, Clinton, Oyster Creek) and the Clean Power Plan. Management also raised the asset retirement obligation by about $775 million in Q3, and the Like-Kind Exchange tax dispute could require up to $560 million in payments if the IRS prevails.

    Oct 30, 2015
  34. 2015-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2015

    Exelon's Q2 2015 10-Q shows a strong first half, driven mainly by Generation's mark-to-market swings and the consolidation of CENG. Exelon reported net income attributable to common shareholders of $638 million ($0.74 diluted EPS) for the quarter, up from $522 million ($0.60) a year earlier, and $1,331 million ($1.54) for the six months versus $612 million ($0.71). Adjusted (non-GAAP) operating earnings were $508 million ($0.59) for the quarter and $1,123 million ($1.30) for the half. Operating revenue net of purchased power and fuel rose $453 million in the quarter, aided by $249 million of favorable economic hedge mark-to-market swings at Generation and a reduced number of nuclear outage days, though the comparison benefits from 2014 results that included a large CENG consolidation gain. The balance sheet expanded materially: total assets reached $92.2 billion, up from $86.8 billion at year-end 2014, and long-term debt rose to $25.2 billion from $19.4 billion as Exelon pre-funded the pending $7.2 billion acquisition of Pepco Holdings (PHI). Cash and equivalents rose to $6.0 billion. Operating cash flow was $3,969 million for the six months, versus $1,751 million a year earlier, largely reflecting $440 million of net counterparty collateral collections. The PHI merger has received approvals in most jurisdictions, including Maryland and Delaware, but still requires District of Columbia approval, faces judicial review petitions in Maryland, and is expected to close in Q3 2015. Management expects more than $300 million of merger-related commitments, substantially all charged to earnings at close. Key risks for investors include the potential retirement of several Generation nuclear plants (Quad Cities, Clinton, Ginna), ongoing FERC proceedings on the Ginna reliability agreement and transmission ROE complaints against BGE, a pending IRS challenge to the like-kind exchange position with up to $810 million of potential tax and after-tax interest, and the ongoing evolution of PJM capacity market rules. Generation's commodity exposure is partly hedged, with 98%-101% of 2015 expected generation hedged but only 46%-49% of 2017.

    Jul 29, 2015
  35. 2015-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2015

    Exelon's Q1 2015 Form 10-Q shows a sharp earnings rebound, with net income attributable to common shareholders of $693 million ($0.80 diluted EPS) versus $90 million ($0.10) a year earlier. The swing is driven largely by mark-to-market gains at Generation of $162 million in 2015 compared with losses of $730 million in 2014, and by the consolidation of CENG (Constellation Energy Nuclear Group) on a fully consolidated basis since April 1, 2014. On an adjusted (non-GAAP) basis, operating earnings were $615 million ($0.71 per diluted share) versus $530 million ($0.62), a more modest improvement that strips out hedging noise and merger costs. The balance sheet expanded materially. Total assets rose to $87.4 billion, and long-term debt increased to $20.5 billion from $19.4 billion, reflecting the $750 million Generation notes issuance and the $1.15 billion junior subordinated equity units issued in 2014 to help fund the pending Pepco Holdings (PHI) acquisition. Operating cash flow improved to $1.49 billion from $165 million, though that comparison is distorted by a large swing in counterparty collateral (a $708 million favorable variance). Capital expenditures rose to $1.78 billion, and Exelon projects full-year 2015 capital spending of about $7.4 billion. Cash dividends were held at $0.31 per share. The pending PHI merger is the dominant strategic item. Exelon expects an all-cash deal of roughly $7.2 billion, with PHI shareholders receiving $27.25 per share, and expects completion in late Q2 or Q3 2015. Approvals have been received from several state commissions and FERC, and settlements have been reached in Delaware and Maryland, though the Delaware settlement still requires DPSC approval. Investors should also note several open risks: the IRS like-kind exchange dispute (up to $810 million in potential tax and interest), the BGE transmission ROE complaints with refund exposure, Generation's exposure to a potential credit downgrade ($2.3 billion of incremental collateral), and the Ginna reliability support agreement that is still subject to regulatory approval.

    Apr 29, 2015
  36. 2014-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2014

    Exelon's third-quarter 2014 10-Q shows a company in the middle of a major transformation: consolidating the CENG nuclear fleet, selling non-core generation, and pursuing the roughly $7.2 billion all-cash acquisition of Pepco Holdings (PHI). For the nine months ended September 30, 2014, consolidated operating revenues rose 7.8% to $20.2 billion and net income attributable to common shareholders increased to $1,604 million ($1.86 diluted EPS) from $1,224 million ($1.42). The increase was helped by a $261 million pre-tax gain on consolidating CENG and a $329 million pre-tax gain on the Safe Harbor hydro sale, but was offset by $477 million of mark-to-market losses on economic hedges at Generation. Management's adjusted (non-GAAP) operating earnings were $1,646 million ($1.91 per diluted share), down from $1,722 million ($2.00) a year earlier, which is the more relevant gauge of underlying performance. Balance sheet and liquidity changed meaningfully. Total assets grew to $85.3 billion from $79.9 billion, and long-term debt rose to $19.2 billion from $17.6 billion, reflecting the CENG consolidation, $1.15 billion of junior subordinated equity units, and $3.2 billion of new debt issued during the nine months. Noncontrolling interest jumped to $1.26 billion, mainly from EDF's stake in CENG. Operating cash flow fell to $3.6 billion from $4.4 billion, pressured by $634 million of net counterparty collateral payments at Generation and $516 million of pension and OPEB contributions. Capital expenditures were $4.1 billion. Exelon's pending PHI deal is financed with about $3.5 billion of debt, up to $1.0 billion of asset sale proceeds, and equity (including a 57.5 million share offering and forward sales), with a bridge facility reduced to $3.9 billion. Key risks for investors include the uncertain regulatory path for the PHI merger (FERC, multiple state commissions, and DOJ review, with closing now expected in the second or third quarter of 2015), ongoing commodity price exposure at Generation with 2015 and 2016 hedge ratios of 86-89% and 55-58%, a subsequent event announced October 24 to sell the Keystone and Conemaugh plants for about $475 million with an expected pre-tax impairment of $350-400 million in Q4 2014, and the potential IRS challenge to the like-kind exchange position, which could require up to roughly $800 million in tax and interest payments.

    Oct 29, 2014
  37. 2014-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2014

    Exelon's second-quarter 2014 10-Q shows a quarter driven by the consolidation of Constellation Energy Nuclear Group (CENG), which produced a $261 million pre-tax gain and lifted Generation's and Exelon's reported results, while underlying operating performance was weaker. Exelon's net income attributable to common shareholders rose to $522 million ($0.60 diluted EPS) from $490 million ($0.57) a year earlier, but operating revenue net of purchased power and fuel fell $110 million, mainly because of $14 million in economic-hedging mark-to-market losses versus $428 million of gains in 2013. The company's own adjusted (non-GAAP) operating earnings declined to $440 million ($0.51 per diluted share) from $454 million ($0.53). The balance sheet expanded substantially, with total assets rising to $83.7 billion from $79.9 billion, largely from CENG consolidation and higher nuclear decommissioning trust assets. Total long-term debt increased to about $18.8 billion and noncontrolling interest jumped to $1.18 billion. Exelon also took steps to fund its pending all-cash acquisition of Pepco Holdings (PHI) for roughly $7.2 billion, including a $1.15 billion junior subordinated equity-unit issuance, a 57.5 million-share common equity offering, and a $7.2 billion bridge facility later reduced to $4.2 billion. Closing is now expected in the second or third quarter of 2015, subject to FERC, state commission, HSR, and shareholder approvals. Other notable items include a $86 million impairment of merchant wind assets at Generation, a $24 million impairment on Georgia coal lease investments, and cash flow from operations that fell to $1.75 billion for the six months from $2.34 billion, reflecting $633 million in net counterparty collateral payments and higher pension contributions. Risks include regulatory outcomes for the PHI merger, pending FERC and Illinois proceedings affecting ComEd (including the FutureGen sourcing agreement and transmission complaints), the like-kind exchange tax dispute (up to $830 million potentially payable), and continued pressure on Generation's merchant margins from low power and gas prices.

    Jul 31, 2014
  38. 2014-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2014

    Exelon's Q1 2014 10-Q shows a quarter marked by weak earnings quality at the holding-company level, driven by Generation. Exelon reported net income attributable to common shareholders of $90 million ($0.10 per diluted share) versus a $(4) million loss a year earlier. Adjusted (non-GAAP) operating earnings were $530 million ($0.62 per diluted share), down from $602 million ($0.70) in Q1 2013. Operating revenue net of purchased power and fuel fell $204 million, largely because Generation's mark-to-market economic hedging losses widened by $327 million and its electric margins dropped on lower realized prices, outages and cold-weather fuel costs. Generation posted a net loss of $185 million, while the regulated utilities (ComEd, PECO, BGE) were profitable, with ComEd's year-over-year swing mainly reflecting the non-recurring Q1 2013 like-kind exchange remeasurement. Cash flow was weak. Operating cash flow fell to $165 million from $859 million, reflecting $699 million of net counterparty collateral payments at Generation and $472 million of pension and OPEB contributions. Liquidity remains substantial, with $8.4 billion of aggregate credit facility commitments, $5.8 billion available at quarter-end, and Exelon's cash and equivalents of $791 million. Total debt rose: long-term debt increased to $18.2 billion and short-term borrowings to $980 million. The dominant event is the April 29, 2014 agreement to acquire Pepco Holdings (PHI) for $27.25 per share in cash, funded roughly 50% with debt and the balance with equity (including mandatory convertibles) and up to $1 billion of non-core asset sales, backed by a $7.2 billion bridge facility. Completion is expected in the first half of 2015, subject to shareholder, FERC, and multiple state and D.C. regulatory approvals. A pending termination fee of $259-$293 million applies in certain circumstances. Also notable is the April 1, 2014 consolidation of CENG: Exelon will derecognize its equity-method investment and consolidate CENG's assets and liabilities at fair value, which could produce a material gain or loss in Q2 2014.

    Apr 30, 2014
  39. 2013-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2013

    Exelon's third-quarter 2013 Form 10-Q (combined filing with Generation, ComEd, PECO and BGE) shows a much stronger earnings picture than a year earlier, though the quarter's results are heavily shaped by merger accounting, the Constellation integration, and a large open tax dispute. Exelon reported Q3 2013 net income attributable to common shareholders of $738 million ($0.86 diluted EPS), versus $296 million ($0.35) in Q3 2012. Nine-month net income was $1,224 million ($1.42 diluted), versus $782 million ($0.97) in the prior-year period, which only included Constellation and BGE from the March 12, 2012 merger close. Management's adjusted (non-GAAP) operating earnings were $667 million ($0.78 per share) for the quarter, up modestly from $658 million ($0.77), and $1,722 million ($2.00) for the nine months, down from $1,783 million ($2.21) as the prior-year period carried different adjustments. Operating revenues were $6,502 million for the quarter, roughly flat year over year, while operating and maintenance expense fell $435 million, largely from generating assets retired or divested in 2012 and merger synergies. The most important investor issues are the like-kind exchange (LKE) tax dispute and the Generation/CENG accounting change. In Q1 2013 Exelon recorded a non-cash charge of about $265 million after-tax after concluding it was no longer more-likely-than-not to prevail on ComEd's 1999 fossil-plant like-kind exchange position; the IRS issued a notice of deficiency on September 30, 2013, and Exelon plans to litigate in Tax Court. If the IRS fully prevails, potential tax and after-tax interest could reach about $840 million, of which roughly $305 million is attributable to ComEd after Exelon's hold-harmless commitment. Separately, the Master Agreement with EDF calls for a closing in early-to-mid 2014 under which Generation will consolidate CENG; this could produce a gain or loss that may be material, and it would change how CENG's results appear in Exelon's financials. Other watch items include ComEd's formula-rate proceeding before the ICC (an investigation opened October 2013 that could be material if adverse), the federal and state litigation over Maryland and New Jersey state-subsidized generation contracts, a pending Maryland CfD that a federal court found unconstitutional, Midwest Generation's bankruptcy and its potential environmental exposure for ComEd and Generation, and the NRC's apparent-violation inquiry into Generation's decommissioning funding reports. Generation's hedging was 97%-100% for 2013, 84%-87% for 2014, and 48%-51% for 2015, leaving it more exposed to power prices in later years. Exelon's quarterly dividend was reset to $0.31 per share under a revised policy.

    Nov 7, 2013
  40. 2013-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2013

    Exelon's second-quarter 2013 results show a sharp earnings rebound on a GAAP basis but a weaker underlying picture. Net income attributable to common shareholders was $490 million, or $0.57 per diluted share, for Q2 2013, versus $286 million, or $0.33, a year earlier. For the six months, net income attributable to common shareholders was flat at $486 million, though diluted EPS fell to $0.57 from $0.62, largely because the 2012 comparison included the March 2012 Constellation merger and a larger share count. Management's adjusted (non-GAAP) operating earnings were $454 million ($0.53 per diluted share) for the quarter, down from $522 million ($0.61) a year earlier, and $1,056 million ($1.23) for the six months versus $1,125 million ($1.44). Investors should focus on that gap: the GAAP improvement was driven mainly by mark-to-market gains and lower merger-related amortization, not by stronger operations. Generation's revenue net of purchased power and fuel rose in Q2 on mark-to-market gains, but electric margins fell on lower realized prices, lower capacity revenue and lower load. The company also recorded a roughly $106 million long-lived asset impairment and related charge in Q2 tied to cancelled nuclear uprate projects. Exelon's board cut the quarterly dividend to $0.31 per share ($1.24 annualized) from the prior $0.525 per share, reflecting weaker power-price expectations. Total assets were $78.4 billion and total debt rose modestly with short-term borrowings increasing to $662 million. The regulated utilities provided more stable contributions. ComEd's six-month net income fell to $14 million from $129 million because of a non-cash $265 million after-tax charge (about $170 million at ComEd) to accrue interest on the disputed like-kind exchange tax position, though ComEd's Q2 earnings improved on Illinois Senate Bill 9 and formula-rate reconciliations. BGE's earnings rose on new Maryland electric and gas rates effective February 2013. Key unresolved risks include the IRS like-kind exchange dispute (potential cash exposure up to $840 million, plus penalties), the NRC decommissioning-funding enforcement review, the Maryland CfD litigation affecting new generation, and EPA rules on air, water and carbon emissions that could pressure Generation's fossil and coal-linked assets.

    Aug 8, 2013
  41. 2013-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2013

    Exelon's first-quarter 2013 results were weak on a GAAP basis, with net income on common stock of $(4) million, or $(0.01) per diluted share, versus $200 million ($0.28) a year earlier. The decline was driven mainly by a non-cash charge of roughly $265 million (after-tax) to remeasure the like-kind exchange tax position taken on ComEd's 1999 sale of fossil plants, after the Federal Circuit's January 2013 Consolidated Edison decision made it no longer more-likely-than-not that the position would be sustained. Interest expense rose to $617 million from $189 million, and the effective tax rate was 98.2%. Excluding this and other items, management reported adjusted (non-GAAP) operating earnings of $602 million, or $0.70 per diluted share, roughly flat in dollar terms against $603 million ($0.85) in the prior year, with the per-share decline reflecting the larger share count after the Constellation merger. Operating revenue rose 30% to $6.08 billion, largely because Constellation and BGE were consolidated for a full quarter, while Generation's revenue net of purchased power and fuel fell $335 million, mainly on $403 million of mark-to-market losses on economic hedges. Operating cash flow fell to $859 million from $994 million. Exelon's board also cut the quarterly dividend to $0.31 per share from $0.525, a reset to $1.24 annualized that signals management's response to weak forward power and gas prices. For investors, the central issues are the size of the potential like-kind exchange cash exposure (up to $840 million including interest, if the IRS fully prevails, with Exelon planning litigation), the ComEd goodwill sensitivity (a fair value decline of more than 10% would be needed to fail the first step of impairment testing), and the continued pressure on Generation's margins from low natural gas prices and state-subsidized new generation in PJM. Regulatory items include Illinois Senate Bill 9, which the governor vetoed on May 5, 2013, and pending FERC and Maryland proceedings.

    May 10, 2013
  42. 2012-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2012

    Exelon's Q3 2012 10-Q shows a transformed company following the March 12, 2012 Constellation merger. Consolidated operating revenues rose 25% in the quarter to $6.565 billion (nine months: $17.2 billion, up 17%), but GAAP net income on common stock collapsed to $296 million, or $0.35 per diluted share, from $601 million and $0.90 a year earlier. The decline is driven by a $278 million pre-tax impairment on three Maryland coal/oil generating stations being sold to Raven Power Holdings, $195 million of FERC settlement costs (nine months), merger and integration costs, and roughly $545 million (nine-month, after-tax) of non-cash amortization of acquired energy contracts recorded at fair value at the merger date. Management's adjusted (non-GAAP) operating earnings were $658 million, or $0.77 per share, versus $1.12 a year ago, reflecting a larger share count (854 million basic shares vs. 663 million) and the weaker results at Generation, where Midwest revenue net of purchased power and fuel fell about 14% on lower realized power prices and capacity revenues. Balance sheet and cash flow changed materially. Total assets increased to $78.4 billion from $55.0 billion, largely from goodwill-free purchase accounting for Constellation assets, PP&E, and the $1.9 billion investment in CENG (a 50.01% stake in a nuclear joint venture with EDF). Total debt, including long-term debt, rose to about $18.7 billion from $12.6 billion. Nine-month operating cash flow was $4.6 billion, up from $2.9 billion, helped by collateral receipts and a $2.1 billion pension contribution in the prior-year period that did not recur, while capital expenditures rose to $4.1 billion. Dividends of $1.58 per share were unchanged year over year. Investors should weigh several open items. ComEd's revenue is subject to ICC rate-order appeals, with a projected revenue shortfall of about $100 million per year from 2014; PECO has replaced smart meters after overheating incidents; the Cotter/Latty Avenue radiological indemnity and a potential EME (Midwest Generation) bankruptcy could create exposure; the IRS like-kind exchange dispute could require up to $870 million in cash and interest; and the Maryland CfD for a new 700 MW plant is a potential material adverse item. The company also halted its Victoria County, Texas nuclear early site permit application in August 2012 in response to low gas prices.

    Nov 7, 2012
  43. 2012-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2012

    Exelon's second-quarter 2012 10-Q reflects its transformation following the March 12, 2012 merger with Constellation Energy. Results are now much larger in scale (total assets rose to $77.4 billion from $55.0 billion at year-end 2011, and operating revenues for the six months rose to $10.6 billion from $9.5 billion), but earnings fell sharply. Net income on common stock was $286 million for Q2 2012 versus $620 million a year earlier, and diluted EPS was $0.33 versus $0.93. For the six months, diluted EPS was $0.62 versus $1.94. Management's adjusted (non-GAAP) operating earnings were $0.61 per diluted share for Q2 (vs. $1.05) and $1.44 for the six months (vs. $2.22). The decline reflects merger-related costs, about $412 million of Q2 amortization of acquired Constellation energy contracts (recorded at fair value at the merger date), lower realized power prices and capacity revenues in the Midwest and Mid-Atlantic, a $195 million FERC settlement, and a $113 million BGE residential rate credit mandated by Maryland regulators. Balance sheet and cash flow changes are significant. Long-term debt rose to about $17.0 billion from $11.8 billion, and shareholders' equity increased to $22.0 billion, largely from the $7.4 billion stock issuance tied to the merger. Operating cash flow for the six months rose to $2.7 billion from $1.0 billion, helped by lower pension contributions ($90 million vs. $2.1 billion a year earlier). Capital expenditures were $2.8 billion for the period, and management projects full-year 2012 capex of about $6.2 billion. Investors should note several forward-looking items disclosed in the filing: a pre-tax loss of roughly $275 million expected in Q3 2012 on the sale of three Maryland coal plants to Riverstone affiliate Raven Power for about $400 million; potential rehearing outcomes on ComEd's Illinois formula rate order (which cut revenue requirements by $168 million) with decisions expected by September 2012; a $860 million potential tax exposure if the IRS prevails on Exelon's like-kind exchange position; and uncertainty around environmental rules (CSAPR, MATS) and Generation's exposure to a potential $2.4 billion collateral call upon loss of investment-grade status.

    Aug 9, 2012
  44. 2012-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2012

    Exelon's first-quarter 2012 Form 10-Q reflects the March 12, 2012 completion of its merger with Constellation Energy Group, which dominates the period's financial profile. Consolidated total assets nearly doubled to $77.6 billion from $55.0 billion at year-end 2011, and long-term debt rose to $16.3 billion from $11.8 billion, while common shares outstanding increased to 852 million from 663 million. Results were sharply weaker: net income fell to $200 million ($0.28 per diluted share) from $669 million ($1.01) a year earlier, driven by $484 million of merger and integration costs, a $195 million FERC settlement expense at Generation, a $216 million Maryland merger commitment charge, and lower Midwest and Mid-Atlantic generation margins from weaker capacity revenues and power prices. Management's adjusted (non-GAAP) operating earnings were $603 million, or $0.85 per diluted share, versus $778 million ($1.17) in the prior-year quarter. Operating cash flow improved to $994 million from negative $207 million, helped by a $1.2 billion year-over-year swing in pension contributions (prior-year contributions were $2.1 billion) and a $340 million counterparty collateral inflow. Cash and equivalents declined to $721 million, and capital expenditures rose to $1.5 billion. Dividends were held at $0.53 per share. Key forward-looking items include ComEd's Energy Infrastructure Modernization Act (EIMA) rate proceeding, where an ALJ proposed a $146 million revenue requirement reduction versus ComEd's position of $59 million; a potential IRS like-kind exchange litigation exposure of up to $840 million in tax and interest (about $240 million after tax in interest expense); a required divestiture of 2,648 MW of Maryland coal plants; and Generation's commitments to Maryland merger conditions of roughly $1 billion of direct investment.

    May 10, 2012
  45. 2011-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2011

    Exelon's Q3 2011 10-Q shows a quarter of lower earnings: net income fell to $601 million ($0.90 diluted EPS) from $845 million ($1.27) a year earlier, and nine-month net income declined to $1,889 million ($2.84 diluted) from $2,039 million ($3.08). The decline is largely the expected roll-off of PECO's transition-period CTC recoveries, which ended December 31, 2010, and was compounded by mark-to-market losses at Generation, unrealized losses on non-regulated nuclear decommissioning trust funds, higher storm and nuclear refueling costs, and a $36 million bargain purchase gain on Wolf Hollow. Management's adjusted (non-GAAP) operating EPS was $1.12 for the quarter versus $1.11 a year ago, and $3.34 for nine months versus $3.10, so underlying operations were steadier than reported GAAP results suggest. Balance sheet and cash flow items deserve attention. Operating cash flow fell to $2.9 billion from $4.1 billion, largely because of a $2.1 billion pension contribution in January 2011 and $807 million of net counterparty collateral posted. Capital expenditures rose to $3.0 billion, and total assets grew to $54.2 billion, driven by Property, plant and equipment and acquisitions including Wolf Hollow (about $305 million cash), Exelon Wind (completed December 2010), and Antelope Valley (about $75 million cash, with up to $713 million of equity expected through 2013). Long-term debt rose to roughly $13.4 billion. The pending $7.9 billion stock-for-stock merger with Constellation Energy, expected to close in early 2012, is the most significant strategic event, subject to FERC, NRC, state and federal approvals and a termination fee of $800 million payable by Exelon in certain circumstances. Regulatory and tax matters also matter for investors. ComEd's 2010 rate case order added $143 million of annual revenue at a 10.5% return on equity, though it is under appeal, and the Illinois Energy Infrastructure Modernization Act (SB 1652) was vetoed by the Governor on September 12, 2011, with a possible veto override pending. The IRS like-kind exchange dispute remains unresolved, with up to $850 million of potential tax and interest exposure if the IRS fully prevails, and Exelon expects to litigate it in 2012.

    Oct 26, 2011
  46. 2011-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2011

    Exelon's Q2 2011 10-Q shows a quarter of solid earnings growth driven by the end of PECO's transition period and favorable Generation market conditions, though six-month results were muted by mark-to-market hedging losses. Consolidated net income rose to $620 million ($0.93 diluted EPS) for the three months ended June 30, 2011, versus $445 million ($0.67) a year earlier, and six-month net income reached $1,288 million ($1.94 diluted EPS) versus $1,194 million ($1.80). Adjusted (non-GAAP) operating earnings were $697 million ($1.05 per share) for the quarter and $1,476 million ($2.22 per share) for six months. Operating revenues were $4,587 million for the quarter, up about 4%, while depreciation fell sharply because PECO's CTC amortization ended on December 31, 2010. Balance sheet and cash flow data show the cost of the $2.1 billion pension contribution made in January 2011. Net cash from operations fell to $1,013 million for the six months from $2,369 million, and capital expenditures rose to $1,985 million. Cash and equivalents declined to $562 million from $1,612 million at year-end 2010. Long-term debt increased to about $11.8 billion, and total shareholders' equity rose to $14.1 billion. Pension funded status improved to roughly 89% for qualified plans. The most significant forward-looking item is the pending $7.9 billion stock-for-stock acquisition of Constellation Energy Group, announced April 28, 2011, with an expected close in early 2012. Exelon estimates $144 million in direct transaction costs and about $500 million of integration costs, and it has proposed divesting 2,648 MW of PJM generation. Other risks include a $55 million ComEd refund obligation tied to the 2007 rate case, a potential IRS like-kind exchange dispute that could cost up to $840 million in tax and interest, and the proposed Illinois SB 1652 modernization legislation, which the Governor may veto.

    Jul 27, 2011
  47. 2011-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2011

    Exelon's first-quarter 2011 Form 10-Q (three months ended March 31, 2011) shows a company whose earnings declined year over year while its balance sheet and liquidity picture shifted mainly because of a large pension contribution. Consolidated net income fell to $668 million ($1.01 diluted EPS) from $749 million ($1.13) in Q1 2010, and operating revenues rose to $5,052 million from $4,461 million. Adjusted (non-GAAP) operating earnings were $778 million ($1.17 per diluted share), up from $662 million ($1.00), with management pointing to mark-to-market hedging swings as the main drag on GAAP results. Operating cash flow was negative $207 million versus $1,861 million a year earlier, driven by a $2.1 billion qualified pension contribution made in January 2011 and lower counterparty collateral inflows. The main earnings headwinds were Generation's $146 million in mark-to-market losses from hedging (versus gains in 2010), the end of the PECO PPA and CTC recoveries at PECO, and a $74 million increase in ComEd uncollectible accounts expense tied to the 2010 recovery rider. These were partly offset by higher Mid-Atlantic margins after the PECO PPA expired, favorable Texas weather performance, lower PECO depreciation after CTCs were fully amortized, and higher PECO distribution rates effective January 1, 2011. Generation's net income fell to $495 million from $561 million, ComEd's to $69 million from $116 million, while PECO's rose to $126 million from $101 million. Regulatory and legal developments are a significant focus for investors. The Illinois Supreme Court declined ComEd's appeal of the 2007 rate case ruling, leading to a $34 million estimated refund obligation. ComEd's pending 2010 rate case proposed order recommends a $152 million increase (versus $343 million requested), with a final ICC order expected by May 2011. Tax matters remain material: a preliminary IRS settlement on the involuntary conversion and CTC positions is in place, but the like-kind exchange dispute could bring up to $840 million in potential tax and interest, and Exelon expects to litigate it starting in 2012. Liquidity remains ample, with $7.3 billion of $7.7 billion in credit facilities available, and new revolving facilities were executed in March 2011.

    Apr 27, 2011
  48. 2010-Q3

    EXELON CORP Quarterly Report for Q3 Ended Sep 30, 2010

    Exelon's Q3 2010 10-Q shows a company with solid earnings but mounting pressures. Net income for the quarter was $845 million ($1.27 diluted EPS), up from $757 million ($1.14) a year earlier, while nine-month net income fell to $2,039 million from $2,126 million, with diluted EPS of $3.08 versus $3.21. Company-defined adjusted operating earnings were $739 million ($1.11/share) for the quarter and $2,057 million ($3.10/share) year to date. The quarterly improvement was driven largely by favorable weather in the ComEd and PECO territories, higher Generation capacity revenues, and utility recovery of regulatory-required program costs, partly offset by a $57 million impairment of SO2 allowances tied to the EPA's proposed Transport Rule. Balance sheet and cash flow data show leverage building and liquidity still adequate. Long-term debt rose to $11.7 billion from $11.0 billion at year-end 2009, with Generation issuing $900 million of senior notes to fund the pending John Deere Renewables acquisition (~$860 million). Operating cash flow fell to $4.1 billion from $4.6 billion, largely due to $740 million of pension and OPEB contributions (including an incremental $500 million pension contribution in Q3). Total shareholders' equity rose to $13.96 billion, and cash rose to $2.7 billion. Management notes its credit facilities run through 2012-2013 and that it may face higher liquidity costs when they are renewed. Investors should weigh several contingent items. The Illinois Appellate Court's September 30 ruling against ComEd on its 2007 rate case could trigger refunds (estimated up to $18 million in 2010 and $30 million in early 2011), and ComEd's 2010 rate case request of $396 million is pending. A preliminary tax settlement with IRS Appeals would require about $235 million of net payments in 2011, while the like-kind exchange dispute remains in litigation with up to $810 million of potential accelerated tax and interest exposure. Generation's Oyster Creek nuclear plant faces a potential $700-800 million cooling tower requirement under Section 316(b), and Generation's ongoing hedging covers 97-100% of 2010 expected generation but only 62-65% of 2012 output, leaving more exposure to power prices in future years.

    Oct 22, 2010
  49. 2010-Q2

    EXELON CORP Quarterly Report for Q2 Ended Jun 30, 2010

    Exelon Corporation (EXC) reported mixed financial results for the second quarter and first half of 2010, with net income declining year-over-year, primarily due to unfavorable Nuclear Decommissioning Trust (NDT) fund performance and increased tax-related charges. Revenue, however, showed modest improvement driven by favorable weather conditions in their service territories and positive impacts from hedging activities. Operationally, the company is navigating significant regulatory changes and capital investments. Key developments include progress on smart grid and smart meter initiatives by PECO and ComEd, planned nuclear power uprates by Generation to enhance capacity, and ongoing proceedings related to environmental regulations, particularly concerning air emissions. The company continues to manage costs effectively, reflecting a commitment to operational efficiency amidst challenging economic conditions. Investors should monitor regulatory outcomes and the company's ability to manage capital expenditures while maintaining a strong liquidity position.

    Jul 22, 2010
  50. 2010-Q1

    EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2010

    Exelon's first-quarter 2010 Form 10-Q (three months ended March 31, 2010) shows consolidated net income of $749 million, up from $712 million a year earlier, with diluted EPS of $1.13 versus $1.08. The improvement was driven mainly by lower operating and maintenance expense, which fell $299 million, largely because the prior-year period included a $223 million impairment of the Handley and Mountain Creek stations and $13 million of NRG acquisition costs. Revenue net of purchased power and fuel expense declined $61 million, pressured by unfavorable market and portfolio conditions at Generation and lower nuclear output from a heavier refueling outage schedule (101 outage days versus 34). Reported results also absorbed a non-cash $65 million after-tax charge to income tax expense from the March 2010 health care reform legislation. Management's adjusted (non-GAAP) operating earnings were $662 million, or $1.00 per diluted share, compared with $797 million, or $1.20, a year earlier. Balance sheet and cash flow data show a stronger liquidity position. Cash and cash equivalents rose to $2.5 billion from $2.0 billion at year-end 2009, and total assets grew to $50.7 billion. Operating cash flow was $1.9 billion, roughly flat year over year, while capital expenditures of $878 million were higher. Long-term debt was largely stable at about $11.6 billion including current maturities. Consolidation of PECO's PETT securitization trust, required by new VIE accounting effective January 1, 2010, added $402 million of variable interest entity debt (classified as current, with $197 million of restricted cash) and an accounts receivable financing of $225 million, which is due to terminate in September 2010 unless extended. Exelon's 2010 pension funding outlook includes an expected incremental contribution of roughly $500 million to its largest pension plan. For investors, the key items to watch are the Generation earnings pressure from lower realized margins and the PPA with PECO expiring at year-end 2010, the pending PAPUC rate case decisions for PECO (expected Q4 2010), a potential adverse IRS outcome on the 1999 fossil asset sale tax positions (up to $1.1 billion of potential tax and interest), and the pending decision on the Oyster Creek and Salem Section 316(b) cooling water requirements, which could require very large capital spending. Generation also had $2.8 billion of net unrealized pre-tax gains deferred in OCI on its cash flow hedges, reflecting forward price movements that support future earnings.

    Apr 23, 2010