Summary
Exelon Corporation reported a significant increase in net income for the second quarter and first six months of 2002 compared to the prior year. This improvement was driven by a substantial gain from the sale of its interest in AT&T Wireless, favorable weather conditions impacting Energy Delivery segment results, and the discontinuation of goodwill amortization following the adoption of SFAS No. 142. However, the Generation segment experienced weaker performance due to depressed wholesale market prices for energy and increased nuclear refueling outage costs. The company continues to manage its capital structure and liquidity through a combination of operating cash flows and external financings, with ongoing investments in its transmission and distribution systems.
Key Highlights
- 1Net income increased significantly, driven by the AT&T Wireless sale gain and adoption of SFAS No. 142, despite weaker performance in the Generation segment.
- 2Energy Delivery segment saw higher revenues and income due to favorable weather and customer choice impacts, although Unbundled Deliveries declined.
- 3Generation segment faced challenges with lower wholesale energy prices and increased operating and maintenance expenses, resulting in a decline in operating income.
- 4Enterprises segment reported a substantial swing to net income, largely due to the gain on the AT&T Wireless sale, despite lower revenues across most of its business lines.
- 5The adoption of SFAS No. 142 led to the discontinuation of goodwill amortization, positively impacting reported net income and earnings per share across Exelon and Commonwealth Edison.
- 6ComEd's operating revenue declined due to customer choice and rate changes, but operating income improved due to lower purchased power, operating and maintenance, and depreciation expenses.
- 7PECO's net income on common stock increased due to higher bundled revenues and customer choice leading to more customers returning to PECO for generation supply.