What is the current status of the FERC/SEC inquiry into ComEd's goodwill allocation?

Exelon believes its goodwill allocation is compliant with Generally Accepted Accounting Principles. The company has held meetings with both FERC and SEC staff, who are still reviewing the issue. Exelon hopes to receive a resolution from the commissions relatively soon.

What is the estimated financial impact of adopting SFAS 143 on Exelon's earnings?

Exelon estimates a non-cash impact on 2003 earnings per share (EPS) of up to a negative ten cents. Additionally, the adoption is expected to result in a substantial non-cash, one-time cumulative gain of at least $1.5 billion after tax. Both figures are subject to change based on current assumptions and economic conditions.

How is Exelon performing against its cost management targets for 2002?

Exelon's Cost Management Initiative (CMI) is performing well, with actual savings of $168 million achieved through August, exceeding the original annual target. The company anticipates sustainable cost savings of $250 to $275 million for the full year.

What is Exelon's updated earnings outlook for 2002?

Exelon remains confident that it will meet or exceed the current analyst consensus estimate of $4.66 per share for 2002. A more specific update within the $4.55 to $4.85 range will be provided during the third quarter earnings call on October 30, 2002.

EXC 8-K SEC Disclosure — Sep 18, 2002

Summary

Exelon Corporation (EXC) filed an 8-K on September 18, 2002, detailing updates presented by Chairman and CEO John W. Rowe at the Merrill Lynch Global Power and Gas Leaders Conference. The report highlights strong performance in Exelon's Cost Management Initiative (CMI), exceeding savings targets for the year. Management expressed confidence in meeting or exceeding the current 2002 earnings per share consensus estimate of $4.66. The filing also provides updates on the ongoing FERC and SEC inquiry into ComEd's goodwill allocation and the estimated impact of adopting Financial Accounting Standards Board Statement No. 143 (SFAS 143) on asset retirement obligations. Key areas of focus for investors include the positive momentum in cost savings, which contribute to earnings outlook, and clarity on the regulatory review of goodwill. The company also provided an initial estimate for the financial impact of SFAS 143, noting potential non-cash charges and a significant one-time gain, though these are subject to change based on assumptions and economic conditions. Investors should monitor the upcoming third-quarter earnings call for further updates.

Key Highlights

1Exelon's Cost Management Initiative (CMI) is ahead of schedule, with actual savings of $168 million through August, and projected sustainable savings of $250 to $275 million for the year.
2The company is confident in meeting or exceeding the 2002 earnings per share consensus estimate of $4.66.
3Exelon continues to engage with the FERC and SEC regarding ComEd's goodwill allocation, believing its accounting practices are in compliance.
4Adoption of SFAS 143 is expected to result in a non-cash charge of up to negative ten cents per share on 2003 EPS, but also a significant one-time non-cash cumulative gain of at least $1.5 billion after tax.
5These estimates for SFAS 143 impact are based on current assumptions and could change.
6A more detailed update on the 2002 earnings outlook is expected during the third quarter earnings call on October 30, 2002.

EXELON CORP 8-K Report (Sep 18, 2002)

Summary

Key Highlights

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