8-KOther Events

EXELON CORP 8-K Report (May 11, 2004)

Filed May 11, 2004For Securities:EXC

Summary

Exelon Corporation (EXC) has received Federal Energy Regulatory Commission (FERC) authorization for the initial stage of its exit from Boston Generating, LLC (BG). This authorization permits the transfer of BG's ownership to a special purpose entity controlled by its lenders, a process expected to be completed by May 31, 2004. This move is part of an orderly transition out of the ownership of generating projects including Mystic 4-7, Mystic 8 and 9, and Fore River. While Exelon's affiliates will continue to operate and market power from these plants on behalf of the new owners in the interim, the second stage of the transaction, involving the full transfer of operational and marketing responsibilities, is anticipated in the third quarter of 2004. Upon completion of the ownership transfer, any operating losses incurred by Exelon and its subsidiary Generation in 2004 related to BG will be offset against the anticipated gain from the sale, providing a clearer financial picture for the company going forward.

Key Highlights

  • 1FERC has authorized the initial transfer of ownership of Boston Generating, LLC (BG) to a special purpose entity owned by lenders.
  • 2The ownership transfer is expected to be completed by May 31, 2004.
  • 3Exelon's affiliates will continue plant operations and power marketing for BG on an interim basis.
  • 4The second stage, transferring operational and marketing responsibilities, is targeted for the third quarter of 2004.
  • 5Operating losses from BG in 2004 will be offset against the anticipated gain from the sale upon ownership transfer.
  • 6This filing relates to the orderly transition out of ownership of specific generating projects: Mystic 4-7, Mystic 8 and 9, and Fore River.

Frequently Asked Questions

This filing informs investors that Exelon Corporation has received FERC approval for the first stage of selling its ownership in Boston Generating, LLC (BG). This is part of a plan to exit these specific generating assets.

The first stage, transferring ownership to the lenders' special purpose entity, is expected by May 31, 2004. The second stage, transferring operational and power marketing responsibilities, is anticipated to be completed during the third quarter of 2004.

Upon completion of the ownership transfer, Exelon expects to recognize a gain from the sale. Any operating losses incurred by Exelon and Generation related to BG in 2004 will be offset against this anticipated gain.

Yes, after the ownership transfer, the parties will need to file an application with the FERC for approval of the second stage, which involves transferring plant operations and power marketing activities.