Why is Exelon refiling its 2004 financial statements?

Exelon is filing this Form 8-K to restate or recast its financial information from the year ended December 31, 2004, to align it with the presentation used in its most recent quarterly report for the period ended March 31, 2005. This is a presentation change for consistency, not necessarily due to new performance issues.

What does it mean that Sithe Energies is now presented as 'discontinued operations'?

This means that the financial results of Sithe Energies, and any gain or loss from its sale, are being separated from Exelon's ongoing business operations in the financial statements. Exelon completed the sale of its investment in Sithe on January 31, 2005.

How does this change affect Exelon's business segments?

Exelon has eliminated Exelon Enterprises (Enterprises) as a distinct reportable segment. The remaining businesses of Enterprises are now included in an 'Other' category. The other reportable segments, Generation and Energy Delivery, remain as previously reported.

Are these changes related to a significant negative event or financial trouble?

No, these changes are primarily related to accounting presentation and segmentation adjustments for clarity and consistency with accounting standards (SFAS No. 144) and the company's evolving business structure. The reclassification of discontinued operations reflects past transactions (sale of Sithe, wind-down of Enterprises and AllEnergy), and the segment change reflects the reduced significance of Enterprises. These are primarily presentational changes.

EXC 8-K SEC Disclosure — May 13, 2005

Summary

Exelon Corporation (EXC) and its subsidiary Exelon Generation Company, LLC (Generation) filed this Form 8-K on May 13, 2005, to retroactively adjust its financial reporting for the year ended December 31, 2004, and prior periods. These adjustments are primarily to conform to the presentation in its March 31, 2005, quarterly report, specifically regarding the classification of certain businesses as discontinued operations and a change in reportable segments. Investors should note that these are presentation changes and not necessarily indicative of new operational developments or performance shifts as of the filing date. The key financial reporting changes involve the reclassification of Exelon's investment in Sithe Energies, Inc. (Sithe) as discontinued operations, consistent with its sale on January 31, 2005. Additionally, results from Exelon Enterprises Company, LLC (Enterprises) and AllEnergy Gas & Electric Marketing LLC (AllEnergy), previously winding down or sold, are now being presented as discontinued operations. This also impacts Exelon's segment reporting, with Enterprises no longer being a distinct reportable segment and its remaining businesses now included in 'Other.' The Energy Delivery segment remains unchanged.

Key Highlights

1Exelon is recasting its 2004 financial statements (Form 10-K) to align with the presentation in its Q1 2005 quarterly report (Form 10-Q).
2The company is now presenting the results of its investment in Sithe Energies, Inc. (Sithe) as discontinued operations, following its sale on January 31, 2005.
3Results from Exelon Enterprises Company, LLC (Enterprises) and AllEnergy Gas & Electric Marketing LLC (AllEnergy) are also being reclassified as discontinued operations.
4Exelon is changing its reportable segments, removing Enterprises as a separate segment.
5Remaining businesses of Enterprises will now be reported under the 'Other' category.
6The Energy Delivery segment (Commonwealth Edison and PECO Energy) remains unchanged in its reporting.
7These changes are intended to improve the comparability and clarity of financial reporting, especially in light of the potential merger with Public Service Enterprise Group Incorporated.

EXELON CORP 8-K Report, Corporate Update (May 13, 2005)

Summary

Key Highlights

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