Exelon Announces Third Quarter 2012 Results; Raises Full-Year Operating Earnings Guidance Range

  Exelon Announces Third Quarter 2012 Results; Raises Full-Year Operating
  Earnings Guidance Range

Business Wire

CHICAGO -- November 01, 2012

Exelon Corporation (NYSE: EXC) announced third quarter 2012 consolidated
earnings as follows:

                                       
                                        Third Quarter
                                       2012   2011
Adjusted (non-GAAP) Operating Results:         
Net Income ($ millions)                  $658    $743
Diluted Earnings per Share              $0.77  $1.12
GAAP Results:
Net Income ($ millions)                  $296    $601
Diluted Earnings per Share              $0.35  $0.90

“We delivered strong financial performance during the third quarter and
exceeded our quarterly guidance range thanks in large part to the management
of our portfolio by Constellation, Exelon’s retail and wholesale marketing
organization,” said Christopher M. Crane, Exelon’s president and CEO. “Based
on our results through September and the ICC’s reversal of its ComEd pension
asset decision in October, we are revising our full-year operating earnings
guidance range upwards to $2.75 to $2.95 per share.”

Third Quarter Operating Results

Third quarter 2012 earnings include financial results for Constellation Energy
and Baltimore Gas and Electric Company (BGE). Therefore, the composition of
results of operations from 2012 and 2011 are not comparable for Exelon
Generation Company, LLC (Generation), BGE and Exelon.

As shown in the table above, Exelon’s adjusted (non-GAAP) operating earnings
declined to $0.77 per share in the third quarter of 2012 from $1.12 per share
in the third quarter of 2011. Earnings in third quarter 2012 primarily
reflected the following negative factors:

  *Lower energy margins at Generation, resulting from decreased capacity
    pricing related to the Reliability Pricing Model (RPM) for the PJM
    Interconnection, LLC (PJM) market, higher nuclear fuel costs and lower
    realized market prices for the sale of energy across all regions;
  *Lower nuclear volume due to increased planned and unplanned outage days;
  *Lower allowed ROE (return on equity) at ComEd;
  *Higher operating and maintenance expenses, including increased labor,
    contracting and materials;
  *Impact of increased average diluted common shares outstanding as a result
    of the merger; and
  *Increased depreciation and amortization expense due to ongoing capital
    expenditures.

These factors were partially offset by:

  *The addition of Constellation Energy’s contribution to Generation’s energy
    margins; and
  *Decreased storm costs in the ComEd and PECO territories.

Adjusted (non-GAAP) operating earnings for the third quarter of 2012 do not
include the following items (after tax) that were included in reported GAAP
earnings:
                                        (in millions)        (per diluted
                                                                share)
Mark-to-Market Impact of Economic        $19                  $0.02
Hedging Activities
Unrealized Gains Related to NDT
(Nuclear Decommissioning Trust) Fund      $38                   $0.04
Investments
Plant Retirements and Divestitures        ($193)                ($0.22)
Asset Retirement Obligation               ($6)                  ($0.01)
Constellation Merger and Integration      ($36)                 ($0.04)
Costs
Amortization of Commodity Contract        ($187)                ($0.21)
Intangibles
Amortization of the Fair Value of        $3                   -
Certain Debt
                                                                
Adjusted (non-GAAP) operating earnings for the third quarter of 2011 do not
include the following items (after tax) that were included in reported GAAP
earnings:
                                        (in millions)        (per diluted
                                                                share)
Mark-to-Market Impact of Economic         ($55)                 ($0.08)
Hedging Activities
Unrealized Losses Related to NDT          ($76)                 ($0.12)
Fund Investments
Plant Retirements and Divestitures        ($2)                  -
Asset Retirement Obligation               ($16)                 ($0.02)
Constellation Merger and Integration      ($11)                 ($0.02)
Costs
Other Acquisition Costs                   ($5)                  ($0.01)
Wolf Hollow Acquisition                  $23                  $0.03

2012 Earnings Outlook

Exelon revised upward its guidance range for 2012 adjusted (non-GAAP)
operating earnings to $2.75 to $2.95 per share. Operating earnings guidance is
based on the assumption of normal weather for the balance of the year and
preliminary cost estimates for the impact of Hurricane Sandy.

The outlook for 2012 adjusted (non-GAAP) operating earnings for Exelon and its
subsidiaries excludes the following items:

  *Mark-to-market adjustments from economic hedging activities
  *Unrealized gains and losses from NDT fund investments to the extent not
    offset by contractual accounting as described in the notes to the
    consolidated financial statements
  *Financial impacts associated with the planned retirement of fossil
    generating units and the expected sale in the fourth quarter of 2012 of
    three generating stations as required by the merger
  *Changes in decommissioning and other asset retirement obligation estimates
  *Certain costs related to the merger and integration initiatives
  *Costs incurred as part of the Maryland order approving the merger
    transaction
  *Non-cash amortization of intangible assets, net, related to commodity
    contracts recorded at fair value at the merger date
  *Costs incurred as part of a March 2012 settlement with the FERC
  *Changes in state deferred tax rates resulting from a reassessment of
    apportionment of Exelon’s deferred taxes as a result of the merger
  *Non-cash amortization of certain debt recorded at fair value at the merger
    date
  *Other acquisition costs
  *Significant impairments of assets, including goodwill
  *Other unusual items
  *Significant changes to GAAP

Third Quarter and Recent Highlights

  *Nuclear Operations:  Generation’s nuclear fleet, including its owned
    output from the Salem Generating Station, produced 34,581 gigawatt-hours
    (GWh) in the third quarter of 2012, compared with 36,045 GWh in the third
    quarter of 2011. The output data excludes the units owned by Constellation
    Energy Nuclear Group LLC (CENG). Excluding Salem and the units owned by
    CENG, the Exelon-operated nuclear plants achieved a 90.7 percent capacity
    factor for the third quarter of 2012, compared with 95.8 percent for the
    third quarter of 2011. The number of planned refueling outage days totaled
    43 in the third quarter of 2012 versus 33 days in the third quarter of
    2011. The number of non-refueling outage days at the Exelon-operated
    plants totaled 40 days in the third quarter of 2012, compared with three
    days in the third quarter of 2011.
  *Fossil and Renewables Operations: The equivalent demand forced outage rate
    for Generation’s fossil fleet is 3.7 percent for the first three quarters
    of 2012, compared with 6.0 percent in the first three quarters of 2011.
    The 2012 results include former Constellation plants, exclusive of the
    Maryland Clean Coal plants to be sold, whereas 2011 data includes only
    legacy Exelon plants. The equivalent availability factor for the
    hydroelectric facilities was 91.9 percent in the third quarter of 2012,
    compared with 93.9 percent in the third quarter of 2011. The change was
    largely due to planned outages in July and August of 2012. The energy
    capture for the wind fleet was 94.4 percent in the third quarter of 2012,
    compared with 91.6 percent in the third quarter of 2011.

  *ComEd Distribution Formula Rate Cases: The Illinois Commerce Commission
    (ICC) ruled on ComEd’s formula rate proceeding under the Electric
    Infrastructure Modernization Act (EIMA) on May30, 2012 (May Order). EIMA
    is designed to provide for timely and regular recovery of actual costs to
    support a 10-year grid modernization program. As enacted by the General
    Assembly, EIMA expressly provides for recovery of certain categories of
    costs such as a return on equity tied to U.S. Treasury bonds and pension
    funding costs, and it also requires an annual revenue requirement
    reconciliation, or "true up," to ensure customers pay no more or no less
    than ComEd's true costs. In the proceeding covered by the May Order, ComEd
    had taken positions supporting a $59 million reduction in the annual
    revenue requirement being recovered in current rates (based on 2010 costs
    and 2011 plant additions), primarily reflecting a lower return on equity
    consistent with the provision of EIMA. The ICC's May Order reduced the
    annual revenue requirements by $168 million, or approximately $110 million
    more than proposed by ComEd.

    On October3, 2012, the ICC issued its final Order on Remand (Rehearing
    Order) in ComEd's expedited rehearing of specific items pursuant to EIMA.
    The Rehearing Order addressed three key conclusions reached in the ICC's
    May Order: (1)ComEd's pension asset recovery; (2)the rate of interest to
    affix to over or under recovered costs; and (3)the use of a year-end or
    an "average year" rate base in determining ComEd's reconciliation revenue
    requirement.

    In the Rehearing Order, the ICC adopted ComEd's position on the return on
    its pension asset, resulting in an increase in ComEd's annual revenue
    requirement of $35 million based on ComEd's 2010 Pension Asset. The impact
    on the 2011 reconciliation and subsequent periods will incorporate the
    additional investment in the pension asset ComEd made in 2011. However,
    the ICC ruled against ComEd in affirming its decision to use (1)an
    average rate base in ComEd's reconciliation revenue requirement; and
    (2)the ICC amended its prior order to provide a short-term debt rate as
    the appropriate interest rate to apply to under/over recoveries of
    incurred costs. ComEd filed a notice of appeal with the Illinois Appellate
    Court on Oct. 4, 2012 on the May Order and the Rehearing Order because the
    impact of the issues in the two orders would be nearly $100 million per
    year that ComEd would not be able to recover and subsequently reinvest in
    the distribution system in 2014 and beyond.

    Pursuant to the distribution formula rate mechanism and the May Order,
    ComEd had recorded as of June30, 2012 a net regulatory asset of $26
    million, reflecting its best estimate of the probable increase in
    distribution rates under the annual reconciliation mechanism reflecting
    costs incurred in 2011 and the first six months of 2012. ComEd expects to
    record in the fourth quarter an increase in revenue of approximately $135
    million pre-tax in 2012 consistent with the terms of the Rehearing Order.

  *Maryland Clean Coal Asset Divestitures:  On Aug. 8, 2012, Exelon reached
    an agreement to sell its three Maryland coal-fired power plants to Raven
    Power Holdings LLC (Raven Power), fulfilling its commitment to Maryland to
    divest the plants as part of its merger with Constellation Energy. The
    sale was required by the Federal Energy Regulatory Commission (FERC), U.S.
    Department of Justice (DOJ) and the Maryland Public Service Commission as
    part of Exelon’s merger approval. The three plants, known collectively as
    Maryland Clean Coal, include:

       *Brandon Shores (coal) in Pasadena, Md.: 1,273 MW of installed
         capacity, two units
       *C.P. Crane (coal and oil) in Middle River, Md.: 399 MW installed
         capacity, three units
       *H.A. Wagner (coal, natural gas and oil) in Pasadena, Md.: 976 MW
         installed capacity, five units

    Generation expects to receive proceeds of approximately $388 million in
    the fourth quarter less cash payments of approximately $32 million to
    Raven Power Holdings LLC over a twelve-month period beginning in June
    2014. Generation expects to incur transaction costs of approximately $20
    million through the closing of the transaction in the fourth quarter of
    2012. The sale will generate approximately $225 million of cash tax
    benefits, of which $135 million will be realized in periods through 2013
    with the balance to be received in later years. Therefore, Generation
    expects net after-tax cash sale proceeds of approximately $500 million
    through 2013 and approximately $65 million in 2014 and subsequent years.
    Exelon recorded a pre-tax loss of $278 million in the third quarter to
    reflect the difference between the estimated sale price and the carrying
    value of the plants. The impact of the loss has been excluded from
    Adjusted (Non-GAAP) Operating Earnings. All regulatory preconditions to
    closing this transaction have been met and required FERC authorizations
    have been received. The transaction is expected to close in the fourth
    quarter of this year.

  *Qualified Facility Sales: On Aug. 21, 2012, Exelon closed on the sale of
    its ownership share of five California power plants – a total of 70
    megawatts (MW) of generating capacity – to Tokyo-based IHI Corporation.
    The power plants joined Exelon’s generating portfolio following the
    company’s merger with Constellation Energy in March 2012. The five
    California power plants include:

       *Chinese Station (biomass) in Jamestown, CA, in which Exelon owned a
         9.9 MW share;
       *Rio Bravo Fresno (biomass) in Fresno, CA, in which Exelon owned a 12
         MW share;
       *Rio Bravo Jasmin (coal) in Bakersfield, CA, in which Exelon owned a
         17.5 MW share;
       *Rio Bravo Poso (coal) in Bakersfield, CA, in which Exelon owned a
         17.5 MW share;
       *Rio Bravo Rocklin (biomass) in Lincoln, CA, in which Exelon owned a
         12 MW share.

  *Riverside 6 & Schuylkill 1 Retirements: On Oct. 31, 2012, Exelon
    Generation notified PJM Interconnection of its intention to permanently
    retire Schuylkill Generating Station Unit 1 by Feb. 1, 2013, and Riverside
    Generating Station Unit 6 by Jun. 1, 2014. Schuylkill Unit 1 is a
    166MWpeakingoil unitlocated in Philadelphia, PA, which wasplaced in
    service in 1958. Riverside 6 is a 115 MWpeaking gas/kerosene unitlocated
    in Baltimore, MD, which wasplaced in servicein 1970. The units arebeing
    retired because they are no longereconomic to operate due totheir age,
    relatively high capital and operating costs and current market conditions.
    PJM has 30 days to review whether the proposed retirements of the units
    create transmission system reliability issues. Once PJM’s review is
    complete, Exelon will determine final retirement dates for the units.

  *Texas ESP Application: On Aug. 28, 2012, Exelon halted efforts to gain
    initial federal regulatory approvals for new nuclear construction in
    Victoria County, TX. The company notified the Nuclear Regulatory
    Commission that it has withdrawn its Early Site Permit application for an
    11,500-acre tract southeast of Victoria. The action is in response to low
    natural gas prices and economic and market conditions that have made
    construction of new merchant nuclear power plants in competitive markets
    uneconomical now and for the foreseeable future. Exelon originally
    submitted an application for a combined construction and operating license
    for the Victoria County site in 2008, but never made a decision to build a
    nuclear plant there. In 2010, the company applied for an Early Site
    Permit, a change in licensing strategy that allowed Exelon to continue
    with some aspects of site evaluation and regulatory approvals while
    deferring a construction decision for up to 20 years. The withdrawal of
    the license brings an end to all project activity.

  *Constellation Solar Projects: In August 2012, Constellation announced two
    solar projects:

       *On Aug. 14, 2012, Constellation announced that it will develop a
         4.35-MW solar generation system for the Casa Grande Union High School
         District in Casa Grande, AZ. Constellation will own and operate the
         solar power system and the school district will purchase the
         electricity it generates under a 20-year power purchase agreement.
       *On Aug. 29, 2012, Constellation announced the completion of a 16.1-MW
         (DC) grid-connected photovoltaic (PV) solar installation in
         Emmitsburg, MD., for the state of Maryland’s Generating Clean
         Horizons initiative. Constellation will own and operate the
         approximately $50 million solar facility on behalf of its customer,
         the State of Maryland. Electricity generated by the system is
         purchased by the state’s Department of General Services and the
         University System of Maryland under 20-year solar power purchase
         agreements with Constellation.

  *Hedging Update: Exelon’s hedging program involves the hedging of commodity
    risk for Exelon’s expected generation, typically on a ratable basis over a
    three-year period. Expected generation represents the amount of energy
    estimated to be generated or purchased through owned or contracted-for
    capacity. The proportion of expected generation hedged as of Sept. 30,
    2012, is 99 to 102 percent for 2012, 88 to 91 percent for 2013, 56 to 59
    percent for 2014 and 21 to 24 percent for 2015. The primary objective of
    Exelon’s hedging program is to manage market risks and protect the value
    of its generation and its investment-grade balance sheet while preserving
    its ability to participate in improving long-term market fundamentals.
  *Financing Activities:

       *BGE: On Aug. 17, 2012, BGE issued $250 million in principal amount of
         its 2.80 percent Notes due 2022. BGE will use the net proceeds to
         repay outstanding commercial paper obligations and for general
         corporate purposes.
       *PECO: On Sept. 17, 2012, PECO issued $350 million of First Mortgage
         Bonds, maturing on Sept. 15, 2022, with a coupon of 2.375 percent.
         PECO used a portion of the net proceeds from the sale of the bonds to
         pay at maturity $225 million aggregate principal amount of its 4.75
         percent first mortgage bonds due Oct. 1, 2012, and the remaining
         proceeds were used for other general corporate purposes.
       *ComEd: On Oct. 1, 2012, ComEd issued $350 million aggregate principal
         amount of its First Mortgage 3.800 percent Bonds, Series 113 due Oct.
         1, 2042. ComEd will use the net proceeds from the sale of the bonds
         to repay outstanding commercial paper obligations and for general
         corporate purposes.

Operating Company Results

Generation consists of owned and contracted electric generating facilities and
wholesale and retail customer supply of electric and natural gas products and
services, including renewable energy products, risk management services and
natural gas exploration and production activities.

Third quarter 2012 GAAP net income was $91 million, compared with $386 million
in the third quarter of 2011. Adjusted (non-GAAP) operating earnings for the
third quarter of 2011 and 2012 do not include various items (after tax) that
were included in reported GAAP earnings. A reconciliation of Adjusted
(non-GAAP) Operating Earnings to GAAP Net Income is in the table below:

                                                               
($ millions)                                             3Q12    3Q11
Generation Adjusted (non-GAAP) Operating Earnings        $458    $522
Mark-to-Market Impact of Economic Hedging Activities      $9       $(55)
Unrealized Gains/Losses Related to NDT Fund Investments   $38      $(76)
Plant Retirements and Divestitures                        $(193)   $(2)
Asset Retirement Obligation                               $(6)     $(18)
Constellation Merger and Integration Costs                $(31)    $(3)
Amortization of Commodity Contract Intangibles            $(187)   -
Amortization of Fair Value of Certain Debt                $3       -
Other Acquisition Costs                                   -        $(5)
Wolf Hollow Acquisition                                  -       $23
Generation GAAP Net Income                               $91     $386

Generation’s Adjusted (non-GAAP) Operating Earnings in the third quarter of
2012 decreased $64 million compared with the same quarter in 2011. This
decrease primarily reflected:

  *Lower energy margins at Generation, resulting from decreased capacity
    pricing related to RPM for the PJM market, higher nuclear fuel costs and
    lower realized market prices for the sale of energy across all regions;
  *Lower nuclear volume due to increased planned and unplanned outage days;
  *Higher operating and maintenance expenses; and
  *Increased depreciation and amortization expense due to ongoing capital
    expenditures.

These items were partially offset by contribution to Generation’s energy
margins from the addition of Constellation Energy to Generation’s operations.

Generation’s average realized margin on all electric sales, including sales to
affiliates and excluding trading activity, was $25.96 per megawatt-hour (MWh)
in the third quarter of 2012, compared with $39.19 per MWh in the third
quarter of 2011.

ComEd consists of electricity transmission and distribution operations in
northern Illinois.

ComEd recorded GAAP net income of $90 million in the third quarter of 2012,
compared with net income of $112 million in the third quarter of 2011.
Adjusted (non-GAAP) operating earnings for the third quarter of 2011 and 2012
do not include various items (after tax) that were included in reported GAAP
earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP
Net Income is in the table below:

                                                  
($ millions)                                  3Q12  3Q11
ComEd Adjusted (non-GAAP) Operating Earnings  $90   $113
Constellation Merger and Integration Costs    -     $(1)
ComEd GAAP Net Income                         $90   $112

ComEd’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2012
were down $23 million from the same quarter in 2011, primarily due to
decreased distribution revenues based on a lower allowed ROE as a result of a
final order issued by the ICC on the 2011 performance based formula rate
proceeding under the EIMA; this unfavorable item was partially offset by
decreased storm costs in ComEd’s territory.

For the third quarter of 2012, cooling degree-days in the ComEd service
territory were up 9.4 percent relative to the same period in 2011 and were
40.1 percent above normal. In the third quarter of 2012, heating degree-days
in the ComEd service territory were down 27.2 percent relative to the same
period in 2011 and were 10.1 percent below normal. Total retail electric
deliveries increased 2.1 percent quarter over quarter.

Weather-normalized retail electric deliveries increased 0.2 percent in the
third quarter of 2012 relative to 2011, reflecting increases in deliveries to
residential and public authorities & railroads, partially offset by decreases
in deliveries to both small and large commercial and industrial (C&I)
customers. For ComEd, weather had no impact on third quarter 2012 earnings
relative to 2011 and a favorable after-tax effect of $14 million relative to
normal weather.

PECO consists of electricity transmission and distribution operations and
retail natural gas distribution operations in southeastern Pennsylvania.

PECO’s GAAP net income in the third quarter of 2012 was $122 million, compared
with $104 million in the third quarter of 2011. Adjusted (non-GAAP) Operating
Earnings for the third quarter of 2011 and 2012 do not include various items
(after tax) that were included in reported GAAP earnings. A reconciliation of
Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table
below:

                                                 
($ millions)                                 3Q12  3Q11
PECO Adjusted (non-GAAP) Operating Earnings  $124  $103
Asset Retirement Obligation                   -      $2
Constellation Merger and Integration Costs   $(2)  $(1)
PECO GAAP Net Income                         $122  $104

PECO’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2012
increased $21 million from the same quarter in 2011, primarily reflecting the
effect of lower storm costs from 2011’s Hurricane Irene; this favorable item
was partially offset by lower load.

For the third quarter of 2012, cooling degree-days in the PECO service
territory were up 2.6 percent relative to the same period in 2011 and were
21.8 percent above normal. In the third quarter of 2012, heating degree-days
in the PECO service territory were down 22.2 percent from 2011 and were 60.0
percent below normal. Total retail electric deliveries were down 2.3 percent
quarter over quarter. On the retail gas side, deliveries in the third quarter
of 2012 were down 4.4 percent from the third quarter of 2011.

Weather-normalized retail electric deliveries were down 3.6 percent in the
third quarter of 2012 relative to 2011, reflecting declines in deliveries to
all customer classes except public authorities and electric railroads.
Weather-normalized gas deliveries were down 4.4 percent in the third quarter
of 2012. For PECO, weather had a favorable after-tax effect of $3 million on
third quarter 2012 earnings relative to 2011 and a favorable after-tax effect
of $12 million relative to normal weather.

BGE consists of electricity transmission and distribution operations and
retail natural gas distribution operations in central Maryland.

BGE’s GAAP net income in the third quarter of 2012 was $(4) million. The net
income included after-tax costs of $1 million associated with the merger and
integration initiatives. Excluding the effects of these items, BGE’s adjusted
(non-GAAP) Operating Earnings in the third quarter of 2012 was $(3) million.
The primary driver of BGE’s loss for the quarter was significant storm costs
associated with the derecho storm.

Adjusted (non-GAAP) Operating Earnings

Adjusted (non-GAAP) operating earnings, which generally exclude significant
one-time charges or credits that are not normally associated with ongoing
operations, mark-to-market adjustments from economic hedging activities and
unrealized gains and losses from NDT fund investments, are provided as a
supplement to results reported in accordance with GAAP. Management uses such
adjusted (non-GAAP) operating earnings measures internally to evaluate the
company’s performance and manage its operations. Reconciliation of GAAP to
adjusted (non-GAAP) operating earnings for historical periods is attached.
Additional earnings release attachments, which include the reconciliation on
pages 8 and 9 are posted on Exelon’s Web site: www.exeloncorp.com and have
been furnished to the Securities and Exchange Commission on Form 8-K on
November 1, 2012.

Cautionary Statements Regarding Forward-Looking Information

This news release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, that are
subject to risks and uncertainties. The factors that could cause actual
results to differ materially from the forward-looking statements made by
Exelon Corporation, Commonwealth Edison Company, PECO Energy Company,
Baltimore Gas and Electric Company and Exelon Generation Company, LLC
(Registrants) include those factors discussed herein, as well as the items
discussed in (1) Exelon’s 2011 Annual Report on Form 10-K in (a) ITEM 1A. Risk
Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations and (c) ITEM 8. Financial Statements and
Supplementary Data: Note 18; (2) Constellation Energy Group’s 2011 Annual
Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations and
(c) ITEM 8. Financial Statements and Supplementary Data: Note 12; (3) the
Registrant’s Second Quarter 2012 Quarterly Report on Form 10-Q in (a) Part II,
Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial
Information, ITEM 1. Financial Statements: Note 15; and (4) other factors
discussed in filings with the SEC by the Registrants. Readers are cautioned
not to place undue reliance on these forward-looking statements, which apply
only as of the date of this presentation. None of the Registrants undertakes
any obligation to publicly release any revision to its forward-looking
statements to reflect events or circumstances after the date of this news
release.

 Exelon Corporation is the nation’s leading competitive energy provider, with
approximately $33 billion in annual revenues. Headquartered in Chicago, Exelon
has operations and business activities in 47 states, the District of Columbia
   and Canada. Exelon is the largest competitive U.S. power generator, with
    approximately 35,000 megawatts of owned capacity comprising one of the
   nation’s cleanest and lowest-cost power generation fleets. The company’s
     Constellation business unit provides energy products and services to
approximately 100,000 business and public sector customers and approximately 1
  million residential customers. Exelon’s utilities deliver electricity and
  natural gas to more than 6.6 million customers in central Maryland (BGE),
       northern Illinois (ComEd) and southeastern Pennsylvania (PECO).


EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations
(unaudited)
(in millions, except per share data)
                                                                                
                      Three Months Ended September 30, 2012 (a)           Three Months Ended September 30, 2011
                                                              Adjusted                                                Adjusted
                      GAAP (b)    Adjustments                 Non-GAAP    GAAP (b)    Adjustments                     Non-GAAP
                                                                                                                        
Operating revenues    $ 6,565     $  464      (c),(d),(e)     $ 7,029     $ 5,254     $  (33    ) (c),(j)             $ 5,221
                                                                                                                        
Operating expenses
      Purchased
      power and         3,026        278      (c),(d),(e)       3,304       2,121        (93    ) (c),(d)               2,028
      fuel
      Operating and     2,156        (378   ) (c),(e),(f),      1,778       1,413        (65    ) (c),(f),(g),(j),(k)   1,348
      maintenance                             (g)
      Depreciation,
      amortization,     500          (13    ) (c),(f)           487         332          (19    ) (c)                   313
      accretion and
      depletion
      Taxes other      290        (4     ) (c)              286       207        -                            207   
      than income
                                                                                                                        
      Total
      operating         5,972        (117   )                   5,855       4,073        (177   )                       3,896
      expenses
                                                                                                                        
Equity in earnings
of unconsolidated      10         50      (e)              60        -          -                            -     
affiliates
                                                                                                                        
Operating income       603        631                      1,234     1,181      144                          1,325 
                                                                                                                        
Other income and
deductions
      Interest          (246  )      (2     ) (c),(h)           (248  )     (182  )      -                              (182  )
      expense
      Other, net       101        (60    ) (c),(f),(i)      41        (142  )     181     (i)                  39    
                                                                                                                        
      Total other
      income and       (145  )     (62    )                  (207  )    (324  )     181                          (143  )
      deductions
                                                                                                                        
Income before           458          569                        1,027       857          325                            1,182
income taxes
                                                                                                                        
Income taxes           161        207     (c),(d),(e),     368       255        183     (c),(d),(f),         438   
                                              (f),(g),(h),(i)                                     (g),(i),(j), (k)
                                                                                                                        
Net income              297          362                        659         602          142                            744
                                                                                                                        
Net loss
attributable to
noncontrolling
interests,             1          -                        1         1          -                            1     
preferred security
dividends and
preference stock
dividends
                                                                                                                        
Net income on         $ 296      $  362                     $ 658      $ 601      $  142                         $ 743   
common stock
                                                                                                                        
Effective tax rate      35.2  %                                 35.8  %     29.8  %                                     37.1  %
                                                                                                                        
Earnings per
average common
share
      Basic           $ 0.35      $  0.42                     $ 0.77      $ 0.91      $  0.21                         $ 1.12
      Diluted         $ 0.35     $  0.42                    $ 0.77     $ 0.90     $  0.22                        $ 1.12  
      
Average common
shares outstanding
      Basic             854                                     854         663                                         663
      Diluted           857                                     857         665                                         665
                                                                                                                        
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
                                                                                                                        
      Plant retirements
      and divestitures            $  0.22                                             $  -
      (c)
      Mark-to-market
      impact of                      (0.02  )                                            0.08
      economic hedging
      activities (d)
      Amortization of
      commodity                      0.21                                                -
      contract
      intangibles (e)
      Constellation
      merger and                     0.04                                                0.02
      integration costs
      (f)
      Asset retirement               0.01                                                0.02
      obligation (g)
      Amortization of
      the fair value of              -                                                   -
      certain debt (h)
      Unrealized
      (gains) losses
      related to NDT                 (0.04  )                                            0.12
      fund investments
      (i)
      Wolf Hollow                    -                                                   (0.03  )
      acquisition (j)
      Other acquisition              -                                                   0.01
      costs (k)
                                                                                      
      Total                       $  0.42                                            $  0.22   
      adjustments
                                                                                                                        
(a)   Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.
(b)   Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
      Adjustment to exclude costs associated with the retirement of fossil generating units, the impacts of the FERC approved
(c)   reliability-must-run rate schedule and the impact associated with the expected sale in the fourth quarter of 2012 of
      three generating stations associated with certain of the regulatory approvals required for the merger.
(d)   Adjustment to exclude the mark-to-market impact of Exelon's economic hedging activities, net of intercompany
      eliminations.
(e)   Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at
      fair value at the merger date.
(f)   Adjustment to exclude certain costs incurred associated with the merger, including transaction costs, employee-related
      expenses (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives.
(g)   Adjustment to exclude the increase in Generation’s decommissioning obligation for spent nuclear fuel at retired nuclear
      units.
(h)   Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date expected to be
      retired in 2013.
(i)   Adjustment to exclude the unrealized losses in 2011 and gains in 2012 associated with Generation's NDT fund investments
      and the associated contractual accounting relating to income taxes.
(j)   Adjustment to exclude the non-cash bargain purchase gain (negative goodwill) associated with the acquisition of Wolf
      Hollow, net of acquisition costs.
(k)   Adjustment to exclude certain costs associated with Exelon's acquisition of Antelope Valley Solar Ranch One (AVSR) in
      2011.
      

EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations
(unaudited)
(in millions, except per share data)
                                                                                     
                       Nine Months Ended September 30, 2012 (a)               Nine Months Ended September 30, 2011
                                                                 Adjusted                                               Adjusted
                       GAAP (b)     Adjustments                  Non-GAAP     GAAP (b)     Adjustments                  Non-GAAP
                                                                                                                          
Operating revenues     $ 17,205     $  1,024    (c),(d),(e),(f)  $ 18,229     $ 14,705     $  (42    ) (c),(n)          $ 14,663
                                                                                                                          
Operating expenses
      Purchased          7,398         540      (c),(d),(e),(g)    7,938        5,836         (366   ) (d)                5,470
      power and fuel
      Operating and      5,949         (1,051 ) (c),(e),(f),       4,898        3,863         (82    ) (c),(g),(i),       3,781
      maintenance                               (g),(h),(i),(j)                                        (j),(n),(o)
      Depreciation,
      amortization,      1,376         (43    ) (c),(g)            1,333        987           (65    ) (c)                922
      accretion and
      depletion
      Taxes other       737         (6     ) (c),(f)           731        602         -                         602    
      than income
                                                                                                                          
      Total
      operating          15,460        (560   )                    14,900       11,288        (513   )                    10,775
      expenses
                                                                                                                          
Equity in earnings
(losses) of             (69    )     110     (e),(g)           41         -           -                         -      
unconsolidated
affiliates
                                                                                                                          
Operating income        1,676       1,694                     3,370      3,417       471                       3,888  
                                                                                                                          
Other income and
deductions
      Interest           (697   )      (8     ) (g),(k)            (705   )     (545   )      -                           (545   )
      expense
      Other, net        253         (73    ) (c),(g),(l)       180        54          94      (l),(n)           148    
                                                                                                                          
      Total other
      income and        (444   )     (81    )                   (525   )    (491   )     94                        (397   )
      deductions
                                                                                                                          
Income before income     1,232         1,613                       2,845        2,926         565                         3,491
taxes
                                                (c),(d),(e),(f),                                       (c),(d),(g),(i),
Income taxes            445         612     (g),(h),(i),(j),  1,057      1,034       235     (j),(l),(n),      1,269  
                                                (k),(l),(m)                                            (o),(p)
                                                                                                                          
Net income on common     787           1,001                       1,788        1,892         330                         2,222
stock
                                                                                                                          
Net loss
attributable to
noncontrolling
interests, preferred    5           -                         5          3           -                         3      
security dividends
and preference stock
dividends
                                                                                                                          
Net income             $ 782       $  1,001                    $ 1,783     $ 1,889     $  330                      $ 2,219  
Effective tax rate       36.1   %                                  37.2   %     35.3   %                                  36.4   %
                                                                                                                          
Earnings per average
common share
      Basic            $ 0.97       $  1.25                      $ 2.22       $ 2.85       $  0.50                      $ 3.35
      Diluted          $ 0.97      $  1.24                     $ 2.21      $ 2.84      $  0.50                     $ 3.34   
Average common
shares outstanding
      Basic              804                                       804          663                                       663
      Diluted            806                                       806          664                                       664
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
      Plant
      retirements
      and                           $  0.25                                                $  0.04
      divestitures
      (c)
      Mark-to-market
      impact of
      economic                         (0.23  )                                               0.34
      hedging
      activities (d)
      Amortization
      of commodity
      contract                         0.68                                                   -
      intangibles
      (e)
      Maryland
      commitments                      0.28                                                   -
      (f)
      Constellation
      merger and                       0.26                                                   0.04
      integration
      costs (g)
      FERC                             0.22                                                   -
      settlement (h)
      Other
      acquisition                      -                                                      0.01
      costs (i)
      Asset
      retirement                       0.01                                                   0.02
      obligation (j)
      Amortization
      of the fair
      value of                         (0.01  )                                               -
      certain debt
      (k)
      Unrealized
      (gains) losses
      related to NDT                   (0.07  )                                               0.07
      fund
      investments
      (l)
      Reassessment
      of state
      deferred                         (0.15  )                                               -
      income taxes
      (m)
      Wolf Hollow
      acquisition                      -                                                      (0.03  )
      (n)
      Recovery of
      costs pursuant
      to the 2011                      -                                                      (0.03  )
      distribution
      rate case
      order (o)
      Charge
      resulting from
      Illinois tax                    -                                                    0.04   
      rate change
      legislation
      (p)
      Total                         $  1.24                                               $  0.50   
      adjustments
(a)   Includes financial results for Constellation Energy including BGE, beginning on March 12, 2012, the date the acquisition was
      completed.
(b)   Results reported in accordance with GAAP.
      Adjustment to exclude costs associated with the retirement of fossil generating units, the impacts of the FERC approved
(c)   reliability-must-run rate schedule, and the impact associated with the expected sale in the fourth quarter of 2012 of three
      generation stations associated with certain of the regulatory approvals required for the merger.
(d)   Adjustment to exclude the mark-to-market impact of Exelon's economic hedging activities.
(e)   Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair
      value at the merger date.
(f)   Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction.
(g)   Adjustment to exclude certain activities associated with the merger, including transaction costs, employee-related expenses
      (e.g. severance, retirement, relocation and retention bonuses) and integration initiatives.
(h)   Adjustment to exclude costs associated with the March 2012 settlement with the FERC.
(i)   Adjustment to exclude certain costs associated with various acquisitions.
(i)   Adjustment to exclude the increase in Generation's decommissioning obligation for spent nuclear fuel and the decrease in
      PECO's asset retirement obligation.
(k)   Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date expected to be
      retired in 2013.
(l)   Adjustment to exclude the unrealized gains in 2011 and losses in 2012 associated with Generation's NDT fund investments and
      the associated contractual accounting relating to income taxes.
(m)   Adjustment to exclude a one-time, non-cash benefit associated with a change in state deferred tax rates resulting from a
      reassessment of anticipated apportionment of Exelon’s deferred taxes as a result of the merger.
(n)   Adjustment to exclude the non-cash bargain purchase gain (negative goodwill) associated with the acquisition of Wolf Hollow,
      net of acquisition costs.
(o)   Adjustment to exclude one-time benefits for the recovery of previously incurred costs related to the 2009 restructuring plan
      and for the passage of Federal health care legislation in 2010.
(p)   Adjustment to exclude a one-time, non-cash charge to remeasure deferred taxes at higher corporate tax rates pursuant to the
      Illinois tax rate change legislation.

Contact:

Exelon Corporation
JaCee Burnes, 312-394-2948 (Investor Relations)
Paul Adams, 410-470-4167 (Corporate Communications)