Exelon Announces First Quarter 2013 Results

  Exelon Announces First Quarter 2013 Results

Business Wire

CHICAGO -- May 01, 2013

Exelon Corporation (NYSE: EXC) announced first quarter 2013 consolidated
earnings as follows:

                                        
                                         First Quarter
                                        2013        2012
Adjusted (non-GAAP) Operating Results:                
Net Income (Loss) ($ millions)             $ 602         $ 603
Diluted Earnings per Share               $ 0.70     $ 0.85
GAAP Results:
Net Income (Loss) ($ millions)             $ (4    )     $ 200
Diluted Earnings per Share               $ (0.01 )   $ 0.28
                                                           

“Exelon delivered earnings at the top end of our guidance range and our
nuclear fleet achieved a 96.4 percent capacity factor this quarter,
highlighting our commitment to financial discipline and operational
excellence,” said Christopher M. Crane, Exelon’s president and CEO.

First Quarter Operating Results

First quarter 2013 earnings include financial results for Constellation Energy
and Baltimore Gas and Electric Company (BGE) while first quarter 2012 earnings
only contains the financial results for those companies from March 12, 2012 to
March 31, 2012. Therefore, the composition of results of operations from 2013
and 2012 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 $0.70 per share in the first quarter of 2013 from $0.85 per share
in the first quarter of 2012. Earnings in first quarter 2013 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;
  *Higher operating and maintenance expenses, including increased labor,
    contracting and materials costs;
  *Increased depreciation and amortization expense due to ongoing capital
    expenditures; and
  *Impact of increased average diluted common shares outstanding as a result
    of the merger.

These factors were partially offset by:

  *The addition of Constellation Energy’s contribution to Generation’s energy
    margins;
  *The addition of a full quarter of BGE’s financial results;
  *Higher nuclear volume due to fewer planned and unplanned outage days; and
  *Impact of favorable weather in the ComEd and PECO territories.

Adjusted (non-GAAP) operating earnings for the first quarter of 2013 do not
include the following items (after tax) that were included in reported GAAP
earnings:

                                                          
Adjusted (non-GAAP) operating earnings for the first quarter of 2013 do not
include the following items (after tax) that were included in reported GAAP
earnings:
                                        (in millions)        (per diluted
                                                                share)
Exelon Adjusted (non-GAAP) Operating      $602                  $0.70
Earnings
Mark-to-Market Impact of Economic         (235)                 (0.27)
Hedging Activities
Unrealized Gains Related to NDT
(Nuclear Decommissioning Trust) Fund      35                    0.04
Investments
Plant Retirements and Divestitures        13                    0.02
Constellation Merger and Integration      (27)                  (0.03)
Costs
Amortization of Commodity Contract        (117)                 (0.14)
Intangibles
Amortization of the Fair Value of         3                     -
Certain Debt
Re-measurement of Like-Kind Exchange      (265)                 (0.31)
Tax Position
Nuclear Uprate Project Cancellation      (13)                 (0.02)
Exelon GAAP Net Income (Loss)            $(4)                 $(0.01)
                                                                
                                                                
Adjusted (non-GAAP) operating earnings for the first quarter of 2012 do not
include the following items (after tax) that were included in reported GAAP
earnings:
                                        (in millions)        (per diluted
                                                                share)
Exelon Adjusted (non-GAAP) Operating      $603                  $0.85
Earnings
Mark-to-Market Impact of Economic         43                    0.06
Hedging Activities
Unrealized Gains Related to NDT Fund      36                    0.05
Investments
Plant Retirements and Divestitures        (6)                   (0.01)
Constellation Merger and Integration      (113)                 (0.16)
Costs
Maryland Commitments                      (227)                 (0.32)
Amortization of Commodity Contract        (78)                  (0.11)
Intangibles
FERC Settlement                           (172)                 (0.25)
Non-Cash Re-measurement of Deferred       117                   0.17
Income Taxes
Other Acquisition Costs                  (3)                  -
Exelon GAAP Net Income (Loss)            $200                 $0.28
                                                                

First Quarter and Recent Highlights

  *Nuclear Operations: Generation’s nuclear fleet, including its owned output
    from the Salem Generating Station, produced 36,031 gigawatt-hours (GWh) in
    the first quarter of 2013, compared with 35,262 GWh in the first quarter
    of 2012. 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 96.4 percent capacity factor for
    the first quarter of 2013, compared with 93.6 percent for the first
    quarter of 2012. The number of planned refueling outage days totaled 49 in
    the first quarter of 2013 versus 67 days in the first quarter of 2012. The
    number of non-refueling outage days totaled six days in the first quarter
    of 2013, compared with 16 days in the first quarter of 2012.
  *Fossil and Renewables Operations: The dispatch match rate for Generation’s
    fossil and hydro fleet was 98.4 percent in the first quarter of 2013,
    compared with 87.8 percent in the first quarter of 2012. The 2013 results
    include former Constellation plants and Exelon hydro plants, whereas the
    2012 data includes only legacy Exelon fossil plants. The performance in
    2012 was driven by an outage at one of the peaking units in Texas. Energy
    capture for the wind and solar fleet was 94.9 percent in the first quarter
    of 2013, compared with 94.4 percent in the first quarter of 2012.

    Dispatch match is used to measure market responsiveness. Expressed as a
    percentage, it reflects the unit’s revenue capture when it is called upon
    for generation. Factors that impact dispatch match adversely include
    forced outages, derates and failure to operate to the desired generation
    signal.

  *Illinois Senate Bill 9: During March 2013, the Illinois House and Senate
    each passed Senate Bill 9 (SB9) with supermajority votes to clarify the
    intent of the Energy Infrastructure Modernization Act (EIMA) on three
    major issues: average versus year-end rate base and capital structure,
    return on pension asset, and a weighted average cost of capital interest
    rate on the prior year reconciliation. In addition, SB9 provides for
    accelerated advanced metering infrastructure (AMI) deployment that would
    commence earlier than 2015.

    On March 21, 2013, SB9 was sent to the governor for his consideration. The
    governor has 60 days to approve or veto the legislation. If the governor
    does nothing, the bill becomes law after 60 days. If he vetoes the bill,
    the legislature will have the opportunity to override the veto with
    supermajority votes in each house, at which time it becomes law. If the
    legislation becomes law by June 15, 2013, ComEd will update certain
    elements of its AMI deployment schedule to provide for an accelerated
    deployment as called for by SB9.

  *ComEd Distribution Formula Rate Case: On April 29, 2013, ComEd filed its
    2013 annual distribution formula rate update, which establishes the net
    revenue requirement used to set the rates that will take effect in January
    2014 after review by the Illinois Commerce Commission (ICC). The revenue
    requirement requested in the filing is based on 2012 actual costs and
    forecasted 2013 capital additions as well as an annual reconciliation of
    the revenue requirement in effect in 2012 to the actual costs incurred for
    that year. ComEd requested a total increase to the net revenue requirement
    of $311 million, reflecting an increase of $169 million for the initial
    revenue requirement for 2013 and an increase of $142 million for the
    annual reconciliation for 2012.

    Rates effective in 2013 as a result of the 2012 distribution formula rate
    update are subject to a reconciliation to actual 2013 costs, which will be
    filed with the ICC in 2014. This reconciliation will be reflected in
    customer rates beginning in January 2015. Throughout each year, ComEd
    records regulatory assets or regulatory liabilities and corresponding
    increases or decreases to revenue for any differences between the revenue
    requirement in effect and its best estimate of the probable increase or
    decrease in the revenue requirement expected to ultimately be approved by
    the ICC in that year’s reconciliation proceedings based on the year’s
    actual costs incurred.

    The filing does not reflect the SB9 legislation. If that legislation
    becomes law, an update to the distribution formula will be filed with the
    ICC shortly thereafter to reflect the passage of such legislation.

  *BGE Gas and Electric Distribution Rate Case: On Feb. 22, 2013, the
    Maryland Public Service Commission (MDPSC) issued Order No. 85374 related
    to the application filed by BGE on July 27, 2012 seeking an increase in
    electric and gas base rates. Under the MDPSC’s Order, BGE is authorized to
    increase annual electric base rates by $81 million, which is approximately
    62 percent of the $131 million requested in the application and annual gas
    base rates by $32 million, which is approximately 71 percent of the $45
    million requested. The electric distribution rate increase was set using
    an allowed return on equity of 9.75 percent and the gas distribution rate
    increase was set using an allowed return on equity of 9.60 percent. The
    new electric and natural gas distribution rates took effect for services
    rendered on or after Feb. 23, 2013.

          PECO Preferred Stock Redemption: On March 25, 2013, PECO announced
   ●  that it issued a notice of redemption for all of the following
          series of preferred stock:
                                                    
          Series                      CUSIP No.            Redemption Price
                                                           Per Share
          $3.80 Series A              693304206            $106.00
          (NYSE: PEPRA)
          $4.30 Series B              693304305            $102.00
          (NYSE: PEPRB)
          $4.40 Series C              693304404            $112.50
          (NYSE: PEPRC)
          $4.68 Series D              693304503            $104.00
          (NYSE: PEPRD)
                                                           
          The redemption date for each of the above series of preferred stock
          is May 1, 2013. The total amount of preferred stock being redeemed
          is $87 million in stated value. The redemption price per share of
          each series of preferred stock shown above equals the stated value
          per share plus a premium, if applicable, plus accrued and unpaid
          dividends to, but excluding, the redemption date, less the
          previously announced quarterly dividend that will be paid separately
          on May 1, 2013, to shareholders of record as of the close of
          business on March 28, 2013. No dividends on the preferred stock
          being redeemed will accrue on or after the redemption date, nor will
          any interest accrue on amounts held to pay the redemption price.

  *Antelope Valley Solar Ranch One Project: Three additional blocks of the
    Antelope Valley Solar Ranch One Project totaling 69 megawatts (MW) became
    operational in the first quarter of 2013, bringing the total capacity in
    operation to 98 MW. The remaining phases of the project are on track to be
    completed by the original planned commercial operation date of December
    2013.
  *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 March 31,
    2013, is 98 to 101 percent for 2013, 70 to 73 percent for 2014, and 33 to
    36 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.

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.

First quarter 2013 GAAP net loss was $18 million, compared with net income of
$168 million in the first quarter of 2012. Adjusted (non-GAAP) operating
earnings for the first quarter of 2013 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 (Loss) is in the
table below:

                                                             
($ millions)                                           1Q13    1Q12
Generation Adjusted (non-GAAP) Operating Earnings      $336    $409
Mark-to-Market Impact of Economic Hedging Activities     (246)     36
Unrealized Gains Related to NDT Fund Investments         35        36
Plant Retirements and Divestitures                       13        (6)
Constellation Merger and Integration Costs               (29)      (45)
Maryland Commitments                                     -         (22)
Amortization of Commodity Contract Intangibles           (117)     (78)
FERC Settlement                                          -         (172)
Non-Cash Re-measurement of Deferred Income Taxes         -         13
Other Acquisition Costs                                  -         (3)
Amortization of the Fair Value of Certain Debt           3         -
Nuclear Uprate Project Cancellation                    (13)    -
Generation GAAP Net Income (Loss)                      $(18)   $168
                                                                   

Generation’s Adjusted (non-GAAP) Operating Earnings in the first quarter of
2013 decreased $73 million compared with the same quarter in 2012. 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;
  *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
and higher nuclear volume due to fewer planned and unplanned outage days.

Generation’s average realized margin on all electric sales, including sales to
affiliates and excluding trading activity, was $27.23 per megawatt-hour (MWh)
in the first quarter of 2013, compared with $32.57 per MWh in the first
quarter of 2012.

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

ComEd recorded GAAP net loss of $81 million in the first quarter of 2013,
compared with net income of $87 million in the first quarter of 2012. Adjusted
(non-GAAP) operating earnings for the first quarter of 2013 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 (Loss) is in the table below:

                                                          
($ millions)                                        1Q13    1Q12
ComEd Adjusted (non-GAAP) Operating Earnings        $89     $88
Re-measurement of Like-Kind Exchange Tax Position     (170)     -
Constellation Merger and Integration Costs          -       (1)
ComEd GAAP Net Income (Loss)                        $(81)   $87
                                                                

ComEd’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2013
were up $1 million from the same quarter in 2012, primarily due to favorable
weather in ComEd’s service territory partially offset by lower realized prices
resulting from changes in customer mix.

For the first quarter of 2013, heating degree-days in the ComEd service
territory were up 36.7 percent relative to the same period in 2012 and were
3.0 percent above normal. Total retail electric deliveries increased 2.9
percent quarter over quarter.

Weather-normalized retail electric deliveries decreased 1.2 percent in the
first quarter of 2013 relative to 2012, reflecting decreases in deliveries to
both small and large commercial and industrial (C&I) customers. For ComEd,
weather had favorable after-tax effect of $10 million on first quarter 2013
earnings relative to 2012 and a favorable after-tax effect of $2 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 first quarter of 2013 was $121 million, compared
with $96 million in the first quarter of 2012. Adjusted (non-GAAP) Operating
Earnings for the first quarter of 2013 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)                                  1Q13   1Q12
PECO Adjusted (non-GAAP) Operating Earnings   $123   $100
Constellation Merger and Integration Costs    (2)    (4)
PECO GAAP Net Income (Loss)                   $121   $96
                                                         

PECO’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2013
increased $23 million from the same quarter in 2012, primarily due to
favorable weather in PECO’s service territory.

For the first quarter of 2013, heating degree-days in the PECO service
territory were up 27.5 percent relative to the same period in 2013 and were
1.5 percent below normal. Total retail electric deliveries were up 4.3 percent
quarter over quarter. On the gas side, deliveries in the first quarter of 2013
were up 23.6 percent from the first quarter of 2012.

Weather-normalized retail electric deliveries were flat in the first quarter
of 2013 relative to 2012, reflecting declines in deliveries to small C&I
customers offset by increases in deliveries to large C&I and residential
customers. Weather-normalized gas deliveries were up 2.0 percent in the first
quarter of 2013. For PECO, weather had favorable after-tax effect of $27
million on first quarter 2013 earnings relative to 2012 and an unfavorable
after-tax effect of $4 million relative to normal weather.

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

For the first quarter of 2013, BGE’s GAAP net income was $77 million and
adjusted (non-GAAP) Operating Earnings were $74 million.

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
page 8 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 May 1,
2013.

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 2012 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 19; and (2) 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
2012 revenues of approximately $23.5 billion. Headquartered in Chicago, Exelon
has operations and business activities in 47 states, the District of Columbia
 and Canada. Exelon is one of the largest competitive U.S. power generators,
 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 March 31, 2013                                 Three Months Ended March 31, 2012 (a)
                                                                             Adjusted                                          Adjusted
                      GAAP (b)   Adjustments                                 Non-GAAP   GAAP      Adjustments                  Non-GAAP
                                                                                        (b)
                                                                                                                                  
Operating revenues    $ 6,082    $   812     (c),(d)                         $  6,894   $ 4,690   $   147     (c),(d),(e),(k)  $  4,837
                                                                                                                                  
Operating expenses
      Purchased
      power and         2,981        253     (c),(d)                            3,234     1,765       1       (c),(d),(e),(f)     1,766
      fuel
      Operating and                                                                                           (e),(f),(k),(l),
      maintenance       1,764        (38)    (e),(f),(g)                        1,726     1,968       (574)                       1,394
                                                                                                              (m)
      Depreciation,
      amortization,     543          (1)     (f)                                542       382         (16)    (e)                 366
      accretion and
      depletion
      Taxes other      277         -                                         277      194        1       (e),(k)            195
      than income
                                                                                                                                  
      Total
      operating         5,565        214                                        5,779     4,309       (588)                       3,721
      expenses
                                                                                                                                  
Equity in earnings
(losses) of            (9)         18      (d)                               9        (22)       8       (d)                (14)
unconsolidated
affiliates
                                                                                                                                  
Operating income       508         616                                       1,124    359        743                        1,102
                                                                                                                                  
Other income and
deductions
      Interest          (623)        285     (f),(g),(h),(i)                    (338)     (195)       (1)     (d)                 (196)
      expense
      Other, net       172         (30)    (e),(f),(h),(j)                   142      194        (119)   (j)                75
                                                                                                                                  
      Total other
      income and       (451)       255                                       (196)    (1)        (120)                      (121)
      deductions
                                                                                                                                  
Income before           57           871                                        928       358         623                         981
income taxes
                                                                                                                                  
                                                                                                              (c),(d),(e),(f),

Income taxes           56          265     (c),(d),(e),(f),(g),(h),(i),(j)   321      158        220     (j),(k),(l),(m),   378

                                                                                                              (n)
                                                                                                                                  
Net income              1            606                                        607       200         403                         603
                                                                                                                                  
Net income
attributable to
noncontrolling
interests,             5           -                                         5        -          -                          -
preferred security
dividends and
preference stock
dividends
                                                                                                                                  
Net income (loss)     $ (4)      $   606                                     $  602     $ 200     $   403                      $  603
on common stock
Effective tax rate      98.2%                                                   34.6%     44.1%                                   38.5%
                                                                                                                                  
Earnings per
average common
share
      Basic           $ (0.01)   $   0.71                                    $  0.70    $ 0.28    $   0.57                     $  0.85
      Diluted         $ (0.01)   $   0.71                                    $  0.70    $ 0.28    $   0.57                     $  0.85
                                                                                                                                  
Average common
shares outstanding
      Basic             855                                                     855       705                                     705
      Diluted           859                                                     859       707                                     707
                                                                                                                                  
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
                                                                                                                                  
      Mark-to-market
      impact of                  $   0.27                                                         $   (0.06)
      economic hedging
      activities (c)
      Amortization of
      commodity                      0.14                                                             0.11
      contract
      intangibles (d)
      Plant retirements
      and divestitures               (0.02)                                                           0.01
      (e)
      Constellation
      merger and                     0.03                                                             0.16
      integration costs
      (f)
      Nuclear
      uprate
      project                        0.02                                                             -
      cancellation
      (g)
      Remeasurement of
      like-kind                      0.31                                                             -
      exchange tax
      position (h)
      Amortization of
      the fair value of              -                                                                -
      certain debt (i)
      Unrealized
      (gains) related                (0.04)                                                           (0.05)
      to NDT fund
      investments (j)
      Maryland
      commitments                    -                                                                0.32
      (k)
      Federal
      Regulatory
      Energy
      Commission                     -                                                                0.25
      (FERC)
      settlement
      (l)
      Other
      acquisition                    -                                                                -
      costs (m)
      Non-cash
      remeasurement of              -                                                               (0.17)
      deferred income
      taxes (n)
      Total                      $   0.71                                                         $   0.57
      adjustments
                                                                                                                                  
(a)   For the three months ended March 31, 2012, 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).
(c)   Adjustment to exclude the mark-to-market impact of Exelon's economic hedging activities, net of intercompany eliminations.
(d)   Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value
      at the merger date.
(e)   Adjustment to exclude the impacts associated with the sale or retirement of generating stations.
      Adjustment to exclude certain costs incurred associated with the merger, including transaction costs, employee-related expenses
(f)   (e.g. severance, retirement, relocation and retention bonuses) integration initiatives and certain pre-acquisition contingencies,
      partially offset in 2013 by a one-time benefit pursuant to the February 22, 2013 order for BGE's 2012 electric and gas
      distribution rate case for the recovery of previously incurred integration costs.
(g)   Adjustment to exclude a 2013 charge to earnings related to Generation's cancellation of previously capitalized nuclear uprate
      projects.
(h)   Adjustment to exclude a non-cash charge to earnings resulting from the first quarter 2013 remeasurement of a like-kind exchange
      tax position taken on ComEd's 1999 sale of fossil generating assets.
(i)   Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date expected to be retired
      in 2013.
(j)   Adjustment to exclude the unrealized gains on NDT fund investments to the extent not offset by contractual accounting as
      described in the notes to the consolidated financial statements.
(k)   Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction.
(l)   Adjustment to exclude costs associated with a March 2012 settlement with the FERC to resolve a dispute related to Constellation's
      prior period hedging and risk management transactions.
(m)   Adjustment to exclude certain costs associated with various acquisitions.
(n)   Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes as a result of the merger.

Contact:

Exelon Corporation
Ravi Ganti, 312-394-2348 (Investor Relations)
Paul Adams, 410-470-4167 (Corporate Communications)