Full Description

Exelon Corporation (Exelon), incorporated on February 1999, is a utility services holding company. It operates through its principal subsidiaries Exelon Generation Company, LLC (Generation), Commonwealth Edison Company (ComEd) and PECO Energy Company (PECO). Generation’s business consists of its owned and contracted electric generating facilities, its wholesale energy marketing operations and its retail supply operations. ComEd’s energy delivery business consists of the purchase and regulated retail sale of electricity and the provision of distribution and transmission services to retail customers in northern Illinois, including the City of Chicago. PECO’s energy delivery business consists of the purchase and regulated retail sale of electricity and the provision of transmission and distribution services to retail customers in southeastern Pennsylvania, including the City of Philadelphia, as well as the purchase and regulated retail sale of natural gas and the provision of distribution services to retail customers in the Pennsylvania counties surrounding the City of Philadelphia.

Generation

Generation is an electric generation company in the United States. Generation combines its generation fleet with a wholesale energy marketing operation and the retail supply operation. As of December 31, 2008, Generation owned generation assets with an aggregate net capacity of 24,809 megawatts, including 16,983 megawatts of nuclear capacity. In addition, Generation controlled another 6,483 megawatts of capacity through long-term contracts. Generation’s wholesale marketing unit, Power Team, a marketer of energy, draws upon Generation’s energy generation portfolio and logistical expertise to ensure delivery of energy to Generation’s wholesale customers under long-term and short-term contracts, including a power purchase agreement (PPA) with PECO and procurement contracts with ComEd. In addition, Power Team markets energy in the wholesale bilateral and spot markets.

The owned and contracted generating resources of Generation are located in the United States in the Midwest region, which is comprised of Illinois (approximately 47% of capacity), the Mid-Atlantic region, which is comprised of Pennsylvania, New Jersey, Maryland and West Virginia (approximately 36% of capacity), the Southern region, which is comprised of Texas, Georgia and Oklahoma (approximately 16%), and the New England region, which is comprised of Massachusetts and Maine (approximately 1% of capacity).

Generation has ownership interests in 11 nuclear generating stations in service, consisting of 19 units with 16,983 megawatts of capacity. Generation’s nuclear fleet plus its ownership interest in two generating units at the Salem Generating Station (Salem) generated approximately 93% of Generation’s total output, during the year ended December 31, 2008. Generation’s nuclear generating stations are operated by Generation, with the exception of the two units at Salem, which are operated by PSEG Nuclear, LLC an indirect, wholly owned subsidiary of Public Service Enterprise Group Incorporated (PSEG). AmerGen Energy Company, LLC (AmerGen), a wholly owned subsidiary of Generation through January 8, 2009, owned and operated the Clinton Nuclear Power Station (Clinton), the Three Mile Island (TMI) Unit No. 1 and the Oyster Creek Generating Station (Oyster Creek). Effective January 8, 2009, AmerGen was merged into Generation, which holds the operating licenses for Clinton, TMI and Oyster Creek as of December 31, 2008.

Generation operates various fossil and hydroelectric facilities and maintains ownership interests in several other facilities such as LaPorte, Keystone, Conemaugh and Wyman, which are operated by third parties. In 2008, electric supply generated from owned fossil and hydroelectric generating facilities was 6% of Generation’s total electric supply.

ComEd

ComEd is engaged principally in the purchase and regulated retail sale of electricity and the provision of distribution and transmission services to a diverse base of residential, commercial and industrial customers in northern Illinois. ComEd’s retail service territory has an area of approximately 11,300 square miles and an estimated population of eight million. The service territory includes the City of Chicago, an area of about 225 square miles with an estimated population of three million. ComEd has approximately 3.8 million customers.

PECO

PECO is engaged principally in the purchase and regulated retail sale of electricity and the provision of transmission and distribution services to retail customers in southeastern Pennsylvania, including the City of Philadelphia, as well as the purchase and regulated retail sale of natural gas and the provision of distribution services to retail customers in the Pennsylvania counties surrounding the City of Philadelphia. PECO’s combined electric and natural gas retail service territory has an area of approximately 2,100 square miles and an estimated population of 3.9 million. PECO provides electric delivery service in an area of approximately 1,900 square miles, with a population of approximately 3.7 million, including 1.4 million in the City of Philadelphia. Natural gas service is supplied in an area of approximately 1,900 square miles in southeastern Pennsylvania adjacent to the City of Philadelphia, with a population of approximately 2.3 million. PECO delivers electricity to approximately 1.6 million customers and natural gas to approximately 485,000 customers.

Under the Pennsylvania Electricity Generation Customer Choice and Competition Act, all of PECO’s retail electric customers have the right to choose their generation suppliers. At December 31, 2008, less than 1% of each of PECO’s residential and large commercial and industrial loads and 7% of its small commercial and industrial load were purchasing generation service from electric generation suppliers. Customers who purchase electricity from a electric generation supplier continue to pay a delivery charge to PECO.

PECO's natural gas sales and gas transportation revenues are derived pursuant to rates regulated by the Pennsylvania Public Utility Commission (PAPUC). PECO's natural gas customers have the right to choose their gas suppliers or to purchase their gas supply from PECO at cost. Approximately 30% of PECO’s total yearly throughput is provided by gas suppliers other than PECO and is related primarily to the supply of PECO’s large commercial and industrial customers. Natural gas transportation service provided to customers by PECO remains subject to rate regulation. PECO also provides billing, metering, installation, maintenance and emergency response services.

PECO’s natural gas supply is provided by purchases from a number of suppliers for terms of up to two years. These purchases are delivered under long-term firm transportation contracts. PECO’s aggregate annual firm supply under these firm transportation contracts is 43 million dekatherms. Peak natural gas is provided by PECO’s liquefied natural gas (LNG) facility and propane-air plant. PECO also has under contract 23 million dekatherms of underground storage through service agreements.