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 October 30, 2015 - 8:00 AM EDT
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Exelon Announces Third Quarter 2015 Results

Exelon Corporation (NYSE: EXC) announced third quarter 2015 consolidated earnings as follows:

     
 

Third Quarter

   

2015

 

2014

Adjusted (non-GAAP) Operating Results:

 

Net Income ($ millions)

$757

$676

Diluted Earnings per Share

 

$0.83

 

$0.78

GAAP Results:

Net Income ($ millions)

$629

$993

Diluted Earnings per Share

 

$0.69

 

$1.15

 

“Our focus on operational performance and strategic investments to grow our business continues to deliver results across all of our businesses,” said Christopher M. Crane, Exelon president and CEO. “Exelon achieved earnings above our guidance range, led by gains at Constellation due to our generation to load matching strategy and improved results at each of our utilities, while also delivering top quartile performance for our customers and communities. Based on our results through September and our outlook for the fourth quarter, we are raising our full-year operating earnings guidance range to $2.40 to $2.60 per share.”

Third Quarter Operating Results

As shown in the table above, Exelon’s Adjusted (non-GAAP) Operating Earnings increased to $0.83 per share in the third quarter of 2015 from $0.78 per share in the third quarter of 2014. Earnings in the third quarter of 2015 primarily reflected the following favorable factors:

  • Higher revenue net of purchased power and fuel at Generation as a result of lower cost-to-serve load, the benefit from the Integrys acquisition and increased load served;
  • Favorable weather at ComEd and PECO;
  • Higher distribution earnings at ComEd and BGE; and
  • Lower storm costs at BGE.

These factors were partially offset by:

  • Higher contracting costs at Generation primarily due to growth development projects;
  • Realized NDT fund losses in 2015 as compared to gains in 2014; and
  • Higher interest expense due to higher outstanding debt at Generation and Corporate.

Adjusted (non-GAAP) Operating Earnings for the third quarter of 2015 do not include the following items (after tax) that were included in reported GAAP Net Income:

         
    (in millions)   (per diluted share)

Exelon Adjusted (non-GAAP) Operating Earnings

 

$757

 

$0.83

Mark-to-Market Impact of Economic Hedging

Activities

(85) (0.09)
Unrealized Losses Related to NDT Fund Investments (133) (0.15)
Amortization of Commodity Contract Intangibles (2)
Merger and Integration Costs (12) (0.02)
Asset Retirement Obligation 6 0.01
Tax Settlements 52 0.06
CENG Non-Controlling Interest   46   0.05

Exelon GAAP Net Income

 

$629

 

$0.69

 

Adjusted (non-GAAP) Operating Earnings for the third quarter of 2014 do not include the following items (after tax) that were included in reported GAAP Net Income:

         
    (in millions)   (per diluted share)

Exelon Adjusted (non-GAAP) Operating Earnings

 

$676

 

$0.78

Mark-to-Market Impact of Economic Hedging

Activities

158 0.18
Unrealized Losses Related to NDT Fund Investments (22) (0.03)
Amortization of Commodity Contract Intangibles 12 0.01
Merger and Integration Costs (58) (0.06)
Asset Retirement Obligation 13 0.02
Tax Settlement 66 0.08
Long-Lived Asset Impairments (30) (0.03)
Plant Retirement and Divestitures 197 0.23
Mark-to-Market Impact of PHI Merger Related

Interest Rate Swaps

(6) (0.01)
CENG Non-Controlling Interest   (13)   (0.02)

Exelon GAAP Net Income

 

$993

 

$1.15

 

Third Quarter and Recent Highlights

  • Pepco Holdings, Inc. (PHI) Merger: On August 12, 2015, the presiding judge in the Circuit Court of Queen Anne's County issued an order denying the motions to stay the Maryland Public Service Commission's order approving the merger. On August 27, 2015, the District of Columbia Public Service Commission (DCPSC) issued an opinion and order denying approval of the merger, asserting that the merger was not in the public's interest. Exelon and PHI filed an Application for Reconsideration with the DCPSC on September 28, 2015. On October 6, 2015, Exelon, PHI, the District of Columbia Government, the Office of People's Counsel, the District of Columbia Water and Sewer Authority, the National Consumer Law Center, National Housing Trust, and the Apartment and Office Building Association of Metropolitan Washington entered into a Nonunanimous Full Settlement Agreement and Stipulation with respect to the merger. Exelon and PHI subsequently filed a motion of joint applicants requesting the DCPSC to reopen the approval application to allow for consideration of the Settlement Agreement and granting additional requested relief. On October 28, 2015, the DCPSC at a public meeting agreed to reopen the approval application to allow for consideration of the Settlement Agreement and set a procedural schedule which would allow for completion of the merger in the first quarter of 2016.
  • Deferment of Early Plant Retirements: Exelon and Generation continue to evaluate the current and expected economic value of each of Generation's nuclear plants. On September 10, 2015, after considering the results of the recent PJM capacity auction, Exelon and Generation decided to defer for one year any decisions about the future operations of its Quad Cities and Byron nuclear plants and will offer both plants in the 2019/2020 auction in May 2016. As a result of clearing the other PJM capacity auction in September 2015 for the 2017/2018 transitional capacity auction, Exelon and Generation will continue to operate its Quad Cities nuclear power plant through at least May 2018. The Byron plant is already obligated to operate through May 2019. In addition, on October 29, 2015, Exelon and Generation decided to defer any decision about the future operations of its Clinton nuclear plant for one year and plan to bid the plant into the MISO capacity auction for the 2016/2017 planning year in March 2016. MISO's announcement on October 27, 2015 acknowledging the need for market design changes in southern Illinois was a key factor in Exelon's and Generation's decision to defer for an additional year, among other factors such as positive results from the Illinois Power Agency's capacity procurement for 2016 and the long-term impact of the EPA's Clean Power Plan. The Clinton plant is currently obligated to operate through May 2016. Exelon and Generation have not made any decision regarding potential nuclear plant closures at other sites at this time.
  • PECO Electric Distribution Rate Case: On September 10, 2015, PECO filed a Joint Petition for Settlement with the Pennsylvania Public Utilities Commission (PAPUC). The terms of the settlement include an increase of $127 million in annual distribution service revenue. On October 28, 2015, the Administrative Law Judge issued a recommended decision to the PAPUC that the joint settlement be approved. A final ruling from the PAPUC is expected by December 2015, and if approved, the rates will go into effect on January 1, 2016.
  • Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100 percent of the CENG units, produced 45,180 gigawatt-hours (GWh) in the third quarter of 2015, compared with 45,263 GWh in the third quarter of 2014. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 95.5 percent capacity factor for the third quarter of 2015, compared with 96.5 percent for the third quarter of 2014. The number of planned refueling outage days totaled 27 in the third quarter of 2015, compared with 18 in the third quarter of 2014. There were 11 non-refueling outage days in the third quarter of 2015, compared with 20 days in the third quarter of 2014.
  • Fossil and Renewable Operations: The Dispatch Match rate for Generation’s gas and hydro fleet was 99.0 percent in the third quarter of 2015, compared with 98.8 percent in the third quarter of 2014. Energy Capture for the wind and solar fleet was 94.8 percent in the third quarter of 2015, compared with 94.9 percent in the third quarter of 2014.
  • Financing Activities: On October 5, 2015, PECO issued $350 million in aggregate principal amount of its First and Refunding Mortgage Bonds, 3.150% Series due October 15, 2025. The net proceeds from the sale of the bonds will be used for general corporate purposes.
  • 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 is the volume of energy that best represents our commodity position in energy markets from owned or contracted for capacity based upon a simulated dispatch model that makes assumptions regarding future market conditions, which are calibrated to market quotes for power, fuel, load following products, and options. The proportion of expected generation hedged as of September 30, 2015, was 97 percent to 100 percent for 2015, 81 percent to 84 percent for 2016, and 51 percent to 54 percent for 2017. 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 the generation, physical delivery and marketing of power across multiple geographical regions through its customer-facing business, Constellation, which sells electricity and natural gas to both wholesale and retail customers. Generation also sells renewable energy and other energy-related products and services, and engages in natural gas and oil exploration and production activities (Upstream).

Generation's third quarter 2015 GAAP Net Income was $377 million, compared with net income of $771 million in the third quarter of 2014. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2015 and 2014 do not include various items (after tax) that were included in reported GAAP Net Income:

         
($ millions)   3Q15   3Q14

Generation Adjusted (non-GAAP) Operating Earnings

 

$499

 

$433

Mark-to-Market Impact of Economic Hedging Activities (85) 161
Unrealized (Losses) Related to NDT Fund Investments (133) (22)
Amortization of Commodity Contract Intangibles (2) 12
Merger and Integration Costs (6) (47)
Plant Retirement and Divestitures 198
Long Lived Asset Impairment (30)
Asset Retirement Obligation 6 13
Tax Settlements 52 66
CENG Non-Controlling Interest   46   (13)

Generation GAAP Net Income

 

$377

 

$771

 

Generation’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2015 increased $66 million compared with the same quarter in 2014. This increase primarily reflected higher revenue net of purchased power and fuel as a result of lower cost-to-serve load, and the benefit from the Integrys acquisition. These increases were partially offset by increased contracting expenses due to growth development opportunities and realized NDT fund losses in 2015 as compared to gains in 2014.

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

ComEd's third quarter 2015 GAAP Net Income was $149 million, compared with net income of $126 million in the third quarter of 2014. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2015 do not include merger and integration costs that were included in reported GAAP Net Income:

         
($ millions)   3Q15   3Q14

ComEd Adjusted (non-GAAP) Operating Earnings

 

$151

 

$126

Merger and Integration Costs   (2)  

ComEd GAAP Net Income

 

$149

 

$126

 

ComEd’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2015 increased $25 million from the same quarter in 2014 primarily as a result of favorable weather and increased electric distribution earnings reflecting the impacts of increased capital investment, which was offset by lower allowed electric distribution return on common equity due to a decrease in treasury rates.

For the third quarter of 2015, heating degree-days in the ComEd service territory were down 50.5 percent relative to the same period in 2014 and were 53.8 percent below normal. Cooling degree days were up 18.1 percent from prior year and 3.4 percent above normal. Total retail electric deliveries increased 3.4 percent in the third quarter of 2015 compared with the same period in 2014.

Weather-normalized retail electric deliveries decreased 0.5 percent in the third quarter of 2015 compared with the same period in 2014.

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

PECO’s third quarter 2015 GAAP Net Income was $90 million, compared with net income of $81 million in the third quarter of 2014. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2015 do not include merger and integration costs that were included in reported GAAP Net Income:

         
($ millions)   3Q15   3Q14

PECO Adjusted (non-GAAP) Operating Earnings

 

$91

 

$81

Merger and Integration Costs   (1)  

PECO GAAP Net Income

 

$90

 

$81

 

PECO’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2015 increased $10 million from the same quarter in 2014 primarily due to favorable weather.

For the third quarter of 2015, there were no heating degree-days in the PECO service territory representing a decrease of 14 days and 38 days relative to the same period in 2014 and normal, respectively. Cooling degree days were up 30.2 percent from the prior year and 27.7 percent above normal. Total retail electric deliveries were up 6.4 percent compared with the third quarter of 2014. Natural gas deliveries (including both retail and transportation components) in the third quarter of 2015 were up 15.1 percent compared with the same period in 2014.

Weather-normalized retail electric and gas deliveries decreased 0.5 percent and increased 9.3 percent, respectively, in the third quarter of 2015 compared with the same period in 2014. The increase in retail gas deliveries was driven primarily by growth in the transportation component during the third quarter of 2015.

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

BGE’s third quarter 2015 GAAP Net Income was $51 million, compared with net income of $46 million in the third quarter of 2014. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2015 do not include merger and integration costs that were included in reported GAAP Net Income:

         
($ millions)   3Q15   3Q14

BGE Adjusted (non-GAAP) Operating Earnings

 

$52

 

$46

Merger and Integration Costs   (1)  

BGE GAAP Net Income

 

$51

 

$46

 

BGE’s Adjusted (non-GAAP) Operating Earnings in the third quarter of 2015 increased $6 million from the same quarter in 2014, primarily due to increased distribution revenues pursuant to increased rates effective in December 2014 and decreased storm costs. Due to decoupling, BGE's distribution revenues are not affected by actual weather.

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 Net Income 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 October 30, 2015.

Cautionary Statements Regarding Forward-Looking Information

This press 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 2014 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 22; (2) Exelon’s Third Quarter 2015 Quarterly Report on Form 10-Q (to be filed on October 30, 2015) in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 19; and (3) 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 press release. 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 press release.

Exelon Corporation (NYSE: EXC) is the nation’s leading competitive energy provider, with 2014 revenues of approximately $27.4 billion. Headquartered in Chicago, Exelon does business in 48 states, the District of Columbia and Canada. Exelon is one of the largest competitive U.S. power generators, with more than 32,000 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 more than 2.5 million residential, public sector and business customers, including more than two-thirds of the Fortune 100. Exelon’s utilities deliver electricity and natural gas to more than 7.8 million customers in central Maryland (BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO). Follow Exelon on Twitter @Exelon.

   

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, 2015 Three Months Ended September 30, 2014
GAAP (a)   Adjustments     Adjusted

Non-GAAP

GAAP (a)   Adjustments     Adjusted

Non-GAAP

Operating revenues $ 7,401 $ 11 (b),(c) $ 7,412 $ 6,912 $ (248 ) (b),(c) $ 6,664
Operating expenses
Purchased power and fuel 3,291 (132 ) (b),(c) 3,159 2,648 33 (b),(c) 2,681
Operating and maintenance 1,996 (13 ) (d),(e) 1,983 1,982 (99 ) (d),(e),(i), (j) 1,883
Depreciation and amortization 606 606 577 577
Taxes other than income 310     310   306     306  
Total operating expenses 6,203 (145 ) 6,058 5,513 (66 ) 5,447
Equity in earnings of unconsolidated affiliates
Gain on sale of assets 2 2 339 (329 ) (j) 10
Gain on consolidation and acquisition of businesses            
Operating income 1,200   156   1,356   1,738   (511 ) 1,227  
Other income and (deductions)
Interest expense (253 ) (12 ) (f) (265 ) (258 ) 24 (b),(k) (234 )
Other, net (244 ) 279   (g) 35   16   54   (f),(g) 70  
Total other income and (deductions) (497 ) 267   (230 ) (242 ) 78   (164 )
Income before income taxes 703 423 1,126 1,496 (433 ) 1,063
Income taxes 115 249 (b),(c),(d), (e),(f),(g) 364 422 (103 ) (b),(c),(d),(e),(f),(g), (i),(j),(k) 319
Equity in losses of unconsolidated affiliates (1 )   (1 )      
Net income 587 174 761 1,074 (330 ) 744
Net income (loss) attributable to noncontrolling interests and preference stock dividends (42 ) 46   (h) 4   81   (13 ) (h) 68  
Net income attributable to common shareholders $ 629   $ 128   $ 757   $ 993   $ (317 ) $ 676  
Effective tax rate 16.4 % 32.3 % 28.2 % 30.0 %
Earnings per average common share
Basic $ 0.69 $ 0.14 $ 0.83 $ 1.15 $ (0.37 ) $ 0.78
Diluted $ 0.69   $ 0.14   $ 0.83   $ 1.15   $ (0.37 ) $ 0.78  
Average common shares outstanding
Basic 913 913 861 861
Diluted 915 915 863 863
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market impact of economic hedging activities (b) $ 0.09 $ (0.18 )
Amortization of commodity contract intangibles (c) (0.01 )
Merger and integration costs (d) 0.02 0.06
Asset retirement obligation (e) (0.01 ) (0.02 )
Tax settlements (f) (0.06 ) (0.08 )
Unrealized losses related to NDT fund investments (g) 0.15 0.03
CENG Non-controlling interest (h) (0.05 ) 0.02
Long-lived asset impairment (i) 0.03
Plant retirements and divestitures (j) (0.23 )
Mark-to-market impact of PHI merger related interest rate
swaps (k)
  0.01  
Total adjustments $ 0.14   $ (0.37 )
(a)   Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b) Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(c) Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value, if and when applicable, related to the Constellation merger, the CENG integration and the Integrys acquisition.
(d) Adjustment to exclude certain costs associated with the Constellation merger, pending PHI acquisition, the CENG integration and Integrys acquisition, including, if and when applicable, professional fees, employee-related expenses, integration activities, upfront credit facilities fees, merger commitments, and certain pre-acquisition contingencies.
(e) Adjustment to exclude a non-cash benefit pursuant to the annual update of the Generation nuclear decommissioning obligation related to the non-regulatory units.
(f) Adjustment to exclude favorable settlements of certain income tax positions on Constellation's pre-acquisition tax returns.
(g) Adjustment to exclude the unrealized gains and losses on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.
(h) Adjustment to account for Generation's non-controlling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments and mark-to-market activity in 2015, and in 2014 the impact of unrealized gains and losses on NDT fund investments, certain merger and acquisition costs, non-cash amortization of intangible assets, net, related to commodity contracts and changes in asset retirement obligations.
(i) Adjustment to exclude a 2014 charge to earnings related to the impairment of certain generating assets held for sale.
(j) Adjustment to exclude the impacts associated with the sale of Generation's ownership interest in generating stations, primarily the gain from the sale of Generation's equity interest in Safe Harbor Water Power Corporation.
(k) Adjustment to exclude the mark-to-market impact of Exelon Corporate's forward-starting interest rate swaps related to financing for the pending PHI acquisition.
   
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, 2015 Nine Months Ended September 30, 2014
GAAP (a)   Adjustments     Adjusted

Non-GAAP

GAAP (a)   Adjustments     Adjusted

Non-GAAP

Operating revenues $ 22,746 $ (190 ) (b),(c) $ 22,556 $ 20,173 $ 772 (b),(c),(d) $ 20,945
Operating expenses
Purchased power and fuel 10,210 88 (b),(c) 10,298 9,399 220 (b),(c) 9,619
Operating and maintenance 6,119 (66 ) (d),(e),(f),(g) 6,053 6,005 (250 ) (d),(e),(g),(l) 5,755
Depreciation and amortization 1,818 1,818 1,732 1,732
Taxes other than income 908     908   887     887  
Total operating expenses 19,055 22 19,077 18,023 (30 ) 17,993
Equity in losses of unconsolidated affiliates (20 ) 12 (c),(d) (8 )
Gain on sales of assets 10 10 356 (329 ) (l) 27
Gain on consolidation of CENG       261   (261 ) (m)  
Operating income 3,701   (212 ) 3,489   2,747   224   2,971  
Other income and (deductions)
Interest expense, net (755 ) (27 ) (h),(j) (782 ) (722 ) 32 (b),(h) (690 )
Other, net (179 ) 357   (i) 178   346   (151 ) (i),(j) 195  
Total other income and (deductions) (934 ) 330   (604 ) (376 ) (119 ) (495 )
Income before income taxes 2,767 118 2,885 2,371 105 2,476
Income taxes 805 145 (b),(c),(d), (e),(f),(g),(h), (i),(j) 950 646 99 (b),(c),(d), (e),(g),(h), (i),(j),(l),(m) 745
Equity in losses of unconsolidated affiliates (3 )   (3 )      
Net income 1,959 (27 ) 1,932 1,725 6 1,731
Net income attributable to noncontrolling interests and preference stock dividends   52   (k) 52   121   (36 ) (k) 85  
Net income attributable to common shareholders $ 1,959   $ (79 ) $ 1,880   $ 1,604   $ 42   $ 1,646  
Effective tax rate 29.1 % 32.9 % 27.2 % 30.1 %
Earnings per average common share
Basic $ 2.23 $ (0.09 ) $ 2.14 $ 1.87 $ 0.05 $ 1.92
Diluted $ 2.22   $ (0.09 ) $ 2.13   $ 1.86   $ 0.05   $ 1.91  
Average common shares outstanding
Basic 879 879 860 860
Diluted 883 883 863 863
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market impact of economic hedging activities (b) $ (0.18 ) $ 0.34
Amortization of commodity contract intangibles (c) (0.01 ) 0.06
Merger and integration costs (d) 0.06 0.11
Long-lived asset impairment (e) 0.02 0.11
Midwest Generation bankruptcy recoveries (f) (0.01 )
Asset retirement obligation (g) (0.02 )
Mark-to-market impact of PHI merger related interest rate

swaps (h)

(0.03 ) 0.01
Unrealized gains related to NDT fund investments (i) 0.19 (0.07 )
Tax settlement (j) (0.06 ) (0.12 )
CENG Non-controlling interest (k) (0.06 ) 0.04
Plant retirements and divestitures (l) (0.01 ) (0.23 )
Gain on CENG integration (m)   (0.18 )
Total adjustments $ (0.09 ) $ 0.05  
Note: For the nine months ended September 30, 2014, includes the results of operations of CENG beginning April 1, 2014, the date the nuclear operating services agreement was executed.
(a)   Results reported in accordance with GAAP.
(b) Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(c) Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value, if and when applicable, related to the Constellation merger, the CENG integration and the Integrys acquisition.
(d) Adjustment to exclude certain costs associated with the Constellation merger, pending PHI acquisition, the CENG integration and Integrys acquisition, including, if and when applicable, professional fees, employee-related expenses, integration activities, upfront credit facilities fees, merger commitments, and certain pre-acquisition contingencies.
(e) Adjustment to exclude a 2015 and 2014 charge to earnings related to the impairment of investments in long-term leases and a 2014 charge to earnings related to the impairment of certain wind generating assets and certain generating assets held for sale.
(f) Adjustment to reflect a benefit related to the favorable settlement of a long-term railcar lease agreement pursuant to the Midwest Generation bankruptcy.
(g) Adjustment to exclude a non-cash benefit pursuant to the annual update of the Generation nuclear decommissioning obligation related to the non-regulatory units.
(h) Adjustment to exclude the mark-to-market impact of Exelon Corporate's forward-starting interest rate swaps related to financing for the pending PHI acquisition.
(i) 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.
(j) Adjustment exclude benefits related to favorable settlements of certain income tax positions on Constellation’s pre-acquisition tax returns.
(k) Adjustment to account for Generation's non-controlling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments and mark-to-market activity in 2015, and in 2014 the impact of unrealized gains and losses on NDT fund investments, certain merger and acquisition costs, non-cash amortization of intangible assets, net, related to commodity contracts and changes in asset retirement obligations.
(l) Adjustment to exclude the impacts associated with the sale of Generation's ownership interest in generating stations, primarily the gain from the sale of Generation's equity interest in Safe Harbor Water Power Corporation.
(m) Adjustment to exclude the gain recorded upon consolidation of CENG resulting from the difference in the fair value of CENG’s net assets and the equity method investment previously recorded on Generation’s and Exelon’s books and the settlement of pre-existing commitments between Generation and CENG.

Exelon Corporation
Francis Idehen
Investor Relations
312-394-3967
or
Paul Adams
Corporate Communications
410-470-4167


Source: Business Wire (October 30, 2015 - 8:00 AM EDT)

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