##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-Q


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|  |  | For the Quarterly Period Ended March 31, 2006                                               
| 
|  |  | or                                                                                          
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

|            |  |                                                                                                                                                                       |  |               
|----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------
|            |  | Name of Registrant; State of Incorporation;                                                                                                                           |  | IRS Employer  
|Commission  |  | Address of Principal Executive Offices; and                                                                                                                           |  | Identification
|File Number |  | Telephone Number                                                                                                                                                      |  | Number        
|            |  |                                                                                                                                                                       |  |               
|1-16169     |  | EXELON CORPORATION
    (a Pennsylvania corporation)
    10 South Dearborn Street  37th Floor
    P.O. Box 805379
    Chicago, Illinois 60680-5379
    (312) 394-7398 |  | 23-2990190    
|1-1839      |  | COMMONWEALTH EDISON COMPANY
    (an Illinois corporation)
    440 South LaSalle Street
    Chicago, Illinois 60605-1028
    (312) 394-4321                            |  | 36-0938600    
|000-16844   |  | PECO ENERGY COMPANY
    (a Pennsylvania corporation)
    P.O. Box 8699
    2301 Market Street
    Philadelphia, Pennsylvania 19101-8699
    (215) 841-4000            |  | 23-0970240    
|333-85496   |  | EXELON GENERATION COMPANY, LLC
    (a Pennsylvania limited liability company)
    300 Exelon Way
    Kennett Square, Pennsylvania 19348
    (610) 765-6900            |  | 23-3064219    

þ o




|                                                           |  |               
|---------------------------------------------------------- |  | --------------
|Exelon Corporation Common Stock, without par value         |  | 668,497,574   
|Commonwealth Edison Company Common Stock, $12.50 par value |  | 127,016,519   
|PECO Energy Company Common Stock, without par value        |  | 170,478,507   
|Exelon Generation Company, LLC                             |  | not applicable

12b-2


|                               |  |                         |   |  |                   |  |  |                       |  |  |   | 
|------------------------------ |  | ----------------------- | - |  | ----------------- |  |  | --------------------- |  |  | - | 
|                               |  | Large Accelerated Filer |   |  | Accelerated Filer |  |  | Non-accelerated Filer | 
|                               |  |                         |   |  |                   |  |  |                       | 
|Exelon Corporation             |  |                         | ü |  |                   |  |  |                       |  |  |   | 
|Commonwealth Edison Company    |  |                         |   |  |                   |  |  |                       |  |  | ü | 
|PECO Energy Company            |  |                         |   |  |                   |  |  |                       |  |  | ü | 
|Exelon Generation Company, LLC |  |                         |   |  |                   |  |  |                       |  |  | ü | 

12b-2 o þ










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TABLE OF CONTENTS


|                               |  |                                                                                           |   |                                                                |     |  |     | 
|------------------------------ |  | ----------------------------------------------------------------------------------------- | - | -------------------------------------------------------------- | --- |  | --- | 
|                               |  |                                                                                           |   | Page No.                                                       |    
|                               |  |                                                                                           |   |                                                                |    
|FILING FORMAT                  |  |                                                                                           | 3 |                                                               
|FORWARD-LOOKING STATEMENTS     |  |                                                                                           | 3 |                                                               
|WHERE TO FIND MORE INFORMATION |  |                                                                                           | 3 |                                                               
|                              
|PART I.                        |  | FINANCIAL INFORMATION                                                                     |   |                                                                | 4   | 
|ITEM 1.                        |  | Financial Statements                                                                      |   |                                                                | 4   | 
|                               |  |                                                                                           |   | Exelon Corporation                                             |     |  |     | 
|                               |  |                                                                                           |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 5   | 
|                               |  |                                                                                           |   | Consolidated Statements of Cash
    Flows                      |     |  | 6   | 
|                               |  |                                                                                           |   | Consolidated Balance Sheets                                    |     |  | 7   | 
|                               |  |                                                                                           |   | Consolidated Statement of
    Changes in Shareholders Equity  |     |  | 9   | 
|                               |  |                                                                                           |   | Commonwealth Edison Company                                    |     |  |     | 
|                               |  |                                                                                           |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 10  | 
|                               |  |                                                                                           |   | Consolidated Statements of Cash
    Flows                      |     |  | 11  | 
|                               |  |                                                                                           |   | Consolidated Balance Sheets                                    |     |  | 12  | 
|                               |  |                                                                                           |   | Consolidated Statement of
    Changes in Shareholders Equity  |     |  | 14  | 
|                               |  |                                                                                           |   | PECO Energy Company                                            |     |  |     | 
|                               |  |                                                                                           |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 15  | 
|                               |  |                                                                                           |   | Consolidated Statements of Cash
    Flows                      |     |  | 16  | 
|                               |  |                                                                                           |   | Consolidated Balance Sheets                                    |     |  | 17  | 
|                               |  |                                                                                           |   | Consolidated Statement of
    Changes in Shareholders Equity  |     |  | 19  | 
|                               |  |                                                                                           |   | Exelon Generation Company, LLC                                 |     |  |     | 
|                               |  |                                                                                           |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 20  | 
|                               |  |                                                                                           |   | Consolidated Statements of Cash
    Flows                      |     |  | 21  | 
|                               |  |                                                                                           |   | Consolidated Balance Sheets                                    |     |  | 22  | 
|                               |  |                                                                                           |   | Consolidated Statement of
    Changes in Members Equity       |     |  | 24  | 
|                               |  |                                                                                           |   | Combined Notes to Consolidated Financial
    Statements        |     |  | 25  | 
|Item 2.                        |  | Managements Discussion and
    Analysis of Financial Condition and Results of Operations |   |                                                                | 71  | 
|                               |  |                                                                                           |   | Exelon Corporation                                             |     |  | 71  | 
|                               |  |                                                                                           |   | Commonwealth Edison Company                                    |     |  | 102 | 
|                               |  |                                                                                           |   | PECO Energy Company                                            |     |  | 104 | 
|                               |  |                                                                                           |   | Exelon Generation Company, LLC                                 |     |  | 106 | 
|Item 3.                        |  | Quantitative and Qualitative Disclosures
    About Market Risk                            |   |                                                                | 108 | 
|Item 4.                        |  | Controls and Procedures                                                                   |   |                                                                | 114 | 
|                              
|PART II.                       |  | OTHER INFORMATION                                                                         |   |                                                                | 114 | 
|Item 1.                        |  | Legal Proceedings                                                                         |   |                                                                | 114 | 
|                               |  |                                                                                           |   | Exelon Corporation                                             |     |  | 114 | 
|                               |  |                                                                                           |   | Commonwealth Edison Company                                    |     |  | 114 | 
|                               |  |                                                                                           |   | PECO Energy Company                                            |     |  | 114 | 
|                               |  |                                                                                           |   | Exelon Generation Company, LLC                                 |     |  | 114 | 

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|                                                 |  |                                                                 |     |                                |     |  |         | 
|------------------------------------------------ |  | --------------------------------------------------------------- | --- | ------------------------------ | --- |  | ------- | 
|                                                 |  |                                                                 |     | Page No.                       |    
|                                                 |  |                                                                 |     |                                |    
|Item 1A.                                         |  | Risk Factors                                                    |     |                                | 114 | 
|                                                 |  |                                                                 |     | Exelon Corporation             |     |  | 114     | 
|                                                 |  |                                                                 |     | Commonwealth Edison Company    |     |  | 114     | 
|                                                 |  |                                                                 |     | PECO Energy Company            |     |  | 114     | 
|                                                 |  |                                                                 |     | Exelon Generation Company, LLC |     |  | 114     | 
|Item 2.                                          |  | Unregistered Sales of Equity Securities
    and Use of Proceeds |     |                                | 115 | 
|                                                 |  |                                                                 |     | Exelon Corporation             |     |  | 115     | 
|Item 6.                                          |  | Exhibits                                                        |     |                                | 116 | 
|SIGNATURES                                       |  |                                                                 | 121 |                               
|                                                 |  |                                                                 |     | Exelon Corporation             |     |  | 121     | 
|                                                 |  |                                                                 |     | Commonwealth Edison Company    |     |  | 121     | 
|                                                 |  |                                                                 |     | PECO Energy Company            |     |  | 122     | 
|                                                 |  |                                                                 |     | Exelon Generation Company, LLC |     |  | 122     | 
|CERTIFICATION EXHIBITS                           |  |                                                                 | 123 |                               
|                                                 |  |                                                                 |     | Exelon Corporation             |     |  | 123,131 | 
|                                                 |  |                                                                 |     | Commonwealth Edison Company    |     |  | 125,133 | 
|                                                 |  |                                                                 |     | PECO Energy Company            |     |  | 127,135 | 
|                                                 |  |                                                                 |     | Exelon Generation Company, LLC |     |  | 129,137 | 
|First Amendment to Credit Agreement             
|Second Amendment to Credit Agreement            
|Third Amendment to Credit Agreement             
|Certification for Exelon Corporation            
|Certification for Exelon Corporation            
|Certification for Commonwealth Edison Company   
|Certification for Commonwealth Edison Company   
|Certification for PECO Energy Company           
|Certification for PECO Energy Company           
|Certification for Exelon Generation Company, LLC
|Certification for Exelon Generation Company, LLC
|Certification for Exelon Corporation            
|Certification for Exelon Corporation            
|Certification for Commonwealth Edison Company   
|Certification for Commonwealth Edison Company   
|Certification for PECO Energy Company           
|Certification for PECO Energy Company           
|Certification for Exelon Generation Company, LLC
|Certification for Exelon Generation Company, LLC



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FILING FORMAT


10-Q





FORWARD-LOOKING STATEMENTS


10-K:





WHERE TO FIND MORE INFORMATION


1-800-SEC-0330. www.sec.gov www.exeloncorp.com


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PART I. FINANCIAL INFORMATION





Item 1.     Financial Statements


4



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EXELON CORPORATION


EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                      |                                                                                                                                                   |                                     |       |       |       |   |       |      |       |  
|----------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------- | ----- | ----- | ----- | - | ----- | ---- | ----- | -
|                                                      |                                                                                                                                                   | Three Months                        |      
|                                                      |                                                                                                                                                   | Ended                               |      
|                                                      |                                                                                                                                                   | March 31,                           |      
|                                                      |                                                                                                                                                   |                                     |      
|                                                      |                                                                                                                                                   | 2006                                |       |       | 2005  |  
|(In millions, except per share data)                  |                                                                                                                                                   |                                     |       |       |       |  
|Operating revenues                                    |                                                                                                                                                   | $                                   | 3,861 |       |       | $ | 3,561 |     
|Operating expenses                                    |                                                                                                                                                   |                                     |       |       |       |   |       |     
|                                                      | Purchased power                                                                                                                                   |                                     |       | 525   |       |   |       | 568  |      
|                                                      | Fuel                                                                                                                                              |                                     |       | 924   |       |   |       | 622  |      
|                                                      | Operating and maintenance                                                                                                                         |                                     |       | 1,037 |       |   |       | 949  |      
|                                                      | Depreciation and amortization                                                                                                                     |                                     |       | 363   |       |   |       | 319  |      
|                                                      | Taxes other than income                                                                                                                           |                                     |       | 194   |       |   |       | 172  |      
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|                                                      |                                                                                                                                                   | Total operating expenses            |       |       | 3,043 |   |       |      | 2,630 |  
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Operating income                                      |                                                                                                                                                   |                                     | 818   |       |       |   | 931   |     
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Other income and deductions                           |                                                                                                                                                   |                                     |       |       |       |   |       |     
|                                                      | Interest expense                                                                                                                                  |                                     |       | (153  | )     |   |       | (106 | )    
|                                                      | Interest expense to affiliates                                                                                                                    |                                     |       | (71   | )     |   |       | (84  | )    
|                                                      | Distributions on preferred securities of subsidiaries                                                                                             |                                     |       | (1    | )     |   |       | (1   | )    
|                                                      | Equity in losses of unconsolidated affiliates                                                                                                     |                                     |       | (39   | )     |   |       | (36  | )    
|                                                      | Other, net                                                                                                                                        |                                     |       | 46    |       |   |       | 30   |      
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|                                                      |                                                                                                                                                   | Total other income and deductions   |       |       | (218  | ) |       |      | (197  | )
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Income from continuing operations before income taxes |                                                                                                                                                   |                                     | 600   |       |       |   | 734   |     
|Income taxes                                          |                                                                                                                                                   |                                     | 201   |       |       |   | 227   |     
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Income from continuing operations                     |                                                                                                                                                   |                                     | 399   |       |       |   | 507   |     
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Discontinued operations                               |                                                                                                                                                   |                                     |       |       |       |   |       |     
|                                                      | Income (loss) from discontinued operations (net of taxes of $0
    and $(1) for the three months ended March 31, 2006 and
    2005, respectively) |                                     |       | 1     |       |   |       | (1   | )    
|                                                      | Gain on disposal of discontinued operations (net of taxes of $4
    for the three months ended March 31, 2005)                                    |                                     |       |      |       |   |       | 15   |      
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|                                                      |                                                                                                                                                   | Income from discontinued operations |       |       | 1     |   |       |      | 14    |  
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Net income                                            |                                                                                                                                                   |                                     | 400   |       |       |   | 521   |     
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Other comprehensive income, net of income taxes       |                                                                                                                                                   |                                     |       |       |       |   |       |     
|                                                      | Minimum pension liability                                                                                                                         |                                     |       |      |       |   |       | 2    |      
|                                                      | Change in unrealized gain (loss) on cash-flow hedges                                                                                              |                                     |       | 92    |       |   |       | (101 | )    
|                                                      | Unrealized gain (loss) on marketable securities                                                                                                   |                                     |       | 28    |       |   |       | (15  | )    
|                                                      | Foreign currency translation adjustment                                                                                                           |                                     |       |      |       |   |       | (1   | )    
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|                                                      |                                                                                                                                                   | Other comprehensive income (loss)   |       |       | 120   |   |       |      | (115  | )
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Comprehensive income                                  |                                                                                                                                                   | $                                   | 520   |       |       | $ | 406   |     
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Average shares of common stock outstanding            |                                                                                                                                                   |                                     |       |       |       |   |       |     
|                                                      |                                                                                                                                                   | Basic                               |       |       | 669   |   |       |      | 666   |  
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|                                                      |                                                                                                                                                   | Diluted                             |       |       | 675   |   |       |      | 675   |  
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Earnings per average common share  Basic:            |                                                                                                                                                   |                                     |       |       |       |   |       |     
|                                                      |                                                                                                                                                   | Income from continuing operations   |       | $     | 0.60  |   |       | $    | 0.76  |  
|                                                      |                                                                                                                                                   | Income from discontinued operations |       |       |      |   |       |      | 0.02  |  
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|                                                      |                                                                                                                                                   | Net income                          |       | $     | 0.60  |   |       | $    | 0.78  |  
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Earnings per average common share  Diluted:          |                                                                                                                                                   |                                     |       |       |       |   |       |     
|                                                      | Income from continuing operations                                                                                                                 |                                     | $     | 0.59  |       |   | $     | 0.75 |      
|                                                      | Income from discontinued operations                                                                                                               |                                     |       |      |       |   |       | 0.02 |      
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|                                                      | Net income                                                                                                                                        |                                     | $     | 0.59  |       |   | $     | 0.77 |      
|                                                      |                                                                                                                                                   |                                     |       |       |       |  
|Dividends per common share                            |                                                                                                                                                   | $                                   | 0.40  |       |       | $ | 0.40  |     
|                                                      |                                                                                                                                                   |                                     |       |       |       |  



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EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                          |                                                                                                                                                |                                                                  |                                                                         |        |      |      |        |       |     |        |  
|--------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ----------------------------------------------------------------------- | ------ | ---- | ---- | ------ | ----- | --- | ------ | -
|                                                          |                                                                                                                                                | For the Three Months                                             |                                                                        
|                                                          |                                                                                                                                                | Ended March 31,                                                  |                                                                        
|                                                          |                                                                                                                                                |                                                                  |                                                                        
|                                                          |                                                                                                                                                | 2006                                                             |                                                                         |        | 2005 |     
|(In millions)                                             |                                                                                                                                                |                                                                  |                                                                         |        |      |     
|Cash flows from operating activities                      |                                                                                                                                                |                                                                  |                                                                         |        |      |      |        |      
|                                                          | Net income                                                                                                                                     |                                                                  | $                                                                       | 400    |      |      | $      | 521   |    
|                                                          | Adjustments to reconcile net income to net cash flows provided
    by (used in) operating activities:                                          |                                                                  |                                                                         |        |      |      |        |       |    
|                                                          |                                                                                                                                                | Depreciation, amortization and accretion, including nuclear fuel |                                                                         |        | 524  |      |        |       | 478 |       
|                                                          |                                                                                                                                                | Deferred income taxes and amortization of investment tax credits |                                                                         |        | (35  | )    |        |       | 634 |       
|                                                          |                                                                                                                                                | Provision for uncollectible accounts                             |                                                                         |        | 25   |      |        |       | 12  |       
|                                                          |                                                                                                                                                | Equity in losses of unconsolidated affiliates                    |                                                                         |        | 39   |      |        |       | 36  |       
|                                                          |                                                                                                                                                | Gain on sales of investments and wholly owned subsidiaries       |                                                                         |        |     |      |        |       | (19 | )     
|                                                          |                                                                                                                                                | Other decommissioning-related activities                         |                                                                         |        | (6   | )    |        |       | (13 | )     
|                                                          |                                                                                                                                                | Other non-cash operating activities                              |                                                                         |        | 47   |      |        |       | (3  | )     
|                                                          |                                                                                                                                                | Changes in assets and liabilities                                |                                                                         |        |      |      |        |       |     |       
|                                                          |                                                                                                                                                |                                                                  | Accounts receivable                                                     |        |      | 253  |        |       |     | 101    |  
|                                                          |                                                                                                                                                |                                                                  | Inventories                                                             |        |      | 65   |        |       |     | 74     |  
|                                                          |                                                                                                                                                |                                                                  | Other current assets                                                    |        |      | (139 | )      |       |     | (180   | )
|                                                          |                                                                                                                                                |                                                                  | Accounts payable, accrued expenses and other current liabilities        |        |      | (454 | )      |       |     | (228   | )
|                                                          |                                                                                                                                                |                                                                  | Counterparty collateral asset                                           |        |      | 146  |        |       |     | (22    | )
|                                                          |                                                                                                                                                |                                                                  | Counterparty collateral liability                                       |        |      | (41  | )      |       |     | (1     | )
|                                                          |                                                                                                                                                |                                                                  | Income taxes                                                            |        |      | 35   |        |       |     | (344   | )
|                                                          |                                                                                                                                                |                                                                  | Net realized and unrealized mark-to-market and hedging
    transactions |        |      | 21   |        |       |     | (83    | )
|                                                          |                                                                                                                                                |                                                                  | Pension and non-pension postretirement benefits obligation              |        |      | 56   |        |       |     | (1,962 | )
|                                                          |                                                                                                                                                |                                                                  | Other noncurrent assets and liabilities                                 |        |      | (88  | )      |       |     | (10    | )
|                                                          |                                                                                                                                                |                                                                  |                                                                         |        |      |     
|Net cash flows provided by (used in) operating activities |                                                                                                                                                |                                                                  | 848                                                                     |        |      |      | (1,009 | )    
|                                                          |                                                                                                                                                |                                                                  |                                                                         |        |      |     
|Cash flows from investing activities                      |                                                                                                                                                |                                                                  |                                                                         |        |      |      |        |      
|                                                          | Capital expenditures                                                                                                                           |                                                                  |                                                                         | (613   | )    |      |        | (489  | )  
|                                                          | Proceeds from nuclear decommissioning trust fund sales                                                                                         |                                                                  |                                                                         | 932    |      |      |        | 782   |    
|                                                          | Investment in nuclear decommissioning trust funds                                                                                              |                                                                  |                                                                         | (1,000 | )    |      |        | (834  | )  
|                                                          | Acquisitions of businesses, net of cash acquired                                                                                               |                                                                  |                                                                         |       |      |      |        | (97   | )  
|                                                          | Proceeds from sales of investments and wholly owned
    subsidiaries, net of $32 of cash sold during the three months
    ended March 31, 2005 |                                                                  |                                                                         |       |      |      |        | 103   |    
|                                                          | Investments in synthetic fuel-producing facilities                                                                                             |                                                                  |                                                                         | (33    | )    |      |        | (28   | )  
|                                                          | Change in restricted cash                                                                                                                      |                                                                  |                                                                         | 5      |      |      |        | (8    | )  
|                                                          | Other investing activities                                                                                                                     |                                                                  |                                                                         | (4     | )    |      |        | 5     |    
|                                                          |                                                                                                                                                |                                                                  |                                                                         |        |      |     
|Net cash flows used in investing activities               |                                                                                                                                                |                                                                  | (713                                                                    | )      |      |      | (566   | )    
|                                                          |                                                                                                                                                |                                                                  |                                                                         |        |      |     
|Cash flows from financing activities                      |                                                                                                                                                |                                                                  |                                                                         |        |      |      |        |      
|                                                          | Issuance of long-term debt                                                                                                                     |                                                                  |                                                                         | 320    |      |      |        | 91    |    
|                                                          | Retirement of long-term debt                                                                                                                   |                                                                  |                                                                         | (16    | )    |      |        | (111  | )  
|                                                          | Retirement of long-term debt to financing affiliates                                                                                           |                                                                  |                                                                         | (215   | )    |      |        | (205  | )  
|                                                          | Change in other short-term debt                                                                                                                |                                                                  |                                                                         | 30     |      |      |        | 1,836 |    
|                                                          | Dividends paid on common stock                                                                                                                 |                                                                  |                                                                         | (267   | )    |      |        | (267  | )  
|                                                          | Proceeds from employee stock plans                                                                                                             |                                                                  |                                                                         | 81     |      |      |        | 103   |    
|                                                          | Purchase of treasury stock                                                                                                                     |                                                                  |                                                                         | (54    | )    |      |        | (8    | )  
|                                                          | Other financing activities                                                                                                                     |                                                                  |                                                                         | 20     |      |      |        | (3    | )  
|                                                          |                                                                                                                                                |                                                                  |                                                                         |        |      |     
|Net cash flows provided by (used in) financing activities |                                                                                                                                                |                                                                  | (101                                                                    | )      |      |      | 1,436  |      
|                                                          |                                                                                                                                                |                                                                  |                                                                         |        |      |     
|Increase (decrease) in cash and cash equivalents          |                                                                                                                                                |                                                                  | 34                                                                      |        |      |      | (139   | )    
|Cash and cash equivalents at beginning of period          |                                                                                                                                                |                                                                  | 140                                                                     |        |      |      | 499    |      
|                                                          |                                                                                                                                                |                                                                  |                                                                         |        |      |     
|Cash and cash equivalents at end of period                |                                                                                                                                                | $                                                                | 174                                                                     |        |      | $    | 360    |      
|                                                          |                                                                                                                                                |                                                                  |                                                                         |        |      |     



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EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                     |                                        |        |       |              |   |        |       |        | 
|---------------------------------- | ----------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                   |                                     | March 31,                              |        |       | December 31, |  
|                                   |                                     | 2006                                   |        |       | 2005         |  
|(In millions)                      |                                     |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                     |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents           |                                        | $      | 174   |              |   | $      | 140   |       
|                                   | Restricted cash and investments     |                                        |        | 44    |              |   |        | 49    |       
|                                   | Accounts receivable, net            |                                        |        |       |              |   |        |       |       
|                                   |                                     | Customer                               |        |       | 1,606        |   |        |       | 1,858  | 
|                                   |                                     | Other                                  |        |       | 292          |   |        |       | 337    | 
|                                   | Mark-to-market derivative assets    |                                        |        | 637   |              |   |        | 916   |       
|                                   | Inventories, at average cost        |                                        |        |       |              |   |        |       |       
|                                   |                                     | Fossil fuel                            |        |       | 248          |   |        |       | 311    | 
|                                   |                                     | Materials and supplies                 |        |       | 357          |   |        |       | 351    | 
|                                   | Deferred income taxes               |                                        |        | 96    |              |   |        | 80    |       
|                                   | Other                               |                                        |        | 583   |              |   |        | 595   |       
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total current assets                   |        |       | 4,037        |   |        |       | 4,637  | 
|                                   |                                     |                                        |        |       |              |  
|Property, plant and equipment, net |                                     |                                        | 22,295 |       |              |   | 21,981 |      
|Deferred debits and other assets   |                                     |                                        |        |       |              |   |        |      
|                                   | Regulatory assets                   |                                        |        | 4,235 |              |   |        | 4,386 |       
|                                   | Nuclear decommissioning trust funds |                                        |        | 5,832 |              |   |        | 5,585 |       
|                                   | Investments                         |                                        |        | 815   |              |   |        | 813   |       
|                                   | Goodwill                            |                                        |        | 3,475 |              |   |        | 3,475 |       
|                                   | Mark-to-market derivative assets    |                                        |        | 369   |              |   |        | 311   |       
|                                   | Prepaid pension asset               |                                        |        | 373   |              |   |        | 377   |       
|                                   | Other                               |                                        |        | 863   |              |   |        | 824   |       
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total deferred debits and other assets |        |       | 15,962       |   |        |       | 15,771 | 
|                                   |                                     |                                        |        |       |              |  
|Total assets                       |                                     | $                                      | 42,294 |       |              | $ | 42,389 |      
|                                   |                                     |                                        |        |       |              |  



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                                                        |                                                                                                                                                        |                                              |        |        |              |   |        |        |        | 
|--------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------- | ------ | ------ | ------------ | - | ------ | ------ | ------ | 
|                                                                                        |                                                                                                                                                        | March 31,                                    |        |        | December 31, |  
|                                                                                        |                                                                                                                                                        | 2006                                         |        |        | 2005         |  
|(In millions)                                                                           |                                                                                                                                                        |                                              |        |        |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY                                                   
|Current liabilities                                                                     |                                                                                                                                                        |                                              |        |        |              |   |        |       
|                                                                                        | Commercial paper and notes payable                                                                                                                     |                                              | $      | 1,320  |              |   | $      | 1,290  |       
|                                                                                        | Long-term debt due within one year                                                                                                                     |                                              |        | 408    |              |   |        | 407    |       
|                                                                                        | Long-term debt to ComEd Transitional Funding Trust and PECO
    Energy Transition Trust due within one year                                            |                                              |        | 702    |              |   |        | 507    |       
|                                                                                        | Accounts payable                                                                                                                                       |                                              |        | 1,153  |              |   |        | 1,467  |       
|                                                                                        | Mark-to-market derivative liabilities                                                                                                                  |                                              |        | 953    |              |   |        | 1,282  |       
|                                                                                        | Accrued expenses                                                                                                                                       |                                              |        | 845    |              |   |        | 1,005  |       
|                                                                                        | Other                                                                                                                                                  |                                              |        | 879    |              |   |        | 605    |       
|                                                                                        |                                                                                                                                                        |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                        | Total current liabilities                    |        |        | 6,260        |   |        |        | 6,563  | 
|                                                                                        |                                                                                                                                                        |                                              |        |        |              |  
|Long-term debt                                                                          |                                                                                                                                                        |                                              | 8,064  |        |              |   | 7,759  |       
|Long-term debt to ComEd Transitional Funding Trust and PECO
    Energy Transition Trust |                                                                                                                                                        |                                              | 3,045  |        |              |   | 3,456  |       
|Long-term debt to other financing trusts                                                |                                                                                                                                                        |                                              | 545    |        |              |   | 545    |       
|Deferred credits and other liabilities                                                  |                                                                                                                                                        |                                              |        |        |              |   |        |       
|                                                                                        | Deferred income taxes                                                                                                                                  |                                              |        | 4,908  |              |   |        | 4,816  |       
|                                                                                        | Unamortized investment tax credits                                                                                                                     |                                              |        | 259    |              |   |        | 262    |       
|                                                                                        | Asset retirement obligations                                                                                                                           |                                              |        | 4,220  |              |   |        | 4,157  |       
|                                                                                        | Pension obligations                                                                                                                                    |                                              |        | 285    |              |   |        | 268    |       
|                                                                                        | Non-pension postretirement benefits obligations                                                                                                        |                                              |        | 1,049  |              |   |        | 1,014  |       
|                                                                                        | Spent nuclear fuel obligation                                                                                                                          |                                              |        | 915    |              |   |        | 906    |       
|                                                                                        | Regulatory liabilities                                                                                                                                 |                                              |        | 2,268  |              |   |        | 2,170  |       
|                                                                                        | Mark-to-market derivative liabilities                                                                                                                  |                                              |        | 437    |              |   |        | 462    |       
|                                                                                        | Other                                                                                                                                                  |                                              |        | 767    |              |   |        | 798    |       
|                                                                                        |                                                                                                                                                        |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                        | Total deferred credits and other liabilities |        |        | 15,108       |   |        |        | 14,853 | 
|                                                                                        |                                                                                                                                                        |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                        | Total liabilities                            |        |        | 33,022       |   |        |        | 33,176 | 
|                                                                                        |                                                                                                                                                        |                                              |        |        |              |  
|Commitments and contingencies                                                           |                                                                                                                                                        |                                              |        |        |              |   |        |       
|Minority interest of consolidated subsidiaries                                          |                                                                                                                                                        |                                              |       |        |              |   | 1      |       
|Preferred securities of subsidiaries                                                    |                                                                                                                                                        |                                              | 87     |        |              |   | 87     |       
|Shareholders equity                                                                    |                                                                                                                                                        |                                              |        |        |              |   |        |       
|                                                                                        | Common stock (No par value, 2,000 shares authorized, 668.5
    and 666.4 shares outstanding at March 31, 2006 and
    December 31, 2005, respectively) |                                              |        | 8,119  |              |   |        | 7,987  |       
|                                                                                        | Treasury stock, at cost (10.4 and 9.4 shares held at
    March 31, 2006 and December 31, 2005, respectively)                                           |                                              |        | (498   | )            |   |        | (444   | )     
|                                                                                        | Retained earnings                                                                                                                                      |                                              |        | 3,068  |              |   |        | 3,206  |       
|                                                                                        | Accumulated other comprehensive loss                                                                                                                   |                                              |        | (1,504 | )            |   |        | (1,624 | )     
|                                                                                        |                                                                                                                                                        |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                        | Total shareholders equity                   |        |        | 9,185        |   |        |        | 9,125  | 
|                                                                                        |                                                                                                                                                        |                                              |        |        |              |  
|Total liabilities and shareholders equity                                              |                                                                                                                                                        | $                                            | 42,294 |        |              | $ | 42,389 |       
|                                                                                        |                                                                                                                                                        |                                              |        |        |              |  



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EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS
EQUITY


(Unaudited)


|                                                        |  |        |       |  |        |   |       |          |  |             |          |   |       |               |       |   |               |   |        |   |  |   |       |  
|------------------------------------------------------- |  | ------ | ----- |  | ------ | - | ----- | -------- |  | ----------- | -------- | - | ----- | ------------- | ----- | - | ------------- | - | ------ | - |  | - | ----- | -
|                                                        |  |        |       |  |        |   |       |          |  | Accumulated |          |   |      
|                                                        |  |        |       |  |        |   |       |          |  | Other       |          |   | Total |              
|                                                        |  | Issued |       |  | Common |   |       | Treasury |  |             | Retained |   |       | Comprehensive |       |   | Shareholders |  
|(Dollars in millions,                                   |  | Shares |       |  | Stock  |   |       | Stock    |  |             | Earnings |   |       | Loss          |       |   | Equity        |  
|shares in thousands)                                    |  |        |       |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  
|Balance, December 31, 2005                              |  |        | 675.8 |  |        | $ | 7,987 |          |  | $           | (444     | ) |       | $             | 3,206 |   |               | $ | (1,624 | ) |  | $ | 9,125 |  
|Net income                                              |  |        |      |  |        |   |      |          |  |             |         |   |       |               | 400   |   |               |   |       |   |  |   | 400   |  
|Long-term incentive plan activity                       |  |        | 3.1   |  |        |   | 132   |          |  |             |         |   |       |               |      |   |               |   |       |   |  |   | 132   |  
|Common stock purchases                                  |  |        |      |  |        |   |      |          |  |             | (54      | ) |       |               |      |   |               |   |       |   |  |   | (54   | )
|Common stock dividends declared                         |  |        |      |  |        |   |      |          |  |             |         |   |       |               | (538  | ) |               |   |       |   |  |   | (538  | )
|Other comprehensive income, net of income taxes of $102 |  |        |      |  |        |   |      |          |  |             |         |   |       |               |      |   |               |   | 120    |   |  |   | 120   |  
|                                                        |  |        |       |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  
|Balance, March 31, 2006                                 |  |        | 678.9 |  |        | $ | 8,119 |          |  | $           | (498     | ) |       | $             | 3,068 |   |               | $ | (1,504 | ) |  | $ | 9,185 |  
|                                                        |  |        |       |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  



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COMMONWEALTH EDISON COMPANY





COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                              |                                               |                                   |     |       |       |   |     |       |       |  
|--------------------------------------------- | --------------------------------------------- | --------------------------------- | --- | ----- | ----- | - | --- | ----- | ----- | -
|                                              |                                               | Three Months                      |    
|                                              |                                               | Ended March 31,                   |    
|                                              |                                               |                                   |    
|                                              |                                               | 2006                              |     |       | 2005  |  
|(In millions)                                 |                                               |                                   |     |       |       |  
|Operating revenues                            |                                               |                                   |     |       |       |   |     |      
|                                              | Operating revenues                            |                                   | $   | 1,423 |       |   | $   | 1,383 |      
|                                              | Operating revenues from affiliates            |                                   |     | 3     |       |   |     | 3     |      
|                                              |                                               |                                   |     |       |       |  
|                                              |                                               | Total operating revenues          |     |       | 1,426 |   |     |       | 1,386 |  
|                                              |                                               |                                   |     |       |       |  
|Operating expenses                            |                                               |                                   |     |       |       |   |     |      
|                                              | Purchased power                               |                                   |     | 91    |       |   |     | 67    |      
|                                              | Purchased power from affiliate                |                                   |     | 771   |       |   |     | 753   |      
|                                              | Operating and maintenance                     |                                   |     | 164   |       |   |     | 159   |      
|                                              | Operating and maintenance from affiliates     |                                   |     | 52    |       |   |     | 44    |      
|                                              | Depreciation and amortization                 |                                   |     | 98    |       |   |     | 97    |      
|                                              | Taxes other than income                       |                                   |     | 81    |       |   |     | 78    |      
|                                              |                                               |                                   |     |       |       |  
|                                              |                                               | Total operating expenses          |     |       | 1,257 |   |     |       | 1,198 |  
|                                              |                                               |                                   |     |       |       |  
|Operating income                              |                                               |                                   | 169 |       |       |   | 188 |      
|                                              |                                               |                                   |     |       |       |  
|Other income and deductions                   |                                               |                                   |     |       |       |   |     |      
|                                              | Interest expense                              |                                   |     | (56   | )     |   |     | (49   | )    
|                                              | Interest expense to affiliates                |                                   |     | (20   | )     |   |     | (25   | )    
|                                              | Equity in losses of unconsolidated affiliates |                                   |     | (3    | )     |   |     | (4    | )    
|                                              | Interest income from affiliates               |                                   |     |      |       |   |     | 2     |      
|                                              | Other, net                                    |                                   |     | 1     |       |   |     | 4     |      
|                                              |                                               |                                   |     |       |       |  
|                                              |                                               | Total other income and deductions |     |       | (78   | ) |     |       | (72   | )
|                                              |                                               |                                   |     |       |       |  
|Income before income taxes                    |                                               |                                   | 91  |       |       |   | 116 |      
|Income taxes                                  |                                               |                                   | 37  |       |       |   | 46  |      
|                                              |                                               |                                   |     |       |       |  
|Net income                                    |                                               |                                   | 54  |       |       |   | 70  |      
|                                              |                                               |                                   |     |       |       |  
|Other comprehensive loss, net of income taxes |                                               |                                   |     |       |       |   |     |      
|                                              | Change in unrealized loss on cash-flow hedges |                                   |     |      |       |   |     | (2    | )    
|                                              |                                               |                                   |     |       |       |  
|                                              |                                               | Other comprehensive loss          |     |       |      |   |     |       | (2    | )
|                                              |                                               |                                   |     |       |       |  
|Comprehensive income                          |                                               | $                                 | 54  |       |       | $ | 68  |      
|                                              |                                               |                                   |     |       |       |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                          |                                                                                                       |                                                                  |                                                                         |      |      |     |      |      |     |      |  
|--------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ----------------------------------------------------------------------- | ---- | ---- | --- | ---- | ---- | --- | ---- | -
|                                                          |                                                                                                       | For the Three                                                    |                                                                        
|                                                          |                                                                                                       | Months Ended                                                     |                                                                        
|                                                          |                                                                                                       | March 31,                                                        |                                                                        
|                                                          |                                                                                                       |                                                                  |                                                                        
|                                                          |                                                                                                       | 2006                                                             |                                                                         |      | 2005 |    
|(In millions)                                             |                                                                                                       |                                                                  |                                                                         |      |      |    
|Cash flows from operating activities                      |                                                                                                       |                                                                  |                                                                         |      |      |     |      |     
|                                                          | Net income                                                                                            |                                                                  | $                                                                       | 54   |      |     | $    | 70   |    
|                                                          | Adjustments to reconcile net income to net cash flows provided
    by (used in) operating activities: |                                                                  |                                                                         |      |      |     |      |      |    
|                                                          |                                                                                                       | Depreciation, amortization and accretion                         |                                                                         |      | 98   |     |      |      | 97  |     
|                                                          |                                                                                                       | Deferred income taxes and amortization of investment tax credits |                                                                         |      | (8   | )   |      |      | 257 |     
|                                                          |                                                                                                       | Provision for uncollectible accounts                             |                                                                         |      | 4    |     |      |      | 6   |     
|                                                          |                                                                                                       | Equity in losses of unconsolidated affiliates                    |                                                                         |      | 3    |     |      |      | 4   |     
|                                                          |                                                                                                       | Other non-cash operating activities                              |                                                                         |      | 11   |     |      |      | 11  |     
|                                                          |                                                                                                       | Changes in assets and liabilities                                |                                                                         |      |      |     |      |      |     |     
|                                                          |                                                                                                       |                                                                  | Accounts receivable                                                     |      |      | 58  |      |      |     | 18   |  
|                                                          |                                                                                                       |                                                                  | Inventories                                                             |      |      | (3  | )    |      |     | (1   | )
|                                                          |                                                                                                       |                                                                  | Other current assets                                                    |      |      | (7  | )    |      |     | (4   | )
|                                                          |                                                                                                       |                                                                  | Accounts payable, accrued expenses and other current liabilities        |      |      | (25 | )    |      |     | (43  | )
|                                                          |                                                                                                       |                                                                  | Changes in receivables and payables to affiliates                       |      |      | 27  |      |      |     | 47   |  
|                                                          |                                                                                                       |                                                                  | Income taxes                                                            |      |      | 59  |      |      |     | (211 | )
|                                                          |                                                                                                       |                                                                  | Net realized and unrealized mark-to-market and hedging
    transactions |      |      | 10  |      |      |     |     |  
|                                                          |                                                                                                       |                                                                  | Pension and non-pension postretirement benefits obligation              |      |      | 17  |      |      |     | (785 | )
|                                                          |                                                                                                       |                                                                  | Other noncurrent assets and liabilities                                 |      |      | (1  | )    |      |     | (9   | )
|                                                          |                                                                                                       |                                                                  |                                                                         |      |      |    
|Net cash flows provided by (used in) operating activities |                                                                                                       |                                                                  | 297                                                                     |      |      |     | (543 | )   
|                                                          |                                                                                                       |                                                                  |                                                                         |      |      |    
|Cash flows from investing activities                      |                                                                                                       |                                                                  |                                                                         |      |      |     |      |     
|                                                          | Capital expenditures                                                                                  |                                                                  |                                                                         | (234 | )    |     |      | (184 | )  
|                                                          | Changes in Exelon intercompany money pool contributions                                               |                                                                  |                                                                         |     |      |     |      | 207  |    
|                                                          | Change in restricted cash                                                                             |                                                                  |                                                                         | (2   | )    |     |      | (2   | )  
|                                                          |                                                                                                       |                                                                  |                                                                         |      |      |    
|Net cash flows provided by (used in) investing activities |                                                                                                       |                                                                  | (236                                                                    | )    |      |     | 21   |     
|                                                          |                                                                                                       |                                                                  |                                                                         |      |      |    
|Cash flows from financing activities                      |                                                                                                       |                                                                  |                                                                         |      |      |     |      |     
|                                                          | Changes in short-term debt                                                                            |                                                                  |                                                                         | (151 | )    |     |      |     |    
|                                                          | Issuance of long-term debt                                                                            |                                                                  |                                                                         | 320  |      |     |      | 91   |    
|                                                          | Retirement of long-term debt                                                                          |                                                                  |                                                                         |     |      |     |      | (91  | )  
|                                                          | Retirement of Exelon intercompany money pool borrowings                                               |                                                                  |                                                                         | (140 | )    |     |      |     |    
|                                                          | Retirement of long-term debt to ComEd Transitional Funding Trust                                      |                                                                  |                                                                         | (89  | )    |     |      | (97  | )  
|                                                          | Dividends paid on common stock                                                                        |                                                                  |                                                                         |     |      |     |      | (138 | )  
|                                                          | Contributions from parent                                                                             |                                                                  |                                                                         |     |      |     |      | 834  |    
|                                                          | Other financing activities                                                                            |                                                                  |                                                                         | (3   | )    |     |      | (2   | )  
|                                                          |                                                                                                       |                                                                  |                                                                         |      |      |    
|Net cash flows provided by (used in) financing activities |                                                                                                       |                                                                  | (63                                                                     | )    |      |     | 597  |     
|                                                          |                                                                                                       |                                                                  |                                                                         |      |      |    
|Increase (decrease) in cash and cash equivalents          |                                                                                                       |                                                                  | (2                                                                      | )    |      |     | 75   |     
|Cash and cash equivalents at beginning of period          |                                                                                                       |                                                                  | 38                                                                      |      |      |     | 30   |     
|                                                          |                                                                                                       |                                                                  |                                                                         |      |      |    
|Cash and cash equivalents at end of period                |                                                                                                       | $                                                                | 36                                                                      |      |      | $   | 105  |     
|                                                          |                                                                                                       |                                                                  |                                                                         |      |      |    



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                              |                                        |        |       |              |   |        |       |       | 
|---------------------------------- | ---------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                              | March 31,                              |        |       | December 31, |  
|                                   |                              | 2006                                   |        |       | 2005         |  
|(In millions)                      |                              |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                              |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents    |                                        | $      | 36    |              |   | $      | 38    |      
|                                   | Restricted cash              |                                        |        | 2     |              |   |        |      |      
|                                   | Accounts receivable, net     |                                        |        |       |              |   |        |       |      
|                                   |                              | Customer                               |        |       | 717          |   |        |       | 806   | 
|                                   |                              | Other                                  |        |       | 43           |   |        |       | 46    | 
|                                   | Inventories, at average cost |                                        |        | 53    |              |   |        | 50    |      
|                                   | Deferred income taxes        |                                        |        | 15    |              |   |        | 13    |      
|                                   | Receivables from affiliates  |                                        |        | 15    |              |   |        | 37    |      
|                                   | Other                        |                                        |        | 41    |              |   |        | 34    |      
|                                   |                              |                                        |        |       |              |  
|                                   |                              | Total current assets                   |        |       | 922          |   |        |       | 1,024 | 
|                                   |                              |                                        |        |       |              |  
|Property, plant and equipment, net |                              |                                        | 10,054 |       |              |   | 9,906  |      
|Deferred debits and other assets   |                              |                                        |        |       |              |   |        |      
|                                   | Investments                  |                                        |        | 42    |              |   |        | 41    |      
|                                   | Investments in affiliates    |                                        |        | 31    |              |   |        | 34    |      
|                                   | Goodwill                     |                                        |        | 3,475 |              |   |        | 3,475 |      
|                                   | Receivables from affiliates  |                                        |        | 1,530 |              |   |        | 1,447 |      
|                                   | Prepaid pension asset        |                                        |        | 932   |              |   |        | 938   |      
|                                   | Other                        |                                        |        | 352   |              |   |        | 346   |      
|                                   |                              |                                        |        |       |              |  
|                                   |                              | Total deferred debits and other assets |        |       | 6,362        |   |        |       | 6,281 | 
|                                   |                              |                                        |        |       |              |  
|Total assets                       |                              | $                                      | 17,338 |       |              | $ | 17,211 |      
|                                   |                              |                                        |        |       |              |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                   |                                                                            |                                              |        |       |              |   |        |       |        | 
|-------------------------------------------------- | -------------------------------------------------------------------------- | -------------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                                   |                                                                            | March 31,                                    |        |       | December 31, |  
|                                                   |                                                                            | 2006                                         |        |       | 2005         |  
|(In millions)                                      |                                                                            |                                              |        |       |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY              
|Current liabilities                                |                                                                            |                                              |        |       |              |   |        |      
|                                                   | Long-term debt due within one year                                         |                                              | $      | 328   |              |   | $      | 328   |       
|                                                   | Long-term debt to ComEd Transitional Funding Trust due within
    one year |                                              |        | 306   |              |   |        | 307   |       
|                                                   | Accounts payable                                                           |                                              |        | 206   |              |   |        | 223   |       
|                                                   | Accrued expenses                                                           |                                              |        | 432   |              |   |        | 417   |       
|                                                   | Payables to affiliates                                                     |                                              |        | 284   |              |   |        | 278   |       
|                                                   | Commercial paper                                                           |                                              |        | 308   |              |   |        | 459   |       
|                                                   | Borrowing from Exelon intercompany money pool                              |                                              |        |      |              |   |        | 140   |       
|                                                   | Customer deposits                                                          |                                              |        | 114   |              |   |        | 110   |       
|                                                   | Other                                                                      |                                              |        | 60    |              |   |        | 46    |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total current liabilities                    |        |       | 2,038        |   |        |       | 2,308  | 
|                                                   |                                                                            |                                              |        |       |              |  
|Long-term debt                                     |                                                                            |                                              | 2,822  |       |              |   | 2,500  |      
|Long-term debt to ComEd Transitional Funding Trust |                                                                            |                                              | 592    |       |              |   | 680    |      
|Long-term debt to other financing trusts           |                                                                            |                                              | 361    |       |              |   | 361    |      
|Deferred credits and other liabilities             |                                                                            |                                              |        |       |              |   |        |      
|                                                   | Deferred income taxes                                                      |                                              |        | 2,143 |              |   |        | 2,147 |       
|                                                   | Unamortized investment tax credits                                         |                                              |        | 42    |              |   |        | 43    |       
|                                                   | Asset retirement obligations                                               |                                              |        | 153   |              |   |        | 151   |       
|                                                   | Non-pension postretirement benefits obligation                             |                                              |        | 186   |              |   |        | 175   |       
|                                                   | Regulatory liabilities                                                     |                                              |        | 2,268 |              |   |        | 2,170 |       
|                                                   | Other                                                                      |                                              |        | 282   |              |   |        | 280   |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total deferred credits and other liabilities |        |       | 5,074        |   |        |       | 4,966  | 
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total liabilities                            |        |       | 10,887       |   |        |       | 10,815 | 
|                                                   |                                                                            |                                              |        |       |              |  
|Commitments and contingencies                      |                                                                            |                                              |        |       |              |   |        |      
|Shareholders equity                               |                                                                            |                                              |        |       |              |   |        |      
|                                                   | Common stock                                                               |                                              |        | 1,588 |              |   |        | 1,588 |       
|                                                   | Other paid-in capital                                                      |                                              |        | 4,890 |              |   |        | 4,890 |       
|                                                   | Retained deficit                                                           |                                              |        | (26   | )            |   |        | (81   | )     
|                                                   | Accumulated other comprehensive loss                                       |                                              |        | (1    | )            |   |        | (1    | )     
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total shareholders equity                   |        |       | 6,451        |   |        |       | 6,396  | 
|                                                   |                                                                            |                                              |        |       |              |  
|Total liabilities and shareholders equity         |                                                                            | $                                            | 17,338 |       |              | $ | 17,211 |      
|                                                   |                                                                            |                                              |        |       |              |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS
EQUITY


(Unaudited)


|                                                        |  |        |       |       |         |   |          |                |  |             |              |   |       |               |       |       |               |   |    |   |  |   |       | 
|------------------------------------------------------- |  | ------ | ----- | ----- | ------- | - | -------- | -------------- |  | ----------- | ------------ | - | ----- | ------------- | ----- | ----- | ------------- | - | -- | - |  | - | ----- | 
|                                                        |  |        |       |       |         |   |          |                |  | Accumulated |              |   |      
|                                                        |  |        |       | Other |         |   | Retained |                |  | Retained    |              |   | Other |               |       | Total |              
|                                                        |  | Common |       |       | Paid-In |   |          | Earnings       |  |             | Earnings     |   |       | Comprehensive |       |       | Shareholders |  
|(In millions)                                           |  | Stock  |       |       | Capital |   |          | Unappropriated |  |             | Appropriated |   |       | Loss          |       |       | Equity        |  
|                                                        |  |        |       |       |         |   |          |                |  |             |              |   |       |               |       |       |               |  
|Balance, December 31, 2005                              |  | $      | 1,588 |       |         | $ | 4,890    |                |  | $           | (1,180       | ) |       | $             | 1,099 |       |               | $ | (1 | ) |  | $ | 6,396 | 
|Net income                                              |  |        |      |       |         |   |         |                |  |             | 54           |   |       |               |      |       |               |   |   |   |  |   | 54    | 
|Appropriation of Retained Earnings for future dividends |  |        |      |       |         |   |         |                |  |             | (54          | ) |       |               | 55    |       |               |   |   |   |  |   | 1     | 
|Other comprehensive income, net of income taxes of $0   |  |        |      |       |         |   |         |                |  |             |             |   |       |               |      |       |               |   |   |   |  |   |      | 
|                                                        |  |        |       |       |         |   |          |                |  |             |              |   |       |               |       |       |               |  
|Balance, March 31, 2006                                 |  | $      | 1,588 |       |         | $ | 4,890    |                |  | $           | (1,180       | ) |       | $             | 1,154 |       |               | $ | (1 | ) |  | $ | 6,451 | 
|                                                        |  |        |       |       |         |   |          |                |  |             |              |   |       |               |       |       |               |  



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PECO ENERGY COMPANY





PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                          |                                               |                                   |     |       |       |   |     |       |       |  
|----------------------------------------- | --------------------------------------------- | --------------------------------- | --- | ----- | ----- | - | --- | ----- | ----- | -
|                                          |                                               | Three Months                      |    
|                                          |                                               | Ended March 31,                   |    
|                                          |                                               |                                   |    
|                                          |                                               | 2006                              |     |       | 2005  |  
|(In millions)                             |                                               |                                   |     |       |       |  
|Operating revenues                        |                                               |                                   |     |       |       |   |     |      
|                                          | Operating revenues                            |                                   | $   | 1,403 |       |   | $   | 1,291 |      
|                                          | Operating revenues from affiliates            |                                   |     | 4     |       |   |     | 4     |      
|                                          |                                               |                                   |     |       |       |  
|                                          |                                               | Total operating revenues          |     |       | 1,407 |   |     |       | 1,295 |  
|                                          |                                               |                                   |     |       |       |  
|Operating expenses                        |                                               |                                   |     |       |       |   |     |      
|                                          | Purchased power                               |                                   |     | 71    |       |   |     | 51    |      
|                                          | Purchased power from affiliate                |                                   |     | 416   |       |   |     | 381   |      
|                                          | Fuel                                          |                                   |     | 326   |       |   |     | 264   |      
|                                          | Fuel from affiliate                           |                                   |     |      |       |   |     | 1     |      
|                                          | Operating and maintenance                     |                                   |     | 117   |       |   |     | 109   |      
|                                          | Operating and maintenance from affiliates     |                                   |     | 31    |       |   |     | 25    |      
|                                          | Depreciation and amortization                 |                                   |     | 171   |       |   |     | 136   |      
|                                          | Taxes other than income                       |                                   |     | 65    |       |   |     | 54    |      
|                                          |                                               |                                   |     |       |       |  
|                                          |                                               | Total operating expenses          |     |       | 1,197 |   |     |       | 1,021 |  
|                                          |                                               |                                   |     |       |       |  
|Operating income                          |                                               |                                   | 210 |       |       |   | 274 |      
|                                          |                                               |                                   |     |       |       |  
|Other income and deductions               |                                               |                                   |     |       |       |   |     |      
|                                          | Interest expense                              |                                   |     | (18   | )     |   |     | (13   | )    
|                                          | Interest expense to affiliates                |                                   |     | (51   | )     |   |     | (59   | )    
|                                          | Equity in losses of unconsolidated affiliates |                                   |     | (3    | )     |   |     | (4    | )    
|                                          | Interest income from affiliates               |                                   |     |      |       |   |     | 1     |      
|                                          | Other, net                                    |                                   |     | 3     |       |   |     | 1     |      
|                                          |                                               |                                   |     |       |       |  
|                                          |                                               | Total other income and deductions |     |       | (69   | ) |     |       | (74   | )
|                                          |                                               |                                   |     |       |       |  
|Income before income taxes                |                                               |                                   | 141 |       |       |   | 200 |      
|Income taxes                              |                                               |                                   | 48  |       |       |   | 71  |      
|                                          |                                               |                                   |     |       |       |  
|Net income                                |                                               |                                   | 93  |       |       |   | 129 |      
|Preferred stock dividends                 |                                               |                                   | 1   |       |       |   | 1   |      
|                                          |                                               |                                   |     |       |       |  
|Net income on common stock                |                                               | $                                 | 92  |       |       | $ | 128 |      
|                                          |                                               |                                   |     |       |       |  
|Comprehensive income, net of income taxes |                                               |                                   |     |       |       |   |     |      
|                                          | Net income                                    |                                   | $   | 93    |       |   | $   | 129   |      
|                                          | Other comprehensive loss, net of income taxes |                                   |     |      |       |   |     |      |      
|                                          |                                               |                                   |     |       |       |  
|Comprehensive income                      |                                               | $                                 | 93  |       |       | $ | 129 |      
|                                          |                                               |                                   |     |       |       |  



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                 |                                                                                             |                                                                  |                                                                  |      |      |      |     |      |     |      |  
|------------------------------------------------ | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------------------------------------------- | ---- | ---- | ---- | --- | ---- | --- | ---- | -
|                                                 |                                                                                             | For the Three                                                    |                                                                 
|                                                 |                                                                                             | Months Ended                                                     |                                                                 
|                                                 |                                                                                             | March 31,                                                        |                                                                 
|                                                 |                                                                                             |                                                                  |                                                                 
|                                                 |                                                                                             | 2006                                                             |                                                                  |      | 2005 |     
|(In millions)                                    |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from operating activities             |                                                                                             |                                                                  |                                                                  |      |      |      |     |     
|                                                 | Net income                                                                                  |                                                                  | $                                                                | 93   |      |      | $   | 129  |    
|                                                 | Adjustments to reconcile net income to net cash flows provided
    by operating activities: |                                                                  |                                                                  |      |      |      |     |      |    
|                                                 |                                                                                             | Depreciation, amortization and accretion                         |                                                                  |      | 171  |      |     |      | 136 |     
|                                                 |                                                                                             | Deferred income taxes and amortization of investment tax credits |                                                                  |      | (70  | )    |     |      | (19 | )   
|                                                 |                                                                                             | Provision for uncollectible accounts                             |                                                                  |      | 19   |      |     |      | 6   |     
|                                                 |                                                                                             | Equity in losses of unconsolidated affiliates                    |                                                                  |      | 3    |      |     |      | 4   |     
|                                                 |                                                                                             | Other non-cash operating activities                              |                                                                  |      | 4    |      |     |      | (3  | )   
|                                                 |                                                                                             | Changes in assets and liabilities                                |                                                                  |      |      |      |     |      |     |     
|                                                 |                                                                                             |                                                                  | Accounts receivable                                              |      |      | (3   | )   |      |     | (20  | )
|                                                 |                                                                                             |                                                                  | Inventories                                                      |      |      | 44   |     |      |     | 74   |  
|                                                 |                                                                                             |                                                                  | Deferred/ over-recovered energy costs                            |      |      | 50   |     |      |     | 27   |  
|                                                 |                                                                                             |                                                                  | Prepaid utility taxes                                            |      |      | (139 | )   |      |     | (149 | )
|                                                 |                                                                                             |                                                                  | Other current assets                                             |      |      |     |     |      |     | 4    |  
|                                                 |                                                                                             |                                                                  | Accounts payable, accrued expenses and other current liabilities |      |      | (68  | )   |      |     | (67  | )
|                                                 |                                                                                             |                                                                  | Change in receivables and payables to affiliates, net            |      |      | 7    |     |      |     | 10   |  
|                                                 |                                                                                             |                                                                  | Income taxes                                                     |      |      | 136  |     |      |     | 82   |  
|                                                 |                                                                                             |                                                                  | Pension asset and non-pension postretirement benefits obligation |      |      | 5    |     |      |     | (141 | )
|                                                 |                                                                                             |                                                                  | Other noncurrent assets and liabilities                          |      |      | (5   | )   |      |     | (1   | )
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows provided by operating activities  |                                                                                             |                                                                  | 247                                                              |      |      |      | 72  |     
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from investing activities             |                                                                                             |                                                                  |                                                                  |      |      |      |     |     
|                                                 | Capital expenditures                                                                        |                                                                  |                                                                  | (90  | )    |      |     | (56  | )  
|                                                 | Changes in Exelon intercompany money pool contributions                                     |                                                                  |                                                                  | 8    |      |      |     | 34   |    
|                                                 | Change in restricted cash                                                                   |                                                                  |                                                                  | (1   | )    |      |     | (4   | )  
|                                                 | Other investing activities                                                                  |                                                                  |                                                                  | (1   | )    |      |     | 3    |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows used in investing activities      |                                                                                             |                                                                  | (84                                                              | )    |      |      | (23 | )   
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from financing activities             |                                                                                             |                                                                  |                                                                  |      |      |      |     |     
|                                                 | Retirement of long-term debt                                                                |                                                                  |                                                                  |     |      |      |     | (4   | )  
|                                                 | Retirement of long-term debt to PECO Energy Transition Trust                                |                                                                  |                                                                  | (126 | )    |      |     | (108 | )  
|                                                 | Change in short-term debt                                                                   |                                                                  |                                                                  | 87   |      |      |     | 36   |    
|                                                 | Dividends paid on common and preferred stock                                                |                                                                  |                                                                  | (117 | )    |      |     | (116 | )  
|                                                 | Contributions from parent                                                                   |                                                                  |                                                                  | 36   |      |      |     | 144  |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows used in financing activities      |                                                                                             |                                                                  | (120                                                             | )    |      |      | (48 | )   
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Increase in cash and cash equivalents            |                                                                                             |                                                                  | 43                                                               |      |      |      | 1   |     
|Cash and cash equivalents at beginning of period |                                                                                             |                                                                  | 37                                                               |      |      |      | 74  |     
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash and cash equivalents at end of period       |                                                                                             | $                                                                | 80                                                               |      |      | $    | 75  |     
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                                 |                                        |       |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------------------- | -------------------------------------- | ----- | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                                 | March 31,                              |       |       | December 31, |  
|                                   |                                                 | 2006                                   |       |       | 2005         |  
|(In millions)                      |                                                 |                                        |       |       |              |  
|ASSETS                            
|Current assets                     |                                                 |                                        |       |       |              |   |        |      
|                                   | Cash and cash equivalents                       |                                        | $     | 80    |              |   | $      | 37    |      
|                                   | Restricted cash                                 |                                        |       | 3     |              |   |        | 2     |      
|                                   | Accounts receivable, net                        |                                        |       |       |              |   |        |       |      
|                                   |                                                 | Customer                               |       |       | 436          |   |        |       | 454   | 
|                                   |                                                 | Other                                  |       |       | 29           |   |        |       | 57    | 
|                                   |                                                 | Affiliate                              |       |       |             |   |        |       | 13    | 
|                                   | Inventories, at average cost                    |                                        |       |       |              |   |        |       |      
|                                   |                                                 | Gas                                    |       |       | 107          |   |        |       | 151   | 
|                                   |                                                 | Materials and supplies                 |       |       | 11           |   |        |       | 11    | 
|                                   | Contributions to Exelon intercompany money pool |                                        |       |      |              |   |        | 8     |      
|                                   | Deferred income taxes                           |                                        |       | 21    |              |   |        | 7     |      
|                                   | Deferred energy costs                           |                                        |       |      |              |   |        | 39    |      
|                                   | Prepaid utility taxes                           |                                        |       | 139   |              |   |        |      |      
|                                   | Other                                           |                                        |       | 17    |              |   |        | 16    |      
|                                   |                                                 |                                        |       |       |              |  
|                                   |                                                 | Total current assets                   |       |       | 843          |   |        |       | 795   | 
|                                   |                                                 |                                        |       |       |              |  
|Property, plant and equipment, net |                                                 |                                        | 4,520 |       |              |   | 4,471  |      
|Deferred debits and other assets   |                                                 |                                        |       |       |              |   |        |      
|                                   | Regulatory assets                               |                                        |       | 4,235 |              |   |        | 4,386 |      
|                                   | Investments                                     |                                        |       | 23    |              |   |        | 22    |      
|                                   | Investment in affiliates                        |                                        |       | 71    |              |   |        | 73    |      
|                                   | Receivable from affiliate                       |                                        |       | 88    |              |   |        | 68    |      
|                                   | Prepaid pension asset                           |                                        |       | 195   |              |   |        | 195   |      
|                                   | Other                                           |                                        |       | 8     |              |   |        | 8     |      
|                                   |                                                 |                                        |       |       |              |  
|                                   |                                                 | Total deferred debits and other assets |       |       | 4,620        |   |        |       | 4,752 | 
|                                   |                                                 |                                        |       |       |              |  
|Total assets                       |                                                 | $                                      | 9,983 |       |              | $ | 10,018 |      
|                                   |                                                 |                                        |       |       |              |  



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                               |                                                                        |                                              |       |        |              |   |        |        |       | 
|---------------------------------------------- | ---------------------------------------------------------------------- | -------------------------------------------- | ----- | ------ | ------------ | - | ------ | ------ | ----- | 
|                                               |                                                                        | March 31,                                    |       |        | December 31, |  
|                                               |                                                                        | 2006                                         |       |        | 2005         |  
|(In millions)                                  |                                                                        |                                              |       |        |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY          
|Current liabilities                            |                                                                        |                                              |       |        |              |   |        |       
|                                               | Commercial paper                                                       |                                              | $     | 307    |              |   | $      | 220    |      
|                                               | Long-term debt to PECO Energy Transition Trust due within one
    year |                                              |       | 396    |              |   |        | 199    |      
|                                               | Accounts payable                                                       |                                              |       | 128    |              |   |        | 182    |      
|                                               | Accrued expenses                                                       |                                              |       | 177    |              |   |        | 92     |      
|                                               | Payables to affiliates                                                 |                                              |       | 172    |              |   |        | 178    |      
|                                               | Customer deposits                                                      |                                              |       | 57     |              |   |        | 54     |      
|                                               | Over-recovered energy costs                                            |                                              |       | 11     |              |   |        |       |      
|                                               | Other                                                                  |                                              |       | 9      |              |   |        | 11     |      
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total current liabilities                    |       |        | 1,257        |   |        |        | 936   | 
|                                               |                                                                        |                                              |       |        |              |  
|Long-term debt                                 |                                                                        |                                              | 1,183 |        |              |   | 1,183  |       
|Long-term debt to PECO Energy Transition Trust |                                                                        |                                              | 2,453 |        |              |   | 2,776  |       
|Long-term debt to other financing trusts       |                                                                        |                                              | 184   |        |              |   | 184    |       
|Deferred credits and other liabilities         |                                                                        |                                              |       |        |              |   |        |       
|                                               | Deferred income taxes                                                  |                                              |       | 2,728  |              |   |        | 2,781  |      
|                                               | Unamortized investment tax credits                                     |                                              |       | 16     |              |   |        | 17     |      
|                                               | Asset retirement obligations                                           |                                              |       | 21     |              |   |        | 20     |      
|                                               | Non-pension postretirement benefits obligation                         |                                              |       | 283    |              |   |        | 278    |      
|                                               | Other                                                                  |                                              |       | 142    |              |   |        | 139    |      
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total deferred credits and other liabilities |       |        | 3,190        |   |        |        | 3,235 | 
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total liabilities                            |       |        | 8,267        |   |        |        | 8,314 | 
|                                               |                                                                        |                                              |       |        |              |  
|Commitments and contingencies                  |                                                                        |                                              |       |        |              |   |        |       
|Shareholders equity                           |                                                                        |                                              |       |        |              |   |        |       
|                                               | Common stock                                                           |                                              |       | 2,193  |              |   |        | 2,193  |      
|                                               | Preferred stock                                                        |                                              |       | 87     |              |   |        | 87     |      
|                                               | Receivable from parent                                                 |                                              |       | (1,196 | )            |   |        | (1,232 | )    
|                                               | Retained earnings                                                      |                                              |       | 625    |              |   |        | 649    |      
|                                               | Accumulated other comprehensive income                                 |                                              |       | 7      |              |   |        | 7      |      
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total shareholders equity                   |       |        | 1,716        |   |        |        | 1,704 | 
|                                               |                                                                        |                                              |       |        |              |  
|Total liabilities and shareholders equity     |                                                                        | $                                            | 9,983 |        |              | $ | 10,018 |       
|                                               |                                                                        |                                              |       |        |              |  



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS
EQUITY


(Unaudited)


|                                                      |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |   |   |  |  |   |       |  
|----------------------------------------------------- |  | ------ | ----- |  | --------- | ---------- | -- | ------ |  | ----------- | -------- | - |  | ------------- | ---- | - | ------------- | - | - |  |  | - | ----- | -
|                                                      |  |        |       |  |           |            |    |        |  | Accumulated |          |   | 
|                                                      |  |        |       |  |           | Receivable |    |        |  |             | Other    |   |  | Total         |     
|                                                      |  | Common |       |  | Preferred |            |    | from   |  |             | Retained |   |  | Comprehensive |      |   | Shareholders |  
|                                                      |  | Stock  |       |  | Stock     |            |    | Parent |  |             | Earnings |   |  | Income        |      |   | Equity        |  
|(In millions)                                         |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |  
|Balance, December 31, 2005                            |  | $      | 2,193 |  |           | $          | 87 |        |  | $           | (1,232   | ) |  | $             | 649  |   |               | $ | 7 |  |  | $ | 1,704 |  
|Net income                                            |  |        |      |  |           |            |   |        |  |             |         |   |  |               | 93   |   |               |   |  |  |  |   | 93    |  
|Common stock dividends                                |  |        |      |  |           |            |   |        |  |             |         |   |  |               | (116 | ) |               |   |  |  |  |   | (116  | )
|Preferred stock dividends                             |  |        |      |  |           |            |   |        |  |             |         |   |  |               | (1   | ) |               |   |  |  |  |   | (1    | )
|Repayment of receivable from parent                   |  |        |      |  |           |            |   |        |  |             | 36       |   |  |               |     |   |               |   |  |  |  |   | 36    |  
|Other comprehensive loss, net of income taxes of $(1) |  |        |      |  |           |            |   |        |  |             |         |   |  |               |     |   |               |   |  |  |  |   |      |  
|                                                      |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |  
|Balance, March 31, 2006                               |  | $      | 2,193 |  |           | $          | 87 |        |  | $           | (1,196   | ) |  | $             | 625  |   |               | $ | 7 |  |  | $ | 1,716 |  
|                                                      |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |  



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EXELON GENERATION COMPANY, LLC





EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                                                                                   |                                                      |                                   |     |       |       |   |     |       |       |  
|------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------- | --------------------------------- | --- | ----- | ----- | - | --- | ----- | ----- | -
|                                                                                                                   |                                                      | Three Months                      |    
|                                                                                                                   |                                                      | Ended March 31,                   |    
|                                                                                                                   |                                                      |                                   |    
|(In millions)                                                                                                      |                                                      | 2006                              |     |       | 2005  |  
|                                                                                                                   |                                                      |                                   |     |       |       |  
|Operating revenues                                                                                                 |                                                      |                                   |     |       |       |   |     |      
|                                                                                                                   | Operating revenues                                   |                                   | $   | 1,032 |       |   | $   | 885   |      
|                                                                                                                   | Operating revenues from affiliates                   |                                   |     | 1,188 |       |   |     | 1,135 |      
|                                                                                                                   |                                                      |                                   |     |       |       |  
|                                                                                                                   |                                                      | Total operating revenues          |     |       | 2,220 |   |     |       | 2,020 |  
|                                                                                                                   |                                                      |                                   |     |       |       |  
|Operating expenses                                                                                                 |                                                      |                                   |     |       |       |   |     |      
|                                                                                                                   | Purchased power                                      |                                   |     | 363   |       |   |     | 450   |      
|                                                                                                                   | Fuel                                                 |                                   |     | 611   |       |   |     | 358   |      
|                                                                                                                   | Operating and maintenance                            |                                   |     | 593   |       |   |     | 541   |      
|                                                                                                                   | Operating and maintenance from affiliates            |                                   |     | 75    |       |   |     | 68    |      
|                                                                                                                   | Depreciation and amortization                        |                                   |     | 67    |       |   |     | 62    |      
|                                                                                                                   | Taxes other than income                              |                                   |     | 43    |       |   |     | 35    |      
|                                                                                                                   |                                                      |                                   |     |       |       |  
|                                                                                                                   |                                                      | Total operating expenses          |     |       | 1,752 |   |     |       | 1,514 |  
|                                                                                                                   |                                                      |                                   |     |       |       |  
|Operating income                                                                                                   |                                                      |                                   | 468 |       |       |   | 506 |      
|                                                                                                                   |                                                      |                                   |     |       |       |  
|Other income and deductions                                                                                        |                                                      |                                   |     |       |       |   |     |      
|                                                                                                                   | Interest expense                                     |                                   |     | (42   | )     |   |     | (27   | )    
|                                                                                                                   | Interest expense to affiliates                       |                                   |     | (1    | )     |   |     | (2    | )    
|                                                                                                                   | Equity in losses of unconsolidated affiliates        |                                   |     | (3    | )     |   |     |      |      
|                                                                                                                   | Other, net                                           |                                   |     | 7     |       |   |     | 18    |      
|                                                                                                                   |                                                      |                                   |     |       |       |  
|                                                                                                                   |                                                      | Total other income and deductions |     |       | (39   | ) |     |       | (11   | )
|                                                                                                                   |                                                      |                                   |     |       |       |  
|Income from continuing operations before income taxes                                                              |                                                      |                                   | 429 |       |       |   | 495 |      
|Income taxes                                                                                                       |                                                      |                                   | 161 |       |       |   | 191 |      
|                                                                                                                   |                                                      |                                   |     |       |       |  
|Income from continuing operations                                                                                  |                                                      |                                   | 268 |       |       |   | 304 |      
|Gain on disposal of discontinued operations (net of taxes of
    $5 for the
    three months ended March 31, 2005) |                                                      |                                   |    |       |       |   | 16  |      
|                                                                                                                   |                                                      |                                   |     |       |       |  
|Net income                                                                                                         |                                                      |                                   | 268 |       |       |   | 320 |      
|                                                                                                                   |                                                      |                                   |     |       |       |  
|Other comprehensive income (loss), net of income taxes                                                             |                                                      |                                   |     |       |       |   |     |      
|                                                                                                                   | Change in unrealized gain (loss) on cash-flow hedges |                                   |     | 92    |       |   |     | (124  | )    
|                                                                                                                   | Unrealized gain (loss) on marketable securities      |                                   |     | 28    |       |   |     | (15   | )    
|                                                                                                                   |                                                      |                                   |     |       |       |  
|                                                                                                                   |                                                      | Other comprehensive income (loss) |     |       | 120   |   |     |       | (139  | )
|                                                                                                                   |                                                      |                                   |     |       |       |  
|Comprehensive income                                                                                               |                                                      | $                                 | 388 |       |       | $ | 181 |      
|                                                                                                                   |                                                      |                                   |     |       |       |  



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |      |      |      |     |      |  
|--------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------ | ---- | ---- | ---- | ---- | --- | ---- | -
|                                                          |                                                                                                                            | For the Three                                                          |                                                                        
|                                                          |                                                                                                                            | Months Ended                                                           |                                                                        
|                                                          |                                                                                                                            | March 31,                                                              |                                                                        
|                                                          |                                                                                                                            |                                                                        |                                                                        
|(In millions)                                             |                                                                                                                            | 2006                                                                   |                                                                         |        | 2005 |     
|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |     
|Cash flows from operating activities                      |                                                                                                                            |                                                                        |                                                                         |        |      |      |      |     
|                                                          | Net income                                                                                                                 |                                                                        | $                                                                       | 268    |      |      | $    | 320  |    
|                                                          | Adjustments to reconcile net income to net cash flows provided
    by (used in) operating activities:                      |                                                                        |                                                                         |        |      |      |      |      |    
|                                                          |                                                                                                                            | Depreciation, amortization and accretion, including nuclear fuel       |                                                                         |        | 226  |      |      |      | 220 |     
|                                                          |                                                                                                                            | Deferred income taxes and amortization of investment tax credits       |                                                                         |        | (1   | )    |      |      | 363 |     
|                                                          |                                                                                                                            | Equity in losses of unconsolidated affiliates                          |                                                                         |        | 3    |      |      |      |    |     
|                                                          |                                                                                                                            | Gain on sale of investments                                            |                                                                         |        |     |      |      |      | (21 | )   
|                                                          |                                                                                                                            | Net realized (gains) losses on nuclear decommissioning
    trust funds |                                                                         |        | 2    |      |      |      | (1  | )   
|                                                          |                                                                                                                            | Other decommissioning-related activities                               |                                                                         |        | (6   | )    |      |      | (5  | )   
|                                                          |                                                                                                                            | Other non-cash operating activities                                    |                                                                         |        | 40   |      |      |      | (7  | )   
|                                                          |                                                                                                                            | Changes in assets and liabilities                                      |                                                                         |        |      |      |      |      |     |     
|                                                          |                                                                                                                            |                                                                        | Accounts receivable                                                     |        |      | 150  |      |      |     | 59   |  
|                                                          |                                                                                                                            |                                                                        | Receivables and payables to affiliates, net                             |        |      | 60   |      |      |     | (58  | )
|                                                          |                                                                                                                            |                                                                        | Inventories                                                             |        |      | 24   |      |      |     | 4    |  
|                                                          |                                                                                                                            |                                                                        | Other current assets                                                    |        |      | (24  | )    |      |     | (30  | )
|                                                          |                                                                                                                            |                                                                        | Accounts payable, accrued expenses and other current liabilities        |        |      | (307 | )    |      |     | (57  | )
|                                                          |                                                                                                                            |                                                                        | Counterparty collateral asset                                           |        |      | 146  |      |      |     | (22  | )
|                                                          |                                                                                                                            |                                                                        | Counterparty collateral liability                                       |        |      | (41  | )    |      |     | (1   | )
|                                                          |                                                                                                                            |                                                                        | Income taxes                                                            |        |      | 85   |      |      |     | (66  | )
|                                                          |                                                                                                                            |                                                                        | Net realized and unrealized mark-to-market and hedging
    transactions |        |      | 23   |      |      |     | (77  | )
|                                                          |                                                                                                                            |                                                                        | Pension and non-pension postretirement benefits obligation              |        |      | 26   |      |      |     | (855 | )
|                                                          |                                                                                                                            |                                                                        | Other noncurrent assets and liabilities                                 |        |      | (72  | )    |      |     | (4   | )
|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |     
|Net cash flows provided by (used in) operating activities |                                                                                                                            |                                                                        | 602                                                                     |        |      |      | (238 | )   
|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |     
|Cash flows from investing activities                      |                                                                                                                            |                                                                        |                                                                         |        |      |      |      |     
|                                                          | Capital expenditures                                                                                                       |                                                                        |                                                                         | (286   | )    |      |      | (247 | )  
|                                                          | Proceeds from nuclear decommissioning trust fund sales                                                                     |                                                                        |                                                                         | 932    |      |      |      | 782  |    
|                                                          | Investment in nuclear decommissioning trust funds                                                                          |                                                                        |                                                                         | (1,000 | )    |      |      | (834 | )  
|                                                          | Acquisitions of businesses, net of cash acquired                                                                           |                                                                        |                                                                         |       |      |      |      | (97  | )  
|                                                          | Proceeds from sales of wholly owned subsidiaries, net of $32 of
    cash sold during the three months ended March 31, 2005 |                                                                        |                                                                         |       |      |      |      | 103  |    
|                                                          | Change in restricted cash                                                                                                  |                                                                        |                                                                         | 1      |      |      |      | (2   | )  
|                                                          | Other investing activities                                                                                                 |                                                                        |                                                                         | (1     | )    |      |      | (3   | )  
|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |     
|Net cash flows used in investing activities               |                                                                                                                            |                                                                        | (354                                                                    | )      |      |      | (298 | )   
|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |     
|Cash flows from financing activities                      |                                                                                                                            |                                                                        |                                                                         |        |      |      |      |     
|                                                          | Retirement of long-term debt                                                                                               |                                                                        |                                                                         |       |      |      |      | (1   | )  
|                                                          | Changes in Exelon intercompany money pool borrowings                                                                       |                                                                        |                                                                         | (88    | )    |      |      | (246 | )  
|                                                          | Distribution to member                                                                                                     |                                                                        |                                                                         | (165   | )    |      |      | (239 | )  
|                                                          | Contribution from member                                                                                                   |                                                                        |                                                                         |       |      |      |      | 843  |    
|                                                          | Other financing activities                                                                                                 |                                                                        |                                                                         | 2      |      |      |      |     |    
|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |     
|Net cash flows provided by (used in) financing activities |                                                                                                                            |                                                                        | (251                                                                    | )      |      |      | 357  |     
|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |     
|Decrease in cash and cash equivalents                     |                                                                                                                            |                                                                        | (3                                                                      | )      |      |      | (179 | )   
|Cash and cash equivalents at beginning of period          |                                                                                                                            |                                                                        | 34                                                                      |        |      |      | 263  |     
|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |     
|Cash and cash equivalents at end of period                |                                                                                                                            | $                                                                      | 31                                                                      |        |      | $    | 84   |     
|                                                          |                                                                                                                            |                                                                        |                                                                         |        |      |     



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                      |                                        |        |       |              |   |        |       |       | 
|---------------------------------- | ------------------------------------ | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                      | March 31,                              |        |       | December 31, |  
|(In millions)                      |                                      | 2006                                   |        |       | 2005         |  
|                                   |                                      |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                      |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents            |                                        | $      | 31    |              |   | $      | 34    |      
|                                   | Restricted cash and investments      |                                        |        | 2     |              |   |        | 3     |      
|                                   | Accounts receivable, net             |                                        |        |       |              |   |        |       |      
|                                   |                                      | Customer                               |        |       | 446          |   |        |       | 585   | 
|                                   |                                      | Other                                  |        |       | 85           |   |        |       | 109   | 
|                                   | Mark-to-market derivative assets     |                                        |        | 637   |              |   |        | 916   |      
|                                   | Receivable from affiliates           |                                        |        | 405   |              |   |        | 411   |      
|                                   | Inventories, at average cost         |                                        |        |       |              |   |        |       |      
|                                   |                                      | Fossil fuel                            |        |       | 141          |   |        |       | 160   | 
|                                   |                                      | Materials and supplies                 |        |       | 293          |   |        |       | 290   | 
|                                   | Deferred income taxes                |                                        |        | 39    |              |   |        | 35    |      
|                                   | Prepayments and other current assets |                                        |        | 364   |              |   |        | 497   |      
|                                   |                                      |                                        |        |       |              |  
|                                   |                                      | Total current assets                   |        |       | 2,443        |   |        |       | 3,040 | 
|                                   |                                      |                                        |        |       |              |  
|Property, plant and equipment, net |                                      |                                        | 7,586  |       |              |   | 7,464  |      
|Deferred debits and other assets   |                                      |                                        |        |       |              |   |        |      
|                                   | Nuclear decommissioning trust funds  |                                        |        | 5,832 |              |   |        | 5,585 |      
|                                   | Investments                          |                                        |        | 120   |              |   |        | 120   |      
|                                   | Mark-to-market derivative assets     |                                        |        | 331   |              |   |        | 286   |      
|                                   | Prepaid pension asset                |                                        |        | 1,007 |              |   |        | 1,013 |      
|                                   | Other                                |                                        |        | 256   |              |   |        | 216   |      
|                                   |                                      |                                        |        |       |              |  
|                                   |                                      | Total deferred debits and other assets |        |       | 7,546        |   |        |       | 7,220 | 
|                                   |                                      |                                        |        |       |              |  
|Total assets                       |                                      | $                                      | 17,575 |       |              | $ | 17,724 |      
|                                   |                                      |                                        |        |       |              |  



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                             |                                                 |                                              |        |       |              |   |        |       |        | 
|-------------------------------------------- | ----------------------------------------------- | -------------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                             |                                                 | March 31,                                    |        |       | December 31, |  
|                                             |                                                 | 2006                                         |        |       | 2005         |  
|(In millions)                                |                                                 |                                              |        |       |              |  
|LIABILITIES AND MEMBERS EQUITY             
|Current liabilities                          |                                                 |                                              |        |       |              |   |        |      
|                                             | Long-term debt due within one year              |                                              | $      | 12    |              |   | $      | 12    |       
|                                             | Accounts payable                                |                                              |        | 728   |              |   |        | 954   |       
|                                             | Mark-to-market derivative liabilities           |                                              |        | 947   |              |   |        | 1,282 |       
|                                             | Payables to affiliates                          |                                              |        | 58    |              |   |        | 4     |       
|                                             | Borrowings from Exelon intercompany money pool  |                                              |        | 4     |              |   |        | 92    |       
|                                             | Commercial paper                                |                                              |        | 313   |              |   |        | 311   |       
|                                             | Accrued expenses                                |                                              |        | 411   |              |   |        | 415   |       
|                                             | Other                                           |                                              |        | 314   |              |   |        | 330   |       
|                                             |                                                 |                                              |        |       |              |  
|                                             |                                                 | Total current liabilities                    |        |       | 2,787        |   |        |       | 3,400  | 
|                                             |                                                 |                                              |        |       |              |  
|Long-term debt                               |                                                 |                                              | 1,788  |       |              |   | 1,788  |      
|Deferred credits and other liabilities       |                                                 |                                              |        |       |              |   |        |      
|                                             | Asset retirement obligations                    |                                              |        | 4,047 |              |   |        | 3,986 |       
|                                             | Pension obligation                              |                                              |        | 17    |              |   |        | 13    |       
|                                             | Non-pension postretirement benefits obligations |                                              |        | 556   |              |   |        | 541   |       
|                                             | Spent nuclear fuel obligation                   |                                              |        | 915   |              |   |        | 906   |       
|                                             | Deferred income taxes                           |                                              |        | 773   |              |   |        | 663   |       
|                                             | Unamortized investment tax credits              |                                              |        | 200   |              |   |        | 202   |       
|                                             | Payables to affiliates                          |                                              |        | 1,605 |              |   |        | 1,503 |       
|                                             | Mark-to-market derivative liabilities           |                                              |        | 432   |              |   |        | 460   |       
|                                             | Other                                           |                                              |        | 251   |              |   |        | 280   |       
|                                             |                                                 |                                              |        |       |              |  
|                                             |                                                 | Total deferred credits and other liabilities |        |       | 8,796        |   |        |       | 8,554  | 
|                                             |                                                 |                                              |        |       |              |  
|                                             |                                                 | Total liabilities                            |        |       | 13,371       |   |        |       | 13,742 | 
|                                             |                                                 |                                              |        |       |              |  
|Commitments and contingencies                |                                                 |                                              |        |       |              |   |        |      
|Minority interest of consolidated subsidiary |                                                 |                                              | 1      |       |              |   | 2      |      
|Members equity                              |                                                 |                                              |        |       |              |   |        |      
|                                             | Membership interest                             |                                              |        | 3,220 |              |   |        | 3,220 |       
|                                             | Undistributed earnings                          |                                              |        | 1,105 |              |   |        | 1,002 |       
|                                             | Accumulated other comprehensive loss            |                                              |        | (122  | )            |   |        | (242  | )     
|                                             |                                                 |                                              |        |       |              |  
|                                             |                                                 | Total members equity                        |        |       | 4,203        |   |        |       | 3,980  | 
|                                             |                                                 |                                              |        |       |              |  
|Total liabilities and members equity        |                                                 | $                                            | 17,575 |       |              | $ | 17,724 |      
|                                             |                                                 |                                              |        |       |              |  



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS EQUITY


(Unaudited)


|                                                        |  |            |       |  |               |             |       |               |       |   |          |   |  |   |       |  
|------------------------------------------------------- |  | ---------- | ----- |  | ------------- | ----------- | ----- | ------------- | ----- | - | -------- | - |  | - | ----- | -
|                                                        |  |            |       |  |               | Accumulated |       |               |      
|                                                        |  |            |       |  |               | Other       |       |               | Total |  
|                                                        |  | Membership |       |  | Undistributed |             |       | Comprehensive |       |   | Members |  
|(In millions)                                           |  | Interest   |       |  | Earnings      |             |       | Income (Loss) |       |   | Equity   |  
|                                                        |  |            |       |  |               |             |       |               |       |   |          |  
|Balance, December 31, 2005                              |  | $          | 3,220 |  |               | $           | 1,002 |               |       | $ | (242     | ) |  | $ | 3,980 |  
|Net income                                              |  |            |      |  |               |             | 268   |               |       |   |         |   |  |   | 268   |  
|Distribution to member                                  |  |            |      |  |               |             | (165  | )             |       |   |         |   |  |   | (165  | )
|Other comprehensive income, net of income taxes of $102 |  |            |      |  |               |             |      |               |       |   | 120      |   |  |   | 120   |  
|                                                        |  |            |       |  |               |             |       |               |       |   |          |  
|Balance, March 31, 2006                                 |  | $          | 3,220 |  |               | $           | 1,105 |               |       | $ | (122     | ) |  | $ | 4,203 |  
|                                                        |  |            |       |  |               |             |       |               |       |   |          |  



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES





COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Dollars in millions, except per share data, unless otherwise
noted)




|   |                                                           
|-- | ----------------------------------------------------------
|1. | Basis of Presentation (Exelon, ComEd, PECO and Generation)







10-K.




|   |                                                
|-- | -----------------------------------------------
|2. | Discontinued Operations (Exelon and Generation)



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                  |  |          |    |     |                |   |    |       |  |   |    | 
|--------------------------------- |  | -------- | -- | --- | -------------- | - | -- | ----- |  | - | -- | 
|Three Months Ended March 31, 2005 |  | Sithe(a) |    |     | Enterprises(b) |   |    | Total | 
|                                  |  |          |    |     |                |   |    |       | 
|Total operating revenues          |  | $        | 30 |     |                | $ | 4  |       |  | $ | 34 | 
|Operating income (loss)           |  |          | 5  |     |                |   | (2 | )     |  |   | 3  | 
|Income before income taxes        |  |          | 20 | (c) |                |   | (4 | )     |  |   | 16 | 






|    |                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Includes Sithes results of operations from January 1,
    2005 through January 31, 2005, which was the date of the
    sale. See Note 4  Acquisitions and Dispositions
    for further information regarding the sale of Sithe.



|    |  |                                                      
|--- |  | -----------------------------------------------------
|(b) |  | Excludes certain investments.                        
|   
|(c) |  | Sithe includes a pre-tax gain on sale of $21 million.





|   |                                                                       
|-- | ----------------------------------------------------------------------
|3. | New Accounting Pronouncements (Exelon, ComEd, PECO and
    Generation)



| |               
| | --------------
| | SFAS No. 123-R



26



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                 |                    |              |    |     |      |   |    |    |  
|-------------------------------------------------------------------------------- | ------------------ | ------------ | -- | --- | ---- | - | -- | -- | -
|                                                                                 |                    | Three Months |   
|                                                                                 |                    | Ended        |   
|                                                                                 |                    | March 31,    |   
|                                                                                 |                    |              |   
|Components of Stock-based Compensation Expense                                   |                    | 2006         |    |     | 2005 |  
|                                                                                 |                    |              |    |     |      |  
|Stock options                                                                    |                    | $            | 17 |     |      | $ |   |   
|Performance shares                                                               |                    |              | 21 |     |      |   | 11 |   
|Other stock-based awards                                                         |                    |              | 1  |     |      |   | 1  |   
|                                                                                 |                    |              |    |     |      |  
|Total stock-based compensation included in operating and
    maintenance expense |                    | $            | 39 |     |      | $ | 12 |   
|                                                                                 |                    |              |    |     |      |  
|                                                                                 | Income tax benefit |              |    | (15 | )    |   |    | (5 | )
|                                                                                 |                    |              |    |     |      |  
|Total after-tax stock-based compensation expense                                 |                    | $            | 24 |     |      | $ | 7  |   
|                                                                                 |                    |              |    |     |      |  





| |              
| | -------------
| | Stock Options







|                        |  |              |      |   |      |  |      |  
|----------------------- |  | ------------ | ---- | - | ---- |  | ---- | -
|                        |  | Three Months |     
|                        |  | Ended        |     
|                        |  | March 31,    |     
|                        |  |              |     
|                        |  | 2006         |      |   | 2005 | 
|                        |  |              |      |   |      | 
|Dividend yield          |  |              | 3.2  | % |      |  | 3.6  | %
|Expected volatility     |  |              | 25.5 | % |      |  | 18.1 | %
|Risk-free interest rate |  |              | 4.27 | % |      |  | 3.83 | %
|Expected life (years)   |  |              | 6.25 |   |      |  | 6.25 |  



27



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                 |  |        |            |          |             |   |             |      |  |           |       |  |  |   |             | 
|-------------------------------- |  | ------ | ---------- | -------- | ----------- | - | ----------- | ---- |  | --------- | ----- |  |  | - | ----------- | 
|                                 |  |        |            | Weighted |             |   | Weighted    |      |  |          
|                                 |  |        |            | Average  |             |   | Average     |      |  |          
|                                 |  |        |            | Exercise |             |   | Remaining   |      |  | Aggregate |      
|                                 |  |        |            | Price    |             |   | Contractual |      |  | Intrinsic |      
|                                 |  | Shares |            |          | (per share) |   |             | Life |  |           | Value | 
|                                 |  |        |            |          |             |   |             |      |  |           |       | 
|Balance at December 31, 2005     |  |        | 21,674,270 |          |             | $ | 31.23       |      |  |           |       |  |  |   |             | 
|Options granted/assumed          |  |        | 4,067,995  |          |             |   | 58.55       |      |  |           |       |  |  |   |             | 
|Options exercised                |  |        | (2,599,923 | )        |             |   | 29.62       |      |  |           |       |  |  |   |             | 
|Options forfeited/cancelled      |  |        | (85,205    | )        |             |   | 39.28       |      |  |           |       |  |  |   |             | 
|                                 |  |        |            |          |             |   |             |      |  |           |       | 
|Balance at March 31, 2006        |  |        | 23,057,137 |          |             |   | 36.20       |      |  |           | 7.25  |  |  | $ | 385,022,603 | 
|                                 |  |        |            |          |             |   |             |      |  |           |       | 
|Exercisable at March 31, 2006(a) |  |        | 11,843,040 |          |             |   | 30.04       |      |  |           | 5.95  |  |  |   | 270,736,274 | 
|                                 |  |        |            |          |             |   |             |      |  |           |       | 






|    |                                                          
|--- | ---------------------------------------------------------
|(a) | Includes options issued to retirement-eligible employees.





28



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                               |  |        |            |          |             |   |       | 
|------------------------------ |  | ------ | ---------- | -------- | ----------- | - | ----- | 
|                               |  |        |            | Weighted |            
|                               |  |        |            | Average  |            
|                               |  |        |            | Exercise |            
|                               |  |        |            | Price    |            
|                               |  | Shares |            |          | (per share) |  
|                               |  |        |            |          |             |  
|Nonvested at December 31, 2005 |  |        | 12,000,284 |          |             | $ | 35.42 | 
|Granted                        |  |        | 4,067,995  |          |             |   | 58.55 | 
|Vested                         |  |        | (4,770,177 | )        |             |   | 37.83 | 
|Forfeited                      |  |        | (84,005    | )        |             |   | 39.55 | 
|                               |  |        |            |          |             |  
|Nonvested at March 31, 2006    |  |        | 11,214,097 |          |             |   | 42.71 | 
|                               |  |        |            |          |             |  





| |                         
| | ------------------------
| | Performance Share Awards





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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                         
| | ------------------------
| | Other Stock-Based Awards





| |                           
| | --------------------------
| | 2005 Pro Forma Information



|                                                                                                                             |                       |                |     |      | 
|---------------------------------------------------------------------------------------------------------------------------- | --------------------- | -------------- | --- | ---- | 
|                                                                                                                             |                       | Three Months   |    
|                                                                                                                             |                       | Ended          |    
|                                                                                                                             |                       | March 31, 2005 |    
|                                                                                                                             |                       |                |    
|Net income  as reported                                                                                                     |                       | $              | 521 |     
|Add: Stock-based compensation expense included in reported net
    income, net of income taxes                               |                       |                | 7   |     
|Deduct: Total stock-based compensation expense determined under
    fair-value method for all awards, net of income taxes(a) |                       |                | (11 | )   
|                                                                                                                             |                       |                |    
|Pro forma net income                                                                                                         |                       | $              | 517 |     
|                                                                                                                             |                       |                |    
|Earnings per share:                                                                                                          |                       |                |     |     
|                                                                                                                             | Basic  as reported   |                | $   | 0.78 | 
|                                                                                                                             | Basic  pro forma     |                | $   | 0.78 | 
|                                                                                                                             | Diluted  as reported |                | $   | 0.77 | 
|                                                                                                                             | Diluted  pro forma   |                | $   | 0.77 | 






|    |                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------
|(a) | The fair value of options granted was estimated using a
    Black-Scholes-Merton option-pricing model.

123-R


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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


SFAS No. 151




SFAS No. 154




EITF 04-13


04-13). 04-13 04-13 04-13 04-13


SFAS No. 155




31



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


SFAS No. 156




FSP
No. FIN 46(R)-6






|   |                                                      
|-- | -----------------------------------------------------
|4. | Acquisitions and Dispositions (Exelon and Generation)

Proposed Merger with PSEG
(Exelon)










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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


10-K


Sithe (Exelon and
Generation)








|                   |  |                   |    | 
|------------------ |  | ----------------- | -- | 
|                   |  | Three Months      |   
|                   |  | Ended             |   
|                   |  | March 31, 2005(a) |   
|                   |  |                   |   
|Operating revenues |  | $                 | 30 | 
|Operating income   |  |                   | 5  | 
|Net income(b)      |  |                   | 16 | 






|    |                                                                                                   
|--- | --------------------------------------------------------------------------------------------------
|(a) | Sithe was sold on January 31, 2005. Accordingly, results
    include only one month of operations.



|    |  |                                                                                                                  
|--- |  | -----------------------------------------------------------------------------------------------------------------
|(b) |  | Net income for the three months ended March 31, 2005
    included a pre-tax gain on sale of Sithe of $21 million.



10-K


33



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                       
|-- | ------------------------------------------------------
|5. | Regulatory Issues (Exelon, ComEd, PECO and Generation)

ComEd




Illinois Procurement Filing.




Illinois Rate Case.


Mitigation Proposal.


Renewable Energy Filing.


34



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Rate Freeze Extension Proposal.


Post 2006 Summary.


PECO


Partial Settlement before the Pennsylvania Public Utility
Commission (PAPUC).


35



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


10-K


ComEd and PECO


Through and Out Rates/SECA.


Generation


Market-Based Rates Filing. 10-K.


36



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                 
|-- | ------------------------------------------------
|6. | Intangible Assets (Exelon, ComEd and Generation)

Goodwill (Exelon and ComEd).


Other Intangible Assets (Exelon).


|                              |  |                |     |             |                   |   |      |     |  |   |             |  |  |              |     |  |     |   |      |   |  |   |     | 
|----------------------------- |  | -------------- | --- | ----------- | ----------------- | - | ---- | --- |  | - | ----------- |  |  | ------------ | --- |  | --- | - | ---- | - |  | - | --- | 
|                              |  | March 31, 2006 |     |             | December 31, 2005 |  
|                              |  |                |     |             |                   |  
|                              |  |                |     | Accumulated |                   |   |      |     |  |   | Accumulated |  |  |             
|Exelon                        |  | Gross          |     |             | Amortization      |   |      | Net |  |   | Gross       |  |  | Amortization |     |  | Net |  
|                              |  |                |     |             |                   |   |      |     |  |   |             |  |  |              |     |  |     |  
|Synthetic fuel investments(a) |  | $              | 264 |             |                   | $ | (137 | )   |  | $ | 127         |  |  | $            | 264 |  |     | $ | (121 | ) |  | $ | 143 | 
|Intangible pension asset      |  |                | 34  |             |                   |   |     |     |  |   | 34          |  |  |              | 34  |  |     |   |     |   |  |   | 34  | 
|                              |  |                |     |             |                   |   |      |     |  |   |             |  |  |              |     |  |     |  
|Total intangible assets       |  | $              | 298 |             |                   | $ | (137 | )   |  | $ | 161         |  |  | $            | 298 |  |     | $ | (121 | ) |  | $ | 177 | 
|                              |  |                |     |             |                   |   |      |     |  |   |             |  |  |              |     |  |     |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Note 3 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2005 Annual Report on
    Form 10-K for a
    description of Exelons right to acquire tax credits
    through investments in synthetic fuel-producing facilities. In
    addition, see Note 10  Income Taxes for further
    information on Exelons investments in synthetic
    fuel-producing facilities.





|   |                                                                    
|-- | -------------------------------------------------------------------
|7. | Debt and Credit Agreements (Exelon, ComEd, PECO and
    Generation)



| |                 
| | ----------------
| | Commercial Paper



|           |  |                |     |  |                   |   |     | 
|---------- |  | -------------- | --- |  | ----------------- | - | --- | 
|Borrower   |  | March 31, 2006 |     |  | December 31, 2005 |  
|           |  |                |     |  |                   |  
|Exelon     |  | $              | 93  |  |                   | $ |    | 
|ComEd      |  |                | 308 |  |                   |   | 459 | 
|PECO       |  |                | 307 |  |                   |   | 220 | 
|Generation |  |                | 313 |  |                   |   | 311 | 



| |                  
| | -----------------
| | Credit Facilities



37



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


10-K




| |           
| | ----------
| | Generation

10-K.




| |      
| | -----
| | ComEd





| |                           
| | --------------------------
| | Issuance of Long-Term Debt



|        |  |      |                      |          |      |  |      |          |  |  |                |  |  |   |     |    
|------- |  | ---- | -------------------- | -------- | ---- |  | ---- | -------- |  |  | -------------- |  |  | - | --- | ---
|        |  |      |                      | Interest |      |  |      |          | 
|Company |  | Type |                      |          | Rate |  |      | Maturity |  |  | Amount         | 
|        |  |      |                      |          |      |  |      |          |  |  |                | 
|ComEd   |  |      | First Mortgage Bonds |          |      |  | 5.90 | %        |  |  | March 15, 2036 |  |  | $ | 325 | (a)






|    |  |                                     
|--- |  | ------------------------------------
|(a) |  | Excludes unamortized bond discounts.





| |     
| | ----
| | SCEP

20-year


38



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                                                        
|-- | -------------------------------------------------------
|8. | Severance Benefits (Exelon, ComEd, PECO and Generation)





|                                                                        |  |       |    |   |      |   |   |            |  |   |          |     |  |        |    |   |  |   |    |    
|----------------------------------------------------------------------- |  | ----- | -- | - | ---- | - | - | ---------- |  | - | -------- | --- |  | ------ | -- | - |  | - | -- | ---
|Salary Continuance Severance                                            |  | ComEd |    |   | PECO |   |   | Generation |  |   | Other(a) |     |  | Exelon |   
|                                                                        |  |       |    |   |      |   |   |            |  |   |          |     |  |        |   
|Expense (income) recorded for the three months ended
    March 31, 2006 |  | $     | (1 | ) |      | $ |  |            |  | $ | 1        | (b) |  | $      | 1  |   |  | $ | 1  | (b)
|Expense (income) recorded for the three months ended
    March 31, 2005 |  |       | (1 | ) |      |   | 1 |            |  |   | (1       | )   |  |        | (1 | ) |  |   | (2 | )  






|    |  |                                                                                                                                                                                 
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including Exelon Business Services Company (BSC) and
    Enterprises.                                         
|   
|(b) |  | Excludes reduction of previously recorded severance charges of
    approximately $1 million related to Salem, of which
    Generation owns 42.59% and which is operated by PSEG.



|                                      |  |       |    |   |      |   |   |            |  |   |          |   |  |        |    |   |  |   |    |  
|------------------------------------- |  | ----- | -- | - | ---- | - | - | ---------- |  | - | -------- | - |  | ------ | -- | - |  | - | -- | -
|Salary Continuance Obligations        |  | ComEd |    |   | PECO |   |   | Generation |  |   | Other(a) |   |  | Exelon |   
|                                      |  |       |    |   |      |   |   |            |  |   |          |   |  |        |   
|Balance at January 1, 2006            |  | $     | 8  |   |      | $ | 1 |            |  | $ | 7        |   |  | $      | 6  |   |  | $ | 22 |  
|Severance (benefits) charges recorded |  |       | (1 | ) |      |   |  |            |  |   | 1        |   |  |        | 1  |   |  |   | 1  |  
|Cash payments                         |  |       | (1 | ) |      |   |  |            |  |   | (1       | ) |  |        | (2 | ) |  |   | (4 | )
|                                      |  |       |    |   |      |   |   |            |  |   |          |   |  |        |   
|Balance at March 31, 2006             |  | $     | 6  |   |      | $ | 1 |            |  | $ | 7        |   |  | $      | 5  |   |  | $ | 19 |  
|                                      |  |       |    |   |      |   |   |            |  |   |          |   |  |        |   






|    |  |                                                                                                 
|--- |  | ------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including BSC and Enterprises.



|   |                                                         
|-- | --------------------------------------------------------
|9. | Retirement Benefits (Exelon, ComEd, PECO and Generation)

10-K


39



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                          |                               |                    |      |             |                     |   |      |      |   |   |      |     |   |   |     |     |  
|------------------------- | ----------------------------- | ------------------ | ---- | ----------- | ------------------- | - | ---- | ---- | - | - | ---- | --- | - | - | --- | --- | -
|                          |                               |                    |      | Other Post- |                    
|                          |                               | Pension Benefits   |      |             | retirement Benefits |  
|                          |                               | Three Months Ended |      |             | Three Months Ended  |  
|                          |                               | March 31,          |      |             | March 31,           |  
|                          |                               |                    |      |             |                     |  
|                          |                               | 2006               |      |             | 2005                |   |      | 2006 |   |   | 2005 |    
|                          |                               |                    |      |             |                     |   |      |      |   |   |      |    
|Service cost              |                               | $                  | 41   |             |                     | $ | 38   |      |   | $ | 25   |     |   | $ | 23  |    
|Interest cost             |                               |                    | 142  |             |                     |   | 139  |      |   |   | 47   |     |   |   | 43  |    
|Expected return on assets |                               |                    | (204 | )           |                     |   | (192 | )    |   |   | (26  | )   |   |   | (24 | )  
|Amortization of:          |                               |                    |      |             |                     |   |      |      |   |   |      |     |   |   |     |    
|                          | Transition obligation (asset) |                    |      |            |                     |   |      | (1   | ) |   |      | 2   |   |   |     | 2   |  
|                          | Prior service cost (benefit)  |                    |      | 4           |                     |   |      | 4    |   |   |      | (23 | ) |   |     | (22 | )
|                          | Actuarial loss                |                    |      | 40          |                     |   |      | 30   |   |   |      | 23  |   |   |     | 17  |  
|                          |                               |                    |      |             |                     |   |      |      |   |   |      |    
|Net periodic benefit cost |                               | $                  | 23   |             |                     | $ | 18   |      |   | $ | 48   |     |   | $ | 39  |    
|                          |                               |                    |      |             |                     |   |      |      |   |   |      |    



|                                            |  |                    |    |  |      |   |    | 
|------------------------------------------- |  | ------------------ | -- |  | ---- | - | -- | 
|                                            |  | Three Months Ended |   
|                                            |  | March 31,          |   
|                                            |  |                    |   
|Pension and Postretirement Benefit Costs(a) |  | 2006               |    |  | 2005 |  
|                                            |  |                    |    |  |      |  
|ComEd                                       |  | $                  | 19 |  |      | $ | 19 | 
|PECO                                        |  |                    | 10 |  |      |   | 6  | 
|Generation                                  |  |                    | 31 |  |      |   | 24 | 






|    |  |                                                                  
|--- |  | -----------------------------------------------------------------
|(a) |  | Includes capitalized costs and operating and maintenance expense.



40



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |  |              |    |  |      |   |    | 
|----------------------------------- |  | ------------ | -- |  | ---- | - | -- | 
|                                    |  | Three Months |   
|                                    |  | Ended        |   
|                                    |  | March 31,    |   
|                                    |  |              |   
|Savings Plan Matching Contributions |  | 2006         |    |  | 2005 |  
|                                    |  |              |    |  |      |  
|Exelon                              |  | $            | 15 |  |      | $ | 14 | 
|ComEd                               |  |              | 4  |  |      |   | 4  | 
|PECO                                |  |              | 2  |  |      |   | 2  | 
|Generation                          |  |              | 8  |  |      |   | 7  | 



|    |                                                  
|--- | -------------------------------------------------
|10. | Income Taxes (Exelon, ComEd, PECO and Generation)



| |       
| | ------
| | Exelon



|                            |                                                       |              |      |      |      |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---- |  | ---- | ---- | -
|                            |                                                       | Three Months |     
|                            |                                                       | Ended        |     
|                            |                                                       | March 31,    |     
|                            |                                                       |              |     
|                            |                                                       | 2006         |      |      | 2005 | 
|                            |                                                       |              |      |      |      | 
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |      |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |      |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 3.4  |      |  |      | 3.9  |  
|                            | Synthetic fuel-producing facilities credit(a)         |              |      | (4.4 | )    |  |      | (7.4 | )
|                            | Qualified nuclear decommissioning trust fund income   |              |      | 0.5  |      |  |      | 0.4  |  
|                            | Manufacturers deduction                              |              |      | (0.8 | )    |  |      | (0.2 | )
|                            | Tax exempt income                                     |              |      | (0.5 | )    |  |      | (0.4 | )
|                            | Nontaxable postretirement benefits                    |              |      | (0.4 | )    |  |      | (0.4 | )
|                            | Amortization of investment tax credit                 |              |      | (0.5 | )    |  |      | (0.4 | )
|                            | Other                                                 |              |      | 1.2  |      |  |      | 0.4  |  
|                            |                                                       |              |      |      |      | 
|Effective income tax rate   |                                                       |              | 33.5 | %    |      |  | 30.9 | %   
|                            |                                                       |              |      |      |      | 






|    |  |                                                                                                                                                                                                                                
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Notes 3 and 12 of Exelons Notes to Consolidated
    Financial Statements within Exelons 2005 Annual Report on
    Form 10-K for
    further information regarding investments in synthetic
    fuel-producing facilities.

41



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |      
| | -----
| | ComEd



|                            |                                                       |              |      |      |      |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---- |  | ---- | ---- | -
|                            |                                                       | Three Months |     
|                            |                                                       | Ended        |     
|                            |                                                       | March 31,    |     
|                            |                                                       |              |     
|                            |                                                       | 2006         |      |      | 2005 | 
|                            |                                                       |              |      |      |      | 
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |      |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |      |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 4.8  |      |  |      | 4.8  |  
|                            | Amortization of regulatory asset                      |              |      | 0.7  |      |  |      | 0.7  |  
|                            | Nontaxable postretirement benefits                    |              |      | (0.7 | )    |  |      | (0.6 | )
|                            | Amortization of investment tax credit                 |              |      | (0.8 | )    |  |      | (0.7 | )
|                            | Other                                                 |              |      | 1.7  |      |  |      | 0.5  |  
|                            |                                                       |              |      |      |      | 
|Effective income tax rate   |                                                       |              | 40.7 | %    |      |  | 39.7 | %   
|                            |                                                       |              |      |      |      | 



| |     
| | ----
| | PECO



|                            |                                                       |              |      |      |      |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---- |  | ---- | ---- | -
|                            |                                                       | Three Months |     
|                            |                                                       | Ended        |     
|                            |                                                       | March 31,    |     
|                            |                                                       |              |     
|                            |                                                       | 2006         |      |      | 2005 | 
|                            |                                                       |              |      |      |      | 
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |      |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |      |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | (0.6 | )    |  |      | (0.2 | )
|                            | Plant basis differences                               |              |      | 0.1  |      |  |      | 0.3  |  
|                            | Nontaxable postretirement benefits                    |              |      | (0.3 | )    |  |      | (0.2 | )
|                            | Amortization of investment tax credit                 |              |      | (0.4 | )    |  |      | (0.3 | )
|                            | Other                                                 |              |      | 0.2  |      |  |      | 0.9  |  
|                            |                                                       |              |      |      |      | 
|Effective income tax rate   |                                                       |              | 34.0 | %    |      |  | 35.5 | %   
|                            |                                                       |              |      |      |      | 

42



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |           
| | ----------
| | Generation



|                            |                                                       |              |      |      |      |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---- |  | ---- | ---- | -
|                            |                                                       | Three Months |     
|                            |                                                       | Ended        |     
|                            |                                                       | March 31,    |     
|                            |                                                       |              |     
|                            |                                                       | 2006         |      |      | 2005 | 
|                            |                                                       |              |      |      |      | 
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |      |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |      |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 4.4  |      |  |      | 4.9  |  
|                            | Qualified nuclear decommissioning trust fund income   |              |      | 0.7  |      |  |      | 0.5  |  
|                            | Manufacturers deduction                              |              |      | (1.1 | )    |  |      | (0.3 | )
|                            | Tax exempt income                                     |              |      | (0.7 | )    |  |      | (0.5 | )
|                            | Nontaxable postretirement benefits                    |              |      | (0.3 | )    |  |      | (0.2 | )
|                            | Amortization of investment tax credit                 |              |      | (0.3 | )    |  |      | (0.3 | )
|                            | Other                                                 |              |      | (0.2 | )    |  |      | (0.5 | )
|                            |                                                       |              |      |      |      | 
|Effective income tax rate   |                                                       |              | 37.5 | %    |      |  | 38.6 | %   
|                            |                                                       |              |      |      |      | 



| |                                                   
| | --------------------------------------------------
| | Investments in Synthetic Fuel-Producing Facilities





year-to


|                                |  |           |    | 
|------------------------------- |  | --------- | -- | 
|                                |  | Estimated |   
|                                |  | 2006      |   
|                                |  |           |   
|Beginning of Phase-Out Range(a) |  | $         | 59 | 
|End of Phase-Out Range(a)       |  |           | 75 | 
|2006 Annual Average NYMEX       |  |           | 67 | 






|    |  |                                                                                                                                                                                                                                         
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Estimated phase-out ranges are calculated using inflation rates
    published by the Internal Revenue Service (IRS) subsequent to
    March 31, 2006. The inflation rate used by Exelon to
    estimate the 2006 phase-out range was 2%.



43



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


year-to




mark-to mark-to








| |                                      
| | -------------------------------------
| | 1999 Sale of Fossil Generating Assets



44



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                                                                      
|--- | ---------------------------------------------------------------------
|11. | Asset Retirement Obligations (Exelon, ComEd, PECO and
    Generation)



| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Nuclear Decommissioning Asset Retirement Obligations (ARO)
    (Exelon and Generation)

10-K




|                                                |  |                       |       |  
|----------------------------------------------- |  | --------------------- | ----- | -
|                                                |  | Exelon and Generation |      
|                                                |  |                       |      
|Nuclear decommissioning AROs at January 1, 2006 |  | $                     | 3,921 |  
|Accretion expense                               |  |                       | 63    |  
|Payments to decommission retired plants         |  |                       | (3    | )
|                                                |  |                       |      
|Nuclear decommissioning AROs at March 31, 2006  |  | $                     | 3,981 |  
|                                                |  |                       |      

45



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |  |                                                                           
| |  | --------------------------------------------------------------------------
| |  | Nuclear Decommissioning Trust Fund Investments
    (Exelon and Generation)











| |                                                          
| | ---------------------------------------------------------
| | Non-Nuclear AROs (Exelon, ComEd, PECO and
    Generation)

10-K


|                                    |  |        |     |  |       |   |     |      |  |   |            |  |  |   |    | 
|----------------------------------- |  | ------ | --- |  | ----- | - | --- | ---- |  | - | ---------- |  |  | - | -- | 
|                                    |  | Exelon |     |  | ComEd |   |     | PECO |  |   | Generation | 
|                                    |  |        |     |  |       |   |     |      |  |   |            | 
|Non-nuclear AROs at January 1, 2006 |  | $      | 236 |  |       | $ | 151 |      |  | $ | 20         |  |  | $ | 65 | 
|Accretion expense(a)                |  |        | 3   |  |       |   | 2   |      |  |   | 1          |  |  |   | 1  | 
|                                    |  |        |     |  |       |   |     |      |  |   |            | 
|Non-nuclear AROs at March 31, 2006  |  | $      | 239 |  |       | $ | 153 |      |  | $ | 21         |  |  | $ | 66 | 
|                                    |  |        |     |  |       |   |     |      |  |   |            | 






|    |  |                                                                                                                                              
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | For ComEd and PECO, the majority of the accretion is recorded as
    an increase to a regulatory asset due to the associated
    regulations.

46



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                     
|--- | ----------------------------------------------------
|12. | Earnings Per Share and Shareholders Equity (Exelon)



| |                   
| | ------------------
| | Earnings per Share



|                                                                                     |  |              |     |  |      |   |     | 
|------------------------------------------------------------------------------------ |  | ------------ | --- |  | ---- | - | --- | 
|                                                                                     |  | Three Months |    
|                                                                                     |  | Ended        |    
|                                                                                     |  | March 31,    |    
|                                                                                     |  |              |    
|                                                                                     |  | 2006         |     |  | 2005 |  
|                                                                                     |  |              |     |  |      |  
|Income from continuing operations                                                    |  | $            | 399 |  |      | $ | 507 | 
|Income from discontinued operations                                                  |  |              | 1   |  |      |   | 14  | 
|                                                                                     |  |              |     |  |      |  
|Net income                                                                           |  | $            | 400 |  |      | $ | 521 | 
|                                                                                     |  |              |     |  |      |  
|Average common shares outstanding  basic                                            |  |              | 669 |  |      |   | 666 | 
|Assumed exercise of stock options, performance share awards and
    restricted stock |  |              | 6   |  |      |   | 9   | 
|                                                                                     |  |              |     |  |      |  
|Average common shares outstanding  diluted                                          |  |              | 675 |  |      |   | 675 | 
|                                                                                     |  |              |     |  |      |  





| |                         
| | ------------------------
| | Share Repurchase Program

10-K




| |                        
| | -----------------------
| | Other Share Repurchases





|    |                                                                       
|--- | ----------------------------------------------------------------------
|13. | Commitments and Contingencies (Exelon, ComEd, PECO and
    Generation)

10-K.




| |                   
| | ------------------
| | Energy Commitments



47



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                       
| | ----------------------
| | Commercial Commitments





| |   |                                                                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Letters of credit and guarantees (outside the scope of FASB
    Interpretation No. 45, Guarantors Accounting
    and Disclosure Requirements for Guarantees, Including Indirect
    Guarantees of Indebtedness to Others) increased
    $52 million and $15 million, respectively, primarily
    as a result of energy trading activities.



| |                          
| | -------------------------
| | Environmental Liabilities







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EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|               |  |                   |     |  |                          |   |    | 
|-------------- |  | ----------------- | --- |  | ------------------------ | - | -- | 
|               |  | Total             |     |  |                         
|               |  | Environmental     |     |  |                         
|               |  | Investigation and |     |  | Portion of Total Related |  
|               |  | Remediation       |     |  | to MGP Investigation     |  
|March 31, 2006 |  | Reserve           |     |  | and Remediation (a)      |  
|               |  |                   |     |  |                          |  
|ComEd          |  | $                 | 53  |  |                          | $ | 46 | 
|PECO           |  |                   | 42  |  |                          |   | 40 | 
|Generation     |  |                   | 21  |  |                          |   |   | 
|               |  |                   |     |  |                          |  
|Exelon         |  | $                 | 116 |  |                          | $ | 86 | 
|               |  |                   |     |  |                          |  






|    |  |            
|--- |  | -----------
|(a) |  | Discounted.

|                  |  |                   |     |  |                          |   |    | 
|----------------- |  | ----------------- | --- |  | ------------------------ | - | -- | 
|                  |  | Total             |     |  |                         
|                  |  | Environmental     |     |  |                         
|                  |  | Investigation and |     |  | Portion of Total Related |  
|                  |  | Remediation       |     |  | to MGP Investigation     |  
|December 31, 2005 |  | Reserve           |     |  | and Remediation(a)       |  
|                  |  |                   |     |  |                          |  
|ComEd             |  | $                 | 54  |  |                          | $ | 48 | 
|PECO              |  |                   | 47  |  |                          |   | 41 | 
|Generation        |  |                   | 27  |  |                          |   |   | 
|                  |  |                   |     |  |                          |  
|Exelon            |  | $                 | 128 |  |                          | $ | 89 | 
|                  |  |                   |     |  |                          |  






|    |  |            
|--- |  | -----------
|(a) |  | Discounted.







| |                                      
| | -------------------------------------
| | Section 316(b) of the Clean Water Act



49



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










| |                                       
| | --------------------------------------
| | Nuclear Generating Station Groundwater



50



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












51



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










| |                   
| | ------------------
| | Cotter Corporation







| |       
| | ------
| | Leases

10-K




| |           
| | ----------
| | Litigation



| |                            
| | ---------------------------
| | Exelon, PECO and Generation

Reverse-Employment Discrimination Claim.


52



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




PJM Billing Dispute.


10-K.








| |      
| | -----
| | ComEd

ComEd Rate Case.


53



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |           
| | ----------
| | Generation

Asbestos Claims. 10-K.


Oil Spill Liability Trust Fund Claim.




| |                    
| | -------------------
| | PECO and Generation

Real Estate Tax Appeals.


54



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                   
| | ----------------------------------
| | Exelon, ComEd, PECO and Generation





| |             
| | ------------
| | Income Taxes

Refund Claims. 93-7, 93-7).


Other Refund Claims. 93-7.


Other.


55



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                                            
|--- | ---------------------------------------------------------------------------
|14. | Supplemental Financial Information (Exelon, ComEd, PECO and
    Generation)



| |                                          
| | -----------------------------------------
| | Supplemental Income Statement Information



|                                                             |                                                                              |              |    |     |      |   |    |     |  
|------------------------------------------------------------ | ---------------------------------------------------------------------------- | ------------ | -- | --- | ---- | - | -- | --- | -
|                                                             |                                                                              | Three Months |   
|                                                             |                                                                              | Ended        |   
|                                                             |                                                                              | March 31,    |   
|                                                             |                                                                              |              |   
|Exelon                                                       |                                                                              | 2006         |    |     | 2005 |  
|                                                             |                                                                              |              |    |     |      |  
|Investment income                                            |                                                                              | $            | 3  |     |      | $ | 3  |    
|Gain on disposition of assets and investments, net           |                                                                              |              | 1  |     |      |   | 2  |    
|Decommissioning-related activities:                          |                                                                              |              |    |     |      |   |    |    
|                                                             | Decommissioning trust fund income(a)                                         |              |    | 29  |      |   |    | 28  |  
|                                                             | Decommissioning trust fund income  AmerGen(a)                               |              |    | 9   |      |   |    | 13  |  
|                                                             | Other-than-temporary impairment of decommissioning trust funds(b)            |              |    | (3  | )    |   |    | (8  | )
|                                                             | Regulatory offset to non-operating decommissioning-related
    activities(c) |              |    | (26 | )    |   |    | (21 | )
|Net direct financing lease income                            |                                                                              |              | 6  |     |      |   | 5  |    
|Allowance for funds used during construction (AFUDC), equity |                                                                              |              |   |     |      |   | 1  |    
|Unrealized income tax credits(d)                             |                                                                              |              | 29 |     |      |   |   |    
|Other                                                        |                                                                              |              | (2 | )   |      |   | 7  |    
|                                                             |                                                                              |              |    |     |      |  
|Other, net                                                   |                                                                              | $            | 46 |     |      | $ | 30 |    
|                                                             |                                                                              |              |    |     |      |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Includes investment income and realized gains and losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(b) |  | For the three months ended March 31, 2006, includes
    other-than-temporary impairments totaling $3 million on
    nuclear decommissioning trust funds for the former ComEd units.
    For the three months ended March 31, 2005, includes
    other-than-temporary impairments totaling $7 million and
    $1 million on nuclear decommissioning trust funds for the
    former ComEd units and AmerGen units, respectively.                                                                                                 
|   
|(c) |  | Includes the elimination of non-operating
    decommissioning-related activity for those units that are
    subject to regulatory accounting, including the elimination of
    decommissioning trust fund income and other-than-temporary
    impairments for certain nuclear units. See Notes 13 and 16
    of Exelons Notes to Consolidated Financial Statements
    within Exelons Annual Report on 2005
    Form 10-K for more
    information regarding the regulatory accounting applied for
    certain nuclear units.
|   
|(d) |  | Receivable for the contractual recovery of unrealized income tax
    credits related to Exelons investment in synthetic
    fuel-producing facilities. See Note 10  Income
    Taxes for further information.                                                                                                                                                                                                                                                                                                                

|                                                   |  |              |   |  |      |   |    |  
|-------------------------------------------------- |  | ------------ | - |  | ---- | - | -- | -
|                                                   |  | Three Months |  
|                                                   |  | Ended        |  
|                                                   |  | March 31,    |  
|                                                   |  |              |  
|ComEd                                              |  | 2006         |   |  | 2005 |  
|                                                   |  |              |   |  |      |  
|Investment income                                  |  | $            |  |  |      | $ | 1  |  
|Gain on disposition of assets and investments, net |  |              |  |  |      |   | 3  |  
|AFUDC, equity                                      |  |              |  |  |      |   | 1  |  
|Other                                              |  |              | 1 |  |      |   | (1 | )
|                                                   |  |              |   |  |      |  
|Other, net                                         |  | $            | 1 |  |      | $ | 4  |  
|                                                   |  |              |   |  |      |  

56



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                  |  |              |   |  |      |   |    |  
|----------------- |  | ------------ | - |  | ---- | - | -- | -
|                  |  | Three Months |  
|                  |  | Ended        |  
|                  |  | March 31,    |  
|                  |  |              |  
|PECO              |  | 2006         |   |  | 2005 |  
|                  |  |              |   |  |      |  
|Investment income |  | $            | 2 |  |      | $ | 2  |  
|Other             |  |              | 1 |  |      |   | (1 | )
|                  |  |              |   |  |      |  
|Other, net        |  | $            | 3 |  |      | $ | 1  |  
|                  |  |              |   |  |      |  

|                                    |                                                                               |              |    |     |      |   |    |     |  
|----------------------------------- | ----------------------------------------------------------------------------- | ------------ | -- | --- | ---- | - | -- | --- | -
|                                    |                                                                               | Three Months |   
|                                    |                                                                               | Ended        |   
|                                    |                                                                               | March 31,    |   
|                                    |                                                                               |              |   
|Generation                          |                                                                               | 2006         |    |     | 2005 |  
|                                    |                                                                               |              |    |     |      |  
|Decommissioning-related activities: |                                                                               |              |    |     |      |   |    |    
|                                    | Decommissioning trust fund income(a)                                          |              | $  | 29  |      |   | $  | 28  |  
|                                    | Decommissioning trust fund income  AmerGen(a)                                |              |    | 9   |      |   |    | 13  |  
|                                    | Other-than-temporary impairment of decommissioning trust funds(b)             |              |    | (3  | )    |   |    | (8  | )
|                                    | Contractual offset to non-operating decommissioning-related
    activities(c) |              |    | (26 | )    |   |    | (21 | )
|Other                               |                                                                               |              | (2 | )   |      |   | 6  |    
|                                    |                                                                               |              |    |     |      |  
|Other, net                          |                                                                               | $            | 7  |     |      | $ | 18 |    
|                                    |                                                                               |              |    |     |      |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Includes investment income and realized gains and losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(b) |  | For the three months ended March 31, 2006, includes
    other-than-temporary impairments totaling $3 million on
    nuclear decommissioning trust funds for the former ComEd units.
    For the three months ended March 31, 2005, includes
    other-than-temporary impairments totaling $7 million and
    $1 million on nuclear decommissioning trust funds for the
    former ComEd units and AmerGen units, respectively.                                                                                               
|   
|(c) |  | Includes the elimination of non-operating
    decommissioning-related activity for those units that are
    subject to contractual accounting, including the elimination of
    decommissioning trust fund income and other-than-temporary
    impairments for certain nuclear units. See Notes 13 and 16
    of Exelons Notes to Consolidated Financial Statements
    within Exelons 2005 Annual Report
    Form 10-K for more
    information regarding the regulatory accounting applied for
    certain nuclear units.

57



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                       
| | --------------------------------------
| | Supplemental Balance Sheet Information



|                                                         |  |           |        |   |              |   |        |  
|-------------------------------------------------------- |  | --------- | ------ | - | ------------ | - | ------ | -
|                                                         |  | March 31, |        |   | December 31, |  
|Exelon and ComEd                                         |  | 2006      |        |   | 2005         |  
|                                                         |  |           |        |   |              |  
|Regulatory assets (liabilities):                         |  |           |        |   |              |   |        |  
|Nuclear decommissioning                                  |  | $         | (1,516 | ) |              | $ | (1,435 | )
|Removal costs                                            |  |           | (1,025 | ) |              |   | (1,015 | )
|Reacquired debt costs and interest-rate swap settlements |  |           | 102    |   |              |   | 107    |  
|Conditional asset retirement obligations                 |  |           | 93     |   |              |   | 91     |  
|Recoverable transition costs                             |  |           | 40     |   |              |   | 43     |  
|Deferred income taxes                                    |  |           | 8      |   |              |   | 8      |  
|Other                                                    |  |           | 30     |   |              |   | 31     |  
|                                                         |  |           |        |   |              |  
|Total net regulatory liabilities                         |  | $         | (2,268 | ) |              | $ | (2,170 | )
|                                                         |  |           |        |   |              |  

|                                                                       |  |           |       |   |              |   |       |  
|---------------------------------------------------------------------- |  | --------- | ----- | - | ------------ | - | ----- | -
|                                                                       |  | March 31, |       |   | December 31, |  
|Exelon and PECO                                                        |  | 2006      |       |   | 2005         |  
|                                                                       |  |           |       |   |              |  
|Regulatory assets (liabilities):                                       |  |           |       |   |              |   |       |  
|Competitive transition charges                                         |  | $         | 3,401 |   |              | $ | 3,532 |  
|Deferred income taxes                                                  |  |           | 784   |   |              |   | 781   |  
|Non-pension postretirement benefits                                    |  |           | 44    |   |              |   | 45    |  
|Reacquired debt costs                                                  |  |           | 35    |   |              |   | 36    |  
|MGP regulatory asset                                                   |  |           | 20    |   |              |   | 26    |  
|Conditional asset retirement obligations                               |  |           | 14    |   |              |   | 13    |  
|U.S. Department of Energy facility decommissioning                     |  |           | 11    |   |              |   | 13    |  
|Nuclear decommissioning                                                |  |           | (88   | ) |              |   | (68   | )
|Other                                                                  |  |           | 14    |   |              |   | 8     |  
|                                                                       |  |           |       |   |              |  
|Long-term regulatory assets                                            |  |           | 4,235 |   |              |   | 4,386 |  
|Deferred (over-recovered) energy costs  current asset
    (liability) |  |           | (11   | ) |              |   | 39    |  
|                                                                       |  |           |       |   |              |  
|Total net regulatory assets                                            |  | $         | 4,224 |   |              | $ | 4,425 |  
|                                                                       |  |           |       |   |              |  



|                               |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |       |    
|------------------------------ | ------------------------------------ | ------ | - | ----- | ----- |  | - | ----- |  |  | ---------- | ----- |  |  | - | ----- | ---
|March 31, 2006                 |                                      | Exelon |   |       | ComEd |  |   | PECO  |  |  | Generation |      
|                               |                                      |        |   |       |       |  |   |       |  |  |            |      
|Property, plant and equipment: |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Accumulated depreciation             |        | $ | 8,033 | (a)   |  | $ | 1,285 |  |  | $          | 2,198 |  |  | $ | 4,418 | (a)
|Accounts receivable:           |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Allowance for uncollectible accounts |        |   | 87    |       |  |   | 19    |  |  |            | 45    |  |  |   | 15    |    






|    |                                                                         
|--- | ------------------------------------------------------------------------
|(a) | Includes accumulated amortization of nuclear fuel of
    $2,151 million.

58



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                               |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |       |    
|------------------------------ | ------------------------------------ | ------ | - | ----- | ----- |  | - | ----- |  |  | ---------- | ----- |  |  | - | ----- | ---
|December 31, 2005              |                                      | Exelon |   |       | ComEd |  |   | PECO  |  |  | Generation |      
|                               |                                      |        |   |       |       |  |   |       |  |  |            |      
|Property, plant and equipment: |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Accumulated depreciation             |        | $ | 7,872 | (a)   |  | $ | 1,253 |  |  | $          | 2,172 |  |  | $ | 4,315 | (a)
|Accounts receivable:           |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Allowance for uncollectible accounts |        |   | 77    |       |  |   | 20    |  |  |            | 39    |  |  |   | 15    |    






|    |                                                                         
|--- | ------------------------------------------------------------------------
|(a) | Includes accumulated amortization of nuclear fuel of
    $2,103 million.



|                           |                                   |           |   |     |              |  |   |     | 
|-------------------------- | --------------------------------- | --------- | - | --- | ------------ |  | - | --- | 
|                           |                                   | March 31, |   |     | December 31, | 
|Exelon and Generation      |                                   | 2006      |   |     | 2005         | 
|                           |                                   |           |   |     |              | 
|Other current assets:      |                                   |           |   |     |              |  |   |    
|                           | Counterparty collateral asset     |           | $ | 139 |              |  | $ | 285 | 
|Other current liabilities: |                                   |           |   |     |              |  |   |    
|                           | Counterparty collateral liability |           |   | 60  |              |  |   | 101 | 



|    |                                                         
|--- | --------------------------------------------------------
|15. | Segment Information (Exelon, ComEd, PECO and Generation)





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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                           
| | ------------------------------------------
| | Three Months Ended March 31, 2006 and 2005



|                                                       |  |       |        |  |      |   |        |            |  |   |          |  |  |              |        |   |              |   |         |   |  |   |        | 
|------------------------------------------------------ |  | ----- | ------ |  | ---- | - | ------ | ---------- |  | - | -------- |  |  | ------------ | ------ | - | ------------ | - | ------- | - |  | - | ------ | 
|                                                       |  | ComEd |        |  | PECO |   |        | Generation |  |   | Other(a) |  |  | Eliminations |        |   | Consolidated |  
|                                                       |  |       |        |  |      |   |        |            |  |   |          |  |  |              |        |   |              |  
|Total revenues(b):                                     |  |       |        |  |      |   |        |            |  |   |          |  |  |              |        |   |              |   |         |   |  |   |        | 
|2006                                                   |  | $     | 1,426  |  |      | $ | 1,407  |            |  | $ | 2,220    |  |  | $            | 205    |   |              | $ | (1,397  | ) |  | $ | 3,861  | 
|2005                                                   |  |       | 1,386  |  |      |   | 1,295  |            |  |   | 2,020    |  |  |              | 168    |   |              |   | (1,308  | ) |  |   | 3,561  | 
|Intersegment revenues:                                
|2006                                                   |  | $     | 2      |  |      | $ | 2      |            |  | $ | 1,188    |  |  | $            | 205    |   |              | $ | (1,397  | ) |  | $ |       | 
|2005                                                   |  |       | 2      |  |      |   | 2      |            |  |   | 1,135    |  |  |              | 169    |   |              |   | (1,308  | ) |  |   |       | 
|Income from continuing operations before income taxes:
|2006                                                   |  | $     | 91     |  |      | $ | 141    |            |  | $ | 429      |  |  | $            | (61    | ) |              | $ |        |   |  | $ | 600    | 
|2005                                                   |  |       | 116    |  |      |   | 200    |            |  |   | 495      |  |  |              | (77    | ) |              |   |        |   |  |   | 734    | 
|Income taxes:                                         
|2006                                                   |  | $     | 37     |  |      | $ | 48     |            |  | $ | 161      |  |  | $            | (45    | ) |              | $ |        |   |  | $ | 201    | 
|2005                                                   |  |       | 46     |  |      |   | 71     |            |  |   | 191      |  |  |              | (81    | ) |              |   |        |   |  |   | 227    | 
|Income from continuing operations:                    
|2006                                                   |  | $     | 54     |  |      | $ | 93     |            |  | $ | 268      |  |  | $            | (16    | ) |              | $ |        |   |  | $ | 399    | 
|2005                                                   |  |       | 70     |  |      |   | 129    |            |  |   | 304      |  |  |              | 4      |   |              |   |        |   |  |   | 507    | 
|Income from discontinued operations:                  
|2006                                                   |  | $     |       |  |      | $ |       |            |  | $ |         |  |  | $            | 1      |   |              | $ |        |   |  | $ | 1      | 
|2005                                                   |  |       |       |  |      |   |       |            |  |   | 16       |  |  |              | (2     | ) |              |   |        |   |  |   | 14     | 
|Net income:                                           
|2006                                                   |  | $     | 54     |  |      | $ | 93     |            |  | $ | 268      |  |  | $            | (15    | ) |              | $ |        |   |  | $ | 400    | 
|2005                                                   |  |       | 70     |  |      |   | 129    |            |  |   | 320      |  |  |              | 2      |   |              |   |        |   |  |   | 521    | 
|Total assets:                                         
|March 31, 2006                                         |  | $     | 17,338 |  |      | $ | 9,983  |            |  | $ | 17,575   |  |  | $            | 13,157 |   |              | $ | (15,759 | ) |  | $ | 42,294 | 
|December 31, 2005                                      |  |       | 17,211 |  |      |   | 10,018 |            |  |   | 17,724   |  |  |              | 13,019 |   |              |   | (15,583 | ) |  |   | 42,389 | 






|    |  |                                                                                                                                                                                                                                                                                                                                                     
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including BSC, Enterprises and investments in synthetic
    fuel-producing facilities.                                                                                                                                                                                            
|   
|(b) |  | For the three months ended March 31, 2006 and 2005, utility
    taxes of $62 million and $63 million, respectively,
    are included in revenues and expenses for ComEd. For the three
    months ended March 31, 2006 and 2005, utility taxes of
    $57 million and $52 million, respectively, are
    included in revenues and expenses for PECO.

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EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                                    
|--- | -------------------------------------------------------------------
|16. | Related-Party Transactions (Exelon, ComEd, PECO and
    Generation)



| |                 
| | ----------------
| | Exelon and ComEd



|                                                         |                                  |                    |   |    |      |  |   |    |  
|-------------------------------------------------------- | -------------------------------- | ------------------ | - | -- | ---- |  | - | -- | -
|                                                         |                                  | Three Months Ended |  
|                                                         |                                  | March 31,          |  
|                                                         |                                  |                    |  
|                                                         |                                  | 2006               |   |    | 2005 | 
|                                                         |                                  |                    |   |    |      | 
|Operating revenues from affiliates                       |                                  |                    |   |    |      |  |   |   
|                                                         | ComEd Transitional Funding Trust |                    | $ | 1  |      |  | $ | 1  |  
|Interest expense to affiliates                           |                                  |                    |   |    |      |  |   |   
|                                                         | ComEd Transitional Funding Trust |                    |   | 14 |      |  |   | 19 |  
|                                                         | ComEd Financing II               |                    |   | 3  |      |  |   | 3  |  
|                                                         | ComEd Financing III              |                    |   | 3  |      |  |   | 3  |  
|Equity in earnings (losses) of unconsolidated affiliates |                                  |                    |   |    |      |  |   |   
|                                                         | ComEd Funding LLC                |                    |   | (3 | )    |  |   | (4 | )

|                                                                                                                  |                                  |           |   |     |              |  |   |     | 
|----------------------------------------------------------------------------------------------------------------- | -------------------------------- | --------- | - | --- | ------------ |  | - | --- | 
|                                                                                                                  |                                  | March 31, |   |     | December 31, | 
|                                                                                                                  |                                  | 2006      |   |     | 2005         | 
|                                                                                                                  |                                  |           |   |     |              | 
|Receivables from affiliates (current)                                                                             |                                  |           |   |     |              |  |   |    
|                                                                                                                  | ComEd Transitional Funding Trust |           | $ | 15  |              |  | $ | 14  | 
|Investment in affiliates                                                                                          |                                  |           |   |     |              |  |   |    
|                                                                                                                  | ComEd Funding LLC                |           |   | 15  |              |  |   | 18  | 
|                                                                                                                  | ComEd Financing II               |           |   | 10  |              |  |   | 10  | 
|                                                                                                                  | ComEd Financing III              |           |   | 6   |              |  |   | 6   | 
|Receivable from affiliates (noncurrent)                                                                           |                                  |           |   |     |              |  |   |    
|                                                                                                                  | ComEd Transitional Funding Trust |           |   | 13  |              |  |   | 12  | 
|Payables to affiliates (current)                                                                                  |                                  |           |   |     |              |  |   |    
|                                                                                                                  | ComEd Financing II               |           |   | 3   |              |  |   | 6   | 
|                                                                                                                  | ComEd Financing III              |           |   |    |              |  |   | 4   | 
|Long-term debt to ComEd Transitional Funding Trust and other
    financing trusts (including due within one year) |                                  |           |   |     |              |  |   |    
|                                                                                                                  | ComEd Transitional Funding Trust |           |   | 898 |              |  |   | 987 | 
|                                                                                                                  | ComEd Financing II               |           |   | 155 |              |  |   | 155 | 
|                                                                                                                  | ComEd Financing III              |           |   | 206 |              |  |   | 206 | 

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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                           |                                   |                    |   |     |      |  |     |     | 
|------------------------------------------ | --------------------------------- | ------------------ | - | --- | ---- |  | --- | --- | 
|                                           |                                   | Three Months Ended |  
|                                           |                                   | March 31,          |  
|                                           |                                   |                    |  
|                                           |                                   | 2006               |   |     | 2005 | 
|                                           |                                   |                    |   |     |      | 
|Operating revenues from affiliates         |                                   |                    |   |     |      |  |     |    
|                                           | Generation(a)                     |                    | $ | 2   |      |  | $   | 2   | 
|Purchased power from affiliate             |                                   |                    |   |     |      |  |     |    
|                                           | PPA with Generation(b)            |                    |   | 771 |      |  |     | 753 | 
|Operations and maintenance from affiliates |                                   |                    |   |     |      |  |     |    
|                                           | BSC(c)                            |                    |   | 52  |      |  |     | 44  | 
|Interest income from affiliates            |                                   |                    |   |     |      |  |     |    
|                                           | Exelon intercompany money pool(d) |                    |   |    |      |  |     | 2   | 
|Capitalized costs                          |                                   |                    |   |     |      |  |     |    
|                                           | BSC(c)                            |                    |   | 17  |      |  |     | 14  | 
|Cash dividends paid to parent              |                                   |                    |  |     |      |  | 138 |    

|                                                  |                               |           |   |       |              |  |     |       | 
|------------------------------------------------- | ----------------------------- | --------- | - | ----- | ------------ |  | --- | ----- | 
|                                                  |                               | March 31, |   |       | December 31, | 
|                                                  |                               | 2006      |   |       | 2005         | 
|                                                  |                               |           |   |       |              | 
|Receivables from affiliates (current)             |                               |           |   |       |              |  |     |      
|                                                  | Other                         |           | $ |      |              |  | $   | 23    | 
|Receivables from affiliates (noncurrent)          |                               |           |   |       |              |  |     |      
|                                                  | Generation(e)                 |           |   | 1,517 |              |  |     | 1,435 | 
|Payables to affiliates (current)                  |                               |           |   |       |              |  |     |      
|                                                  | Generation decommissioning(f) |           |   | 11    |              |  |     | 11    | 
|                                                  | Generation(a),(b)             |           |   | 251   |              |  |     | 242   | 
|                                                  | BSC(c)                        |           |   | 19    |              |  |     | 14    | 
|Borrowings from Exelon intercompany money pool(d) |                               |           |  |       |              |  | 140 |      






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | ComEd provides retail electric and ancillary services to
    Generation.                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(b) |  | ComEd has entered into a full-requirements purchase power
    agreement (PPA), as amended, with Generation. See Note 17
    of ComEds Notes to Consolidated Financial Statements
    within ComEds 2005 Annual Report on
    Form 10-K for more
    information regarding the PPA.                                                                                                                                                                                                                                            
|   
|(c) |  | ComEd receives a variety of corporate support services from BSC,
    including legal, human resources, financial, information
    technology, supply management services, planning and engineering
    of delivery systems, management of construction, maintenance and
    operations of the transmission and delivery systems and
    management of other support services. All services are provided
    at cost, including applicable overhead. A portion of such
    services is capitalized.                              
|   
|(d) |  | ComEd participated in Exelons intercompany money pool,
    whereby ComEd earned interest on its contributions to the money
    pool and paid interest on its borrowings from the money pool at
    a market rate of interest. As of January 10, 2006, ComEd
    suspended participation in the money pool and on
    February 22, 2006, entered into a $1 billion senior
    secured three year revolving credit agreement among a group of
    lenders. See Note 7  Debt and Credit Agreements
    for additional information
|   
|(e) |  | ComEd has a long-term receivable from Generation as a result of
    the nuclear decommissioning contractual construct whereby, to
    the extent the assets associated with decommissioning are
    greater than the applicable ARO at the end of                                                                                                                                                                                                                                                                               

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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |  |                                                                                                                                                                                                                                                       
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |  | decommissioning, such amounts are due back to ComEd for payment
    to ComEds customers. See Note 11 of ComEds
    Notes to Consolidated Financial Statements within ComEds
    2005 Annual Report on
    Form 10-K for
    additional information.
|   
|(f) |  | ComEd has a short-term payable to Generation, primarily
    representing ComEds legal requirements to remit
    collections of nuclear decommissioning costs from its customers
    to Generation.                                                   



| |                
| | ---------------
| | Exelon and PECO



|                                              |                |                    |   |    |      |  |   |    | 
|--------------------------------------------- | -------------- | ------------------ | - | -- | ---- |  | - | -- | 
|                                              |                | Three Months Ended |  
|                                              |                | March 31,          |  
|                                              |                |                    |  
|                                              |                | 2006               |   |    | 2005 | 
|                                              |                |                    |   |    |      | 
|Operating revenues from affiliates            |                |                    |   |    |      |  |   |   
|                                              | PETT(a)        |                    | $ | 2  |      |  | $ | 2  | 
|Interest expense to affiliates                |                |                    |   |    |      |  |   |   
|                                              | PETT           |                    |   | 48 |      |  |   | 56 | 
|                                              | PECO Trust III |                    |   | 2  |      |  |   | 2  | 
|                                              | PECO Trust IV  |                    |   | 1  |      |  |   | 1  | 
|Equity in losses of unconsolidated affiliates |                |                    |   |    |      |  |   |   
|                                              | PETT           |                    |   | 3  |      |  |   | 4  | 

|                                                                                      |                          |           |   |       |              |  |   |       | 
|------------------------------------------------------------------------------------- | ------------------------ | --------- | - | ----- | ------------ |  | - | ----- | 
|                                                                                      |                          | March 31, |   |       | December 31, | 
|                                                                                      |                          | 2006      |   |       | 2005         | 
|                                                                                      |                          |           |   |       |              | 
|Investment in affiliates                                                              |                          |           |   |       |              |  |   |      
|                                                                                      | PETT                     |           | $ | 61    |              |  | $ | 63    | 
|                                                                                      | PECO Energy Capital Corp |           |   | 4     |              |  |   | 4     | 
|                                                                                      | PECO Trust IV            |           |   | 6     |              |  |   | 6     | 
|Payables to affiliates (current)                                                      |                          |           |   |       |              |  |   |      
|                                                                                      | PECO Trust III           |           |   | 2     |              |  |   | 1     | 
|                                                                                      | PECO Trust IV            |           |   | 2     |              |  |   |      | 
|Long-term debt to PETT and other financing trusts (including due
    within one year) |                          |           |   |       |              |  |   |      
|                                                                                      | PETT                     |           |   | 2,849 |              |  |   | 2,975 | 
|                                                                                      | PECO Trust III           |           |   | 81    |              |  |   | 81    | 
|                                                                                      | PECO Trust IV            |           |   | 103   |              |  |   | 103   | 






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(a) | PECO receives a monthly service fee from PETT based on a
    percentage of the outstanding balance of all series of
    transition bonds.

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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                           |               |                    |     |      |      |  |     |     | 
|------------------------------------------ | ------------- | ------------------ | --- | ---- | ---- |  | --- | --- | 
|                                           |               | Three Months Ended |    
|                                           |               | March 31,          |    
|                                           |               |                    |    
|                                           |               | 2006               |     |      | 2005 | 
|                                           |               |                    |     |      |      | 
|Operating revenues from affiliates         |               |                    |     |      |      |  |     |    
|                                           | Generation(a) |                    |     | $  2 |      |  | $   | 2   | 
|Purchased power from affiliate             |               |                    |     |      |      |  |     |    
|                                           | Generation(b) |                    |     | 416  |      |  |     | 381 | 
|Fuel from affiliate                        |               |                    |     |      |      |  |     |    
|                                           | Generation(c) |                    |     |     |      |  |     | 1   | 
|Operations and maintenance from affiliates |               |                    |     |      |      |  |     |    
|                                           | BSC(d)        |                    |     | 31   |      |  |     | 25  | 
|Interest income from affiliates            |               |                    |     |      |      |  |     |    
|                                           | Other         |                    |     |     |      |  |     | 1   | 
|Capitalized costs                          |               |                    |     |      |      |  |     |    
|                                           | BSC(d)        |                    |     | 17   |      |  |     | 6   | 
|Cash dividends paid to parent              |               |                    | 116 |      |      |  | 115 |    

|                                                   |                               |           |       |     |              |  |       |     | 
|-------------------------------------------------- | ----------------------------- | --------- | ----- | --- | ------------ |  | ----- | --- | 
|                                                   |                               | March 31, |       |     | December 31, | 
|                                                   |                               | 2006      |       |     | 2005         | 
|                                                   |                               |           |       |     |              | 
|Receivable from affiliate (current)                |                               |           |       |     |              |  |       |    
|                                                   | BSC                           |           | $     |    |              |  | $     | 13  | 
|Contributions to Exelon intercompany money pool(e) |                               |           |      |     |              |  | 8     |    
|Receivable from affiliate (noncurrent)             |                               |           |       |     |              |  |       |    
|                                                   | Generation decommissioning(f) |           |       | 88  |              |  |       | 68  | 
|Payables to affiliates (current)                   |                               |           |       |     |              |  |       |    
|                                                   | Generation(b)                 |           |       | 143 |              |  |       | 151 | 
|                                                   | BSC(d)                        |           |       | 25  |              |  |       | 26  | 
|Shareholders equity  receivable from parent(g)   |                               |           | 1,196 |     |              |  | 1,232 |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | PECO provides energy to Generation for Generations own use.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(b) |  | PECO has entered into a PPA with Generation. See Note 15 of
    PECOs Notes to Consolidated Financial Statements within
    PECOs 2005 Annual Report on
    Form 10-K for more
    information regarding the PPA.                                                                                                                                                                                                                                                                              
|   
|(c) |  | Effective April 1, 2004, PECO entered into a one-year gas
    procurement agreement with Generation.                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(d) |  | PECO receives a variety of corporate support services from BSC,
    including legal, human resources, financial, information
    technology, supply management services, planning and engineering
    of delivery systems, management of construction, maintenance and
    operations of the transmission and delivery systems and
    management of other support services. All services are provided
    at cost, including applicable overhead. A portion of such
    services is capitalized.
|   
|(e) |  | PECO participates in Exelons intercompany money pool. PECO
    earns interest on its contributions to the money pool at a
    market rate of interest.                                                                                                                                                                                                                                                                                                                                          

64



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(f) |  | PECO has a long-term receivable from Generation as a result of
    the nuclear decommissioning contractual construct, whereby, to
    the extent the assets associated with decommissioning are
    greater than the applicable ARO at the end of decommissioning,
    such amounts are due back to PECO for payment to PECOs
    customers. See Note 9 of PECOs Notes to Consolidated
    Financial Statements within PECOs 2005 Annual Report on
    Form 10-K for
    additional information.
|   
|(g) |  | PECO has a non-interest bearing receivable from Exelon related
    to the 2001 corporate restructuring. The receivable is expected
    to be settled over the years 2006 through 2010.                                                                                                                                                                                                                                                                                                             



| |           
| | ----------
| | Generation



|                                           |                                   |                    |     |      |      |  |     |     | 
|------------------------------------------ | --------------------------------- | ------------------ | --- | ---- | ---- |  | --- | --- | 
|                                           |                                   | Three Months Ended |    
|                                           |                                   | March 31,          |    
|                                           |                                   |                    |    
|                                           |                                   | 2006               |     |      | 2005 | 
|                                           |                                   |                    |     |      |      | 
|Operating revenues from affiliates         |                                   |                    |     |      |      |  |     |    
|                                           | ComEd(a)                          |                    |     | $771 |      |  | $   | 753 | 
|                                           | PECO(a)                           |                    |     | 416  |      |  |     | 382 | 
|                                           | BSC                               |                    |     | 1    |      |  |     |    | 
|Operations and maintenance from affiliates |                                   |                    |     |      |      |  |     |    
|                                           | ComEd(b)                          |                    |     | 2    |      |  |     | 2   | 
|                                           | PECO(b)                           |                    |     | 2    |      |  |     | 2   | 
|                                           | BSC(c)                            |                    |     | 71   |      |  |     | 64  | 
|Interest expense to affiliate              |                                   |                    |     |      |      |  |     |    
|                                           | Exelon intercompany money pool(d) |                    |     | 1    |      |  |     | 2   | 
|Cash distribution paid to member           |                                   |                    | 165 |      |      |  | 239 |    
|Cash contribution received from member     |                                   |                    |    |      |      |  | 843 |    

|                                                  |                          |           |   |       |              |  |    |       | 
|------------------------------------------------- | ------------------------ | --------- | - | ----- | ------------ |  | -- | ----- | 
|                                                  |                          | March 31, |   |       | December 31, | 
|                                                  |                          | 2006      |   |       | 2005         | 
|                                                  |                          |           |   |       |              | 
|Receivables from affiliates (current)             |                          |           |   |       |              |  |    |      
|                                                  | ComEd(a)                 |           | $ | 251   |              |  | $  | 242   | 
|                                                  | ComEd decommissioning(e) |           |   | 11    |              |  |    | 11    | 
|                                                  | PECO(a)                  |           |   | 143   |              |  |    | 151   | 
|                                                  | BSC(c)                   |           |   |      |              |  |    | 7     | 
|Payables to affiliates (current)                  |                          |           |   |       |              |  |    |      
|                                                  | Exelon(f)                |           |   | 2     |              |  |    | 4     | 
|                                                  | BSC(c)                   |           |   | 56    |              |  |    |      | 
|Borrowings from Exelon intercompany money pool(d) |                          |           | 4 |       |              |  | 92 |      
|Payables to affiliates (noncurrent)               |                          |           |   |       |              |  |    |      
|                                                  | ComEd decommissioning(g) |           |   | 1,517 |              |  |    | 1,435 | 
|                                                  | PECO decommissioning(g)  |           |   | 88    |              |  |    | 68    | 

65



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Generation has entered into PPAs with ComEd and PECO, as
    amended, to provide the full energy requirements of ComEd and
    PECO. See Note 17 of Generations Notes to
    Consolidated Financial Statements within Generations 2005
    Annual Report on
    Form 10-K for
    additional information regarding the PPAs.                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(b) |  | Generation purchases retail and electric and ancillary services
    from ComEd and buys power from PECO for Generations own
    use. In order to facilitate payment processing, ComEd processes
    certain invoice payments on behalf of Generation. Prior to
    joining PJM on May 1, 2004, ComEd also provided
    transmission services to Generation. Amounts charged by ComEd to
    Generation for transmission have been recorded as intercompany
    purchased power by Generation. Effective April 1, 2004,
    Generation entered into a one-year gas supply agreement with
    PECO. See Note 17 of Generations Notes to
    Consolidated Financial Statements within Generations 2005
    Annual Report on
    Form 10-K for
    additional information regarding the PPAs.
|   
|(c) |  | Generation receives a variety of corporate support services from
    BSC, including legal, human resources, financial, information
    technology and supply management services. All services are
    provided at cost, including applicable overhead. A portion of
    such services is capitalized. Some third-party reimbursements
    due to Generation are recovered through BSC.                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(d) |  | Generation participates in Exelons intercompany money
    pool. Generation earns interest on its contributions to the
    money pool, and pays interest on its borrowings from the money
    pool at a market rate of interest.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(e) |  | Generation has short-term receivable from ComEd, primarily
    representing ComEds legal requirements to remit
    collections of nuclear decommissioning costs from its customers
    to Generation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(f) |  | In order to facilitate payment processing, Exelon processes
    certain invoice payments on behalf of Generation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(g) |  | Generation has long-term payables to ComEd and PECO as a result
    of the nuclear decommissioning contractual construct whereby, to
    the extent the assets associated with decommissioning are
    greater than the applicable ARO, such amounts are due back to
    ComEd and PECO, as applicable, for payment to the customers. See
    Note 13 of Generations Notes to Consolidated
    Financial Statements within Generations 2005 Annual Report
    on Form 10-K for
    additional information.                                                                                                                                                                                                                                                                                



|    |                                                                          
|--- | -------------------------------------------------------------------------
|17. | Derivative Financial Instruments (Exelon, ComEd, PECO and
    Generation)



| |                                             
| | --------------------------------------------
| | Interest-Rate Swaps (Exelon, ComEd and PECO)



Fair-Value Hedges. fixed-to Fixed-to


Cash-Flow Hedges.


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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                                              
| | -------------------------------------------------------------
| | Energy-Related Derivatives (Exelon, ComEd and
    Generation)

10-K.


mark-to




67



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                              |  |            |      |   |             |   |      |             |         |   |          |   |  |       |        |   |          |   |     |             |  |   |    |   |  |   |        |  
|------------------------------------------------------------- |  | ---------- | ---- | - | ----------- | - | ---- | ----------- | ------- | - | -------- | - |  | ----- | ------ | - | -------- | - | --- | ----------- |  | - | -- | - |  | - | ------ | -
|                                                              |  | Generation |      |   |             |   |      |             | Exelon  |  
|                                                              |  |            |      |   |             |   |      |             | Energy- |  
|                                                              |  | Cash-Flow  |      |   | Other       |   |      | Proprietary |         |   |          |   |  |       |        |   | Related  |  
|Derivatives                                                   |  | Hedges     |      |   | Derivatives |   |      | Trading     |         |   | SubTotal |   |  | ComEd |        |   | Other(a) |   |     | Derivatives | 
|                                                              |  |            |      |   |             |   |      |             |         |   |          |   |  |       |        |   |          |   |     |             | 
|Current assets                                                |  | $          | 347  |   |             | $ | 266  |             |         | $ | 24       |   |  | $     | 637    |   |          | $ |    |             |  | $ |   |   |  | $ | 637    |  
|Noncurrent assets                                             |  |            | 200  |   |             |   | 10   |             |         |   | 121      |   |  |       | 331    |   |          |   |    |             |  |   | 38 |   |  |   | 369    |  
|                                                              |  |            |      |   |             |   |      |             |         |   |          |   |  |       |        |   |          |   |     |             | 
|Total mark-to-market energy contract assets                   |  | $          | 547  |   |             | $ | 276  |             |         | $ | 145      |   |  | $     | 968    |   |          | $ |    |             |  | $ | 38 |   |  | $ | 1,006  |  
|                                                              |  |            |      |   |             |   |      |             |         |   |          |   |  |       |        |   |          |   |     |             | 
|Current liabilities                                           |  | $          | (640 | ) |             | $ | (289 | )           |         | $ | (18      | ) |  | $     | (947   | ) |          | $ | (6  | )           |  |   |   |   |  | $ | (953   | )
|Noncurrent liabilities                                        |  |            | (276 | ) |             |   | (36  | )           |         |   | (120     | ) |  |       | (432   | ) |          |   | (4  | )           |  |   | (1 | ) |  |   | (437   | )
|                                                              |  |            |      |   |             |   |      |             |         |   |          |   |  |       |        |   |          |   |     |             | 
|Total mark-to-market energy contract liabilities              |  | $          | (916 | ) |             | $ | (325 | )           |         | $ | (138     | ) |  |       | (1,379 | ) |          | $ | (10 | )           |  |   | (1 | ) |  | $ | (1,390 | )
|                                                              |  |            |      |   |             |   |      |             |         |   |          |   |  |       |        |   |          |   |     |             | 
|Total mark-to-market energy contract net assets (liabilities) |  | $          | (369 | ) |             | $ | (49  | )           |         | $ | 7        |   |  | $     | (411   | ) |          | $ | (10 | )           |  | $ | 37 |   |  | $ | (384   | )
|                                                              |  |            |      |   |             |   |      |             |         |   |          |   |  |       |        |   |          |   |     |             | 






|    |  |                                                                                                                                                         
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including BSC, Enterprises and investments in synthetic
    fuel-producing facilities.

Normal Operations and Hedging Activities.




| |                              
| | -----------------------------
| | Cash-Flow Hedges (Generation)



|                                                     |  |                     |      |  
|---------------------------------------------------- |  | ------------------- | ---- | -
|                                                     |  | Total Cash-Flow     |     
|                                                     |  | Hedge OCI Activity, |     
|Three Months Ended March 31, 2006                    |  | Net of Income Tax   |     
|                                                     |  |                     |     
|Accumulated OCI derivative loss at December 31, 2005 |  | $                   | (314 | )
|Changes in fair value                                |  |                     | 46   |  
|Reclassifications from OCI to net income             |  |                     | 45   |  
|                                                     |  |                     |     
|Accumulated OCI derivative loss at March 31, 2006    |  | $                   | (223 | )
|                                                     |  |                     |     

68



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                     |  |                     |      |  
|---------------------------------------------------- |  | ------------------- | ---- | -
|                                                     |  | Total Cash-Flow     |     
|                                                     |  | Hedge OCI Activity, |     
|Three Months Ended March 31, 2005                    |  | Net of Income Tax   |     
|                                                     |  |                     |     
|Accumulated OCI derivative loss at December 31, 2004 |  | $                   | (137 | )
|Changes in fair value                                |  |                     | (176 | )
|Reclassifications from OCI to net income             |  |                     | 54   |  
|                                                     |  |                     |     
|Accumulated OCI derivative loss at March 31, 2005    |  | $                   | (259 | )
|                                                     |  |                     |     







| |                                                 
| | ------------------------------------------------
| | Other Derivatives (Exelon, ComEd and Generation)

mark-to mark-to mark-to mark-to Mark-to


|                                         |  |            |     |   |          |   |     |          |  |   |        |  |  |   |     |  
|---------------------------------------- |  | ---------- | --- | - | -------- | - | --- | -------- |  | - | ------ |  |  | - | --- | -
|Three Months Ended March 31, 2006        |  | Generation |     |   | ComEd(a) |   |     | Other(b) |  |   | Exelon | 
|                                         |  |            |     |   |          |   |     |          |  |   |        | 
|Unrealized mark-to-market gains (losses) |  | $          | (57 | ) |          | $ | (10 | )        |  | $ | 13     |  |  | $ | (54 | )
|Realized mark-to-market gains            |  |            | 35  |   |          |   |    |          |  |   |       |  |  |   | 35  |  
|                                         |  |            |     |   |          |   |     |          |  |   |        | 
|Total net mark-to-market gains (losses)  |  | $          | (22 | ) |          | $ | (10 | )        |  | $ | 13     |  |  | $ | (19 | )
|                                         |  |            |     |   |          |   |     |          |  |   |        | 






|    |  |                                                                                                                                                         
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Energy-Related Derivatives above.                                                                                                                 
|   
|(b) |  | Other includes corporate operations, shared service entities,
    including BSC, Enterprises and investments in synthetic
    fuel-producing facilities.

69



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                  |  |            |    |  |       |   |          |  |        |   |   |  |  |   |    | 
|--------------------------------- |  | ---------- | -- |  | ----- | - | -------- |  | ------ | - | - |  |  | - | -- | 
|Three Months Ended March 31, 2005 |  | Generation |    |  | ComEd |   | Other(a) |  | Exelon |  
|                                  |  |            |    |  |       |   |          |  |        |  
|Unrealized mark-to-market gains   |  | $          | 53 |  |       | $ |         |  |        | $ |  |  |  | $ | 53 | 
|Realized mark-to-market gains     |  |            | 10 |  |       |   |         |  |        |   |  |  |  |   | 10 | 
|                                  |  |            |    |  |       |   |          |  |        |   |   | 
|Total net mark-to-market gains    |  | $          | 63 |  |       | $ |         |  |        | $ |  |  |  | $ | 63 | 
|                                  |  |            |    |  |       |   |          |  |        |   |   | 






|    |  |                                                                                                                                                         
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including BSC, Enterprises and investments in synthetic
    fuel-producing facilities.

Proprietary Trading Activities. mark-to mark-to mark-to mark-to


|                                       |  |           |    |   |      |   |    | 
|-------------------------------------- |  | --------- | -- | - | ---- | - | -- | 
|                                       |  | Three     |   
|                                       |  | Months    |   
|                                       |  | Ended     |   
|                                       |  | March 31, |   
|                                       |  |           |   
|                                       |  | 2006      |    |   | 2005 |  
|                                       |  |           |    |   |      |  
|Unrealized mark-to-market gains        |  | $         | 2  |   |      | $ | 5  | 
|Realized mark-to-market gains (losses) |  |           | (2 | ) |      |   | 7  | 
|                                       |  |           |    |   |      |  
|Total net mark-to-market gains         |  | $         |   |   |      | $ | 12 | 
|                                       |  |           |    |   |      |  

Credit Risk Associated with Derivative Instruments.


70



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations



General






| |   |                                                                                                                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | ComEd, whose business includes the purchase and regulated
    retail and wholesale sale of electricity and distribution and
    transmission services in northern Illinois, including the City
    of Chicago.                                                                                                                                                              
|
| |  | PECO, whose businesses include the purchase and regulated
    retail sale of electricity and distribution and transmission
    services in southeastern Pennsylvania, including the City of
    Philadelphia, and the purchase and regulated retail sale of
    natural gas and distribution services in the Pennsylvania
    counties surrounding the City of Philadelphia.
|
| |  | Generation, which consists principally of the electric
    generating facilities and wholesale energy marketing operations
    of Generation, the competitive retail sales business of Exelon
    Energy Company and certain other generation projects.                                                                                                                     








EXELON CORPORATION


Executive Overview


Financial Results.




| |   |                                                                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | unrealized
    mark-to-market losses
    on contracts not yet settled;                                                                                                                                                                                                                         
|
| |  | unfavorable weather conditions in Exelons service areas;                                                                                                                                                                                                                                      
|
| |  | higher operating and maintenance expenses, including expenses
    related to stock compensation as a result of adopting FASB
    Statement No. 123 (revised 2004), Share-Based
    Payment
    (SFAS No. 123-R)
    and higher non-outage operating costs and nuclear refueling
    expenses;
|
| |  | increased depreciation and amortization expense, primarily
    related to competitive transition charge (CTC) amortization
    at PECO;                                                                                                                                                        
|
| |  | reduced earnings from investments in synthetic fuel-producing
    facilities;                                                                                                                                                                                                                  
|
| |  | a gain recorded in 2005 associated with the sale of
    Exelons investment in Sithe Energies, Inc. (Sithe);                                                                                                                                                                                   
|
| |  | increased interest expense associated with the debt issued in
    March 2005 to fund Exelons pension contribution; and                                                                                                                                                                        

71



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##### Table of Contents





| |   |                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------
| |  | increased taxes other than income due to favorable real estate
    tax settlements at PECO and Generation in 2005.





| |   |                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------
| |  | higher margins on Generations wholesale market sales;                                                   
|
| |  | increased electric revenues at PECO associated with certain
    scheduled rate increases; and            
|
| |  | increased kWh deliveries, excluding the effects of weather,
    reflecting load growth at ComEd and PECO.

Investment Strategy.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Proposed Merger with Public Service Enterprise Group
    Incorporated (PSEG)  On December 20, 2004,
    Exelon entered into a merger agreement with PSEG (Merger), and
    shareholders of both companies approved the transaction in July
    2005. As of April 25, 2006, all material regulatory actions
    required to complete the Merger have been completed with the
    exception of the approval from the New Jersey Board of Public
    Utilities (NJBPU) and the United States Nuclear Regulatory
    Commission (NRC) and the review by the United Sates
    Department of Justice (DOJ).



| |                                                                                                                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In New Jersey, hearings for the Merger review concluded at the
    end of March 2006. Settlement discussions began in December and
    are expected to resume soon. Exelon expects to complete all
    regulatory reviews and close the Merger in the third quarter of
    2006.

Financing Activities.


Regulatory and Environmental Developments.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Illinois Procurement Filing  On
    January 24, 2006, the Illinois Commerce Commission
    (ICC) approved ComEds procurement case, authorizing
    ComEd to procure power after 2006 through a reverse-auction
    competitive bidding process and to recover the costs from retail
    customers with no markup. The auction will be administered by an
    independent auction manager, with oversight by the ICC staff.
    The first auction is scheduled to take place during the fall, at
    which time ComEds entire load will be up for bid. To
    mitigate the effects of changes in future prices, the load will
    be staggered in three-year contracts. ComEd, the Attorney
    General of Illinois, Citizens Utility Board and other parties
    have filed appeals for review of portions of the order with the
    Illinois Appellate Court. While ComEd is generally supportive of
    the order in the procurement case, ComEd has objected to the
    requirement for a prudence review.
|
| |  | House Bill 5766  On February 24, 2006,
    House Bill 5766 was introduced in the Illinois General Assembly
    and was referred to the Rules Committee. This bill, if
    enacted into law, would result in the extension of the retail
    rate freeze in Illinois. As ComEd believes the proposed
    legislation, if enacted into law, would have serious detrimental
    effects on Illinois, ComEd, and consumers of electricity, ComEd
    and others are vigorously opposing this legislative initiative.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Nuclear Generating Station Groundwater  In
    February 2006, Exelon and Generation launched an initiative
    across its ten-station nuclear fleet to systematically assess
    systems that handle tritium and take the necessary actions to
    minimize the risk of inadvertent discharge of tritium to the
    environment. The initiative is in response to the detection of
    tritium in water samples taken related to leaks at the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Braidwood, Byron and Dresden nuclear generating stations in
    Illinois. There is no health or safety threat to existing
    drinking water wells or sources based on current testing
    results, and the drinking water tested in residential wells
    meets Federal safe drinking water standards. Exelon and
    Generation will continue to monitor these matters and are
    working with state and local officials to determine the
    appropriate remediation plans, where necessary.

Outlook for 2006 and Beyond.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelon expects the Merger will result in synergies, cost savings
    and operating efficiencies. Although Exelon expects to achieve
    these anticipated benefits of the Merger, achieving them is
    subject to a number of uncertainties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Certain governmental officials and consumer advocacy groups
    claim that ComEds retail rates for electricity should not
    be based solely on its cost to procure electricity and capacity
    in the wholesale market. Additionally, certain parties to
    ComEds pending rate case proceeding have indicated
    ComEds rates for delivering energy should be reduced or
    not increased. If the price at which ComEd is allowed to sell
    electricity beginning in 2007 is below ComEds cost to
    procure and deliver electricity, or if ComEd is unable to
    recover its costs and investment through the Rate Case, there
    may be material adverse consequences to ComEd and, possibly,
    Exelon. However, the ICCs unanimous approval of the
    reverse-auction process, barring any successful appeals or
    change in law, should provide ComEd with stability and greater
    certainty that it will be able to procure energy and pass
    through the costs of that energy to ComEds customers
    beginning in 2007 through a transparent market mechanism in the
    reverse-auction competitive bidding process. The results of the
    Rate Case are expected be known during the third quarter of 2006.                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | The price of power purchased and sold in the open wholesale
    energy markets can vary significantly in response to market
    conditions. Generally, between 60% and 70% of Generations
    supply currently serves ComEd and PECO customers. Consequently,
    Generation has historically limited its earnings exposure from
    the volatility of the wholesale energy market to the energy
    generated in excess of the ComEd and PECO requirements, as well
    as any other contracted longer term obligations. Following the
    expiration of the purchased power agreement (PPA) with
    ComEd at the end of 2006, approximately 70% to 80% of
    Generations supply will be exposed to energy market
    prices, increasing the volatility of Exelons results.
    While current market prices for electricity have increased
    significantly over the past few years due to the rise in natural
    gas and fuel prices in the market which has improved
    Generations margins due to its significant capacity of
    low-cost nuclear generating facilities, Generations
    ability to maintain those margins will depend on future fossil
    fuel prices and its ability to obtain high capacity factors at
    its nuclear plants. As mentioned previously, following the
    expiration of the PPA between ComEd and Generation, Exelon will
    increase the amount of power sold into the wholesale energy
    market. Based on recent increases in market prices, power now
    being sold to ComEd is likely to be sold in 2007 at higher
    prices than the prices previously received as part of the PPA.
|
| |  | Federal and state governing bodies have begun to introduce, and
    in some cases approve, legislation mandating the future use of
    renewable and alternative fuel sources, such as wind, solar,
    biomass and geothermal. The extent of the use of these renewable
    and alternative fuel sources varies by state and could change.
    The future requirement to use these renewable and alternative
    fuel sources for some portion of ComEds and PECOs
    distribution sales could result in increased fuel costs and
    capital expenditures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | Exelon anticipates that it will be subject to the ongoing
    pressures of rising operating expenses due to increases in costs
    such as medical benefits and rising payroll costs due to
    inflation. Also, Exelon will continue to incur significant
    capital costs associated with its commitment to produce and
    deliver energy reliably to its customers. The Company is
    determined to operate its businesses responsibly and to
    appropriately manage its operating and capital costs while
    serving its customers and producing value for its shareholders.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

73



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelon, through three wholly owned subsidiaries, has investments
    in synthetic fuel-producing facilities. The IRS provides tax
    credits for such facilities under Section 45k (formerly
    Section 29) of the Internal Revenue Code. Based on the 2006
    and 2007 New York Mercantile Exchange, Inc. index (NYMEX)
    futures prices per barrel of oil at March 31, 2006, Exelon
    estimates there will be a phase out of tax credits of 52% and
    60% in 2006 and 2007, respectively. This would decrease
    Exelons net income as compared to 2005 by as much as
    $47 million and $53 million in 2006 and 2007,
    respectively. These estimates can change significantly due to
    the volatility in oil prices and pending legislation in
    Congress. See Note 10 of the Combined Notes to Consolidated
    Financial Statements and Liquidity and Capital Resources for
    further discussion.

Critical Accounting Policies and Estimates


10-K


Stock-based
compensation cost (Exelon, ComEd, PECO and Generation)


123-R,


New Accounting Pronouncements




74



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Results of Operations  Exelon Corporation




| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Three Months Ended March 31, 2006 Compared To Three
    Months Ended March 31, 2005

Significant Operating Trends  Exelon


|                                                         |                                   |                          |       |       |               |   |       |          |       |   |       |      |      |  
|-------------------------------------------------------- | --------------------------------- | ------------------------ | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | ----- | ---- | ---- | -
|                                                         |                                   | Three Months             |       |       |              
|                                                         |                                   | Ended                    |       |       |              
|                                                         |                                   | March 31,                |       |       | Favorable     |  
|                                                         |                                   |                          |       |       | (Unfavorable) |  
|Exelon Corporation                                       |                                   | 2006                     |       |       | 2005          |   |       | Variance |      
|                                                         |                                   |                          |       |       |               |   |       |          |      
|Operating revenues                                       |                                   | $                        | 3,861 |       |               | $ | 3,561 |          |       | $ | 300   |     
|Operating expenses                                       |                                   |                          |       |       |               |   |       |          |       |   |       |     
|                                                         | Purchased power and fuel expense  |                          |       | 1,449 |               |   |       | 1,190    |       |   |       | (259 | )   
|                                                         | Operating and maintenance expense |                          |       | 1,037 |               |   |       | 949      |       |   |       | (88  | )   
|                                                         | Depreciation and amortization     |                          |       | 363   |               |   |       | 319      |       |   |       | (44  | )   
|                                                         | Taxes other than income           |                          |       | 194   |               |   |       | 172      |       |   |       | (22  | )   
|                                                         |                                   |                          |       |       |               |   |       |          |      
|                                                         |                                   | Total operating expenses |       |       | 3,043         |   |       |          | 2,630 |   |       |      | (413 | )
|                                                         |                                   |                          |       |       |               |   |       |          |      
|Operating income                                         |                                   |                          | 818   |       |               |   | 931   |          |       |   | (113  | )   
|                                                         | Other income and deductions       |                          |       | (218  | )             |   |       | (197     | )     |   |       | (21  | )   
|                                                         |                                   |                          |       |       |               |   |       |          |      
|Income from continuing operations before income taxes    |                                   |                          | 600   |       |               |   | 734   |          |       |   | (134  | )   
|Income taxes                                             |                                   |                          | 201   |       |               |   | 227   |          |       |   | 26    |     
|                                                         |                                   |                          |       |       |               |   |       |          |      
|Income from continuing operations                        |                                   |                          | 399   |       |               |   | 507   |          |       |   | (108  | )   
|Income from discontinued operations, net of income taxes |                                   |                          | 1     |       |               |   | 14    |          |       |   | (13   | )   
|                                                         |                                   |                          |       |       |               |   |       |          |      
|Net income                                               |                                   | $                        | 400   |       |               | $ | 521   |          |       | $ | (121  | )   
|                                                         |                                   |                          |       |       |               |   |       |          |      
|Diluted earnings per share                               |                                   | $                        | 0.59  |       |               | $ | 0.77  |          |       | $ | (0.18 | )   
|                                                         |                                   |                          |       |       |               |   |       |          |      

Net Income. mark-to 123-R; mark-to


Operating Revenues. mark-to


Purchased Power and Fuel Expense. mark-to


75



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Operating and Maintenance Expense.


Depreciation and Amortization Expense.


Taxes Other Than Income.


Other Income and Deductions. pre-1983


Effective Income Tax Rate.


Discontinued Operations.






| |                                          
| | -----------------------------------------
| | Results of Operations by Business Segment





| |                                                      
| | -----------------------------------------------------
| | Income from Continuing Operations by Business Segment

|           |  |              |     |   |               |   |     |          |  |   |      |  
|---------- |  | ------------ | --- | - | ------------- | - | --- | -------- |  | - | ---- | -
|           |  | Three Months |     |   |              
|           |  | Ended        |     |   |              
|           |  | March 31,    |     |   | Favorable     |  
|           |  |              |     |   | (Unfavorable) |  
|           |  | 2006         |     |   | 2005          |   |     | Variance | 
|           |  |              |     |   |               |   |     |          | 
|ComEd      |  | $            | 54  |   |               | $ | 70  |          |  | $ | (16  | )
|PECO       |  |              | 93  |   |               |   | 129 |          |  |   | (36  | )
|Generation |  |              | 268 |   |               |   | 304 |          |  |   | (36  | )
|Other(a)   |  |              | (16 | ) |               |   | 4   |          |  |   | (20  | )
|           |  |              |     |   |               |   |     |          | 
|Total      |  | $            | 399 |   |               | $ | 507 |          |  | $ | (108 | )
|           |  |              |     |   |               |   |     |          | 






|    |                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Other includes corporate operations, shared service entities,
    including BSC, Enterprises, investments in synthetic fuel-
    producing facilities and intersegment eliminations.

76



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| |                               
| | ------------------------------
| | Net Income by Business Segment

|           |  |              |     |   |               |   |     |          |  |   |      |  
|---------- |  | ------------ | --- | - | ------------- | - | --- | -------- |  | - | ---- | -
|           |  | Three Months |     |   |              
|           |  | Ended        |     |   |              
|           |  | March 31,    |     |   | Favorable     |  
|           |  |              |     |   | (Unfavorable) |  
|           |  | 2006         |     |   | 2005          |   |     | Variance | 
|           |  |              |     |   |               |   |     |          | 
|ComEd      |  | $            | 54  |   |               | $ | 70  |          |  | $ | (16  | )
|PECO       |  |              | 93  |   |               |   | 129 |          |  |   | (36  | )
|Generation |  |              | 268 |   |               |   | 320 |          |  |   | (52  | )
|Other(a)   |  |              | (15 | ) |               |   | 2   |          |  |   | (17  | )
|           |  |              |     |   |               |   |     |          | 
|Total      |  | $            | 400 |   |               | $ | 521 |          |  | $ | (121 | )
|           |  |              |     |   |               |   |     |          | 






|    |                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Other includes corporate operations, shared service entities,
    including BSC, Enterprises, investments in synthetic fuel-
    producing facilities and intersegment eliminations.



| |                              
| | -----------------------------
| | Results of Operations  ComEd

|                            |                                               |                                   |       |     |               |   |       |          |       |   |     |     |     |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | --- | ------------- | - | ----- | -------- | ----- | - | --- | --- | --- | -
|                            |                                               | Three Months                      |       |     |              
|                            |                                               | Ended March 31,                   |       |     | Favorable     |  
|                            |                                               |                                   |       |     | (Unfavorable) |  
|                            |                                               | 2006                              |       |     | 2005          |   |       | Variance |      
|                            |                                               |                                   |       |     |               |   |       |          |      
|Operating revenues          |                                               | $                                 | 1,426 |     |               | $ | 1,386 |          |       | $ | 40  |    
|Operating expenses          |                                               |                                   |       |     |               |   |       |          |       |   |     |    
|                            | Purchased power                               |                                   |       | 862 |               |   |       | 820      |       |   |     | (42 | )  
|                            | Operating and maintenance                     |                                   |       | 216 |               |   |       | 203      |       |   |     | (13 | )  
|                            | Depreciation and amortization                 |                                   |       | 98  |               |   |       | 97       |       |   |     | (1  | )  
|                            | Taxes other than income                       |                                   |       | 81  |               |   |       | 78       |       |   |     | (3  | )  
|                            |                                               |                                   |       |     |               |   |       |          |      
|                            |                                               | Total operating expenses          |       |     | 1,257         |   |       |          | 1,198 |   |     |     | (59 | )
|                            |                                               |                                   |       |     |               |   |       |          |      
|Operating income            |                                               |                                   | 169   |     |               |   | 188   |          |       |   | (19 | )  
|                            |                                               |                                   |       |     |               |   |       |          |      
|Other income and deductions |                                               |                                   |       |     |               |   |       |          |       |   |     |    
|                            | Interest expense                              |                                   |       | (76 | )             |   |       | (74      | )     |   |     | (2  | )  
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (3  | )             |   |       | (4       | )     |   |     | 1   |    
|                            | Other, net                                    |                                   |       | 1   |               |   |       | 6        |       |   |     | (5  | )  
|                            |                                               |                                   |       |     |               |   |       |          |      
|                            |                                               | Total other income and deductions |       |     | (78           | ) |       |          | (72   | ) |     |     | (6  | )
|                            |                                               |                                   |       |     |               |   |       |          |      
|Income before income taxes  |                                               |                                   | 91    |     |               |   | 116   |          |       |   | (25 | )  
|Income taxes                |                                               |                                   | 37    |     |               |   | 46    |          |       |   | 9   |    
|                            |                                               |                                   |       |     |               |   |       |          |      
|Net income                  |                                               | $                                 | 54    |     |               | $ | 70    |          |       | $ | (16 | )  
|                            |                                               |                                   |       |     |               |   |       |          |      

Net Income.


77



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Operating Revenues.


|                                     |                |            |     |    | 
|------------------------------------ | -------------- | ---------- | --- | -- | 
|                                     |                | Increase   |    
|                                     |                | (Decrease) |    
|                                     |                |            |    
|Customer choice                      |                | $          | 47  |   
|Volume                               |                |            | 24  |   
|Weather                              |                |            | (21 | ) 
|Rate changes and mix                 |                |            | (8  | ) 
|                                     |                |            |    
|                                     | Retail revenue |            |     | 42 | 
|                                     |                |            |    
|Wholesale and miscellaneous revenues |                |            | 8   |   
|Mark-to-market wholesale contract    |                |            | (10 | ) 
|                                     |                |            |    
|Increase in operating revenues       |                | $          | 40  |   
|                                     |                |            |    

Customer choice.




|                                                                                               |                                       |                 |  |        |      |  |  |        |  
|---------------------------------------------------------------------------------------------- | ------------------------------------- | --------------- |  | ------ | ---- |  |  | ------ | -
|                                                                                               |                                       | Three Months    | 
|                                                                                               |                                       | Ended March 31, | 
|                                                                                               |                                       |                 | 
|                                                                                               |                                       | 2006            |  |        | 2005 | 
|                                                                                               |                                       |                 |  |        |      | 
|Retail customers purchasing energy from an alternative electric
    supplier:                  |                                       |                 |  |        |      |  |  |       
|                                                                                               | Volume (GWhs)(a)                      |                 |  | 3,845  |      |  |  | 4,826  |  
|                                                                                               | Percentage of total retail deliveries |                 |  | 18     | %    |  |  | 22     | %
|Retail customers purchasing energy from an alternative electric
    supplier or the ComEd PPO: |                                       |                 |  |        |      |  |  |       
|                                                                                               | Number of customers at period end     |                 |  | 20,717 |      |  |  | 21,281 |  
|                                                                                               | Percentage of total retail customers  |                 |  | (b     | )    |  |  | (b     | )
|                                                                                               | Volume (GWhs)(a)                      |                 |  | 6,877  |      |  |  | 7,336  |  
|                                                                                               | Percentage of total retail deliveries |                 |  | 32     | %    |  |  | 34     | %






|    |                                                              
|--- | -------------------------------------------------------------
|(a) | One GWh is the equivalent of one million kilowatthours (kWh).



|    |                       
|--- | ----------------------
|(b) | Less than one percent.

Volume.


Weather.


78



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##### Table of Contents



Rate changes and mix.


Wholesale and miscellaneous revenues.


Mark-to Market-to mark-to


Purchased Power Expense.


|                                            |  |            |     |  
|------------------------------------------- |  | ---------- | --- | -
|                                            |  | Increase   |    
|                                            |  | (Decrease) |    
|                                            |  |            |    
|Customer choice                             |  | $          | 46  |  
|Volume                                      |  |            | 13  |  
|SECA rates                                  |  |            | 15  |  
|PJM Interconnection, LLC (PJM) transmission |  |            | 12  |  
|Prices                                      |  |            | (29 | )
|Weather                                     |  |            | (15 | )
|                                            |  |            |    
|Increase in purchased power expense         |  | $          | 42  |  
|                                            |  |            |    

Customer choice.


Volume.


Seams Elimination Charge/ Cost Adjustment/ Assignment
(SECA) rates.


PJM transmission.


Prices.


Weather.


79



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##### Table of Contents



Operating and Maintenance Expense.


|                                              |  |            |    |  
|--------------------------------------------- |  | ---------- | -- | -
|                                              |  | Increase   |   
|                                              |  | (Decrease) |   
|                                              |  |            |   
|Fringe benefits(a)                            |  | $          | 11 |  
|Corporate allocations                         |  |            | 3  |  
|Severance-related expenses                    |  |            | 1  |  
|PSEG merger integration costs                 |  |            | 1  |  
|Other                                         |  |            | (3 | )
|                                              |  |            |   
|Increase in operating and maintenance expense |  | $          | 13 |  
|                                              |  |            |   






|    |                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Reflects increases in various fringe benefits including
    increased stock compensation expense of $8 million
    primarily due to Exelons and ComEds adoption of
    SFAS No. 123-R
    on January 1, 2006 and increased pension and other
    postretirement benefits costs of $1 million.

Depreciation and Amortization Expense.


|                                                  |  |            |    |  
|------------------------------------------------- |  | ---------- | -- | -
|                                                  |  | Increase   |   
|                                                  |  | (Decrease) |   
|                                                  |  |            |   
|Depreciation expense                              |  | $          | 2  |  
|Other amortization expense                        |  |            | (1 | )
|                                                  |  |            |   
|Increase in depreciation and amortization expense |  | $          | 1  |  
|                                                  |  |            |   

Taxes Other Than Income.


|                                    |  |            |    |  
|----------------------------------- |  | ---------- | -- | -
|                                    |  | Increase   |   
|                                    |  | (Decrease) |   
|                                    |  |            |   
|Real estate taxes                   |  | $          | 3  |  
|Taxes on utility revenues(a)        |  |            | (2 | )
|Other                               |  |            | 2  |  
|                                    |  |            |   
|Increase in taxes other than income |  | $          | 3  |  
|                                    |  |            |   






|    |                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | As these taxes were collected from customers and remitted to the
    taxing authorities and included in revenues and expenses, the
    increase in expense was offset by a corresponding increase in
    revenues.

Interest Expense.


Other, Net.


|                       |  |            |    |  
|---------------------- |  | ---------- | -- | -
|                       |  | Increase   |   
|                       |  | (Decrease) |   
|                       |  |            |   
|Sale of receivable     |  | $          | (3 | )
|Other                  |  |            | (2 | )
|                       |  |            |   
|Decrease in other, net |  | $          | (5 | )
|                       |  |            |   

Income Taxes.


80



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| |                                                           
| | ----------------------------------------------------------
| | ComEd Electric Operating Statistics and Revenue
    Detail

|                                        |                             |                 |        |        |      |  |        |          |  |  |          |      |   |  |       |      |   
|--------------------------------------- | --------------------------- | --------------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ---- | - |  | ----- | ---- | --
|                                        |                             | Three Months    |        |        |      |  |       
|                                        |                             | Ended March 31, |        |        |      |  |       
|                                        |                             |                 |        |        |      |  |       
|Retail Deliveries  (in GWhs)           |                             | 2006            |        |        | 2005 |  |        | Variance |  |  | % Change |     
|                                        |                             |                 |        |        |      |  |        |          |  |  |          |     
|Full service(a)                         |                             |                 |        |        |      |  |        |          |  |  |          |      |   |  |       |     
|Residential                             |                             |                 | 6,797  |        |      |  | 7,111  |          |  |  | (314     | )    |   |  | (4.4  | )%  
|Small commercial & industrial           |                             |                 | 5,319  |        |      |  | 5,108  |          |  |  | 211      |      |   |  | 4.1   | %   
|Large commercial & industrial           |                             |                 | 2,179  |        |      |  | 1,780  |          |  |  | 399      |      |   |  | 22.4  | %   
|Public authorities & electric railroads |                             |                 | 601    |        |      |  | 530    |          |  |  | 71       |      |   |  | 13.4  | %   
|                                        |                             |                 |        |        |      |  |        |          |  |  |          |     
|                                        | Total full service          |                 |        | 14,896 |      |  |        | 14,529   |  |  |          | 367  |   |  |       | 2.5  | % 
|                                        |                             |                 |        |        |      |  |        |          |  |  |          |     
|PPO                                     |                             |                 |        |        |      |  |        |          |  |  |          |      |   |  |       |     
|Small commercial & industrial           |                             |                 | 1,509  |        |      |  | 1,025  |          |  |  | 484      |      |   |  | 47.2  | %   
|Large commercial & industrial           |                             |                 | 1,523  |        |      |  | 1,485  |          |  |  | 38       |      |   |  | 2.6   | %   
|                                        |                             |                 |        |        |      |  |        |          |  |  |          |     
|                                        |                             |                 | 3,032  |        |      |  | 2,510  |          |  |  | 522      |      |   |  | 20.8  | %   
|                                        |                             |                 |        |        |      |  |        |          |  |  |          |     
|Delivery only(b)                        |                             |                 |        |        |      |  |        |          |  |  |          |      |   |  |       |     
|Small commercial & industrial           |                             |                 | 894    |        |      |  | 1,668  |          |  |  | (774     | )    |   |  | (46.4 | )%  
|Large commercial & industrial           |                             |                 | 2,951  |        |      |  | 3,158  |          |  |  | (207     | )    |   |  | (6.6  | )%  
|                                        |                             |                 |        |        |      |  |        |          |  |  |          |     
|                                        |                             |                 | 3,845  |        |      |  | 4,826  |          |  |  | (981     | )    |   |  | (20.3 | )%  
|                                        |                             |                 |        |        |      |  |        |          |  |  |          |     
|                                        | Total PPO and delivery only |                 |        | 6,877  |      |  |        | 7,336    |  |  |          | (459 | ) |  |       | (6.3 | )%
|                                        |                             |                 |        |        |      |  |        |          |  |  |          |     
|Total retail deliveries                 |                             |                 | 21,773 |        |      |  | 21,865 |          |  |  | (92      | )    |   |  | (0.4  | )%  
|                                        |                             |                 |        |        |      |  |        |          |  |  |          |     






|    |                                                                                                
|--- | -----------------------------------------------------------------------------------------------
|(a) | Full service reflects deliveries to customers taking electric
    service under tariffed rates.



|    |                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------
|(b) | Delivery only service reflects customers electing to receive
    generation service from an alternative electric supplier.

81



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|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |     |   |  |       |      |  
|--------------------------------------- | -------------------------------------- | --------------- | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | --- | - |  | ----- | ---- | -
|                                        |                                        | Three Months    |       |       |      |   |      
|                                        |                                        | Ended March 31, |       |       |      |   |      
|                                        |                                        |                 |       |       |      |   |      
|Electric Revenue                        |                                        | 2006            |       |       | 2005 |   |       | Variance |  |   | % Change |    
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                                        |                 |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        | $               | 549   |       |      | $ | 565   |          |  | $ | (16      | )   |   |  | (2.8  | )%  
|Small commercial & industrial           |                                        |                 | 388   |       |      |   | 371   |          |  |   | 17       |     |   |  | 4.6   | %   
|Large commercial & industrial           |                                        |                 | 110   |       |      |   | 88    |          |  |   | 22       |     |   |  | 25.0  | %   
|Public authorities & electric railroads |                                        |                 | 36    |       |      |   | 33    |          |  |   | 3        |     |   |  | 9.1   | %   
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service                     |                 |       | 1,083 |      |   |       | 1,057    |  |   |          | 26  |   |  |       | 2.5  | %
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    
|PPO(b)                                  |                                        |                 |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Small commercial & industrial           |                                        |                 | 102   |       |      |   | 65    |          |  |   | 37       |     |   |  | 56.9  | %   
|Large commercial & industrial           |                                        |                 | 90    |       |      |   | 79    |          |  |   | 11       |     |   |  | 13.9  | %   
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |                 | 192   |       |      |   | 144   |          |  |   | 48       |     |   |  | 33.3  | %   
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    
|Delivery only(c)                        |                                        |                 |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Small commercial & industrial           |                                        |                 | 11    |       |      |   | 32    |          |  |   | (21      | )   |   |  | (65.6 | )%  
|Large commercial & industrial           |                                        |                 | 27    |       |      |   | 38    |          |  |   | (11      | )   |   |  | (28.9 | )%  
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |                 | 38    |       |      |   | 70    |          |  |   | (32      | )   |   |  | (45.7 | )%  
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    
|                                        | Total PPO and delivery only            |                 |       | 230   |      |   |       | 214      |  |   |          | 16  |   |  |       | 7.5  | %
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                                        |                 | 1,313 |       |      |   | 1,271 |          |  |   | 42       |     |   |  | 3.3   | %   
|                                        | Wholesale and miscellaneous revenue(d) |                 |       | 123   |      |   |       | 115      |  |   |          | 8   |   |  |       | 7.0  | %
|                                        | Mark-to-market wholesale contract      |                 |       | (10   | )    |   |       |         |  |   |          | (10 | ) |  |       | n.m. |  
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    
|Total operating revenues                |                                        | $               | 1,426 |       |      | $ | 1,386 |          |  | $ | 40       |     |   |  | 2.9   | %   
|                                        |                                        |                 |       |       |      |   |       |          |  |   |          |    






|     |  |                                                                                                                                                                                                                      
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a)  |  | Full service revenue reflects deliveries to customers taking
    electric service under tariffed rates, which include the cost of
    energy and the cost of the transmission and the distribution of
    the energy.
|    
|(b)  |  | Revenues from customers choosing the PPO include an energy
    charge at market rates, transmission and distribution charges,
    and a CTC.                                                                         
|    
|(c)  |  | Delivery only revenues reflect revenue under tariff rates from
    customers electing to receive generation service from an
    alternative electric supplier, which includes a distribution
    charge and a CTC.   
|    
|(d)  |  | Wholesale and miscellaneous revenues include transmission
    revenue (including revenue from PJM), sales to municipalities
    and other wholesale energy sales.                                                    
|    
|n.m. |  | Not meaningful                                                                                                                                                                                                       

82



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| |                             
| | ----------------------------
| | Results of Operations  PECO

|                            |                                               |                                   |       |     |               |   |       |          |       |   |     |      |      |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | --- | ------------- | - | ----- | -------- | ----- | - | --- | ---- | ---- | -
|                            |                                               | Three Months                      |       |     |              
|                            |                                               | Ended March 31,                   |       |     | Favorable     |  
|                            |                                               |                                   |       |     | (Unfavorable) |  
|                            |                                               | 2006                              |       |     | 2005          |   |       | Variance |      
|                            |                                               |                                   |       |     |               |   |       |          |      
|Operating revenues          |                                               | $                                 | 1,407 |     |               | $ | 1,295 |          |       | $ | 112 |     
|Operating expenses          |                                               |                                   |       |     |               |   |       |          |       |   |     |     
|                            | Purchased power and fuel                      |                                   |       | 813 |               |   |       | 697      |       |   |     | (116 | )   
|                            | Operating and maintenance                     |                                   |       | 148 |               |   |       | 134      |       |   |     | (14  | )   
|                            | Depreciation and amortization                 |                                   |       | 171 |               |   |       | 136      |       |   |     | (35  | )   
|                            | Taxes other than income                       |                                   |       | 65  |               |   |       | 54       |       |   |     | (11  | )   
|                            |                                               |                                   |       |     |               |   |       |          |      
|                            |                                               | Total operating expenses          |       |     | 1,197         |   |       |          | 1,021 |   |     |      | (176 | )
|                            |                                               |                                   |       |     |               |   |       |          |      
|Operating income            |                                               |                                   | 210   |     |               |   | 274   |          |       |   | (64 | )   
|Other income and deductions |                                               |                                   |       |     |               |   |       |          |       |   |     |     
|                            | Interest expense                              |                                   |       | (69 | )             |   |       | (72      | )     |   |     | 3    |     
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (3  | )             |   |       | (4       | )     |   |     | 1    |     
|                            | Other, net                                    |                                   |       | 3   |               |   |       | 2        |       |   |     | 1    |     
|                            |                                               |                                   |       |     |               |   |       |          |      
|                            |                                               | Total other income and deductions |       |     | (69           | ) |       |          | (74   | ) |     |      | 5    |  
|                            |                                               |                                   |       |     |               |   |       |          |      
|Income before income taxes  |                                               |                                   | 141   |     |               |   | 200   |          |       |   | (59 | )   
|Income taxes                |                                               |                                   | 48    |     |               |   | 71    |          |       |   | 23  |     
|                            |                                               |                                   |       |     |               |   |       |          |      
|Net income                  |                                               |                                   | 93    |     |               |   | 129   |          |       |   | (36 | )   
|Preferred stock dividends   |                                               |                                   | 1     |     |               |   | 1     |          |       |   |    |     
|                            |                                               |                                   |       |     |               |   |       |          |      
|Net income on common stock  |                                               | $                                 | 92    |     |               | $ | 128   |          |       | $ | (36 | )   
|                            |                                               |                                   |       |     |               |   |       |          |      

Net Income.


Operating Revenues.


|                               |                |          |     |    |     |          |     |            |  |   |     |     | 
|------------------------------ | -------------- | -------- | --- | -- | --- | -------- | --- | ---------- |  | - | --- | --- | 
|                               |                |          |     |    |     | Total    |    
|                               |                |          |     |    |     | Increase |    
|                               |                | Electric |     |    | Gas |          |     | (Decrease) | 
|                               |                |          |     |    |     |          |     |            | 
|Rate increases                 |                | $        | 44  |    |     | $        | 130 |            |  | $ | 174 |    
|Customer choice                |                |          | 21  |    |     |          |    |            |  |   | 21  |    
|Volume                         |                |          | 19  |    |     |          | (13 | )          |  |   | 6   |    
|Other rate changes and mix     |                |          | 6   |    |     |          |    |            |  |   | 6   |    
|Weather                        |                |          | (32 | )  |     |          | (65 | )          |  |   | (97 | )  
|                               |                |          |     |    |     |          |     |            | 
|                               | Retail revenue |          |     | 58 |     |          |     | 52         |  |   |     | 110 | 
|                               |                |          |     |    |     |          |     |            | 
|Miscellaneous revenues         |                |          | 6   |    |     |          | (4  | )          |  |   | 2   |    
|                               |                |          |     |    |     |          |     |            | 
|Increase in operating revenues |                | $        | 64  |    |     | $        | 48  |            |  | $ | 112 |    
|                               |                |          |     |    |     |          |     |            | 

83



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Rate increases.


Customer choice.


|                                                                              |                                       |                 |  |        |      |  |  |        |  
|----------------------------------------------------------------------------- | ------------------------------------- | --------------- |  | ------ | ---- |  |  | ------ | -
|                                                                              |                                       | Three Months    | 
|                                                                              |                                       | Ended March 31, | 
|                                                                              |                                       |                 | 
|                                                                              |                                       | 2006            |  |        | 2005 | 
|                                                                              |                                       |                 |  |        |      | 
|Retail customers purchasing energy from an alternative electric
    supplier: |                                       |                 |  |        |      |  |  |       
|                                                                              | Number of customers at period end     |                 |  | 40,700 |      |  |  | 77,800 |  
|                                                                              | Percentage of total retail customers  |                 |  | 3      | %    |  |  | 5      | %
|                                                                              | Volume (GWhs)(a)                      |                 |  | 218    |      |  |  | 687    |  
|                                                                              | Percentage of total retail deliveries |                 |  | 2      | %    |  |  | 7      | %






|    |                                                              
|--- | -------------------------------------------------------------
|(a) | One GWh is the equivalent of one million kilowatthours (kWh).



Volume.


Other rate changes and mix.


Weather.


Miscellaneous revenues.


84



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Purchased Power and Fuel Expense.


|                                             |  |          |     |   |     |          |     |            |  |   |     |  
|-------------------------------------------- |  | -------- | --- | - | --- | -------- | --- | ---------- |  | - | --- | -
|                                             |  |          |     |   |     | Total    |    
|                                             |  |          |     |   |     | Increase |    
|                                             |  | Electric |     |   | Gas |          |     | (Decrease) | 
|                                             |  |          |     |   |     |          |     |            | 
|Rate increases                               |  | $        | 32  |   |     | $        | 130 |            |  | $ | 162 |  
|Customer choice                              |  |          | 21  |   |     |          |    |            |  |   | 21  |  
|PJM Transmission                             |  |          | 10  |   |     |          |    |            |  |   | 10  |  
|Weather                                      |  |          | (14 | ) |     |          | (54 | )          |  |   | (68 | )
|Volume                                       |  |          | 6   |   |     |          | (12 | )          |  |   | (6  | )
|Other                                        |  |          |    |   |     |          | (3  | )          |  |   | (3  | )
|                                             |  |          |     |   |     |          |     |            | 
|Increase in purchased power and fuel expense |  | $        | 55  |   |     | $        | 61  |            |  | $ | 116 |  
|                                             |  |          |     |   |     |          |     |            | 

Rate increases.


Customer choice.


PJM Transmission.


Weather.


Volume.


Other.


Operating and Maintenance Expense.


|                                                              |  |            |    |  
|------------------------------------------------------------- |  | ---------- | -- | -
|                                                              |  | Increase   |   
|                                                              |  | (Decrease) |   
|                                                              |  |            |   
|Allowance for uncollectible accounts(a)                       |  | $          | 13 |  
|Fringe benefits(b)                                            |  |            | 9  |  
|Implementation of new customer information and billing system |  |            | 1  |  
|PSEG merger integration costs                                 |  |            | 1  |  
|Professional fees related to income tax refund claim(c)       |  |            | (9 | )
|Environmental reserve(d)                                      |  |            | (4 | )
|Other                                                         |  |            | 3  |  
|                                                              |  |            |   
|Increase in operating and maintenance expense                 |  | $          | 14 |  
|                                                              |  |            |   






|    |  |                                                                                                                                                           
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Primarily reflects higher accounts receivable balances in 2006
    compared to 2005 resulting from increased revenues. See
    Operating Revenues above.

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|    |  |                                                                                                                                                                                                                                                                                               
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Reflects increases in various fringe benefits including
    increased stock compensation expense of $4 million
    primarily due to Exelons and PECOs adoption of
    SFAS No. 123-R on January 1, 2006 and increased
    pension and other postretirement benefits costs of
    $3 million.
|   
|(c) |  | Represents a charge recorded in the first quarter of 2005 which
    was subsequently reversed in the third quarter of 2005. See
    Note 13 of the Combined Notes to Consolidated Financial
    Statements for additional information.                                                        
|   
|(d) |  | Represents a settlement related to one Superfund site in 2006.
    See Note 13 of the Combined Notes to Consolidated Financial
    Statements for additional information.                                                                                                                     

Depreciation and Amortization Expense.


|                                                  |  |            |    | 
|------------------------------------------------- |  | ---------- | -- | 
|                                                  |  | Increase   |   
|                                                  |  | (Decrease) |   
|                                                  |  |            |   
|CTC amortization                                  |  | $          | 33 | 
|Other                                             |  |            | 2  | 
|                                                  |  |            |   
|Increase in depreciation and amortization expense |  | $          | 35 | 
|                                                  |  |            |   



Taxes Other Than Income.


|                                                |  |            |    | 
|----------------------------------------------- |  | ---------- | -- | 
|                                                |  | Increase   |   
|                                                |  | (Decrease) |   
|                                                |  |            |   
|Reduction in real estate tax accrual in 2005(a) |  | $          | 6  | 
|Taxes on utility revenues(b)                    |  |            | 5  | 
|                                                |  |            |   
|Increase in taxes other than income             |  | $          | 11 | 
|                                                |  |            |   






|    |  |                                                                                                                                                                                                                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Represents the reduction of a real estate tax accrual in March
    2005 following settlements between PECO and various taxing
    authorities related to prior year tax assessments. See
    Note 13 of the Combined Notes to Consolidated Financial
    Statements for additional information.
|   
|(b) |  | As these taxes were collected from customers and remitted to the
    taxing authorities and included in revenues and expenses, the
    increase in tax expense was offset by a corresponding increase
    in revenues. Includes a $3 million adjustment for the
    period 2001 through 2005.  

Interest Expense.


Income Taxes.


86



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| |                                                          
| | ---------------------------------------------------------
| | PECO Electric Operating Statistics and Revenue
    Detail



|                                        |                     |              |       |       |      |  |       |          |  |  |          |      |   |  |       |       |   
|--------------------------------------- | ------------------- | ------------ | ----- | ----- | ---- |  | ----- | -------- |  |  | -------- | ---- | - |  | ----- | ----- | --
|                                        |                     | Three Months |       |       |      |  |      
|                                        |                     | Ended        |       |       |      |  |      
|                                        |                     | March 31,    |       |       |      |  |      
|                                        |                     |              |       |       |      |  |      
|Retail Deliveries  (in GWhs)           |                     | 2006         |       |       | 2005 |  |       | Variance |  |  | % Change |     
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|Full service(a)                         |                     |              |       |       |      |  |       |          |  |  |          |      |   |  |       |      
|Residential                             |                     |              | 3,198 |       |      |  | 3,268 |          |  |  | (70      | )    |   |  | (2.1  | )%   
|Small commercial & industrial           |                     |              | 1,883 |       |      |  | 1,732 |          |  |  | 151      |      |   |  | 8.7   | %    
|Large commercial & industrial           |                     |              | 3,702 |       |      |  | 3,510 |          |  |  | 192      |      |   |  | 5.5   | %    
|Public authorities & electric railroads |                     |              | 243   |       |      |  | 227   |          |  |  | 16       |      |   |  | 7.0   | %    
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|                                        | Total full service  |              |       | 9,026 |      |  |       | 8,737    |  |  |          | 289  |   |  |       | 3.3   | % 
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|Delivery only(b)                        |                     |              |       |       |      |  |       |          |  |  |          |      |   |  |       |      
|Residential                             |                     |              | 18    |       |      |  | 104   |          |  |  | (86      | )    |   |  | (82.7 | )%   
|Small commercial & industrial           |                     |              | 182   |       |      |  | 397   |          |  |  | (215     | )    |   |  | (54.2 | )%   
|Large commercial & industrial           |                     |              | 18    |       |      |  | 186   |          |  |  | (168     | )    |   |  | (90.3 | )%   
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|                                        | Total delivery only |              |       | 218   |      |  |       | 687      |  |  |          | (469 | ) |  |       | (68.3 | )%
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|Total retail deliveries                 |                     |              | 9,244 |       |      |  | 9,424 |          |  |  | (180     | )    |   |  | (1.9  | )%   
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     






|    |  |                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------
|(a) |  | Full service reflects deliveries to customers taking electric
    service under tariffed rates.                          
|   
|(b) |  | Delivery only service reflects customers receiving electric
    generation service from an alternative electric supplier.

|                                        |                     |              |     |     |      |   |     |          |  |   |          |     |   |  |       |       |   
|--------------------------------------- | ------------------- | ------------ | --- | --- | ---- | - | --- | -------- |  | - | -------- | --- | - |  | ----- | ----- | --
|                                        |                     | Three Months |     |     |      |   |    
|                                        |                     | Ended        |     |     |      |   |    
|                                        |                     | March 31,    |     |     |      |   |    
|                                        |                     |              |     |     |      |   |    
|Electric Revenue                        |                     | 2006         |     |     | 2005 |   |     | Variance |  |   | % Change |    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Full service(a)                         |                     |              |     |     |      |   |     |          |  |   |          |     |   |  |       |      
|Residential                             |                     | $            | 405 |     |      | $ | 386 |          |  | $ | 19       |     |   |  | 4.9   | %    
|Small commercial & industrial           |                     |              | 209 |     |      |   | 184 |          |  |   | 25       |     |   |  | 13.6  | %    
|Large commercial & industrial           |                     |              | 295 |     |      |   | 263 |          |  |   | 32       |     |   |  | 12.2  | %    
|Public authorities & electric railroads |                     |              | 21  |     |      |   | 20  |          |  |   | 1        |     |   |  | 5.0   | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|                                        | Total full service  |              |     | 930 |      |   |     | 853      |  |   |          | 77  |   |  |       | 9.0   | % 
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Delivery only(b)                        |                     |              |     |     |      |   |     |          |  |   |          |     |   |  |       |      
|Residential                             |                     |              | 1   |     |      |   | 7   |          |  |   | (6       | )   |   |  | (85.7 | )%   
|Small commercial & industrial           |                     |              | 9   |     |      |   | 18  |          |  |   | (9       | )   |   |  | (50.0 | )%   
|Large commercial & industrial           |                     |              | 1   |     |      |   | 5   |          |  |   | (4       | )   |   |  | (80.0 | )%   
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|                                        | Total delivery only |              |     | 11  |      |   |     | 30       |  |   |          | (19 | ) |  |       | (63.3 | )%
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Total electric retail revenues          |                     |              | 941 |     |      |   | 883 |          |  |   | 58       |     |   |  | 6.6   | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Miscellaneous revenues(c)               |                     |              | 58  |     |      |   | 52  |          |  |   | 6        |     |   |  | 11.5  | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Total electric and other revenue        |                     | $            | 999 |     |      | $ | 935 |          |  | $ | 64       |     |   |  | 6.8   | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    






|    |  |                                                                                                                                                                                                                             
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Full service revenue reflects revenue from customers taking
    electric service under tariffed rates, which includes the cost
    of energy, the cost of the transmission and the distribution of
    the energy and a CTC.
|   
|(b) |  | Delivery only revenue reflects revenue from customers receiving
    generation service from an alternative electric supplier, which
    includes a distribution charge and a CTC.                                           
|   
|(c) |  | Miscellaneous revenues include transmission revenue from PJM and
    other wholesale energy sales.                                                                                                                          

87



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PECO Gas Sales Statistics
and Revenue Detail




|                                                       |  |              |        |  |      |  |        |          |  |  |          |   |  |  |       |   
|------------------------------------------------------ |  | ------------ | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ----- | --
|                                                       |  | Three Months |        |  |      |  |       
|                                                       |  | Ended        |        |  |      |  |       
|                                                       |  | March 31,    |        |  |      |  |       
|                                                       |  |              |        |  |      |  |       
|Deliveries to customers (in million cubic feet (mmcf)) |  | 2006         |        |  | 2005 |  |        | Variance |  |  | % Change |  
|                                                       |  |              |        |  |      |  |        |          |  |  |          |  
|Retail sales                                           |  |              | 24,921 |  |      |  | 30,134 |          |  |  | (5,213   | ) |  |  | (17.3 | )%
|Transportation                                         |  |              | 6,880  |  |      |  | 7,545  |          |  |  | (665     | ) |  |  | (8.8  | )%
|                                                       |  |              |        |  |      |  |        |          |  |  |          |  
|Total                                                  |  |              | 31,801 |  |      |  | 37,679 |          |  |  | (5,878   | ) |  |  | (15.6 | )%
|                                                       |  |              |        |  |      |  |        |          |  |  |          |  

|                  |  |              |     |  |      |   |     |          |  |   |          |   |  |  |       |   
|----------------- |  | ------------ | --- |  | ---- | - | --- | -------- |  | - | -------- | - |  |  | ----- | --
|                  |  | Three Months |     |  |      |   |    
|                  |  | Ended        |     |  |      |   |    
|                  |  | March 31,    |     |  |      |   |    
|                  |  |              |     |  |      |   |    
|Revenue           |  | 2006         |     |  | 2005 |   |     | Variance |  |   | % Change |  
|                  |  |              |     |  |      |   |     |          |  |   |          |  
|Retail sales      |  | $            | 403 |  |      | $ | 350 |          |  | $ | 53       |   |  |  | 15.1  | % 
|Transportation    |  |              | 4   |  |      |   | 5   |          |  |   | (1       | ) |  |  | (20.0 | )%
|Resales and other |  |              | 1   |  |      |   | 5   |          |  |   | (4       | ) |  |  | (80.0 | )%
|                  |  |              |     |  |      |   |     |          |  |   |          |  
|Total gas revenue |  | $            | 408 |  |      | $ | 360 |          |  | $ | 48       |   |  |  | 13.3  | % 
|                  |  |              |     |  |      |   |     |          |  |   |          |  

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| |                                   
| | ----------------------------------
| | Results of Operations  Generation

|                                                         |                                               |                                   |       |     |               |   |       |          |       |   |     |      |      |  
|-------------------------------------------------------- | --------------------------------------------- | --------------------------------- | ----- | --- | ------------- | - | ----- | -------- | ----- | - | --- | ---- | ---- | -
|                                                         |                                               | Three Months                      |       |     |              
|                                                         |                                               | Ended                             |       |     |              
|                                                         |                                               | March 31,                         |       |     | Favorable     |  
|                                                         |                                               |                                   |       |     | (Unfavorable) |  
|                                                         |                                               | 2006                              |       |     | 2005          |   |       | Variance |      
|                                                         |                                               |                                   |       |     |               |   |       |          |      
|Operating revenues                                       |                                               | $                                 | 2,220 |     |               | $ | 2,020 |          |       | $ | 200 |     
|Operating expenses                                       |                                               |                                   |       |     |               |   |       |          |       |   |     |     
|                                                         | Purchased power and fuel                      |                                   |       | 974 |               |   |       | 808      |       |   |     | (166 | )   
|                                                         | Operating and maintenance                     |                                   |       | 668 |               |   |       | 609      |       |   |     | (59  | )   
|                                                         | Depreciation and amortization                 |                                   |       | 67  |               |   |       | 62       |       |   |     | (5   | )   
|                                                         | Taxes other than income                       |                                   |       | 43  |               |   |       | 35       |       |   |     | (8   | )   
|                                                         |                                               |                                   |       |     |               |   |       |          |      
|                                                         |                                               | Total operating expenses          |       |     | 1,752         |   |       |          | 1,514 |   |     |      | (238 | )
|                                                         |                                               |                                   |       |     |               |   |       |          |      
|Operating income                                         |                                               |                                   | 468   |     |               |   | 506   |          |       |   | (38 | )   
|                                                         |                                               |                                   |       |     |               |   |       |          |      
|Other income and deductions                              |                                               |                                   |       |     |               |   |       |          |       |   |     |     
|                                                         | Interest expense                              |                                   |       | (43 | )             |   |       | (29      | )     |   |     | (14  | )   
|                                                         | Equity in losses of unconsolidated affiliates |                                   |       | (3  | )             |   |       |         |       |   |     | (3   | )   
|                                                         | Other, net                                    |                                   |       | 7   |               |   |       | 18       |       |   |     | (11  | )   
|                                                         |                                               |                                   |       |     |               |   |       |          |      
|                                                         |                                               | Total other income and deductions |       |     | (39           | ) |       |          | (11   | ) |     |      | (28  | )
|                                                         |                                               |                                   |       |     |               |   |       |          |      
|Income from continuing operations before income taxes    |                                               |                                   | 429   |     |               |   | 495   |          |       |   | (66 | )   
|Income taxes                                             |                                               |                                   | 161   |     |               |   | 191   |          |       |   | 30  |     
|                                                         |                                               |                                   |       |     |               |   |       |          |      
|Income from continuing operations                        |                                               |                                   | 268   |     |               |   | 304   |          |       |   | (36 | )   
|Income from discontinued operations, net of income taxes |                                               |                                   |      |     |               |   | 16    |          |       |   | (16 | )   
|                                                         |                                               |                                   |       |     |               |   |       |          |      
|Net income                                               |                                               | $                                 | 268   |     |               | $ | 320   |          |       | $ | (52 | )   
|                                                         |                                               |                                   |       |     |               |   |       |          |      

Net Income.


Operating Revenues.


|                                    |  |              |       |  |      |   |       |          |  |   |          |   |  |  |       |   
|----------------------------------- |  | ------------ | ----- |  | ---- | - | ----- | -------- |  | - | -------- | - |  |  | ----- | --
|                                    |  | Three Months |       |  |      |   |      
|                                    |  | Ended        |       |  |      |   |      
|                                    |  | March 31,    |       |  |      |   |      
|                                    |  |              |       |  |      |   |      
|Revenue                             |  | 2006         |       |  | 2005 |   |       | Variance |  |   | % Change |  
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Electric sales to affiliates        |  | $            | 1,172 |  |      | $ | 1,118 |          |  | $ | 54       |   |  |  | 4.8   | % 
|Wholesale and retail electric sales |  |              | 746   |  |      |   | 660   |          |  |   | 86       |   |  |  | 13.0  | % 
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Total energy sales revenue          |  |              | 1,918 |  |      |   | 1,778 |          |  |   | 140      |   |  |  | 7.9   | % 
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Retail gas sales                    |  |              | 249   |  |      |   | 189   |          |  |   | 60       |   |  |  | 31.7  | % 
|Trading portfolio                   |  |              | 2     |  |      |   | 6     |          |  |   | (4       | ) |  |  | (66.7 | )%
|Other revenue(a)                    |  |              | 51    |  |      |   | 47    |          |  |   | 4        |   |  |  | 8.5   | % 
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Total revenue                       |  | $            | 2,220 |  |      | $ | 2,020 |          |  | $ | 200      |   |  |  | 9.9   | % 
|                                    |  |              |       |  |      |   |       |          |  |   |          |  






|    |  |                                                                                                                     
|--- |  | --------------------------------------------------------------------------------------------------------------------
|(a) |  | Includes sales related to tolling agreements, fossil fuel sales
    and decommissioning revenue from ComEd and PECO.

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|                                    |  |              |        |  |      |  |        |          |  |  |          |   |  |  |       |   
|----------------------------------- |  | ------------ | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ----- | --
|                                    |  | Three Months |        |  |      |  |       
|                                    |  | Ended        |        |  |      |  |       
|                                    |  | March 31,    |        |  |      |  |       
|                                    |  |              |        |  |      |  |       
|Sales (in GWhs)                     |  | 2006         |        |  | 2005 |  |        | Variance |  |  | % Change |  
|                                    |  |              |        |  |      |  |        |          |  |  |          |  
|Electric sales to affiliates        |  |              | 29,924 |  |      |  | 28,453 |          |  |  | 1,471    |   |  |  | 5.2   | % 
|Wholesale and retail electric sales |  |              | 14,308 |  |      |  | 17,010 |          |  |  | (2,702   | ) |  |  | (15.9 | )%
|                                    |  |              |        |  |      |  |        |          |  |  |          |  
|Total sales                         |  |              | 44,232 |  |      |  | 45,463 |          |  |  | (1,231   | ) |  |  | (2.7  | )%
|                                    |  |              |        |  |      |  |        |          |  |  |          |  



Electric sales to affiliates.


Wholesale and retail electric sales.


|                                                |  |            |      |  
|----------------------------------------------- |  | ---------- | ---- | -
|                                                |  | Increase   |     
|                                                |  | (Decrease) |     
|                                                |  |            |     
|Price                                           |  | $          | 193  |  
|Volume                                          |  |            | (107 | )
|                                                |  |            |     
|Increase in wholesale and retail electric sales |  | $          | 86   |  
|                                                |  |            |     



Retail gas sales.


Other revenues.


Purchased Power and Fuel Expense.


|                                    |  |              |        |  |      |  |        |          |  |  |          |   |  |  |       |   
|----------------------------------- |  | ------------ | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ----- | --
|                                    |  | Three Months |        |  |      |  |       
|                                    |  | Ended        |        |  |      |  |       
|                                    |  | March 31,    |        |  |      |  |       
|                                    |  |              |        |  |      |  |       
|Supply Source (in GWhs)             |  | 2006         |        |  | 2005 |  |        | Variance |  |  | % Change |  
|                                    |  |              |        |  |      |  |        |          |  |  |          |  
|Nuclear generation(a)               |  |              | 33,491 |  |      |  | 32,780 |          |  |  | 711      |   |  |  | 2.2   | % 
|Purchases  non-trading portfolio   |  |              | 7,770  |  |      |  | 9,546  |          |  |  | (1,776   | ) |  |  | (18.6 | )%
|Fossil and hydroelectric generation |  |              | 2,971  |  |      |  | 3,137  |          |  |  | (166     | ) |  |  | (5.3  | )%
|                                    |  |              |        |  |      |  |        |          |  |  |          |  
|Total supply                        |  |              | 44,232 |  |      |  | 45,463 |          |  |  | (1,231   | ) |  |  | (2.7  | )%
|                                    |  |              |        |  |      |  |        |          |  |  |          |  






|    |  |                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------
|(a) |  | Represents Generations proportionate share of the output
    of its nuclear generating plants.

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|                                             |  |            |     |  
|-------------------------------------------- |  | ---------- | --- | -
|                                             |  | Increase   |    
|                                             |  | (Decrease) |    
|                                             |  |            |    
|Price                                        |  | $          | 175 |  
|Volume                                       |  |            | (94 | )
|Mark-to-market                               |  |            | 85  |  
|                                             |  |            |    
|Increase in purchased power and fuel expense |  | $          | 166 |  
|                                             |  |            |    

Price.


Volume.


Mark-to Mark-to




|                                                                      |                                         |              |       |       |      |  |       |          |  |  |      |      |   
|--------------------------------------------------------------------- | --------------------------------------- | ------------ | ----- | ----- | ---- |  | ----- | -------- |  |  | ---- | ---- | --
|                                                                      |                                         | Three Months |       |       |     
|                                                                      |                                         | Ended        |       |       |     
|                                                                      |                                         | March 31,    |       |       |     
|                                                                      |                                         |              |       |       |     
|($/MWh)                                                               |                                         | 2006         |       |       | 2005 |  |       | % Change | 
|                                                                      |                                         |              |       |       |      |  |       |          | 
|Average electric revenue                                              |                                         |              |       |       |      |  |       |          |  |  |      |     
|                                                                      | Electric sales to affiliates            |              | $     | 39.17 |      |  | $     | 39.29    |  |  |      | (0.3 | )%
|                                                                      | Wholesale and retail electric sales     |              |       | 52.14 |      |  |       | 38.80    |  |  |      | 34.4 | % 
|                                                                      | Total  excluding the trading portfolio |              |       | 43.36 |      |  |       | 39.11    |  |  |      | 10.9 | % 
|Average electric supply cost(a)  excluding the
    trading portfolio |                                         |              | 16.44 |       |      |  | 13.84 |          |  |  | 18.8 | %   
|Average margin  excluding the trading portfolio                      |                                         |              | 26.92 |       |      |  | 25.27 |          |  |  | 6.5  | %   






|    |  |                                                                                                                                                                                                                   
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Average supply cost includes purchased power and fuel costs
    associated with electric sales. Average electric supply cost
    does not include fuel costs associated with retail gas sales and
    other sales.



|                                                              |  |              |       |   |      |   |       |  
|------------------------------------------------------------- |  | ------------ | ----- | - | ---- | - | ----- | -
|                                                              |  | Three Months |      
|                                                              |  | Ended        |      
|                                                              |  | March 31,    |      
|                                                              |  |              |      
|                                                              |  | 2006         |       |   | 2005 |  
|                                                              |  |              |       |   |      |  
|Nuclear fleet capacity factor(a)                              |  |              | 91.0  | % |      |   | 89.9  | %
|Nuclear fleet production cost per MWh(a)                      |  | $            | 15.51 |   |      | $ | 14.64 |  
|Average purchased power cost for wholesale operations per MWh |  |              | 46.72 |   |      |   | 47.14 |  






|    |  |                                                        
|--- |  | -------------------------------------------------------
|(a) |  | Excludes Salem, which is operated by PSEG Nuclear, LLC.



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Operating and Maintenance Expense.


|                                                 |  |            |    | 
|------------------------------------------------ |  | ---------- | -- | 
|                                                 |  | Increase   |   
|                                                 |  | (Decrease) |   
|                                                 |  |            |   
|Nuclear refueling and non-outage operating costs |  | $          | 25 | 
|Fringe benefits                                  |  |            | 27 | 
|Other                                            |  |            | 7  | 
|                                                 |  |            |   
|Increase in operating and maintenance expense    |  | $          | 59 | 
|                                                 |  |            |   





| |   |                                                                                                                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A $20 million increase in costs for normal plant operations
    and maintenance and inflationary costs and a $5 million
    increase in costs for inspections and maintenance during planned
    refueling outages.                                                                                                  
|
| |  | A $27 million increase in various fringe benefits including
    increased stock-based compensation primarily as a result of
    Exelons adoption of SFAS No. 123-R as of
    January 1, 2006 and increased direct and allocated costs
    related to payroll, pension and other postretirement benefits
    expense.

Depreciation and Amortization.


Taxes Other Than Income.


Interest Expense. pre-1983


Other, Net.


Effective Income Tax Rate.


Discontinued Operations.


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Liquidity and Capital Resources


10-K




Cash Flows from Operating Activities








93



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|                                                |                                                                               |                 |     |      |      |   |        |          |   |   |       |       |  
|----------------------------------------------- | ----------------------------------------------------------------------------- | --------------- | --- | ---- | ---- | - | ------ | -------- | - | - | ----- | ----- | -
|                                                |                                                                               | Three Months    |     |      |     
|                                                |                                                                               | Ended March 31, |     |      |     
|                                                |                                                                               |                 |     |      |     
|                                                |                                                                               | 2006            |     |      | 2005 |   |        | Variance |  
|                                                |                                                                               |                 |     |      |      |   |        |          |  
|Net income                                      |                                                                               | $               | 400 |      |      | $ | 521    |          |   | $ | (121  | )    
|Add (subtract):                                 |                                                                               |                 |     |      |      |   |        |          |   |   |       |      
|                                                | Non-cash operating activities(a)                                              |                 |     | 594  |      |   |        | 1,125    |   |   |       | (531  | )
|                                                | Income taxes                                                                  |                 |     | 35   |      |   |        | (344     | ) |   |       | 379   |  
|                                                | Changes in working capital and other noncurrent assets and
    liabilities(b) |                 |     | (237 | )    |   |        | (349     | ) |   |       | 112   |  
|                                                | Pension contributions and postretirement healthcare benefit
    payments, net |                 |     | 56   |      |   |        | (1,962   | ) |   |       | 2,018 |  
|                                                |                                                                               |                 |     |      |      |   |        |          |  
|Net cash flows provided by (used in) operations |                                                                               | $               | 848 |      |      | $ | (1,009 | )        |   | $ | 1,857 |      
|                                                |                                                                               |                 |     |      |      |   |        |          |  






|    |  |                                                                                                                                                                                
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Represents depreciation, amortization and accretion, deferred
    income taxes, equity in losses of unconsolidated affiliates, and
    other non-cash charges.                 
|   
|(b) |  | Changes in working capital and other noncurrent assets and
    liabilities exclude the changes in commercial paper, income
    taxes and the current portion of long-term debt.





|           |  |                 |     |  |      |   |        |  
|---------- |  | --------------- | --- |  | ---- | - | ------ | -
|           |  | Three Months    |    
|           |  | Ended March 31, |    
|           |  |                 |    
|           |  | 2006            |     |  | 2005 |  
|           |  |                 |     |  |      |  
|Exelon     |  | $               | 848 |  |      | $ | (1,009 | )
|ComEd      |  |                 | 297 |  |      |   | (543   | )
|PECO       |  |                 | 247 |  |      |   | 72     |  
|Generation |  |                 | 602 |  |      |   | (238   | )







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | During the three months ended March 31, 2006 and 2005,
    Generation had net collections and net disbursements of
    counterparty collateral of $105 million and
    $23 million, respectively. The increase in cash flows was
    primarily due to changes in collateral requirements resulting
    from increased activity within exchange-based markets for energy
    and fossil fuel.                                                                                                                                                                
|
| |  | In January 2005, Exelon received a $102 million Federal
    income tax refund for capital losses generated in 2003 related
    to Generations previously owned investment in Sithe, which
    were carried back to prior periods. In the first quarter of
    2006, Exelon remitted a $98 million payment to the IRS in
    connection with the settlement of the IRSs challenge of
    the timing of the above-described deduction. This payment
    included $6 million of interest which was recognized as
    interest expense in the first quarter of

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| |  |                                                                                                                                                                                                                           
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 2006. Exelon expects to receive, in either the fourth quarter of
    2006 or first quarter of 2007, approximately $92 million
    related to this same deduction in connection with the filing of
    its 2005 tax return.



| |                                     
| | ------------------------------------
| | Cash Flows from Investing Activities



|           |  |              |      |   |      |   |      |  
|---------- |  | ------------ | ---- | - | ---- | - | ---- | -
|           |  | Three Months |     
|           |  | Ended        |     
|           |  | March 31,    |     
|           |  |              |     
|           |  | 2006         |      |   | 2005 |  
|           |  |              |      |   |      |  
|Exelon     |  | $            | (713 | ) |      | $ | (566 | )
|ComEd      |  |              | (236 | ) |      |   | 21   |  
|PECO       |  |              | (84  | ) |      |   | (23  | )
|Generation |  |              | (354 | ) |      |   | (298 | )



|                                  |  |                |     |  |           |   |       | 
|--------------------------------- |  | -------------- | --- |  | --------- | - | ----- | 
|                                  |  | Three Months   |     |  |          
|                                  |  | Ended          |     |  | Projected |  
|                                  |  | March 31, 2006 |     |  | 2006      |  
|                                  |  |                |     |  |           |  
|ComEd                             |  | $              | 234 |  |           | $ | 925   | 
|PECO                              |  |                | 90  |  |           |   | 333   | 
|Generation                        |  |                | 286 |  |           |   | 1,115 | 
|Other(a)                          |  |                | 3   |  |           |   | 68    | 
|                                  |  |                |     |  |           |  
|Total Exelon capital expenditures |  | $              | 613 |  |           | $ | 2,441 | 
|                                  |  |                |     |  |           |  






|    |  |                                                                                    
|--- |  | -----------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations and shared service entities,
    including BSC.



ComEd and PECO.


Generation.






| |       
| | ------
| | Exelon



| |   |                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelon contributed $33 million and $28 million to its
    investments in synthetic fuel-producing facilities during the
    three months ended March 31, 2006 and 2005, respectively.

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| |      
| | -----
| | ComEd



| |   |                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As a result of its prior contributions to the Exelon
    intercompany money pool, $207 million was returned to ComEd
    during the three months ended March 31, 2005.



| |     
| | ----
| | PECO



| |   |                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As a result of its prior contributions to the Exelon
    intercompany money pool, $8 million and $34 million
    were returned to PECO during the three months ended
    March 31, 2006 and 2005, respectively.



| |           
| | ----------
| | Generation



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On January 31, 2005, subsidiaries of Generation completed a
    series of transactions that resulted in Generations sale
    of its investment in Sithe. Specifically, subsidiaries of
    Generation acquired Reservoir Capital Groups 50% interest
    in Sithe for cash payments of $97 million and sold 100% of
    Sithe to Dynegy, for net cash proceeds of $103 million. See
    Note 4 of the Combined Notes to Consolidated Financial
    Statements for further discussion of the sale of Sithe.

Acquisition of the Remaining Interest of Southeast Chicago
Energy Project, LLC (SCEP). 350-megawatt 20-year




| |                                     
| | ------------------------------------
| | Cash Flows from Financing Activities



|           |  |                 |      |   |      |   |       |  
|---------- |  | --------------- | ---- | - | ---- | - | ----- | -
|           |  | Three Months    |     
|           |  | Ended March 31, |     
|           |  |                 |     
|           |  | 2006            |      |   | 2005 |  
|           |  |                 |      |   |      |  
|Exelon     |  | $               | (101 | ) |      | $ | 1,436 |  
|ComEd      |  |                 | (63  | ) |      |   | 597   |  
|PECO       |  |                 | (120 | ) |      |   | (48   | )
|Generation |  |                 | (251 | ) |      |   | 357   |  



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10-K






|           |  |              |     |  |      |   |     | 
|---------- |  | ------------ | --- |  | ---- | - | --- | 
|           |  | Three Months |    
|           |  | Ended        |    
|           |  | March 31,    |    
|           |  |              |    
|           |  | 2006         |     |  | 2005 |  
|           |  |              |     |  |      |  
|Exelon     |  | $            | 267 |  |      | $ | 267 | 
|ComEd      |  |              |    |  |      |   | 138 | 
|PECO       |  |              | 117 |  |      |   | 116 | 
|Generation |  |              | 165 |  |      |   | 239 | 

10-K








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| |   |                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelon purchased treasury shares totaling $54 million and
    $8 million during the three months ended March 31,
    2006 and 2005, respectively.                                           
|
| |  | Exelon received proceeds from employee stock plans of
    $81 million and $103 million during the three months
    ended March 31, 2006 and 2005, respectively.                             
|
| |  | There was $21 million and $0 of excess tax benefits
    included as a cash inflow in other financing activities during
    the three months ended March 31, 2006 and 2005,
    respectively.

Intercompany Money Pool.




| |               
| | --------------
| | Credit Matters

Exelon Credit Facilities.




|              |  |                |       |  |             |   |       |                  |  |   |     | 
|------------- |  | -------------- | ----- |  | ----------- | - | ----- | ---------------- |  | - | --- | 
|              |  | Aggregate Bank |       |  | Available   |   |       | Outstanding      | 
|Borrower      |  | Commitment(a)  |       |  | Capacity(b) |   |       | Commercial Paper | 
|              |  |                |       |  |             |   |       |                  | 
|Exelon(c)     |  | $              | 200   |  |             | $ | 200   |                  |  | $ | 93  | 
|ComEd         |  |                | 1,000 |  |             |   | 957   |                  |  |   | 308 | 
|PECO(c)       |  |                | 500   |  |             |   | 500   |                  |  |   | 307 | 
|Generation(c) |  |                | 1,750 |  |             |   | 1,667 |                  |  |   | 313 | 






|    |  |                                                                                                                                                                                                                                                                                                                                  
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Represents the total bank commitments to the borrower under
    credit agreements to which the borrower is a party.                                                                                                                                                                                                              
|   
|(b) |  | Available capacity represents the unused bank commitments under
    the borrowers credit agreements net of outstanding letters
    of credit. The amount of commercial paper outstanding does not
    reduce the available capacity under the credit agreements.                                                                
|   
|(c) |  | Exelon, PECO and Generation are parties to two credit agreements
    with aggregate bank commitments of $1.5 billion. The credit
    agreements contain separate sublimits for Exelon, PECO and
    Generation, which are reflected in the table, which sublimits
    may be changed upon written notification to the bank group.





98



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|                           |  |           |  |           |  |           |  |            |           | 
|-------------------------- |  | --------- |  | --------- |  | --------- |  | ---------- | --------- | 
|                           |  | Exelon    |  | ComEd     |  | PECO      |  | Generation |          
|                           |  |           |  |           |  |           |  |            |          
|Credit agreement threshold |  | 2.65 to 1 |  | 2.25 to 1 |  | 2.25 to 1 |  |            | 3.25 to 1 | 





Capital Structure.


|                                   |  |              |    |   |       |  |    |         |  |  |            |   |  |  |    |  
|---------------------------------- |  | ------------ | -- | - | ----- |  | -- | ------- |  |  | ---------- | - |  |  | -- | -
|                                   |  | Exelon       |    |   |       |  |    |         | 
|                                   |  | Consolidated |    |   | ComEd |  |    | PECO(a) |  |  | Generation |  
|                                   |  |              |    |   |       |  |    |         |  |  |            |  
|Long-term debt                     |  |              | 36 | % |       |  | 28 | %       |  |  | 19         | % |  |  | 28 | %
|Long-term debt to affiliates(b)    |  |              | 19 |   |       |  | 11 |         |  |  | 49         |   |  |  |   |  
|Common equity                      |  |              | 39 |   |       |  | 58 |         |  |  | 26         |   |  |  |   |  
|Members equity                    |  |              |   |   |       |  |   |         |  |  |           |   |  |  | 67 |  
|Preferred securities               |  |              |   |   |       |  |   |         |  |  | 1          |   |  |  |   |  
|Commercial paper and notes payable |  |              | 6  |   |       |  | 3  |         |  |  | 5          |   |  |  | 5  |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | As of March 31, 2006, PECOs capital structure,
    excluding the deduction from shareholders equity of the
    $1.2 billion receivable from Exelon (which amount is
    deducted for GAAP purposes as reflected in the table, but is
    excluded from the percentages in this footnote), consisted of
    38% common equity, 1% preferred securities, 4% notes
    payable and 57% long- term debt, including long-term debt to
    unconsolidated affiliates.                                                                                                                                                  
|   
|(b) |  | Includes $4.3 billion, $1.3 billion and
    $3.0 billion owed to unconsolidated affiliates of Exelon,
    ComEd and PECO, respectively, that qualify as special purpose
    entities under FIN 46-R. These special purpose entities
    were created for the sole purpose of issuing debt obligations to
    securitize intangible transition property and CTCs of ComEd and
    PECO or mandatorily redeemable preferred securities. See
    Note 1 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2005 Annual Report on
    Form 10-K for
    further information regarding FIN 46-R.

Intercompany Money Pool.


99



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|           |  |             |     |  |          |           |     |             |  |   |    |  
|---------- |  | ----------- | --- |  | -------- | --------- | --- | ----------- |  | - | -- | -
|           |  |             |     |  |          | March 31, |    
|           |  |             |     |  |          | 2006      |    
|           |  | Maximum     |     |  | Maximum  |           |     | Contributed | 
|           |  | Contributed |     |  | Borrowed |           |     | (Borrowed)  | 
|           |  |             |     |  |          |           |     |             | 
|ComEd(a)   |  | $           |    |  |          | $         | 140 |             |  | $ |   |  
|PECO       |  |             | 21  |  |          |           | 11  |             |  |   |   |  
|Generation |  |             | 11  |  |          |           | 206 |             |  |   | (4 | )
|BSC        |  |             |    |  |          |           | 134 |             |  |   |   |  
|UII, LLC   |  |             | 4   |  |          |           |    |             |  |   | 4  |  
|Exelon     |  |             | 248 |  |          |           |    |             |  |   |   |  






|    |  |                                                                                                    
|--- |  | ---------------------------------------------------------------------------------------------------
|(a) |  | During the first quarter of 2006, ComEd suspended participation
    in the intercompany money pool.

Security Ratings. 10-K.


Shelf Registrations.


Investments in Synthetic Fuel-Producing Facilities






|                                  |  |           |    | 
|--------------------------------- |  | --------- | -- | 
|                                  |  | Estimated |   
|                                  |  | 2007      |   
|                                  |  |           |   
|Beginning of Phase-Out Range(a)   |  | $         | 61 | 
|End of Phase-Out Range(a)         |  |           | 76 | 
|Annual Average NYMEX Future Price |  |           | 70 | 






|    |  |                                                                                                                                                                                             
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Estimated phase-out ranges are calculated using inflation rates
    published by the IRS after year-end. The inflation rate used by
    Exelon to estimate the 2007 phase-out ranges was 2%.



100



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Contractual Obligations and Off-Balance Sheet
Arrangements


10-K


Exelon




| |   |                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Letters of credit and guarantees increased $52 million and
    $15 million, respectively, primarily as a result of
    Generations energy trading activities.

ComEd




| |   |                                                                                          
| | - | -----------------------------------------------------------------------------------------
| |  | ComEd issued $325 million First Mortgage 5.90% Bonds,
    Series 103, due March 15, 2036.

Generation




| |   |                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Letters of credit and guarantees increased $36 million and
    $15 million, respectively, primarily as a result of
    Generations energy trading activities.

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COMMONWEALTH EDISON COMPANY


General




Executive Overview


10-Q.


Results of Operations




| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Three Months Ended March 31, 2006 Compared to Three
    Months Ended March 31, 2005

10-Q.


Liquidity and Capital Resources








| |                                     
| | ------------------------------------
| | Cash Flows from Operating Activities

10-Q.




| |                                     
| | ------------------------------------
| | Cash Flows from Investing Activities

10-Q.




| |                                     
| | ------------------------------------
| | Cash Flows from Financing Activities

10-Q.


102



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| |               
| | --------------
| | Credit Matters

10-Q.




| |                                                               
| | --------------------------------------------------------------
| | Contractual Obligations and Off-Balance Sheet
    Arrangements

10-Q.


103



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##### Table of Contents






PECO ENERGY COMPANY


General




Executive Overview


10-Q.


Results of Operations




| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Three Months Ended March 31, 2006 Compared to Three
    Months Ended March 31, 2005

10-Q.


Liquidity and Capital Resources








| |                                     
| | ------------------------------------
| | Cash Flows from Operating Activities

10-Q.




| |                                     
| | ------------------------------------
| | Cash Flows from Investing Activities

10-Q.




| |                                     
| | ------------------------------------
| | Cash Flows from Financing Activities

10-Q.


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| |               
| | --------------
| | Credit Matters

10-Q.




| |                                                               
| | --------------------------------------------------------------
| | Contractual Obligations and Off-Balance Sheet
    Arrangements

10-Q.


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EXELON GENERATION COMPANY


General




Executive Overview


10-Q.


Results of Operations




| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Three Months Ended March 31, 2006 Compared to Three
    Months Ended March 31, 2005

10-Q.


Liquidity and Capital Resources








| |                                     
| | ------------------------------------
| | Cash Flows from Operating Activities

10-Q.




| |                                     
| | ------------------------------------
| | Cash Flows from Investing Activities

10-Q.




| |                                     
| | ------------------------------------
| | Cash Flows from Financing Activities

10-Q.


106



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| |               
| | --------------
| | Credit Matters

10-Q.




| |                                                               
| | --------------------------------------------------------------
| | Contractual Obligations and Off-Balance Sheet
    Arrangements

10-Q.


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|        |                                                           
|------- | ----------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market Risk



Commodity Price Risk (Exelon, ComEd and Generation)




10-K.




Normal Operations and Hedging Activities.


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around-the




Proprietary Trading Activities. mark-to


Trading and Non-Trading Marketing Activities.


mark-to mark-to


|                                                                                         |  |       |      |  
|---------------------------------------------------------------------------------------- |  | ----- | ---- | -
|                                                                                         |  | Total |     
|                                                                                         |  |       |     
|Total mark-to-market energy contract net liabilities at
    January 1, 2006              |  | $     | (540 | )
|Total change in fair value during 2006 of contracts recorded in
    earnings             |  |       | (55  | )
|Reclassification to realized at settlement of contracts recorded
    in earnings         |  |       | 33   |  
|Reclassification to realized at settlement from OCI                                      |  |       | 76   |  
|Effective portion of changes in fair value  recorded
    in OCI                         |  |       | 75   |  
|Purchase/sale/disposal of existing contracts or portfolios
    subject to mark-to-market |  |       |     |  
|                                                                                         |  |       |     
|Total mark-to-market energy contract net liabilities at
    March 31, 2006               |  | $     | (411 | )
|                                                                                         |  |       |     

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mark-to


|                                                     |                                                  |           |      |        |              |   |        |        |  
|---------------------------------------------------- | ------------------------------------------------ | --------- | ---- | ------ | ------------ | - | ------ | ------ | -
|                                                     |                                                  | March 31, |      |        | December 31, |  
|                                                     |                                                  | 2006      |      |        | 2005         |  
|                                                     |                                                  |           |      |        |              |  
|Current assets                                       |                                                  | $         | 637  |        |              | $ | 916    |       
|Noncurrent assets                                    |                                                  |           | 331  |        |              |   | 286    |       
|                                                     |                                                  |           |      |        |              |  
|                                                     | Total mark-to-market energy contract assets      |           |      | 968    |              |   |        | 1,202  |  
|                                                     |                                                  |           |      |        |              |  
|Current liabilities                                  |                                                  |           | (947 | )      |              |   | (1,282 | )     
|Noncurrent liabilities                               |                                                  |           | (432 | )      |              |   | (460   | )     
|                                                     |                                                  |           |      |        |              |  
|                                                     | Total mark-to-market energy contract liabilities |           |      | (1,379 | )            |   |        | (1,742 | )
|                                                     |                                                  |           |      |        |              |  
|Total mark-to-market energy contract net liabilities |                                                  | $         | (411 | )      |              | $ | (540   | )     
|                                                     |                                                  |           |      |        |              |  

over-the over-the


mark-to mark-to mark-to


|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |      |  |        |   |       |  |   |   |  |  |   |   |  |  |   |      |  
|--------------------------------------------------------------- | ------------------------------------------------ | ----------------- | - | -------- | ---- | ---------- | - | ---- | - |  | ---- | --- | ---- |  | ------ | - | ----- |  | - | - |  |  | - | - |  |  | - | ---- | -
|                                                                |                                                  | Maturities Within |   |         
|                                                                |                                                  |                   |   |         
|                                                                |                                                  |                   |   | 2011 and |      | Total Fair |  
|(In millions)                                                   |                                                  | 2006              |   |          | 2007 |            |   | 2008 |   |  | 2009 |     | 2010 |  | Beyond |   | Value | 
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |      |  |        |   |       | 
|Normal Operations, qualifying cash-flow hedge
    contracts(a): |                                                  |                   |   |          |      |            |   |      |   |  |      |     |      |  |        |   |       |  |   |   |  |  |   |   |  |  |   |     
|                                                                | Actively quoted prices                           |                   | $ |         |      |            | $ |     |   |  | $    |    |      |  | $      |  |       |  | $ |  |  |  | $ |  |  |  | $ |     |  
|                                                                | Prices provided by other external sources        |                   |   | (196     | )    |            |   | (163 | ) |  |      | (11 | )    |  |        |  |       |  |   |  |  |  |   |  |  |  |   | (370 | )
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |      |  |        |   |       |  |   |   | 
|                                                                | Total                                            |                   | $ | (196     | )    |            | $ | (163 | ) |  | $    | (11 | )    |  | $      |  |       |  | $ |  |  |  | $ |  |  |  | $ | (370 | )
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |      |  |        |   |       |  |   |   | 
|Normal Operations, other derivative contracts(b):               |                                                  |                   |   |          |      |            |   |      |   |  |      |     |      |  |        |   |       |  |   |   |  |  |   |   |  |  |   |     
|                                                                | Actively quoted prices                           |                   | $ | (13      | )    |            | $ | (51  | ) |  | $    | 7   |      |  | $      |  |       |  | $ |  |  |  | $ |  |  |  | $ | (57  | )
|                                                                | Prices provided by other external sources        |                   |   | 25       |      |            |   | 30   |   |  |      | (6  | )    |  |        |  |       |  |   |  |  |  |   |  |  |  |   | 49   |  
|                                                                | Prices based on model or other valuation methods |                   |   | (25      | )    |            |   | (8   | ) |  |      |    |      |  |        |  |       |  |   |  |  |  |   |  |  |  |   | (33  | )
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |      |  |        |   |       |  |   |   | 
|                                                                | Total                                            |                   | $ | (13      | )    |            | $ | (29  | ) |  | $    | 1   |      |  | $      |  |       |  | $ |  |  |  | $ |  |  |  | $ | (41  | )
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |      |  |        |   |       |  |   |   | 

110



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|    |  |                                                                                                                                                                
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Mark-to-market gains
    and losses on contracts that qualify as cash-flow hedges are
    recorded in OCI.                                                     
|   
|(b) |  | Mark-to-market gains
    and losses on other non-trading and trading derivative contracts
    that do not qualify as cash-flow hedges are recorded in earnings.



|                                                   |  |                                     |      |   |               |   |    |           |  |   |      |  
|-------------------------------------------------- |  | ----------------------------------- | ---- | - | ------------- | - | -- | --------- |  | - | ---- | -
|                                                   |  | Total Cash-Flow Hedge OCI Activity, |     
|                                                   |  | Net of Income Tax                   |     
|                                                   |  |                                     |     
|                                                   |  | Power Team Normal                   |      |   | Interest-Rate |   |    | Total     | 
|                                                   |  | Operations and                      |      |   | and Other     |   |    | Cash-Flow | 
|(In millions)                                      |  | Hedging Activities                  |      |   | Hedges        |   |    | Hedges    | 
|                                                   |  |                                     |      |   |               |   |    |           | 
|Accumulated OCI derivative loss at January 1, 2006 |  | $                                   | (314 | ) |               | $ | (4 | )         |  | $ | (318 | )
|Changes in fair value                              |  |                                     | 46   |   |               |   | 1  |           |  |   | 47   |  
|Reclassifications from OCI to net income           |  |                                     | 45   |   |               |   |   |           |  |   | 45   |  
|                                                   |  |                                     |      |   |               |   |    |           | 
|Accumulated OCI derivative loss at March 31, 2006  |  | $                                   | (223 | ) |               | $ | (3 | )         |  | $ | (226 | )
|                                                   |  |                                     |      |   |               |   |    |           | 

Credit Risk (Exelon and Generation)




| |           
| | ----------
| | Generation





111



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|                               |                                         |               |     |   |            |   |     |          |                |   |                  |                 |  |                  |   |   |  |   |    |   | 
|------------------------------ | --------------------------------------- | ------------- | --- | - | ---------- | - | --- | -------- | -------------- | - | ---------------- | --------------- |  | ---------------- | - | - |  | - | -- | - | 
|                               |                                         | Total         |     |   |            |   |     |          | Number Of      |   |                  | Net Exposure Of | 
|                               |                                         | Exposure      |     |   |            |   |     |          | Counterparties |   |                  | Counterparties  | 
|                               |                                         | Before Credit |     |   | Credit     |   |     | Net      |                |   | Greater than 10% |                 |  | Greater than 10% |  
|Rating as of March 31, 2006(a) |                                         | Collateral    |     |   | Collateral |   |     | Exposure |                |   | of Net Exposure  |                 |  | of Net Exposure  |  
|                               |                                         |               |     |   |            |   |     |          |                |   |                  |                 |  |                  |  
|Investment grade               |                                         | $             | 369 |   |            | $ | 101 |          |                | $ | 268              |                 |  |                  | 2 |   |  | $ | 90 |  
|Non-investment grade           |                                         |               | 25  |   |            |   | 2   |          |                |   | 23               |                 |  |                  |  |   |  |   |   |  
|No external ratings            |                                         |               |     |   |            |   |     |          |                |   |                  |                 |  |                  |   |   |  |   |    |  
|                               | Internally rated  investment grade     |               |     | 8 |            |   |     | 2        |                |   |                  | 6               |  |                  |   |  |  |   |    |  | 
|                               | Internally rated  non-investment grade |               |     | 2 |            |   |     | 1        |                |   |                  | 1               |  |                  |   |  |  |   |    |  | 
|                               |                                         |               |     |   |            |   |     |          |                |   |                  |                 |  |                  |  
|Total                          |                                         | $             | 404 |   |            | $ | 106 |          |                | $ | 298              |                 |  |                  | 2 |   |  | $ | 90 |  
|                               |                                         |               |     |   |            |   |     |          |                |   |                  |                 |  |                  |  






|    |  |                                                          
|--- |  | ---------------------------------------------------------
|(a) |  | This table does not include accounts receivable exposure.

|                               |                                         |                                  |     |          |           |                |              |         |               |            |   |   |  |   |     |   | 
|------------------------------ | --------------------------------------- | -------------------------------- | --- | -------- | --------- | -------------- | ------------ | ------- | ------------- | ---------- | - | - |  | - | --- | - | 
|                               |                                         | Maturity of Credit Risk Exposure |    
|                               |                                         |                                  |    
|                               |                                         |                                  |     | Exposure |           | Total Exposure |             
|                               |                                         | Less than                        |     |          |           |                | Greater than |         | Before Credit |           
|Rating as of March 31, 2006(a) |                                         | 2 Years                          |     |          | 2-5 Years |                |              | 5 Years |               | Collateral |  
|                               |                                         |                                  |     |          |           |                |              |         |               |            |  
|Investment grade               |                                         | $                                | 336 |          |           | $              | 33           |         |               | $          |  |   |  | $ | 369 |  
|Non-investment grade           |                                         |                                  | 24  |          |           |                | 1            |         |               |            |  |   |  |   | 25  |  
|No external ratings            |                                         |                                  |     |          |           |                |              |         |               |            |   |   |  |   |     |  
|                               | Internally rated  investment grade     |                                  |     | 8        |           |                |              |        |               |            |   |  |  |   |     | 8 | 
|                               | Internally rated  non-investment grade |                                  |     | 2        |           |                |              |        |               |            |   |  |  |   |     | 2 | 
|                               |                                         |                                  |     |          |           |                |              |         |               |            |   |  
|Total                          |                                         | $                                | 370 |          |           | $              | 34           |         |               | $          |  |   |  | $ | 404 |  
|                               |                                         |                                  |     |          |           |                |              |         |               |            |   |  






|    |  |                                                          
|--- |  | ---------------------------------------------------------
|(a) |  | This table does not include accounts receivable exposure.

Collateral.


ISOs.


112



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| |       
| | ------
| | Exelon



Interest-Rate Risk (Exelon, ComEd, PECO and Generation)


Variable Rate Debt.


Equity Price Risk (Exelon and Generation)


10-K


113



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|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures








PART II  OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings

10-K







|         |             
|-------- | ------------
|Item 1A. | Risk Factors



The Registrants may incur substantial costs to fulfill their
obligations related to environmental and other matters.


clean-up


114



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|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds

Exelon




|                               |  |              |           |  |                |                  |                     |                 |                  |                  |                 |  |  |  |    |  
|------------------------------ |  | ------------ | --------- |  | -------------- | ---------------- | ------------------- | --------------- | ---------------- | ---------------- | --------------- |  |  |  | -- | -
|                               |  |              |           |  |                |                  |                     | Maximum Number  |                 
|                               |  |              |           |  |                |                  |                     | (or Approximate |                 
|                               |  |              |           |  |                | Total Number of  |                     |                 | Dollar Value) of |                 
|                               |  |              |           |  |                | Shares Purchased |                     |                 | Shares that May  |                 
|                               |  | Total Number |           |  |                |                  | As Part of Publicly |                 |                  | Yet Be Purchased |                
|                               |  | of Shares    |           |  | Average Price  |                  |                     | Announced Plans |                  |                  | Under the Plans | 
|Period                         |  | Purchased(a) |           |  | Paid per Share |                  |                     | or Programs(b)  |                  |                  | or Programs     | 
|                               |  |              |           |  |                |                  |                     |                 |                  |                  |                 | 
|January 1  January 31, 2006   |  |              | 4,220     |  |                | $                | 52.39               |                 |                  |                  |                |  |  |  | (b | )
|February 1  February 28, 2006 |  |              | 1,033,311 |  |                |                  | 56.60               |                 |                  |                  | 947,600         |  |  |  | (b | )
|March 1  March 31, 2006       |  |              | 6,003     |  |                |                  | 55.62               |                 |                  |                  |                |  |  |  | (b | )
|                               |  |              |           |  |                |                  |                     |                 |                  |                  |                 | 
|Total                          |  |              | 1,043,534 |  |                |                  | 56.58               |                 |                  |                  | 947,600         |  |  |  | (b | )
|                               |  |              |           |  |                |                  |                     |                 |                  |                  |                 | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Shares other than those purchased as part of a publicly
    announced plan primarily represent restricted shares surrendered
    by employees to satisfy tax obligations arising upon the vesting
    of restricted shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|(b) |  | In April 2004, Exelons Board of Directors approved a
    discretionary share repurchase program that allows Exelon to
    repurchase shares of its common stock on a periodic basis in the
    open market. The share repurchase program is intended to
    mitigate, in part, the dilutive effect of shares issued under
    Exelons employee stock option plan and Exelons
    Employee Stock Purchase Plan (ESPP). The aggregate shares of
    common stock repurchased pursuant to the program cannot exceed
    the economic benefit received after January 1, 2004 due to
    stock option exercises and share purchases pursuant to
    Exelons ESPP. The economic benefit consists of direct cash
    proceeds from purchases of stock and tax benefits associated
    with exercises of stock options. The share repurchase program
    has no specified limit and no specified termination date.

115



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Item 6.     Exhibits


|        |       |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------- | ----- | ----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |            
|No.     |       | Description
|        |       |            
|        | 2-1   |             |  | Amended and Restated Agreement and Plan of Merger dated as of
    October 20, 2000, among PECO Energy Company, Exelon
    Corporation and Unicom Corporation (File No. 0-01401, PECO
    Energy Company Form 10-Q for the quarter ended
    September 30, 2000, Exhibit 2-1).                                                                                                                                                                                               
|        | 2-2   |             |  | Agreement and Plan of Merger between Exelon Corporation and
    Public Service Enterprise Group Incorporated dated as of
    December 20, 2004 (File No. 1-16169, Form 8-K
    dated December 21, 2004, Exhibit 2.1).                                                                                                                                                                                                                                                       
|       
|        | 3-1   |             |  | Articles of Incorporation of Exelon Corporation (Registration
    Statement No. 333-37082, Form S-4, Exhibit 3-1).                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 3-2   |             |  | Amendment to Articles of Incorporation of Exelon Corporation
    (File No. 1-16169, Form 10-Q for the quarter ended
    June 30, 2004, Exhibit 3-1).                                                                                                                                                                                                                                                                                                                        
|       
|        | 3-3   |             |  | Amendment to Articles of Incorporation of Exelon Corporation
    (File No. 1-16169, Form 10-Q for the quarter ended
    September 30, 2005, Exhibit 3-10).                                                                                                                                                                                                                                                                                                                  
|       
|        | 3-4   |             |  | Amended and Restated Bylaws of Exelon Corporation, adopted
    January 27, 2004 (File No. 1-16169, 2003
    Form 10-K Exhibit 3-2).                                                                                                                                                                                                                                                                                                                                         
|       
|        | 3-5   |             |  | Amended and Restated Articles of Incorporation of PECO Energy
    Company (File No. 1-01401, 2000 Form 10-K,
    Exhibit 3-3).                                                                                                                                                                                                                                                                                                                                              
|       
|        | 3-6   |             |  | Bylaws of PECO Energy Company, adopted February 26, 1990
    and amended January 26, 1998 (File No. 1-01401, 1997
    Form 10-K, Exhibit 3-2).                                                                                                                                                                                                                                                                                                                              
|       
|        | 3-7   |             |  | Restated Articles of Incorporation of Commonwealth Edison
    Company effective February 20, 1985, including Statements
    of Resolution Establishing Series, relating to the establishment
    of three new series of Commonwealth Edison Company preference
    stock known as the $9.00 Cumulative Preference
    Stock, the $6.875 Cumulative Preference Stock
    and the $2.425 Cumulative Preference Stock (File
    No. 1-1839, 1994 Form 10-K, Exhibit 3-2).
|       
|        | 3-8   |             |  | Amended and Restated Bylaws of Commonwealth Edison Company,
    effective January 23, 2006 (File No. 1-1839,
    Form 8-K dated January 23, 2006, Exhibit 99.1).                                                                                                                                                                                                                                                                                                            
|       
|        | 3-9   |             |  | Certificate of Formation of Exelon Generation Company, LLC
    (Registration Statement No. 333-85496, Form S-4,
    Exhibit 3-1).                                                                                                                                                                                                                                                                                                                                           
|       
|        | 3-10  |             |  | First Amended and Restated Operating Agreement of Exelon
    Generation Company, LLC executed as of January 1, 2001
    (File No. 333-85496, 2003 Form 10-K, Exhibit 3-8).                                                                                                                                                                                                                                                                                                  
|       
|        | 4-1   |             |  | First and Refunding Mortgage dated May 1, 1923 between The
    Counties Gas and Electric Company (predecessor to PECO Energy
    Company) and Fidelity Trust Company, Trustee (Wachovia Bank,
    National Association), (Registration No. 2-2281,
    Exhibit B-1).                                                                                                                                                                                                        
|        | 4-1-1 |             |  | Supplemental Indentures to PECO Energy Companys First and
    Refunding Mortgage:                                                                                                                                                                                                                                                                                                                                                                                          

|                  |  |                |  |             |         | 
|----------------- |  | -------------- |  | ----------- | ------- | 
|Dated as of       |  | File Reference |  | Exhibit No. |        
|                  |  |                |  |             |        
|May 1, 1927       |  | 2-2881         |  |             | B-1(c)  | 
|March 1, 1937     |  | 2-2881         |  |             | B-1(g)  | 
|December 1, 1941  |  | 2-4863         |  |             | B-1(h)  | 
|November 1, 1944  |  | 2-5472         |  |             | B-1(i)  | 
|December 1, 1946  |  | 2-6821         |  |             | 7-1(j)  | 
|September 1, 1957 |  | 2-13562        |  |             | 2(b)-17 | 
|May 1, 1958       |  | 2-14020        |  |             | 2(b)-18 | 
|March 1, 1968     |  | 2-34051        |  |             | 2(b)-24 | 
|March 1, 1981     |  | 2-72802        |  |             | 4-46    | 
|March 1, 1981     |  | 2-72802        |  |             | 4-47    | 

116



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|                   |  |                                         |  |             |         | 
|------------------ |  | --------------------------------------- |  | ----------- | ------- | 
|Dated as of        |  | File Reference                          |  | Exhibit No. |        
|                   |  |                                         |  |             |        
|December 1, 1984   |  | 1-01401, 1984 Form 10-K                 |  |             | 4-2(b)  | 
|April 1, 1991      |  | 1-01401, 1991 Form 10-K                 |  |             | 4(e)-76 | 
|December 1, 1991   |  | 1-01401, 1991 Form 10-K                 |  |             | 4(e)-77 | 
|June 1, 1992       |  | 1-01401, June 30, 1992 Form 10-Q        |  |             | 4(e)-81 | 
|March 1, 1993      |  | 1-01401, 1992 Form 10-K                 |  |             | 4(e)-86 | 
|May 1, 1993        |  | 1-01401, March 31, 1993 Form 10-Q       |  |             | 4(e)-88 | 
|May 1, 1993        |  | 1-01401, March 31, 1993 Form 10-Q       |  |             | 4(e)-89 | 
|August 15, 1993    |  | 1-01401, Form 8-A dated August 19, 1993 |  |             | 4(e)-92 | 
|May 1, 1995        |  | 1-01401, Form 8-K dated May 24, 1995    |  |             | 4(e)-96 | 
|September 15, 2002 |  | 1-01401, September 30, 2002 Form 10-Q   |  |             | 4-1     | 
|October 1, 2002    |  | 1-01401, September 30, 2002 Form 10-Q   |  |             | 4-2     | 
|April 15, 2003     |  | 0-16844, March 31, 2003 Form 10-Q       |  |             | 4.1     | 
|April 15, 2004     |  | 0-16844, September 30, 2004 Form 10-Q   |  |             | 4-1-1   | 

| |       |  |  |                                                                                                                                                                                                                                                                                                                  
| | ----- |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4-2   |  |  | Exelon Corporation Dividend Reinvestment and Stock Purchase Plan
    (Registration Statement No. 333-84446, Form S-3,
    Prospectus).                                                                                                                                                                           
| | 4-3   |  |  | Mortgage of Commonwealth Edison Company to Illinois Merchants
    Trust Company, Trustee (BNY Midwest Trust Company, as current
    successor Trustee), dated July 1, 1923, as supplemented and
    amended by Supplemental Indenture thereto dated August 1,
    1944 (File No. 2-60201, Form S-7, Exhibit 2-1).
| | 4-3-1 |  |  | Supplemental Indentures to aforementioned Commonwealth Edison
    Mortgage.                                                                                                                                                                                                                                      

|                  |  |                   |  |             |     | 
|----------------- |  | ----------------- |  | ----------- | --- | 
|Dated as of       |  | File Reference    |  | Exhibit No. |    
|                  |  |                   |  |             |    
|August 1, 1946    |  | 2-60201, Form S-7 |  |             | 2-1 | 
|April 1, 1953     |  | 2-60201, Form S-7 |  |             | 2-1 | 
|March 31, 1967    |  | 2-60201, Form S-7 |  |             | 2-1 | 
|April 1,1967      |  | 2-60201, Form S-7 |  |             | 2-1 | 
|February 28, 1969 |  | 2-60201, Form S-7 |  |             | 2-1 | 
|May 29, 1970      |  | 2-60201, Form S-7 |  |             | 2-1 | 
|June 1, 1971      |  | 2-60201, Form S-7 |  |             | 2-1 | 
|April 1, 1972     |  | 2-60201, Form S-7 |  |             | 2-1 | 
|May 31, 1972      |  | 2-60201, Form S-7 |  |             | 2-1 | 
|June 15, 1973     |  | 2-60201, Form S-7 |  |             | 2-1 | 
|May 31, 1974      |  | 2-60201, Form S-7 |  |             | 2-1 | 
|June 13, 1975     |  | 2-60201, Form S-7 |  |             | 2-1 | 
|May 28, 1976      |  | 2-60201, Form S-7 |  |             | 2-1 | 
|June 3, 1977      |  | 2-60201, Form S-7 |  |             | 2-1 | 
|May 17, 1978      |  | 2-99665, Form S-3 |  |             | 4-3 | 
|August 31, 1978   |  | 2-99665, Form S-3 |  |             | 4-3 | 
|June 18, 1979     |  | 2-99665, Form S-3 |  |             | 4-3 | 
|June 20, 1980     |  | 2-99665, Form S-3 |  |             | 4-3 | 
|April 16, 1981    |  | 2-99665, Form S-3 |  |             | 4-3 | 
|April 30, 1982    |  | 2-99665, Form S-3 |  |             | 4-3 | 
|April 15, 1983    |  | 2-99665, Form S-3 |  |             | 4-3 | 

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|                   |  |                                                         |  |             |       | 
|------------------ |  | ------------------------------------------------------- |  | ----------- | ----- | 
|Dated as of        |  | File Reference                                          |  | Exhibit No. |      
|                   |  |                                                         |  |             |      
|April 13, 1984     |  | 2-99665, Form S-3                                       |  |             | 4-3   | 
|April 15, 1985     |  | 2-99665, Form S-3                                       |  |             | 4-3   | 
|April 15, 1986     |  | 33-6879, Form S-3                                       |  |             | 4-9   | 
|June 15, 1990      |  | 33-38232, Form S-3                                      |  |             | 4-12  | 
|October 1, 1991    |  | 33-40018, Form S-3                                      |  |             | 4-13  | 
|October 15, 1991   |  | 33-40018, Form S-3                                      |  |             | 4-14  | 
|May 15, 1992       |  | 33-48542, Form S-3                                      |  |             | 4-14  | 
|September 15, 1992 |  | 33-53766, Form S-3                                      |  |             | 4-14  | 
|February 1, 1993   |  | 1-1839, 1992 Form 10-K                                  |  |             | 4-14  | 
|April 1, 1993      |  | 33-64028, Form S-3                                      |  |             | 4-12  | 
|April 15, 1993     |  | 33-64028, Form S-3                                      |  |             | 4-13  | 
|June 15, 1993      |  | 1-1839, Form 8-K dated May 21, 1993                     |  |             | 4-1   | 
|July 15, 1993      |  | 1-1839, Form 10-Q for quarter ended June 30, 1993.      |  |             | 4-1   | 
|January 15, 1994   |  | 1-1839, 1993 Form 10-K                                  |  |             | 4-15  | 
|December 1, 1994   |  | 1-1839, 1994 Form 10-K                                  |  |             | 4-16  | 
|June 1, 1996       |  | 1-1839, 1996 Form 10-K                                  |  |             | 4-16  | 
|March 1, 2002      |  | 1-1839, 2001 Form 10-K                                  |  |             | 4-4-1 | 
|May 20, 2002       |  |                                                         |  |             |       | 
|June 1, 2002       |  |                                                         |  |             |       | 
|October 7, 2002    |  |                                                         |  |             |       | 
|January 13, 2003   |  | 1-1839, Form 8-K dated January 22, 2003                 |  |             | 4-4   | 
|March 14, 2003     |  | 1-1839, Form 8-K dated April 7, 2003                    |  |             | 4-4   | 
|August 13, 2003    |  | 1-1839, Form 8-K dated August 25, 2003                  |  |             | 4-4   | 
|February 15, 2005  |  | 1-16169, Form 10-Q for the quarter ended March 31, 2005 |  |             | 4-3-1 | 
|February 1, 2006   |  | 1-1839, Form 8-K dated February 22, 2006                |  |             | 99.3  | 
|February 22, 2006  |  | 1-1839, Form 8-K dated March 6, 2006                    |  |             | 4.1   | 

| |       |  |  |                                                                                                                                                                                                                                                                                                                
| | ----- |  |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4-3-2 |  |  | Instrument of Resignation, Appointment and Acceptance dated as
    of February 20, 2002, under the provisions of the Mortgage
    of Commonwealth Edison Company dated July 1, 1923, and
    Indentures Supplemental thereto, regarding corporate trustee
    (File No. 1-1839, 2001 Form 10-K, Exhibit 4-4-2).
| | 4-3-3 |  |  | Instrument dated as of January 31, 1996, under the
    provisions of the Mortgage of Commonwealth Edison Company dated
    July 1, 1923 and Indentures Supplemental thereto, regarding
    individual trustee (File No. 1-1839, 1995 Form 10-K,
    Exhibit 4-29).                                             
| | 4-4   |  |  | Indenture dated as of September 1, 1987 between
    Commonwealth Edison Company and Citibank, N.A., Trustee relating
    to Notes (File No. 1-1839, Form S-3,
    Exhibit 4-13).                                                                                                                               
| | 4-5   |  |  | Indenture dated June 1, 2001 between Generation and First
    Union National Bank (now U.S. Bank, N.A.) (Registration
    Statement No. 333-85496, Form S-4, Exhibit 4.1).                                                                                                                                     
| | 4-6   |  |  | Indenture dated December 19, 2003 between Generation and
    Wachovia Bank, National Association (now U.S. Bank, N.A.)
    (File No. 333-85496, 2003 Form 10-K, Exhibit 4-6).                                                                                                                                  
| | 4-7   |  |  | Indenture to Subordinated Debt Securities dated as of
    June 24, 2003 between PECO Energy Company, as Issuer, and
    Wachovia Bank National Association, as Trustee (now
    U.S. Bank, N.A.) (File No. 0-16844, PECO Energy
    Company Form 10-Q for the quarter ended June 30, 2003,
    Exhibit 4.1).   

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| |      |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ---- |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4-8  |  |  | Preferred Securities Guarantee Agreement between PECO Energy
    Company, as Guarantor, and Wachovia Trust Company, National
    Association (now U.S. Bank, N.A.), as Trustee, dated as of
    June 24, 2003 (File No. 0-16844, PECO Energy Company
    Form 10-Q for the quarter ended June 30, 2003,
    Exhibit 4.2).                                                                                                                                                     
| | 4-9  |  |  | PECO Energy Capital Trust IV Amended and Restated
    Declaration of Trust among PECO Energy Company, as Sponsor,
    Wachovia Trust Company, National Association (now
    U.S. Bank, N.A.), as Delaware Trustee and Property Trustee,
    and J. Barry Mitchell, George R. Shicora and Charles S. Walls as
    Administrative Trustees dated as of June 24, 2003 (File
    No. 0-16844, PECO Energy Company Form 10-Q for the
    quarter ended June 30, 2003, Exhibit 4.3).
| | 4-10 |  |  | Indenture dated May 1, 2001 between Exelon and
    J.P. Morgan Trust Company, National Association (formerly
    known as Chase Manhattan Trust Company, National Association),
    as trustee (File No. 1-16169, Exelon Corporation
    Form 10-Q for the quarter ended June 30, 2005,
    Exhibit 4-10).                                                                                                                                                                    
| | 4-11 |  |  | Form of $400,000,000 4.45% senior notes due 2010 dated
    June 9, 2005 issued by Exelon Corporation (File
    No. 1-16169, Exelon Corporation Form 8-K dated
    June 9, 2005, Exhibit 99.1).                                                                                                                                                                                                                                                                                
| | 4-12 |  |  | Form of $800,000,000 4.90% senior notes due 2015 dated
    June 9, 2005 issued by Exelon Corporation (File
    No. 1-16169, Exelon Corporation Form 8-K dated
    June 9, 2005, Exhibit 99.2).                                                                                                                                                                                                                                                                                
| | 4-13 |  |  | Form of $500,000,000 5.625% senior notes due 2035 dated
    June 9, 2005 issued by Exelon Corporation (File
    No. 1-16169, Exelon Corporation Form 8-K dated
    June 9, 2005, Exhibit 99.3).                                                                                                                                                                                                                                                                               
| | 10-1 |  |  | Credit Agreement dated as of February 22, 2006 among
    Commonwealth Edison Company, the Lenders party thereto and
    JPMorgan Chase Bank, N.A., as Administrative Agent (File
    No. 1-1839, Form 8-K dated February 22, 2006,
    Exhibit 99.2).                                                                                                                                                                                                                         
| | 10-2 |  |  | First Amendment to Credit Agreement dated as of
    February 22, 2006, amending $50,000,000 Credit Agreement
    dated as of October 28, 2005 among, Exelon Corporation,
    Commonwealth Edison Company, PECO Energy Company, Exelon
    Generation Company, LLC, various financial institutions and
    JPMorgan Chase Bank, N.A., as administrative agent.                                                                                                                 
| | 10-3 |  |  | Second Amendment to Credit Agreement dated as of
    February 22, 2006, amending Five Year Credit Agreement
    dated as of July 16, 2004 among, Exelon Corporation,
    Commonwealth Edison Company, PECO Energy Company, Exelon
    Generation Company, LLC, various financial institutions and
    JPMorgan Chase Bank, N.A., as administrative agent.                                                                                                                     
| | 10-4 |  |  | Third Amendment to Credit Agreement dated as of
    February 22, 2006, amending Three Year Credit Agreement
    dated as of October 31, 2003 among, Exelon Corporation,
    Commonwealth Edison Company, PECO Energy Company, Exelon
    Generation Company, LLC, various financial institutions and
    JPMorgan Chase Bank, N.A., as administrative agent.                                                                                                                  
| | 10-5 |  |  | Bilateral Credit Facility dated as of February 10, 2006
    between Exelon Generation Company, LLC and U.S. Bank
    National Association (File No. 333-85496, Form 8-K
    dated February 16, 2006, Exhibit 99.1).                                                                                                                                                                                                                                                           
| | 10-6 |  |  | Bilateral Credit Facility dated as of February 10, 2006
    between Exelon Generation Company, LLC and Wachovia Bank,
    National Association (File No. 333-85496, Form 8-K
    dated February 10, 2006, Exhibit 10.1).                                                                                                                                                                                                                                                      
| | 10-7 |  |  | Bilateral Credit Facility dated as of February 10, 2006
    between Exelon Generation Company, LLC and CitiBank, N.A. (File
    No. 333-85496, Form 8-K dated February 10, 2006,
    Exhibit 10.2).                                                                                                                                                                                                                                                                           
| | 10-8 |  |  | Bilateral Credit Facility dated as of February 10, 2006
    between Exelon Generation Company, LLC and HSBC Bank USA,
    National Association (File No. 333-85496, Form 8-K
    dated February 10, 2006, Exhibit 10.3).                                                                                                                                                                                                                                                      
| | 10-9 |  |  | Bilateral Credit Facility dated as of February 13, 2006
    between Exelon Generation Company, LLC and Royal Bank of
    Scotland plc (File No. 333-85496, Form 8-K dated
    February 10, 2006, Exhibit 10.4).                                                                                                                                                                                                                                                               

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| |       |  |  |                                                                                                                                                                                                                            
| | ----- |  |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10-10 |  |  | Bilateral Credit Facility dated as of February 13, 2006
    between Exelon Generation Company, LLC and Barclays Bank PLC
    (File No. 333-85496, Form 8-K dated February 10,
    2006, Exhibit 10.5).                     
| | 10-11 |  |  | Bilateral Credit Facility dated as of February 13, 2006
    between Exelon Generation Company, LLC and Wells Fargo Bank,
    National Association (File No. 333-85496, Form 8-K
    dated February 10, 2006, Exhibit 10.6).

13a-14(a) 15d-14(a) 10-Q


|     |  |   |  |                                                            
|---- |  | - |  | -----------------------------------------------------------
|31-1 |  |  |  | Filed by John W. Rowe for Exelon Corporation               
|31-2 |  |  |  | Filed by John F. Young for Exelon Corporation              
|31-3 |  |  |  | Filed by Frank M. Clark for Commonwealth Edison Company    
|31-4 |  |  |  | Filed by Robert K. McDonald for Commonwealth Edison Company
|31-5 |  |  |  | Filed by John L. Skolds for PECO Energy Company            
|31-6 |  |  |  | Filed by John F. Young for PECO Energy Company             
|31-7 |  |  |  | Filed by John L. Skolds for Exelon Generation Company, LLC 
|31-8 |  |  |  | Filed by John F. Young for Exelon Generation Company, LLC  

10-Q


|     |  |   |  |                                                            
|---- |  | - |  | -----------------------------------------------------------
|32-1 |  |  |  | Filed by John W. Rowe for Exelon Corporation               
|32-2 |  |  |  | Filed by John F. Young for Exelon Corporation              
|32-3 |  |  |  | Filed by Frank M. Clark for Commonwealth Edison Company    
|32-4 |  |  |  | Filed by Robert K. McDonald for Commonwealth Edison Company
|32-5 |  |  |  | Filed by John L. Skolds for PECO Energy Company            
|32-6 |  |  |  | Filed by John F. Young for PECO Energy Company             
|32-7 |  |  |  | Filed by John L. Skolds for Exelon Generation Company, LLC 
|32-8 |  |  |  | Filed by John F. Young for Exelon Generation Company, LLC  

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SIGNATURES







EXELON CORPORATION


|                                                                                                                                       |  |                                                                                                                                                   
|-------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                      
|/s/ John W. RoweJohn W. Rowe
    Chairman, Chief Executive Officer and President
    (Principal Executive Officer)                     |  | /s/ John F. YoungJohn F. Young
    Executive Vice President, Finance and Markets and Chief
    Financial Officer
    (Principal Financial Officer)
|                                                                                                                                      
|/s/ Matthew F.
    HilzingerMatthew F. Hilzinger
    Senior Vice President and Corporate Controller
    (Principal Accounting Officer) |  |                                                                                                                                                   








COMMONWEALTH EDISON COMPANY


|                                                                                                                                                                   |  |                                                                                                                                               
|------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                  
|/s/ Frank M. ClarkFrank M. Clark
    Chairman and Chief Executive Officer
    (Principal Executive Officer)                                                        |  | /s/ J. Barry MitchellJ. Barry Mitchell
    President                                                                                          
|                                                                                                                                                                  
|/s/ Robert K. McDonaldRobert K.McDonald
    Senior Vice President, Chief Financial Officer,
    Treasurer and Chief Risk Officer
    (Principal Financial Officer) |  | /s/ Matthew F.
    HilzingerMatthew F. Hilzinger
    Senior Vice President and Corporate Controller, Exelon
    (Principal Accounting Officer)



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PECO ENERGY COMPANY


|                                                                                                                                                                                        |  |                                                                                                                                               
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                       
|/s/ John L. SkoldsJohn L. Skolds
    President, Exelon Energy Delivery
    (Principal Executive Officer)                                                                                |  | /s/ Denis P.
    OBrienDenis P. OBrien
    President                                                                                        
|                                                                                                                                                                                       
|/s/ John F. YoungJohn F. Young
    Executive Vice President, Finance and Markets and Chief
    Financial Officer, Exelon, and Chief Financial Officer
    (Principal Financial Officer) |  | /s/ Matthew F.
    HilzingerMatthew F. Hilzinger
    Senior Vice President and Corporate Controller, Exelon
    (Principal Accounting Officer)








EXELON GENERATION COMPANY, LLC


|                                                                                                      |  |                                                                                                                                                                                        
|----------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|/s/ John L. SkoldsJohn L. Skolds
    President
    (Principal Executive Officer)                      |  | /s/ John F. YoungJohn F. Young
    Executive Vice President, Finance and Markets and Chief
    Financial Officer, Exelon, and Chief Financial Officer
    (Principal Financial Officer)
|                                                                                                     
|/s/ Jon D. VeurinkJon D. Veurink
    Vice President and Controller
    (Principal Accounting Officer) |  |                                                                                                                                                                                        



122