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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 September 30, 2005                                           
| 
|  |  | 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)
    10 South Dearborn Street  37th Floor
    P.O. Box 805379
    Chicago, Illinois 60680-5379
    (312) 394-4321 |  | 36-0938600    
|1-1401      |  | 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    

o o




|                                                           |  |               
|---------------------------------------------------------- |  | --------------
|Exelon Corporation Common Stock, without par value         |  | 667,225,227   
|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

þ o o þ


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TABLE OF CONTENTS


|                               |  |                                                                                          |   |                                                                |     |  |     | 
|------------------------------ |  | ---------------------------------------------------------------------------------------- | - | -------------------------------------------------------------- | --- |  | --- | 
|                               |  |                                                                                          |   | Page No.                                                       |    
|                               |  |                                                                                          |   |                                                                |    
|FILING FORMAT                  |  |                                                                                          | 4 |                                                               
|FORWARD-LOOKING STATEMENTS     |  |                                                                                          | 4 |                                                               
|WHERE TO FIND MORE INFORMATION |  |                                                                                          | 4 |                                                               
|                              
|PART I.                        |  | FINANCIAL INFORMATION                                                                    |   |                                                                | 6   | 
|Item 1.                        |  | Financial Statements                                                                     |   |                                                                | 6   | 
|                               |  |                                                                                          |   | Exelon Corporation                                             |     |  |     | 
|                               |  |                                                                                          |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 7   | 
|                               |  |                                                                                          |   | Consolidated Statements of Cash
    Flows                      |     |  | 8   | 
|                               |  |                                                                                          |   | Consolidated Balance Sheets                                    |     |  | 9   | 
|                               |  |                                                                                          |   | Consolidated Statement of
    Changes in Shareholders Equity  |     |  | 11  | 
|                               |  |                                                                                          |   | Commonwealth Edison Company                                    |     |  |     | 
|                               |  |                                                                                          |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 12  | 
|                               |  |                                                                                          |   | Consolidated Statements of Cash
    Flows                      |     |  | 13  | 
|                               |  |                                                                                          |   | Consolidated Balance Sheets                                    |     |  | 14  | 
|                               |  |                                                                                          |   | Consolidated Statement of
    Changes in Shareholders Equity  |     |  | 16  | 
|                               |  |                                                                                          |   | PECO Energy Company                                            |     |  |     | 
|                               |  |                                                                                          |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 17  | 
|                               |  |                                                                                          |   | Consolidated Statements of Cash
    Flows                      |     |  | 18  | 
|                               |  |                                                                                          |   | Consolidated Balance Sheets                                    |     |  | 19  | 
|                               |  |                                                                                          |   | Consolidated Statement of
    Changes in Shareholders Equity  |     |  | 21  | 
|                               |  |                                                                                          |   | Exelon Generation Company, LLC                                 |     |  |     | 
|                               |  |                                                                                          |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 22  | 
|                               |  |                                                                                          |   | Consolidated Statements of Cash
    Flows                      |     |  | 23  | 
|                               |  |                                                                                          |   | Consolidated Balance Sheets                                    |     |  | 24  | 
|                               |  |                                                                                          |   | Consolidated Statement of
    Changes in Members Equity       |     |  | 26  | 
|                               |  |                                                                                          |   | Combined Notes to Consolidated Financial
    Statements        |     |  | 27  | 
|Item 2.                        |  | Managements Discussion and
    Analysis of Financial Condition and Results of Operation |   |                                                                | 79  | 
|                               |  |                                                                                          |   | Exelon Corporation                                             |     |  | 81  | 
|                               |  |                                                                                          |   | Commonwealth Edison Company                                    |     |  | 137 | 
|                               |  |                                                                                          |   | PECO Energy Company                                            |     |  | 140 | 
|                               |  |                                                                                          |   | Exelon Generation Company, LLC                                 |     |  | 143 | 
|Item 3.                        |  | Quantitative and Qualitative Disclosures
    About Market Risk                           |   |                                                                | 145 | 
|Item 4.                        |  | Controls and Procedures                                                                  |   |                                                                | 152 | 
|                              
|PART II.                       |  | OTHER INFORMATION                                                                        |   |                                                                | 152 | 
|Item 1.                        |  | Legal Proceedings                                                                        |   |                                                                | 152 | 
|                               |  |                                                                                          |   | Exelon Corporation                                             |     |  | 152 | 
|                               |  |                                                                                          |   | PECO Energy Company                                            |     |  | 152 | 
|                               |  |                                                                                          |   | Exelon Generation Company, LLC                                 |     |  | 152 | 

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|                                                                       |  |                                                                 |     |                                |     |  |     | 
|---------------------------------------------------------------------- |  | --------------------------------------------------------------- | --- | ------------------------------ | --- |  | --- | 
|                                                                       |  |                                                                 |     | Page No.                       |    
|                                                                       |  |                                                                 |     |                                |    
|Item 2.                                                                |  | Unregistered Sales of Equity Securities
    and Use of Proceeds |     |                                | 153 | 
|                                                                       |  |                                                                 |     | Exelon Corporation             |     |  | 153 | 
|Item 4.                                                                |  | Submission of Matters to Vote of
    Security Holders           |     |                                | 153 | 
|                                                                       |  |                                                                 |     | Exelon Corporation             |     |  | 153 | 
|Item 5.                                                                |  | Other Information                                               |     |                                | 154 | 
|                                                                       |  |                                                                 |     | Exelon Corporation             |     |  | 154 | 
|                                                                       |  |                                                                 |     | PECO Energy Company            |     |  | 154 | 
|Item 6.                                                                |  | Exhibits                                                        |     |                                | 155 | 
|SIGNATURES                                                             |  |                                                                 | 160 |                               
|                                                                       |  |                                                                 |     | Exelon Corporation             |     |  | 160 | 
|                                                                       |  |                                                                 |     | Commonwealth Edison Company    |     |  | 160 | 
|                                                                       |  |                                                                 |     | PECO Energy Company            |     |  | 161 | 
|                                                                       |  |                                                                 |     | Exelon Generation Company, LLC |     |  | 161 | 
|Amendment to Articles of Incorporation of Exelon Corporation          
|Certification for John W. Rowe for Exelon Corporation                 
|Certification for John F. Young for Exelon Corporation                
|Certification for J. Barry Mitchell for Exelon Corporation            
|Certification for John L. Skolds for Commonwealth Edison Company      
|Certification for J. Barry Mitchell for Commonwealth Edison Company   
|Certification for John L. Skolds for PECO Energy Company              
|Certification for J. Barry Mitchell for PECO Energy Company           
|Certification for John L. Skolds for Exelon Generation Company, LLC   
|Certification for J. Barry Mitchell for Exelon Generation Company, LLC
|Certification for John W. Rowe for Exelon Corporation                 
|Certification for John F. Young for Exelon Corporation                
|Certification for J. Barry Mitchell for Exelon Corporation            
|Certification for John L. Skolds for Commonwealth Edison Company      
|Certification for J. Barry Mitchell for Commonwealth Edison Company   
|Certification for John L. Skolds for PECO Energy Company              
|Certification for J. Barry Mitchell for PECO Energy Company           
|Certification for John L. Skolds for Exelon Generation Company, LLC   
|Certification for J. Barry Mitchell for Exelon Generation Company, LLC



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FILING FORMAT







FORWARD-LOOKING STATEMENTS







WHERE TO FIND MORE INFORMATION


www.sec.gov www.exeloncorp.com


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PART I. FINANCIAL INFORMATION





Item 1.     Financial
Statements


6



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EXELON CORPORATION


EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |       |       |   |        |       |       |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------- | ----- | ----- | ------------- | - | ----- | ----- | ----- | - | ------ | ----- | ----- | - | ------ | ----- | ----- | -
|                                                                                                                                                                         |                                                                                                                                                                                        | Three Months                            |       |       | Nine Months   |  
|                                                                                                                                                                         |                                                                                                                                                                                        | Ended                                   |       |       | Ended         |  
|                                                                                                                                                                         |                                                                                                                                                                                        | September 30,                           |       |       | September 30, |  
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |  
|                                                                                                                                                                         |                                                                                                                                                                                        | 2005                                    |       |       | 2004          |   |       | 2005  |       |   | 2004   |      
|(In millions, except per share data)                                                                                                                                     |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Operating revenues                                                                                                                                                       |                                                                                                                                                                                        | $                                       | 4,473 |       |               | $ | 3,748 |       |       | $ | 11,519 |       |       | $ | 10,821 |      
|Operating expenses                                                                                                                                                       |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |       |       |   |        |      
|                                                                                                                                                                         | Purchased power                                                                                                                                                                        |                                         |       | 1,210 |               |   |       | 887   |       |   |        | 2,442 |       |   |        | 2,145 |      
|                                                                                                                                                                         | Fuel                                                                                                                                                                                   |                                         |       | 471   |               |   |       | 346   |       |   |        | 1,570 |       |   |        | 1,636 |      
|                                                                                                                                                                         | Operating and maintenance                                                                                                                                                              |                                         |       | 911   |               |   |       | 778   |       |   |        | 2,804 |       |   |        | 2,696 |      
|                                                                                                                                                                         | Depreciation and amortization                                                                                                                                                          |                                         |       | 358   |               |   |       | 362   |       |   |        | 1,003 |       |   |        | 974   |      
|                                                                                                                                                                         | Taxes other than income                                                                                                                                                                |                                         |       | 211   |               |   |       | 177   |       |   |        | 560   |       |   |        | 548   |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|                                                                                                                                                                         |                                                                                                                                                                                        | Total operating expenses                |       |       | 3,161         |   |       |       | 2,550 |   |        |       | 8,379 |   |        |       | 7,999 |  
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Operating income                                                                                                                                                         |                                                                                                                                                                                        |                                         | 1,312 |       |               |   | 1,198 |       |       |   | 3,140  |       |       |   | 2,822  |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Other income and deductions                                                                                                                                              |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |       |       |   |        |      
|                                                                                                                                                                         | Interest expense                                                                                                                                                                       |                                         |       | (139  | )             |   |       | (112  | )     |   |        | (374  | )     |   |        | (362  | )    
|                                                                                                                                                                         | Interest expense to affiliates                                                                                                                                                         |                                         |       | (77   | )             |   |       | (88   | )     |   |        | (241  | )     |   |        | (271  | )    
|                                                                                                                                                                         | Distributions on preferred securities of subsidiary                                                                                                                                    |                                         |       | (1    | )             |   |       | (1    | )     |   |        | (3    | )     |   |        | (3    | )    
|                                                                                                                                                                         | Equity in losses of unconsolidated affiliates                                                                                                                                          |                                         |       | (39   | )             |   |       | (42   | )     |   |        | (107  | )     |   |        | (97   | )    
|                                                                                                                                                                         | Other, net                                                                                                                                                                             |                                         |       | 12    |               |   |       | (102  | )     |   |        | 111   |       |   |        | 46    |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|                                                                                                                                                                         |                                                                                                                                                                                        | Total other income and deductions       |       |       | (244          | ) |       |       | (345  | ) |        |       | (614  | ) |        |       | (687  | )
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Income from continuing operations before income taxes and
    minority interest                                                                                          |                                                                                                                                                                                        |                                         | 1,068 |       |               |   | 853   |       |       |   | 2,526  |       |       |   | 2,135  |      
|Income taxes                                                                                                                                                             |                                                                                                                                                                                        |                                         | 344   |       |               |   | 279   |       |       |   | 779    |       |       |   | 661    |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Income from continuing operations before minority interest                                                                                                               |                                                                                                                                                                                        |                                         | 724   |       |               |   | 574   |       |       |   | 1,747  |       |       |   | 1,474  |      
|Minority interest                                                                                                                                                        |                                                                                                                                                                                        |                                         |      |       |               |   | 3     |       |       |   |       |       |       |   | 3      |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Income from continuing operations                                                                                                                                        |                                                                                                                                                                                        |                                         | 724   |       |               |   | 577   |       |       |   | 1,747  |       |       |   | 1,477  |      
|Discontinued operations                                                                                                                                                  |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |       |       |   |        |      
|                                                                                                                                                                         | Income (loss) from discontinued operations (net of income taxes
    of $0, $2, $(2) and $(23) for the three and nine months ended
    September 30, 2005 and 2004, respectively)       |                                         |       |      |               |   |       | 1     |       |   |        | (3    | )     |   |        | (30   | )    
|                                                                                                                                                                         | Gain (loss) on disposal of discontinued operations (net of
    income taxes of $1, $(1), $5 and $18 for the three and nine
    months ended September 30, 2005 and 2004, respectively) |                                         |       | 1     |               |   |       | (1    | )     |   |        | 16    |       |   |        | 31    |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|                                                                                                                                                                         |                                                                                                                                                                                        | Income from discontinued operations     |       |       | 1             |   |       |       |      |   |        |       | 13    |   |        |       | 1     |  
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Income before cumulative effect of changes in accounting
    principles                                                                                                  |                                                                                                                                                                                        |                                         | 725   |       |               |   | 577   |       |       |   | 1,760  |       |       |   | 1,478  |      
|Cumulative effect of changes in accounting principles (net of
    income taxes of $(5) and $17 for the three and nine months ended
    September 30, 2004, respectively) |                                                                                                                                                                                        |                                         |      |       |               |   | (9    | )     |       |   |       |       |       |   | 23     |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Net income                                                                                                                                                               |                                                                                                                                                                                        |                                         | 725   |       |               |   | 568   |       |       |   | 1,760  |       |       |   | 1,501  |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Other comprehensive income (loss), net of income taxes                                                                                                                   |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |       |       |   |        |      
|                                                                                                                                                                         | Minimum pension liability                                                                                                                                                              |                                         |       |      |               |   |       |      |       |   |        | 2     |       |   |        |      |      
|                                                                                                                                                                         | Change in net unrealized gain (loss) on cash-flow hedges                                                                                                                               |                                         |       | (161  | )             |   |       | 77    |       |   |        | (294  | )     |   |        | (68   | )    
|                                                                                                                                                                         | Foreign currency translation adjustment                                                                                                                                                |                                         |       |      |               |   |       |      |       |   |        |      |       |   |        | (2    | )    
|                                                                                                                                                                         | Unrealized gain (loss) on marketable securities                                                                                                                                        |                                         |       | 15    |               |   |       | 7     |       |   |        | (9    | )     |   |        | 18    |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|                                                                                                                                                                         |                                                                                                                                                                                        | Total other comprehensive income (loss) |       |       | (146          | ) |       |       | 84    |   |        |       | (301  | ) |        |       | (52   | )
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Total comprehensive income                                                                                                                                               |                                                                                                                                                                                        | $                                       | 579   |       |               | $ | 652   |       |       | $ | 1,459  |       |       | $ | 1,449  |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Average shares of common stock outstanding 
    Basic                                                                                                                   |                                                                                                                                                                                        |                                         | 670   |       |               |   | 661   |       |       |   | 669    |       |       |   | 660    |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Average shares of common stock outstanding 
    Diluted                                                                                                                 |                                                                                                                                                                                        |                                         | 677   |       |               |   | 669   |       |       |   | 676    |       |       |   | 668    |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Earnings per average common share  Basic:                                                                                                                               |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |       |       |   |        |      
|                                                                                                                                                                         | Income from continuing operations                                                                                                                                                      |                                         | $     | 1.08  |               |   | $     | 0.87  |       |   | $      | 2.61  |       |   | $      | 2.23  |      
|                                                                                                                                                                         | Income from discontinued operations                                                                                                                                                    |                                         |       |      |               |   |       |      |       |   |        | 0.02  |       |   |        |      |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|                                                                                                                                                                         | Income before cumulative effect of changes in accounting
    principles                                                                                                                |                                         |       | 1.08  |               |   |       | 0.87  |       |   |        | 2.63  |       |   |        | 2.23  |      
|                                                                                                                                                                         | Cumulative effect of changes in accounting principles                                                                                                                                  |                                         |       |      |               |   |       | (0.01 | )     |   |        |      |       |   |        | 0.04  |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|                                                                                                                                                                         | Net income                                                                                                                                                                             |                                         | $     | 1.08  |               |   | $     | 0.86  |       |   | $      | 2.63  |       |   | $      | 2.27  |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Earnings per average common share  Diluted:                                                                                                                             |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |       |       |   |        |      
|                                                                                                                                                                         | Income from continuing operations                                                                                                                                                      |                                         | $     | 1.07  |               |   | $     | 0.86  |       |   | $      | 2.58  |       |   | $      | 2.21  |      
|                                                                                                                                                                         | Income from discontinued operations                                                                                                                                                    |                                         |       |      |               |   |       |      |       |   |        | 0.02  |       |   |        |      |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|                                                                                                                                                                         | Income before cumulative effect of changes in accounting
    principles                                                                                                                |                                         |       | 1.07  |               |   |       | 0.86  |       |   |        | 2.60  |       |   |        | 2.21  |      
|                                                                                                                                                                         | Cumulative effect of changes in accounting principles                                                                                                                                  |                                         |       |      |               |   |       | (0.01 | )     |   |        |      |       |   |        | 0.04  |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|                                                                                                                                                                         | Net income                                                                                                                                                                             |                                         | $     | 1.07  |               |   | $     | 0.85  |       |   | $      | 2.60  |       |   | $      | 2.25  |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      
|Dividends per common share                                                                                                                                               |                                                                                                                                                                                        | $                                       | 0.400 |       |               | $ | 0.305 |       |       | $ | 1.200  |       |       | $ | 0.860  |      
|                                                                                                                                                                         |                                                                                                                                                                                        |                                         |       |       |               |   |       |       |       |   |        |      



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EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                         |        |       |        |        |        |       |      |  
|------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------ | ----- | ------ | ------ | ------ | ----- | ---- | -
|                                                                                     |                                                                                                                                                   | Nine Months                                                                     |                                                                        
|                                                                                     |                                                                                                                                                   | Ended                                                                           |                                                                        
|                                                                                     |                                                                                                                                                   | September 30,                                                                   |                                                                        
|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                        
|                                                                                     |                                                                                                                                                   | 2005                                                                            |                                                                         |        | 2004  |       
|(In millions)                                                                        |                                                                                                                                                   |                                                                                 |                                                                         |        |       |       
|Cash flows from operating activities                                                 |                                                                                                                                                   |                                                                                 |                                                                         |        |       |        |        |       
|                                                                                     | Net income                                                                                                                                        |                                                                                 | $                                                                       | 1,760  |       |        | $      | 1,501  |      
|                                                                                     | Adjustments to reconcile net income to net cash flows provided
    by operating activities:                                                       |                                                                                 |                                                                         |        |       |        |        |        |      
|                                                                                     |                                                                                                                                                   | Depreciation, amortization and accretion, including nuclear fuel                |                                                                         |        | 1,477 |        |        |        | 1,449 |     
|                                                                                     |                                                                                                                                                   | Other decommissioning-related activities                                        |                                                                         |        | 18    |        |        |        | 65    |     
|                                                                                     |                                                                                                                                                   | Cumulative effect of changes in accounting principles (net of
    income taxes) |                                                                         |        |      |        |        |        | (23   | )   
|                                                                                     |                                                                                                                                                   | Deferred income taxes and amortization of investment tax credits                |                                                                         |        | 487   |        |        |        | 314   |     
|                                                                                     |                                                                                                                                                   | Provision for uncollectible accounts                                            |                                                                         |        | 48    |        |        |        | 59    |     
|                                                                                     |                                                                                                                                                   | Equity in losses of unconsolidated affiliates                                   |                                                                         |        | 107   |        |        |        | 97    |     
|                                                                                     |                                                                                                                                                   | Gain on sales of investments and wholly owned subsidiaries                      |                                                                         |        | (19   | )      |        |        | (154  | )   
|                                                                                     |                                                                                                                                                   | Net realized gains on nuclear decommissioning trust funds                       |                                                                         |        | (52   | )      |        |        | (9    | )   
|                                                                                     |                                                                                                                                                   | Other non-cash operating activities                                             |                                                                         |        | 39    |        |        |        | (24   | )   
|                                                                                     |                                                                                                                                                   | Changes in assets and liabilities:                                              |                                                                         |        |       |        |        |        |       |     
|                                                                                     |                                                                                                                                                   |                                                                                 | Accounts receivable                                                     |        |       | (213   | )      |        |       | (6   | )
|                                                                                     |                                                                                                                                                   |                                                                                 | Inventories                                                             |        |       | (54    | )      |        |       | (20  | )
|                                                                                     |                                                                                                                                                   |                                                                                 | Other current assets                                                    |        |       | (231   | )      |        |       | 105  |  
|                                                                                     |                                                                                                                                                   |                                                                                 | Accounts payable, accrued expenses and other current liabilities        |        |       | 125    |        |        |       | (92  | )
|                                                                                     |                                                                                                                                                   |                                                                                 | Income taxes                                                            |        |       | 257    |        |        |       | 149  |  
|                                                                                     |                                                                                                                                                   |                                                                                 | Net realized and unrealized mark-to-market and hedging
    transactions |        |       | (168   | )      |        |       | (6   | )
|                                                                                     |                                                                                                                                                   |                                                                                 | Pension and non-pension postretirement benefits obligation              |        |       | (1,893 | )      |        |       | (259 | )
|                                                                                     |                                                                                                                                                   |                                                                                 | Other noncurrent assets and liabilities                                 |        |       | (99    | )      |        |       | 8    |  
|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                         |        |       |       
|Net cash flows provided by operating activities                                      |                                                                                                                                                   |                                                                                 | 1,589                                                                   |        |       |        | 3,154  |       
|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                         |        |       |       
|Cash flows from investing activities                                                 |                                                                                                                                                   |                                                                                 |                                                                         |        |       |        |        |       
|                                                                                     | Capital expenditures                                                                                                                              |                                                                                 |                                                                         | (1,521 | )     |        |        | (1,295 | )    
|                                                                                     | Proceeds from sale of nuclear decommissioning trust fund assets                                                                                   |                                                                                 |                                                                         | 3,234  |       |        |        | 1,485  |      
|                                                                                     | Investment in nuclear decommissioning trust funds                                                                                                 |                                                                                 |                                                                         | (3,387 | )     |        |        | (1,687 | )    
|                                                                                     | Collection of other notes receivable                                                                                                              |                                                                                 |                                                                         |       |       |        |        | 58     |      
|                                                                                     | Proceeds from sales of investments and wholly owned
    subsidiaries, net of $32 of cash sold during the nine months
    ended September 30, 2005 |                                                                                 |                                                                         | 105    |       |        |        | 238    |      
|                                                                                     | Proceeds from sales of long-lived assets                                                                                                          |                                                                                 |                                                                         | 2      |       |        |        | 50     |      
|                                                                                     | Acquisition of Sithe Energies, Inc.                                                                                                               |                                                                                 |                                                                         | (97    | )     |        |        |       |      
|                                                                                     | Investment in synthetic fuel-producing facilities                                                                                                 |                                                                                 |                                                                         | (92    | )     |        |        | (32    | )    
|                                                                                     | Change in restricted cash                                                                                                                         |                                                                                 |                                                                         | 38     |       |        |        | (18    | )    
|                                                                                     | Net cash increase from consolidation of Sithe Energies,
    Inc.                                                                                  |                                                                                 |                                                                         |       |       |        |        | 19     |      
|                                                                                     | Other investing activities                                                                                                                        |                                                                                 |                                                                         | (10    | )     |        |        | (25    | )    
|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                         |        |       |       
|Net cash flows used in investing activities                                          |                                                                                                                                                   |                                                                                 | (1,728                                                                  | )      |       |        | (1,207 | )     
|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                         |        |       |       
|Cash flows from financing activities                                                 |                                                                                                                                                   |                                                                                 |                                                                         |        |       |        |        |       
|                                                                                     | Issuance of long-term debt                                                                                                                        |                                                                                 |                                                                         | 1,788  |       |        |        | 75     |      
|                                                                                     | Retirement of long-term debt                                                                                                                      |                                                                                 |                                                                         | (382   | )     |        |        | (973   | )    
|                                                                                     | Retirement of long-term debt to financing affiliates                                                                                              |                                                                                 |                                                                         | (639   | )     |        |        | (547   | )    
|                                                                                     | Issuance of short-term debt                                                                                                                       |                                                                                 |                                                                         | 2,500  |       |        |        |       |      
|                                                                                     | Retirement of short-term debt                                                                                                                     |                                                                                 |                                                                         | (2,200 | )     |        |        |       |      
|                                                                                     | Change in other short-term debt                                                                                                                   |                                                                                 |                                                                         | (344   | )     |        |        | (1     | )    
|                                                                                     | Payment on acquisition note payable to Sithe Energies, Inc.                                                                                       |                                                                                 |                                                                         |       |       |        |        | (27    | )    
|                                                                                     | Dividends paid on common stock                                                                                                                    |                                                                                 |                                                                         | (804   | )     |        |        | (565   | )    
|                                                                                     | Proceeds from employee stock plans                                                                                                                |                                                                                 |                                                                         | 193    |       |        |        | 192    |      
|                                                                                     | Purchase of treasury stock                                                                                                                        |                                                                                 |                                                                         | (262   | )     |        |        | (75    | )    
|                                                                                     | Other financing activities                                                                                                                        |                                                                                 |                                                                         | (57    | )     |        |        | 36     |      
|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                         |        |       |       
|Net cash flows used in financing activities                                          |                                                                                                                                                   |                                                                                 | (207                                                                    | )      |       |        | (1,885 | )     
|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                         |        |       |       
|Increase (decrease) in cash and cash equivalents                                     |                                                                                                                                                   |                                                                                 | (346                                                                    | )      |       |        | 62     |       
|Cash and cash equivalents at beginning of period                                     |                                                                                                                                                   |                                                                                 | 499                                                                     |        |       |        | 493    |       
|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                         |        |       |       
|Cash and cash equivalents at end of period                                           |                                                                                                                                                   | $                                                                               | 153                                                                     |        |       | $      | 555    |       
|                                                                                     |                                                                                                                                                   |                                                                                 |                                                                         |        |       |       
|Supplemental cash flow information  Noncash
    investing and financing activities: |                                                                                                                                                   |                                                                                 |                                                                         |        |       |        |        |       
|                                                                                     | Consolidation of Sithe Energies, Inc. pursuant to FASB
    Interpretation No. 46-R, Consolidation of Variable
    Interest Entities             |                                                                                 | $                                                                       |       |       |        | $      | 85     |      
|                                                                                     | Disposition of Boston Generating, LLC                                                                                                             |                                                                                 |                                                                         |       |       |        |        | 102    |      
|                                                                                     | Note payable issued for investment in synthetic fuel-producing
    facilities                                                                     |                                                                                 |                                                                         |       |       |        |        | 22     |      



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EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                     |                                        |        |       |              |   |        |       |        | 
|---------------------------------- | ----------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                   |                                     | September 30,                          |        |       | December 31, |  
|                                   |                                     | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                     |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                     |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents           |                                        | $      | 153   |              |   | $      | 499   |       
|                                   | Restricted cash and investments     |                                        |        | 32    |              |   |        | 60    |       
|                                   | Accounts receivable, net            |                                        |        |       |              |   |        |       |       
|                                   |                                     | Customer                               |        |       | 1,834        |   |        |       | 1,649  | 
|                                   |                                     | Other                                  |        |       | 263          |   |        |       | 409    | 
|                                   | Mark-to-market derivative assets    |                                        |        | 1,240 |              |   |        | 403   |       
|                                   | Inventories, at average cost        |                                        |        |       |              |   |        |       |       
|                                   |                                     | Fossil fuel                            |        |       | 262          |   |        |       | 230    | 
|                                   |                                     | Materials and supplies                 |        |       | 336          |   |        |       | 312    | 
|                                   | Deferred income taxes               |                                        |        | 108   |              |   |        | 68    |       
|                                   | Other                               |                                        |        | 495   |              |   |        | 296   |       
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total current assets                   |        |       | 4,723        |   |        |       | 3,926  | 
|                                   |                                     |                                        |        |       |              |  
|Property, plant and equipment, net |                                     |                                        | 21,613 |       |              |   | 21,482 |      
|Deferred debits and other assets   |                                     |                                        |        |       |              |   |        |      
|                                   | Regulatory assets                   |                                        |        | 4,460 |              |   |        | 4,790 |       
|                                   | Nuclear decommissioning trust funds |                                        |        | 5,455 |              |   |        | 5,262 |       
|                                   | Investments                         |                                        |        | 811   |              |   |        | 804   |       
|                                   | Goodwill                            |                                        |        | 4,696 |              |   |        | 4,705 |       
|                                   | Mark-to-market derivative assets    |                                        |        | 397   |              |   |        | 383   |       
|                                   | Pension asset                       |                                        |        | 83    |              |   |        |      |       
|                                   | Other                               |                                        |        | 914   |              |   |        | 1,418 |       
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total deferred debits and other assets |        |       | 16,816       |   |        |       | 17,362 | 
|                                   |                                     |                                        |        |       |              |  
|Total assets                       |                                     | $                                      | 43,152 |       |              | $ | 42,770 |      
|                                   |                                     |                                        |        |       |              |  



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                                                        |                                                                                                                                                            |                                              |        |        |              |   |        |        |        | 
|--------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | ------ | ------ | ------------ | - | ------ | ------ | ------ | 
|                                                                                        |                                                                                                                                                            | September 30,                                |        |        | December 31, |  
|                                                                                        |                                                                                                                                                            | 2005                                         |        |        | 2004         |  
|(In millions)                                                                           |                                                                                                                                                            |                                              |        |        |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY                                                   
|Current liabilities                                                                     |                                                                                                                                                            |                                              |        |        |              |   |        |       
|                                                                                        | Notes payable                                                                                                                                              |                                              | $      | 446    |              |   | $      | 490    |       
|                                                                                        | Long-term debt due within one year                                                                                                                         |                                              |        | 218    |              |   |        | 427    |       
|                                                                                        | Long-term debt to ComEd Transitional Funding Trust and PECO
    Energy Transition Trust due within one year                                                |                                              |        | 615    |              |   |        | 486    |       
|                                                                                        | Accounts payable                                                                                                                                           |                                              |        | 1,434  |              |   |        | 1,255  |       
|                                                                                        | Mark-to-market derivative liabilities                                                                                                                      |                                              |        | 1,684  |              |   |        | 598    |       
|                                                                                        | Accrued expenses                                                                                                                                           |                                              |        | 978    |              |   |        | 1,143  |       
|                                                                                        | Other                                                                                                                                                      |                                              |        | 670    |              |   |        | 483    |       
|                                                                                        |                                                                                                                                                            |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                            | Total current liabilities                    |        |        | 6,045        |   |        |        | 4,882  | 
|                                                                                        |                                                                                                                                                            |                                              |        |        |              |  
|Long-term debt                                                                          |                                                                                                                                                            |                                              | 8,076  |        |              |   | 7,292  |       
|Long-term debt to ComEd Transitional Funding Trust and PECO
    Energy Transition Trust |                                                                                                                                                            |                                              | 3,542  |        |              |   | 4,311  |       
|Long-term debt to other financing trusts                                                |                                                                                                                                                            |                                              | 545    |        |              |   | 545    |       
|Deferred credits and other liabilities                                                  |                                                                                                                                                            |                                              |        |        |              |   |        |       
|                                                                                        | Deferred income taxes                                                                                                                                      |                                              |        | 4,753  |              |   |        | 4,488  |       
|                                                                                        | Unamortized investment tax credits                                                                                                                         |                                              |        | 265    |              |   |        | 275    |       
|                                                                                        | Asset retirement obligation                                                                                                                                |                                              |        | 3,872  |              |   |        | 3,981  |       
|                                                                                        | Pension obligations                                                                                                                                        |                                              |        | 112    |              |   |        | 1,993  |       
|                                                                                        | Non-pension postretirement benefits obligation                                                                                                             |                                              |        | 1,136  |              |   |        | 1,065  |       
|                                                                                        | Spent nuclear fuel obligation                                                                                                                              |                                              |        | 897    |              |   |        | 878    |       
|                                                                                        | Regulatory liabilities                                                                                                                                     |                                              |        | 2,343  |              |   |        | 2,204  |       
|                                                                                        | Mark-to-market derivative liabilities                                                                                                                      |                                              |        | 482    |              |   |        | 323    |       
|                                                                                        | Other                                                                                                                                                      |                                              |        | 839    |              |   |        | 915    |       
|                                                                                        |                                                                                                                                                            |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                            | Total deferred credits and other liabilities |        |        | 14,699       |   |        |        | 16,122 | 
|                                                                                        |                                                                                                                                                            |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                            | Total liabilities                            |        |        | 32,907       |   |        |        | 33,152 | 
|                                                                                        |                                                                                                                                                            |                                              |        |        |              |  
|Commitments and contingencies                                                           |                                                                                                                                                            |                                              |        |        |              |   |        |       
|Minority interest of consolidated subsidiary                                            |                                                                                                                                                            |                                              | 1      |        |              |   | 42     |       
|Preferred securities of subsidiaries                                                    |                                                                                                                                                            |                                              | 87     |        |              |   | 87     |       
|Shareholders equity                                                                    |                                                                                                                                                            |                                              |        |        |              |   |        |       
|                                                                                        | Common stock (No par value, 2,000 shares authorized, 667.2
    and 664.2 shares outstanding at September 30, 2005 and
    December 31, 2004, respectively) |                                              |        | 7,939  |              |   |        | 7,664  |       
|                                                                                        | Treasury stock, at cost (7.5 and 2.5 shares held at
    September 30, 2005 and December 31, 2004, respectively)                                            |                                              |        | (344   | )            |   |        | (82    | )     
|                                                                                        | Retained earnings                                                                                                                                          |                                              |        | 4,309  |              |   |        | 3,353  |       
|                                                                                        | Accumulated other comprehensive loss                                                                                                                       |                                              |        | (1,747 | )            |   |        | (1,446 | )     
|                                                                                        |                                                                                                                                                            |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                            | Total shareholders equity                   |        |        | 10,157       |   |        |        | 9,489  | 
|                                                                                        |                                                                                                                                                            |                                              |        |        |              |  
|Total liabilities and shareholders equity                                              |                                                                                                                                                            | $                                            | 43,152 |        |              | $ | 42,770 |       
|                                                                                        |                                                                                                                                                            |                                              |        |        |              |  



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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, 2004                    |  |        | 666,688 |  |        | $ | 7,664 |          |  | $           | (82      | ) |       | $             | 3,353 |   |               | $ | (1,446 | ) |  | $ | 9,489  |  
|Net income                                    |  |        |        |  |        |   |      |          |  |             |         |   |       |               | 1,760 |   |               |   |       |   |  |   | 1,760  |  
|Long-term incentive plan activity             |  |        | 8,048   |  |        |   | 275   |          |  |             |         |   |       |               |      |   |               |   |       |   |  |   | 275    |  
|Common stock purchases                        |  |        |        |  |        |   |      |          |  |             | (262     | ) |       |               |      |   |               |   |       |   |  |   | (262   | )
|Common stock dividends declared               |  |        |        |  |        |   |      |          |  |             |         |   |       |               | (804  | ) |               |   |       |   |  |   | (804   | )
|Other comprehensive loss, net of income taxes |  |        |        |  |        |   |      |          |  |             |         |   |       |               |      |   |               |   | (301   | ) |  |   | (301   | )
|                                              |  |        |         |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  
|Balance, September 30, 2005                   |  |        | 674,736 |  |        | $ | 7,939 |          |  | $           | (344     | ) |       | $             | 4,309 |   |               | $ | (1,747 | ) |  | $ | 10,157 |  
|                                              |  |        |         |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  



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COMMONWEALTH EDISON COMPANY


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |       |       |   |       |       |       |  
|------------------------------------------------------ | ------------------------------------------------- | --------------------------------------- | --- | ----- | ------------- | - | --- | ----- | ----- | - | ---- | ----- | ----- | - | ----- | ----- | ----- | -
|                                                       |                                                   | Three Months                            |     |       | Nine Months   |  
|                                                       |                                                   | Ended                                   |     |       | Ended         |  
|                                                       |                                                   | September 30,                           |     |       | September 30, |  
|                                                       |                                                   |                                         |     |       |               |  
|                                                       |                                                   | 2005                                    |     |       | 2004          |   |     | 2005  |       |   | 2004 |      
|(In millions)                                          |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|Operating revenues                                     |                                                   |                                         |     |       |               |   |     |       |       |   |      |       |       |   |       |      
|                                                       | Operating revenues                                |                                         | $   | 1,945 |               |   | $   | 1,720 |       |   | $    | 4,814 |       |   | $     | 4,441 |      
|                                                       | Operating revenues from affiliates                |                                         |     | 3     |               |   |     |      |       |   |      | 8     |       |   |       | 17    |      
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|                                                       |                                                   | Total operating revenues                |     |       | 1,948         |   |     |       | 1,720 |   |      |       | 4,822 |   |       |       | 4,458 |  
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|Operating expenses                                     |                                                   |                                         |     |       |               |   |     |       |       |   |      |       |       |   |       |      
|                                                       | Purchased power                                   |                                         |     | 91    |               |   |     | 80    |       |   |      | 247   |       |   |       | 144   |      
|                                                       | Purchased power from affiliate                    |                                         |     | 991   |               |   |     | 827   |       |   |      | 2,514 |       |   |       | 1,870 |      
|                                                       | Operating and maintenance                         |                                         |     | 161   |               |   |     | 189   |       |   |      | 475   |       |   |       | 544   |      
|                                                       | Operating and maintenance from affiliates         |                                         |     | 50    |               |   |     | 42    |       |   |      | 139   |       |   |       | 125   |      
|                                                       | Depreciation and amortization                     |                                         |     | 111   |               |   |     | 104   |       |   |      | 308   |       |   |       | 309   |      
|                                                       | Taxes other than income                           |                                         |     | 81    |               |   |     | 68    |       |   |      | 232   |       |   |       | 219   |      
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|                                                       |                                                   | Total operating expenses                |     |       | 1,485         |   |     |       | 1,310 |   |      |       | 3,915 |   |       |       | 3,211 |  
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|Operating income                                       |                                                   |                                         | 463 |       |               |   | 410 |       |       |   | 907  |       |       |   | 1,247 |      
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|Other income and deductions                            |                                                   |                                         |     |       |               |   |     |       |       |   |      |       |       |   |       |      
|                                                       | Interest expense                                  |                                         |     | (49   | )             |   |     | (59   | )     |   |      | (152  | )     |   |       | (203  | )    
|                                                       | Interest expense to affiliates                    |                                         |     | (22   | )             |   |     | (27   | )     |   |      | (71   | )     |   |       | (85   | )    
|                                                       | Equity in losses of unconsolidated affiliates     |                                         |     | (3    | )             |   |     | (4    | )     |   |      | (11   | )     |   |       | (13   | )    
|                                                       | Interest income from affiliates                   |                                         |     |      |               |   |     | 6     |       |   |      | 3     |       |   |       | 16    |      
|                                                       | Net loss on the extinguishment of long-term debt  |                                         |     |      |               |   |     | (106  | )     |   |      |      |       |   |       | (106  | )    
|                                                       | Other, net                                        |                                         |     | (10   | )             |   |     | (1    | )     |   |      |      |       |   |       | 6     |      
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|                                                       |                                                   | Total other income and deductions       |     |       | (84           | ) |     |       | (191  | ) |      |       | (231  | ) |       |       | (385  | )
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|Income before income taxes                             |                                                   |                                         | 379 |       |               |   | 219 |       |       |   | 676  |       |       |   | 862   |      
|Income taxes                                           |                                                   |                                         | 155 |       |               |   | 95  |       |       |   | 273  |       |       |   | 351   |      
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|Net income                                             |                                                   |                                         | 224 |       |               |   | 124 |       |       |   | 403  |       |       |   | 511   |      
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|Other comprehensive income (loss), net of income taxes |                                                   |                                         |     |       |               |   |     |       |       |   |      |       |       |   |       |      
|                                                       | Change in net unrealized gain on cash-flow hedges |                                         |     | 21    |               |   |     |      |       |   |      |      |       |   |       |      |      
|                                                       | Unrealized gain on marketable securities          |                                         |     | 1     |               |   |     |      |       |   |      | 1     |       |   |       |      |      
|                                                       | Foreign currency translation adjustment           |                                         |     |      |               |   |     | (1    | )     |   |      |      |       |   |       | (1    | )    
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|                                                       |                                                   | Total other comprehensive income (loss) |     |       | 22            |   |     |       | (1    | ) |      |       | 1     |   |       |       | (1    | )
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      
|Total comprehensive income                             |                                                   | $                                       | 246 |       |               | $ | 123 |       |       | $ | 404  |       |       | $ | 510   |      
|                                                       |                                                   |                                         |     |       |               |   |     |       |       |   |      |      



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                          |                                                                                             |                                                                  |                                                                  |      |      |      |        |      |     |      |  
|--------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------------------------------------------- | ---- | ---- | ---- | ------ | ---- | --- | ---- | -
|                                                          |                                                                                             | Nine Months                                                      |                                                                 
|                                                          |                                                                                             | Ended                                                            |                                                                 
|                                                          |                                                                                             | September 30,                                                    |                                                                 
|                                                          |                                                                                             |                                                                  |                                                                 
|                                                          |                                                                                             | 2005                                                             |                                                                  |      | 2004 |     
|(In millions)                                             |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from operating activities                      |                                                                                             |                                                                  |                                                                  |      |      |      |        |     
|                                                          | Net income                                                                                  |                                                                  | $                                                                | 403  |      |      | $      | 511  |    
|                                                          | Adjustments to reconcile net income to net cash flows provided
    by operating activities: |                                                                  |                                                                  |      |      |      |        |      |    
|                                                          |                                                                                             | Depreciation and amortization                                    |                                                                  |      | 308  |      |        |      | 309 |     
|                                                          |                                                                                             | Deferred income taxes and amortization of investment tax credits |                                                                  |      | 190  |      |        |      | 157 |     
|                                                          |                                                                                             | Provision for uncollectible accounts                             |                                                                  |      | 21   |      |        |      | 25  |     
|                                                          |                                                                                             | Equity in losses of unconsolidated affiliates                    |                                                                  |      | 11   |      |        |      | 13  |     
|                                                          |                                                                                             | Other non-cash operating activities                              |                                                                  |      | 46   |      |        |      | 80  |     
|                                                          |                                                                                             | Changes in assets and liabilities:                               |                                                                  |      |      |      |        |      |     |     
|                                                          |                                                                                             |                                                                  | Accounts receivable                                              |      |      | (189 | )      |      |     | (110 | )
|                                                          |                                                                                             |                                                                  | Other current assets                                             |      |      | (11  | )      |      |     |     |  
|                                                          |                                                                                             |                                                                  | Accounts payable, accrued expenses and other current liabilities |      |      | 17   |        |      |     | (34  | )
|                                                          |                                                                                             |                                                                  | Changes in receivables and payables to affiliates                |      |      | 8    |        |      |     | 24   |  
|                                                          |                                                                                             |                                                                  | Income taxes                                                     |      |      | 30   |        |      |     | 53   |  
|                                                          |                                                                                             |                                                                  | Pension asset and non-pension postretirement benefits obligation |      |      | (760 | )      |      |     | (141 | )
|                                                          |                                                                                             |                                                                  | Other noncurrent assets and liabilities                          |      |      | (16  | )      |      |     | (20  | )
|                                                          |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows provided by operating activities           |                                                                                             |                                                                  | 58                                                               |      |      |      | 867    |     
|                                                          |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from investing activities                      |                                                                                             |                                                                  |                                                                  |      |      |      |        |     
|                                                          | Capital expenditures                                                                        |                                                                  |                                                                  | (597 | )    |      |        | (518 | )  
|                                                          | Changes in Exelon intercompany money pool contributions                                     |                                                                  |                                                                  | 308  |      |      |        | 405  |    
|                                                          | Change in restricted cash                                                                   |                                                                  |                                                                  |     |      |      |        | 20   |    
|                                                          | Notes receivable from affiliates                                                            |                                                                  |                                                                  |     |      |      |        | 436  |    
|                                                          | Other investing activities                                                                  |                                                                  |                                                                  | 3    |      |      |        | 12   |    
|                                                          |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows provided by (used in) investing activities |                                                                                             |                                                                  | (286                                                             | )    |      |      | 355    |     
|                                                          |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from financing activities                      |                                                                                             |                                                                  |                                                                  |      |      |      |        |     
|                                                          | Issuance of short-term debt                                                                 |                                                                  |                                                                  | 146  |      |      |        |     |    
|                                                          | Issuance of long-term debt                                                                  |                                                                  |                                                                  | 91   |      |      |        |     |    
|                                                          | Retirement of long-term debt                                                                |                                                                  |                                                                  | (310 | )    |      |        | (798 | )  
|                                                          | Retirement of long-term debt to ComEd Transitional Funding Trust                            |                                                                  |                                                                  | (278 | )    |      |        | (261 | )  
|                                                          | Changes in Exelon intercompany money pool borrowings                                        |                                                                  |                                                                  | 110  |      |      |        | 17   |    
|                                                          | Dividends paid on common stock                                                              |                                                                  |                                                                  | (352 | )    |      |        | (320 | )  
|                                                          | Contributions from parent                                                                   |                                                                  |                                                                  | 834  |      |      |        | 94   |    
|                                                          | Settlement of cash-flow and fair-value hedges                                               |                                                                  |                                                                  |     |      |      |        | 26   |    
|                                                          | Other financing activities                                                                  |                                                                  |                                                                  | (5   | )    |      |        | 2    |    
|                                                          |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows provided by (used in) financing activities |                                                                                             |                                                                  | 236                                                              |      |      |      | (1,240 | )   
|                                                          |                                                                                             |                                                                  |                                                                  |      |      |     
|Increase (decrease) in cash and cash equivalents          |                                                                                             |                                                                  | 8                                                                |      |      |      | (18    | )   
|Cash and cash equivalents at beginning of period          |                                                                                             |                                                                  | 30                                                               |      |      |      | 34     |     
|                                                          |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash and cash equivalents at end of period                |                                                                                             | $                                                                | 38                                                               |      |      | $    | 16     |     
|                                                          |                                                                                             |                                                                  |                                                                  |      |      |     



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                                 |                                        |        |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                                 | September 30,                          |        |       | December 31, |  
|                                   |                                                 | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                                 |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                                 |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents                       |                                        | $      | 38    |              |   | $      | 30    |      
|                                   | Accounts receivable, net                        |                                        |        |       |              |   |        |       |      
|                                   |                                                 | Customer                               |        |       | 899          |   |        |       | 726   | 
|                                   |                                                 | Other                                  |        |       | 35           |   |        |       | 50    | 
|                                   | Inventories, at average cost                    |                                        |        | 48    |              |   |        | 48    |      
|                                   | Deferred income taxes                           |                                        |        | 22    |              |   |        |      |      
|                                   | Receivables from affiliates                     |                                        |        | 16    |              |   |        | 10    |      
|                                   | Contributions to Exelon intercompany money pool |                                        |        |      |              |   |        | 308   |      
|                                   | Other                                           |                                        |        | 36    |              |   |        | 24    |      
|                                   |                                                 |                                        |        |       |              |  
|                                   |                                                 | Total current assets                   |        |       | 1,094        |   |        |       | 1,196 | 
|                                   |                                                 |                                        |        |       |              |  
|Property, plant and equipment, net |                                                 |                                        | 9,806  |       |              |   | 9,463  |      
|Deferred debits and other assets   |                                                 |                                        |        |       |              |   |        |      
|                                   | Investments                                     |                                        |        | 40    |              |   |        | 39    |      
|                                   | Investment in affiliates                        |                                        |        | 38    |              |   |        | 52    |      
|                                   | Goodwill                                        |                                        |        | 4,696 |              |   |        | 4,705 |      
|                                   | Receivables from affiliates                     |                                        |        | 1,539 |              |   |        | 1,443 |      
|                                   | Pension asset                                   |                                        |        | 943   |              |   |        | 156   |      
|                                   | Other                                           |                                        |        | 362   |              |   |        | 387   |      
|                                   |                                                 |                                        |        |       |              |  
|                                   |                                                 | Total deferred debits and other assets |        |       | 7,618        |   |        |       | 6,782 | 
|                                   |                                                 |                                        |        |       |              |  
|Total assets                       |                                                 | $                                      | 18,518 |       |              | $ | 17,441 |      
|                                   |                                                 |                                        |        |       |              |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                   |                                                                            |                                              |        |       |              |   |        |       |        | 
|-------------------------------------------------- | -------------------------------------------------------------------------- | -------------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                                   |                                                                            | September 30,                                |        |       | December 31, |  
|                                                   |                                                                            | 2005                                         |        |       | 2004         |  
|(In millions)                                      |                                                                            |                                              |        |       |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY              
|Current liabilities                                |                                                                            |                                              |        |       |              |   |        |      
|                                                   | Long-term debt due within one year                                         |                                              | $      | 109   |              |   | $      | 272   |       
|                                                   | Long-term debt to ComEd Transitional Funding Trust due within
    one year |                                              |        | 297   |              |   |        | 321   |       
|                                                   | Accounts payable                                                           |                                              |        | 273   |              |   |        | 196   |       
|                                                   | Accrued expenses                                                           |                                              |        | 555   |              |   |        | 589   |       
|                                                   | Payable to affiliates                                                      |                                              |        | 266   |              |   |        | 227   |       
|                                                   | Notes payable                                                              |                                              |        | 146   |              |   |        |      |       
|                                                   | Borrowings from Exelon intercompany money pool                             |                                              |        | 110   |              |   |        |      |       
|                                                   | Customer deposits                                                          |                                              |        | 106   |              |   |        | 93    |       
|                                                   | Deferred income taxes                                                      |                                              |        |      |              |   |        | 17    |       
|                                                   | Other                                                                      |                                              |        | 42    |              |   |        | 49    |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total current liabilities                    |        |       | 1,904        |   |        |       | 1,764  | 
|                                                   |                                                                            |                                              |        |       |              |  
|Long-term debt                                     |                                                                            |                                              | 2,829  |       |              |   | 2,901  |      
|Long-term debt to ComEd Transitional Funding Trust |                                                                            |                                              | 766    |       |              |   | 1,020  |      
|Long-term debt to other financing trusts           |                                                                            |                                              | 361    |       |              |   | 361    |      
|Deferred credits and other liabilities             |                                                                            |                                              |        |       |              |   |        |      
|                                                   | Deferred income taxes                                                      |                                              |        | 2,125 |              |   |        | 1,890 |       
|                                                   | Unamortized investment tax credits                                         |                                              |        | 44    |              |   |        | 45    |       
|                                                   | Non-pension postretirement benefits obligation                             |                                              |        | 222   |              |   |        | 195   |       
|                                                   | Payables to affiliates                                                     |                                              |        | 16    |              |   |        | 17    |       
|                                                   | Regulatory liabilities                                                     |                                              |        | 2,343 |              |   |        | 2,204 |       
|                                                   | Other                                                                      |                                              |        | 282   |              |   |        | 304   |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total deferred credits and other liabilities |        |       | 5,032        |   |        |       | 4,655  | 
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total liabilities                            |        |       | 10,892       |   |        |       | 10,701 | 
|                                                   |                                                                            |                                              |        |       |              |  
|Commitments and contingencies                      |                                                                            |                                              |        |       |              |   |        |      
|Shareholders equity                               |                                                                            |                                              |        |       |              |   |        |      
|                                                   | Common stock                                                               |                                              |        | 1,588 |              |   |        | 1,588 |       
|                                                   | Preference stock                                                           |                                              |        | 7     |              |   |        | 7     |       
|                                                   | Other paid-in capital                                                      |                                              |        | 4,877 |              |   |        | 4,168 |       
|                                                   | Receivable from parent                                                     |                                              |        |      |              |   |        | (125  | )     
|                                                   | Retained earnings                                                          |                                              |        | 1,153 |              |   |        | 1,102 |       
|                                                   | Accumulated other comprehensive income                                     |                                              |        | 1     |              |   |        |      |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total shareholders equity                   |        |       | 7,626        |   |        |       | 6,740  | 
|                                                   |                                                                            |                                              |        |       |              |  
|Total liabilities and shareholders equity         |                                                                            | $                                            | 18,518 |       |              | $ | 17,441 |      
|                                                   |                                                                            |                                              |        |       |              |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS
EQUITY


(Unaudited)


|                                                        |  |        |       |  |            |       |   |         |            |   |        |          |  |                |          |   |              |       |      |               |       |   |               |   |  |   |   |  |  |   |       |  
|------------------------------------------------------- |  | ------ | ----- |  | ---------- | ----- | - | ------- | ---------- | - | ------ | -------- |  | -------------- | -------- | - | ------------ | ----- | ---- | ------------- | ----- | - | ------------- | - |  | - | - |  |  | - | ----- | -
|                                                        |  |        |       |  |            |       |   |         |            |   |        |          |  | Accumulated    |          |   |             
|                                                        |  |        |       |  |            | Other |   |         | Receivable |   |        | Retained |  |                | Retained |   |              | Other |      |               | Total |  
|                                                        |  | Common |       |  | Preference |       |   | Paid-In |            |   | from   |          |  | Earnings       |          |   | Earnings     |       |      | Comprehensive |       |   | Shareholders |  
|                                                        |  | Stock  |       |  | Stock      |       |   | Capital |            |   | Parent |          |  | Unappropriated |          |   | Appropriated |       |      | Income        |       |   | Equity        |  
|(In millions)                                           |  |        |       |  |            |       |   |         |            |   |        |          |  |                |          |   |              |       |      |               |       |   |               |  
|Balance, December 31, 2004                              |  | $      | 1,588 |  |            | $     | 7 |         |            | $ | 4,168  |          |  | $              | (125     | ) |              | $     |     |               |       | $ | 1,102         |   |  | $ |  |  |  | $ | 6,740 |  
|Net income                                              |  |        |      |  |            |       |  |         |            |   |       |          |  |                |         |   |              |       | 403  |               |       |   |              |   |  |   |  |  |  |   | 403   |  
|Repayment of receivable from parent                     |  |        |      |  |            |       |  |         |            |   |       |          |  |                | 125      |   |              |       |     |               |       |   |              |   |  |   |  |  |  |   | 125   |  
|Capital contribution from parent                        |  |        |      |  |            |       |  |         |            |   | 709    |          |  |                |         |   |              |       |     |               |       |   |              |   |  |   |  |  |  |   | 709   |  
|Appropriation of Retained Earnings for future dividends |  |        |      |  |            |       |  |         |            |   |       |          |  |                |         |   |              |       | (403 | )             |       |   | 403           |   |  |   |  |  |  |   |      |  
|Common stock dividends                                  |  |        |      |  |            |       |  |         |            |   |       |          |  |                |         |   |              |       |     |               |       |   | (352          | ) |  |   |  |  |  |   | (352  | )
|Other comprehensive income, net of income taxes         |  |        |      |  |            |       |  |         |            |   |       |          |  |                |         |   |              |       |     |               |       |   |              |   |  |   | 1 |  |  |   | 1     |  
|                                                        |  |        |       |  |            |       |   |         |            |   |        |          |  |                |          |   |              |       |      |               |       |   |               |  
|Balance, September 30, 2005                             |  | $      | 1,588 |  |            | $     | 7 |         |            | $ | 4,877  |          |  | $              |         |   |              | $     |     |               |       | $ | 1,153         |   |  | $ | 1 |  |  | $ | 7,626 |  
|                                                        |  |        |       |  |            |       |   |         |            |   |        |          |  |                |          |   |              |       |      |               |       |   |               |  



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PECO ENERGY COMPANY


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |       |    |       |     |       |   |       |  
|------------------------------------------------------ | ------------------------------------------------- | -------------------------------------------------------- | --------------------------------------- | ----- | ------------- | ----- | --- | ----- | - | ----- | ---- | ----- | -- | ----- | --- | ----- | - | ----- | -
|                                                       |                                                   | Three Months                                             |                                         |       | Nine Months   |      
|                                                       |                                                   | Ended                                                    |                                         |       | Ended         |      
|                                                       |                                                   | September 30,                                            |                                         |       | September 30, |      
|                                                       |                                                   |                                                          |                                         |       |               |      
|                                                       |                                                   | 2005                                                     |                                         |       | 2004          |       |     | 2005  |   |       | 2004 |      
|(In millions)                                          |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|Operating revenues                                     |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |       |    |       |     |      
|                                                       | Operating revenues                                |                                                          | $                                       | 1,318 |               |       | $   | 1,119 |   |       | $    | 3,648 |    |       | $   | 3,381 |  
|                                                       | Operating revenues from affiliates                |                                                          |                                         | 4     |               |       |     | 5     |   |       |      | 13    |    |       |     | 14    |  
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|                                                       |                                                   |                                                          | Total operating revenues                |       |               | 1,322 |     |       |   | 1,124 |      |       |    | 3,661 |     |       |   | 3,395 |  
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|Operating expenses                                     |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |       |    |       |     |      
|                                                       | Purchased power                                   |                                                          |                                         | 71    |               |       |     | 49    |   |       |      | 181   |    |       |     | 149   |  
|                                                       | Purchased power from affiliate                    |                                                          |                                         | 513   |               |       |     | 409   |   |       |      | 1,273 |    |       |     | 1,108 |  
|                                                       | Fuel                                              |                                                          |                                         | 42    |               |       |     | 28    |   |       |      | 372   |    |       |     | 354   |  
|                                                       | Fuel from affiliate                               |                                                          |                                         |      |               |       |     | 7     |   |       |      | 1     |    |       |     | 14    |  
|                                                       | Operating and maintenance                         |                                                          |                                         | 115   |               |       |     | 96    |   |       |      | 315   |    |       |     | 310   |  
|                                                       | Operating and maintenance from affiliates         |                                                          |                                         | 28    |               |       |     | 26    |   |       |      | 81    |    |       |     | 77    |  
|                                                       | Depreciation and amortization                     |                                                          |                                         | 159   |               |       |     | 144   |   |       |      | 431   |    |       |     | 395   |  
|                                                       | Taxes other than income                           |                                                          |                                         | 74    |               |       |     | 64    |   |       |      | 189   |    |       |     | 181   |  
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|                                                       |                                                   |                                                          | Total operating expenses                |       |               | 1,002 |     |       |   | 823   |      |       |    | 2,843 |     |       |   | 2,588 |  
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|Operating income                                       |                                                   |                                                          | 320                                     |       |               |       | 301 |       |   |       | 818  |       |    |       | 807 |      
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|Other income and deductions                            |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |       |    |       |     |      
|                                                       | Interest expense                                  |                                                          |                                         | (15   | )             |       |     | (15   | ) |       |      | (41   | )  |       |     | (42   | )
|                                                       | Interest expense to affiliates                    |                                                          |                                         | (55   | )             |       |     | (61   | ) |       |      | (171  | )  |       |     | (187  | )
|                                                       | Equity in losses of unconsolidated affiliates     |                                                          |                                         | (4    | )             |       |     | (6    | ) |       |      | (12   | )  |       |     | (19   | )
|                                                       | Interest income from affiliates                   |                                                          |                                         |      |               |       |     |      |   |       |      | 1     |    |       |     |      |  
|                                                       | Other, net                                        |                                                          |                                         | 2     |               |       |     | 3     |   |       |      | 10    |    |       |     | 8     |  
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|                                                       |                                                   |                                                          | Total other income and deductions       |       |               | (72   | )   |       |   | (79   | )    |       |    | (213  | )   |       |   | (240  | )
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|Income before income taxes                             |                                                   |                                                          | 248                                     |       |               |       | 222 |       |   |       | 605  |       |    |       | 567 |      
|Income taxes                                           |                                                   |                                                          | 82                                      |       |               |       | 83  |       |   |       | 200  |       |    |       | 195 |      
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|Net income                                             |                                                   |                                                          | 166                                     |       |               |       | 139 |       |   |       | 405  |       |    |       | 372 |      
|Preferred stock dividends                              |                                                   |                                                          | 1                                       |       |               |       | 1   |       |   |       | 3    |       |    |       | 3   |      
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|Net income on common stock                             |                                                   | $                                                        | 165                                     |       |               | $     | 138 |       |   | $     | 402  |       |    | $     | 369 |      
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|Other comprehensive income (loss), net of income taxes |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |       |    |       |     |      
|                                                       | Net income                                        |                                                          | $                                       | 166   |               |       | $   | 139   |   |       | $    | 405   |    |       | $   | 372   |  
|                                                       | Other comprehensive income (net of income taxes): |                                                          |                                         |       |               |       |     |       |   |       |      |       |    |       |     |       |  
|                                                       |                                                   | Change in net unrealized gain (loss) on cash-flow hedges |                                         |       |              |       |     |       |  |       |      |       | (2 | )     |     |       | 2 |      
|                                                       |                                                   | Unrealized gain on marketable securities                 |                                         |       |              |       |     |       |  |       |      |       |   |       |     |       | 2 |      
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|                                                       |                                                   |                                                          | Total other comprehensive income (loss) |       |               |      |     |       |   |      |      |       |    | (2    | )   |       |   | 4     |  
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      
|Total comprehensive income                             |                                                   | $                                                        | 166                                     |       |               | $     | 139 |       |   | $     | 403  |       |    | $     | 376 |      
|                                                       |                                                   |                                                          |                                         |       |               |       |     |       |   |       |      |      



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                 |                                                                                             |                                                                  |                                                                  |      |      |      |      |      |     |     |  
|------------------------------------------------ | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------------------------------------------- | ---- | ---- | ---- | ---- | ---- | --- | --- | -
|                                                 |                                                                                             | Nine Months                                                      |                                                                 
|                                                 |                                                                                             | Ended                                                            |                                                                 
|                                                 |                                                                                             | September 30,                                                    |                                                                 
|                                                 |                                                                                             |                                                                  |                                                                 
|                                                 |                                                                                             | 2005                                                             |                                                                  |      | 2004 |     
|(In millions)                                    |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from operating activities             |                                                                                             |                                                                  |                                                                  |      |      |      |      |     
|                                                 | Net income                                                                                  |                                                                  | $                                                                | 405  |      |      | $    | 372  |    
|                                                 | Adjustments to reconcile net income to net cash flows provided
    by operating activities: |                                                                  |                                                                  |      |      |      |      |      |    
|                                                 |                                                                                             | Depreciation and amortization                                    |                                                                  |      | 431  |      |      |      | 395 |    
|                                                 |                                                                                             | Deferred income taxes and amortization of investment tax credits |                                                                  |      | (87  | )    |      |      | (72 | )  
|                                                 |                                                                                             | Provision for uncollectible accounts                             |                                                                  |      | 26   |      |      |      | 30  |    
|                                                 |                                                                                             | Equity in losses of unconsolidated affiliates                    |                                                                  |      | 12   |      |      |      | 19  |    
|                                                 |                                                                                             | Other non-cash operating activities                              |                                                                  |      |     |      |      |      | 4   |    
|                                                 |                                                                                             | Changes in assets and liabilities:                               |                                                                  |      |      |      |      |      |     |    
|                                                 |                                                                                             |                                                                  | Accounts receivable                                              |      |      | (4   | )    |      |     | 4   |  
|                                                 |                                                                                             |                                                                  | Inventories                                                      |      |      | (34  | )    |      |     | (15 | )
|                                                 |                                                                                             |                                                                  | Deferred energy costs                                            |      |      | 47   |      |      |     | 52  |  
|                                                 |                                                                                             |                                                                  | Prepaid utility taxes                                            |      |      | (26  | )    |      |     | (20 | )
|                                                 |                                                                                             |                                                                  | Other current assets                                             |      |      | (7   | )    |      |     | (2  | )
|                                                 |                                                                                             |                                                                  | Accounts payable, accrued expenses and other current liabilities |      |      | (95  | )    |      |     | (95 | )
|                                                 |                                                                                             |                                                                  | Change in receivables and payables to affiliates, net            |      |      | 40   |      |      |     | 9   |  
|                                                 |                                                                                             |                                                                  | Income taxes                                                     |      |      | 6    |      |      |     | 101 |  
|                                                 |                                                                                             |                                                                  | Pension asset and non-pension postretirement benefits obligation |      |      | (142 | )    |      |     | 20  |  
|                                                 |                                                                                             |                                                                  | Other noncurrent assets and liabilities                          |      |      | 28   |      |      |     | (12 | )
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows provided by operating activities  |                                                                                             |                                                                  | 600                                                              |      |      |      | 790  |     
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from investing activities             |                                                                                             |                                                                  |                                                                  |      |      |      |      |     
|                                                 | Capital expenditures                                                                        |                                                                  |                                                                  | (210 | )    |      |      | (162 | )  
|                                                 | Changes in Exelon intercompany money pool contributions                                     |                                                                  |                                                                  | 34   |      |      |      | (26  | )  
|                                                 | Change in restricted cash                                                                   |                                                                  |                                                                  | 27   |      |      |      | (3   | )  
|                                                 | Other investing activities                                                                  |                                                                  |                                                                  | 4    |      |      |      | 2    |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows used in investing activities      |                                                                                             |                                                                  | (145                                                             | )    |      |      | (189 | )   
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from financing activities             |                                                                                             |                                                                  |                                                                  |      |      |      |      |     
|                                                 | Issuance of long-term debt                                                                  |                                                                  |                                                                  |     |      |      |      | 75   |    
|                                                 | Retirement of long-term debt                                                                |                                                                  |                                                                  | (15  | )    |      |      | (77  | )  
|                                                 | Retirement of long-term debt to PECO Energy Transition Trust                                |                                                                  |                                                                  | (361 | )    |      |      | (286 | )  
|                                                 | Change in short-term debt                                                                   |                                                                  |                                                                  |     |      |      |      | (46  | )  
|                                                 | Changes in Exelon intercompany money pool borrowings                                        |                                                                  |                                                                  | 7    |      |      |      |     |    
|                                                 | Dividends paid on common and preferred stock                                                |                                                                  |                                                                  | (350 | )    |      |      | (279 | )  
|                                                 | Contribution from parent                                                                    |                                                                  |                                                                  | 215  |      |      |      | 106  |    
|                                                 | Other financing activities                                                                  |                                                                  |                                                                  |     |      |      |      | 4    |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows used in financing activities      |                                                                                             |                                                                  | (504                                                             | )    |      |      | (503 | )   
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Increase (decrease) in cash and cash equivalents |                                                                                             |                                                                  | (49                                                              | )    |      |      | 98   |     
|Cash and cash equivalents at beginning of period |                                                                                             |                                                                  | 74                                                               |      |      |      | 18   |     
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash and cash equivalents at end of period       |                                                                                             | $                                                                | 25                                                               |      |      | $    | 116  |     
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                                 |                                        |       |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------------------- | -------------------------------------- | ----- | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                                 | September 30,                          |       |       | December 31, |  
|                                   |                                                 | 2005                                   |       |       | 2004         |  
|(In millions)                      |                                                 |                                        |       |       |              |  
|ASSETS                            
|Current assets                     |                                                 |                                        |       |       |              |   |        |      
|                                   | Cash and cash equivalents                       |                                        | $     | 25    |              |   | $      | 74    |      
|                                   | Restricted cash                                 |                                        |       | 2     |              |   |        | 29    |      
|                                   | Accounts receivable, net                        |                                        |       |       |              |   |        |       |      
|                                   |                                                 | Customer                               |       |       | 358          |   |        |       | 368   | 
|                                   |                                                 | Other                                  |       |       | 22           |   |        |       | 34    | 
|                                   | Inventories, at average cost                    |                                        |       |       |              |   |        |       |      
|                                   |                                                 | Gas                                    |       |       | 150          |   |        |       | 117   | 
|                                   |                                                 | Materials and supplies                 |       |       | 11           |   |        |       | 10    | 
|                                   | Contributions to Exelon intercompany money pool |                                        |       |      |              |   |        | 34    |      
|                                   | Deferred income taxes                           |                                        |       | 20    |              |   |        | 24    |      
|                                   | Deferred energy costs                           |                                        |       | 24    |              |   |        | 71    |      
|                                   | Prepaid utility taxes                           |                                        |       | 27    |              |   |        | 1     |      
|                                   | Other                                           |                                        |       | 18    |              |   |        | 11    |      
|                                   |                                                 |                                        |       |       |              |  
|                                   |                                                 | Total current assets                   |       |       | 657          |   |        |       | 773   | 
|                                   |                                                 |                                        |       |       |              |  
|Property, plant and equipment, net |                                                 |                                        | 4,423 |       |              |   | 4,329  |      
|Deferred debits and other assets   |                                                 |                                        |       |       |              |   |        |      
|                                   | Regulatory assets                               |                                        |       | 4,460 |              |   |        | 4,790 |      
|                                   | Investments                                     |                                        |       | 22    |              |   |        | 22    |      
|                                   | Investment in affiliates                        |                                        |       | 77    |              |   |        | 87    |      
|                                   | Receivable from affiliate                       |                                        |       | 61    |              |   |        | 46    |      
|                                   | Pension asset                                   |                                        |       | 193   |              |   |        | 77    |      
|                                   | Other                                           |                                        |       | 14    |              |   |        | 9     |      
|                                   |                                                 |                                        |       |       |              |  
|                                   |                                                 | Total deferred debits and other assets |       |       | 4,827        |   |        |       | 5,031 | 
|                                   |                                                 |                                        |       |       |              |  
|Total assets                       |                                                 | $                                      | 9,907 |       |              | $ | 10,133 |      
|                                   |                                                 |                                        |       |       |              |  



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                               |                                                                        |                                              |       |        |              |   |        |        |       | 
|---------------------------------------------- | ---------------------------------------------------------------------- | -------------------------------------------- | ----- | ------ | ------------ | - | ------ | ------ | ----- | 
|                                               |                                                                        | September 30,                                |       |        | December 31, |  
|                                               |                                                                        | 2005                                         |       |        | 2004         |  
|(In millions)                                  |                                                                        |                                              |       |        |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY          
|Current liabilities                            |                                                                        |                                              |       |        |              |   |        |       
|                                               | Long-term debt due within one year                                     |                                              | $     | 31     |              |   | $      | 46     |      
|                                               | Long-term debt to PECO Energy Transition Trust due within one
    year |                                              |       | 319    |              |   |        | 165    |      
|                                               | Accounts payable                                                       |                                              |       | 116    |              |   |        | 121    |      
|                                               | Accrued expenses                                                       |                                              |       | 176    |              |   |        | 263    |      
|                                               | Payables to affiliates                                                 |                                              |       | 186    |              |   |        | 146    |      
|                                               | Borrowings from Exelon intercompany money pool                         |                                              |       | 7      |              |   |        |       |      
|                                               | Customer deposits                                                      |                                              |       | 51     |              |   |        | 42     |      
|                                               | Other                                                                  |                                              |       | 8      |              |   |        | 11     |      
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total current liabilities                    |       |        | 894          |   |        |        | 794   | 
|                                               |                                                                        |                                              |       |        |              |  
|Long-term debt                                 |                                                                        |                                              | 1,153 |        |              |   | 1,153  |       
|Long-term debt to PECO Energy Transition Trust |                                                                        |                                              | 2,776 |        |              |   | 3,291  |       
|Long-term debt to other financing trusts       |                                                                        |                                              | 184   |        |              |   | 184    |       
|Deferred credits and other liabilities         |                                                                        |                                              |       |        |              |   |        |       
|                                               | Deferred income taxes                                                  |                                              |       | 2,771  |              |   |        | 2,834  |      
|                                               | Unamortized investment tax credits                                     |                                              |       | 17     |              |   |        | 19     |      
|                                               | Non-pension postretirement benefits obligation                         |                                              |       | 293    |              |   |        | 319    |      
|                                               | Other                                                                  |                                              |       | 153    |              |   |        | 141    |      
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total deferred credits and other liabilities |       |        | 3,234        |   |        |        | 3,313 | 
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total liabilities                            |       |        | 8,241        |   |        |        | 8,735 | 
|                                               |                                                                        |                                              |       |        |              |  
|Commitments and contingencies                  |                                                                        |                                              |       |        |              |   |        |       
|Shareholders equity                           |                                                                        |                                              |       |        |              |   |        |       
|                                               | Common stock                                                           |                                              |       | 2,176  |              |   |        | 2,176  |      
|                                               | Preferred stock                                                        |                                              |       | 87     |              |   |        | 87     |      
|                                               | Receivable from parent                                                 |                                              |       | (1,267 | )            |   |        | (1,482 | )    
|                                               | Retained earnings                                                      |                                              |       | 662    |              |   |        | 607    |      
|                                               | Accumulated other comprehensive income                                 |                                              |       | 8      |              |   |        | 10     |      
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total shareholders equity                   |       |        | 1,666        |   |        |        | 1,398 | 
|                                               |                                                                        |                                              |       |        |              |  
|Total liabilities and shareholders equity     |                                                                        | $                                            | 9,907 |        |              | $ | 10,133 |       
|                                               |                                                                        |                                              |       |        |              |  



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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, 2004                    |  | $      | 2,176 |  |           | $          | 87 |        |  | $           | (1,482   | ) |  | $             | 607  |   |               | $ | 10 |   |  | $ | 1,398 |  
|Net income                                    |  |        |      |  |           |            |   |        |  |             |         |   |  |               | 405  |   |               |   |   |   |  |   | 405   |  
|Common stock dividends                        |  |        |      |  |           |            |   |        |  |             |         |   |  |               | (347 | ) |               |   |   |   |  |   | (347  | )
|Preferred stock dividends                     |  |        |      |  |           |            |   |        |  |             |         |   |  |               | (3   | ) |               |   |   |   |  |   | (3    | )
|Repayment of receivable from parent           |  |        |      |  |           |            |   |        |  |             | 215      |   |  |               |     |   |               |   |   |   |  |   | 215   |  
|Other comprehensive loss, net of income taxes |  |        |      |  |           |            |   |        |  |             |         |   |  |               |     |   |               |   | (2 | ) |  |   | (2    | )
|                                              |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |  
|Balance, September 30, 2005                   |  | $      | 2,176 |  |           | $          | 87 |        |  | $           | (1,267   | ) |  | $             | 662  |   |               | $ | 8  |   |  | $ | 1,666 |  
|                                              |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |  



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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                                             |                                            |       | Nine Months   |      
|                                                                                       |                                                                                                                                                                                 | Ended                                                    |                                            |       | Ended         |      
|                                                                                       |                                                                                                                                                                                 | September 30,                                            |                                            |       | September 30, |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |      
|                                                                                       |                                                                                                                                                                                 | 2005                                                     |                                            |       | 2004          |       |     | 2005  |    |       | 2004  |      
|(In millions)                                                                          |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Operating revenues                                                                     |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |       |      |       |     |      
|                                                                                       | Operating revenues                                                                                                                                                              |                                                          | $                                          | 1,207 |               |       | $   | 907   |    |       | $     | 3,047 |      |       | $   | 2,984 |    
|                                                                                       | Operating revenues from affiliates                                                                                                                                              |                                                          |                                            | 1,504 |               |       |     | 1,244 |    |       |       | 3,789 |      |       |     | 2,994 |    
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Total operating revenues                   |       |               | 2,711 |     |       |    | 2,151 |       |       |      | 6,836 |     |       |     | 5,978 |  
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Operating expenses                                                                     |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |       |      |       |     |      
|                                                                                       | Purchased power                                                                                                                                                                 |                                                          |                                            | 1,047 |               |       |     | 757   |    |       |       | 2,014 |      |       |     | 1,852 |    
|                                                                                       | Purchased power from affiliates                                                                                                                                                 |                                                          |                                            |      |               |       |     |      |    |       |       |      |      |       |     | 11    |    
|                                                                                       | Fuel                                                                                                                                                                            |                                                          |                                            | 441   |               |       |     | 318   |    |       |       | 1,227 |      |       |     | 1,276 |    
|                                                                                       | Operating and maintenance                                                                                                                                                       |                                                          |                                            | 469   |               |       |     | 348   |    |       |       | 1,547 |      |       |     | 1,405 |    
|                                                                                       | Operating and maintenance from affiliates                                                                                                                                       |                                                          |                                            | 68    |               |       |     | 66    |    |       |       | 201   |      |       |     | 200   |    
|                                                                                       | Depreciation and amortization                                                                                                                                                   |                                                          |                                            | 63    |               |       |     | 93    |    |       |       | 188   |      |       |     | 212   |    
|                                                                                       | Taxes other than income                                                                                                                                                         |                                                          |                                            | 48    |               |       |     | 41    |    |       |       | 122   |      |       |     | 134   |    
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Total operating expenses                   |       |               | 2,136 |     |       |    | 1,623 |       |       |      | 5,299 |     |       |     | 5,090 |  
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Operating income                                                                       |                                                                                                                                                                                 |                                                          | 575                                        |       |               |       | 528 |       |    |       | 1,537 |       |      |       | 888 |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Other income and deductions                                                            |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |       |      |       |     |      
|                                                                                       | Interest expense                                                                                                                                                                |                                                          |                                            | (33   | )             |       |     | (24   | )  |       |       | (89   | )    |       |     | (76   | )  
|                                                                                       | Interest expense to affiliates                                                                                                                                                  |                                                          |                                            |      |               |       |     | (1    | )  |       |       | (2    | )    |       |     | (3    | )  
|                                                                                       | Equity in earnings (losses) of unconsolidated affiliates                                                                                                                        |                                                          |                                            | (2    | )             |       |     | (5    | )  |       |       | 2     |      |       |     | (7    | )  
|                                                                                       | Other, net                                                                                                                                                                      |                                                          |                                            | 13    |               |       |     | 4     |    |       |       | 82    |      |       |     | 118   |    
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Total other income and deductions          |       |               | (22   | )   |       |    | (26   | )     |       |      | (7    | )   |       |     | 32    |  
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Income from continuing operations before income taxes and
    minority interest        |                                                                                                                                                                                 |                                                          | 553                                        |       |               |       | 502 |       |    |       | 1,530 |       |      |       | 920 |      
|Income taxes                                                                           |                                                                                                                                                                                 |                                                          | 219                                        |       |               |       | 193 |       |    |       | 595   |       |      |       | 352 |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Income from continuing operations before minority interest                             |                                                                                                                                                                                 |                                                          | 334                                        |       |               |       | 309 |       |    |       | 935   |       |      |       | 568 |      
|Minority interest                                                                      |                                                                                                                                                                                 |                                                          |                                           |       |               |       | 4   |       |    |       |      |       |      |       | 3   |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Income from continuing operations                                                      |                                                                                                                                                                                 |                                                          | 334                                        |       |               |       | 313 |       |    |       | 935   |       |      |       | 571 |      
|Discontinued operations                                                                |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |       |      |       |     |      
|                                                                                       | Income (loss) from discontinued operations (net of income taxes
    of $0, $5, $(1) and $(9) for the three and nine months ended
    September 30, 2005 and 2004, respectively) |                                                          |                                            |      |               |       |     | 6     |    |       |       |      |      |       |     | (4    | )  
|                                                                                       | Gain on disposal of discontinued operations (net of income taxes
    of $1, $0, $5 and $0 for the three and nine months ended
    September 30, 2005 and 2004, respectively)    |                                                          |                                            | 1     |               |       |     |      |    |       |       | 16    |      |       |     |      |    
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Income (loss) from discontinued operations |       |               | 1     |     |       |    | 6     |       |       |      | 16    |     |       |     | (4    | )
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Income before cumulative effect of a change in accounting
    principle                |                                                                                                                                                                                 |                                                          | 335                                        |       |               |       | 319 |       |    |       | 951   |       |      |       | 567 |      
|Cumulative effect of a change in accounting principle (net of
    income taxes of $22) |                                                                                                                                                                                 |                                                          |                                           |       |               |       |    |       |    |       |      |       |      |       | 32  |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Net income                                                                             |                                                                                                                                                                                 |                                                          | 335                                        |       |               |       | 319 |       |    |       | 951   |       |      |       | 599 |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Other comprehensive income (loss), net of income taxes                                 |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |       |      |       |     |      
|                                                                                       |                                                                                                                                                                                 | Change in net unrealized gain (loss) on cash-flow hedges |                                            |       | (181          | )     |     |       | 77 |       |       |       | (266 | )     |     |       | (70 | )    
|                                                                                       |                                                                                                                                                                                 | Unrealized gain (loss) on marketable securities          |                                            |       | 14            |       |     |       | 7  |       |       |       | (10  | )     |     |       | 15  |      
|                                                                                       |                                                                                                                                                                                 | Foreign currency translation adjustment                  |                                            |       |              |       |     |       | 1  |       |       |       | (1   | )     |     |       | (1  | )    
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Total other comprehensive income (loss)    |       |               | (167  | )   |       |    | 85    |       |       |      | (277  | )   |       |     | (56   | )
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      
|Total comprehensive income                                                             |                                                                                                                                                                                 | $                                                        | 168                                        |       |               | $     | 404 |       |    | $     | 674   |       |      | $     | 543 |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |               |       |     |       |    |       |       |      



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |     |       |     |        |     |     |  
|------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------ | --- | ----- | --- | ------ | --- | --- | -
|                                                                                     |                                                                                                                                       | Nine Months                                                                                                                  |                                                                                
|                                                                                     |                                                                                                                                       | Ended                                                                                                                        |                                                                                
|                                                                                     |                                                                                                                                       | September 30,                                                                                                                |                                                                                
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                
|                                                                                     |                                                                                                                                       | 2005                                                                                                                         |                                                                                 |                                                                         | 2004   |    
|(In millions)                                                                        |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |    
|Cash flows from operating activities                                                 |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |     |       |    
|                                                                                     |                                                                                                                                       | Net income                                                                                                                   |                                                                                 | $                                                                       | 951    |     |       | $   | 599    |    
|                                                                                     |                                                                                                                                       | Adjustments to reconcile net income to net cash flows provided
    by operating activities:                                  |                                                                                 |                                                                         |        |     |       |     |        |    
|                                                                                     |                                                                                                                                       |                                                                                                                              | Depreciation, amortization and accretion, including nuclear fuel                |                                                                         |        | 661 |       |     |        | 687 |    
|                                                                                     |                                                                                                                                       |                                                                                                                              | Cumulative effect of a change in accounting principle (net of
    income taxes) |                                                                         |        |    |       |     |        | (32 | )  
|                                                                                     |                                                                                                                                       |                                                                                                                              | Other decommissioning-related activities                                        |                                                                         |        | 18  |       |     |        | 65  |    
|                                                                                     |                                                                                                                                       |                                                                                                                              | Gain on sale of investments                                                     |                                                                         |        | (21 | )     |     |        | (91 | )  
|                                                                                     |                                                                                                                                       |                                                                                                                              | Deferred income taxes and amortization of investment tax credits                |                                                                         |        | 378 |       |     |        | 159 |    
|                                                                                     |                                                                                                                                       |                                                                                                                              | Provision for uncollectible accounts                                            |                                                                         |        |    |       |     |        | 3   |    
|                                                                                     |                                                                                                                                       |                                                                                                                              | Equity in (earnings) losses of unconsolidated affiliates                        |                                                                         |        | (2  | )     |     |        | 7   |    
|                                                                                     |                                                                                                                                       |                                                                                                                              | Net realized gains on nuclear decommissioning trust funds                       |                                                                         |        | (52 | )     |     |        | (9  | )  
|                                                                                     |                                                                                                                                       |                                                                                                                              | Other non-cash operating activities                                             |                                                                         |        | (28 | )     |     |        | (69 | )  
|                                                                                     |                                                                                                                                       |                                                                                                                              | Changes in assets and liabilities:                                              |                                                                         |        |     |       |     |        |     |    
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 | Accounts receivable                                                     |        |     | (73   | )   |        |     | 78  |  
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 | Receivables and payables to affiliates, net                             |        |     | (70   | )   |        |     | (5  | )
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 | Inventories                                                             |        |     | (20   | )   |        |     |    |  
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 | Other current assets                                                    |        |     | (236  | )   |        |     | 66  |  
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 | Accounts payable, accrued expenses and other current liabilities        |        |     | 221   |     |        |     | (46 | )
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 | Income taxes                                                            |        |     | 130   |     |        |     | 220 |  
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 | Net realized and unrealized mark-to-market and hedging
    transactions |        |     | (139  | )   |        |     | (18 | )
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 | Pension asset and non-pension postretirement benefits obligation        |        |     | (823  | )   |        |     | (89 | )
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 | Other noncurrent assets and liabilities                                 |        |     | (64   | )   |        |     | (17 | )
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |    
|Net cash flows provided by operating activities                                      |                                                                                                                                       |                                                                                                                              | 831                                                                             |                                                                         |        |     | 1,508 |    
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |    
|Cash flows from investing activities                                                 |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |     |       |    
|                                                                                     |                                                                                                                                       | Capital expenditures                                                                                                         |                                                                                 |                                                                         | (704   | )   |       |     | (608   | )  
|                                                                                     |                                                                                                                                       | Proceeds from sale of nuclear decommissioning trust fund assets                                                              |                                                                                 |                                                                         | 3,234  |     |       |     | 1,485  |    
|                                                                                     |                                                                                                                                       | Investment in nuclear decommissioning trust funds                                                                            |                                                                                 |                                                                         | (3,387 | )   |       |     | (1,687 | )  
|                                                                                     |                                                                                                                                       | Changes in Exelon intercompany money pool contributions                                                                      |                                                                                 |                                                                         |       |     |       |     | (17    | )  
|                                                                                     |                                                                                                                                       | Acquisition of Sithe Energies, Inc.                                                                                          |                                                                                 |                                                                         | (97    | )   |       |     |       |    
|                                                                                     |                                                                                                                                       | Proceeds from sale of wholly owned subsidiaries, net of $32 of
    cash sold during the nine months ended September 30, 2005 |                                                                                 |                                                                         | 103    |     |       |     | 24     |    
|                                                                                     |                                                                                                                                       | Proceeds from the sale of long-lived assets                                                                                  |                                                                                 |                                                                         |       |     |       |     | 42     |    
|                                                                                     |                                                                                                                                       | Net cash increase from consolidation of Sithe Energies, Inc. and
    Exelon Energy Company                                   |                                                                                 |                                                                         |       |     |       |     | 24     |    
|                                                                                     |                                                                                                                                       | Change in restricted cash                                                                                                    |                                                                                 |                                                                         | (1     | )   |       |     | (8     | )  
|                                                                                     |                                                                                                                                       | Other investing activities                                                                                                   |                                                                                 |                                                                         | (9     | )   |       |     | 13     |    
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |    
|Net cash flows used in investing activities                                          |                                                                                                                                       |                                                                                                                              | (861                                                                            | )                                                                       |        |     | (732  | )  
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |    
|Cash flows from financing activities                                                 |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |     |       |    
|                                                                                     |                                                                                                                                       | Retirement of long-term debt                                                                                                 |                                                                                 |                                                                         | (11    | )   |       |     | (29    | )  
|                                                                                     |                                                                                                                                       | Payment on acquisition note payable to Sithe Energies, Inc.                                                                  |                                                                                 |                                                                         |       |     |       |     | (27    | )  
|                                                                                     |                                                                                                                                       | Changes in Exelon intercompany money pool borrowings                                                                         |                                                                                 |                                                                         | (283   | )   |       |     | (445   | )  
|                                                                                     |                                                                                                                                       | Distribution to member                                                                                                       |                                                                                 |                                                                         | (749   | )   |       |     | (170   | )  
|                                                                                     |                                                                                                                                       | Contribution from member                                                                                                     |                                                                                 |                                                                         | 843    |     |       |     | 6      |    
|                                                                                     |                                                                                                                                       | Other financing activities                                                                                                   |                                                                                 |                                                                         | 1      |     |       |     | 1      |    
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |    
|Net cash flows used in financing activities                                          |                                                                                                                                       |                                                                                                                              | (199                                                                            | )                                                                       |        |     | (664  | )  
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |    
|Increase (decrease) in cash and cash equivalents                                     |                                                                                                                                       |                                                                                                                              | (229                                                                            | )                                                                       |        |     | 112   |    
|Cash and cash equivalents at beginning of period                                     |                                                                                                                                       |                                                                                                                              | 263                                                                             |                                                                         |        |     | 158   |    
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |    
|Cash and cash equivalents at end of period                                           |                                                                                                                                       | $                                                                                                                            | 34                                                                              |                                                                         |        | $   | 270   |    
|                                                                                     |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |    
|Supplemental cash flow information  Noncash
    investing and financing activities: |                                                                                                                                       |                                                                                                                              |                                                                                 |                                                                         |        |     |       |    
|                                                                                     | Consolidation of Sithe Energies, Inc. pursuant to FASB
    Interpretation No. 46-R, Consolidation of Variable
    Interest Entities |                                                                                                                              | $                                                                               |                                                                        |        |     | $     | 85  |       
|                                                                                     | Contribution of Exelon Energy Company from Exelon Corporation                                                                         |                                                                                                                              |                                                                                 |                                                                        |        |     |       | (9  | )     
|                                                                                     | Disposition of Boston Generating, LLC                                                                                                 |                                                                                                                              |                                                                                 |                                                                        |        |     |       | 102 |       



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                     |                                        |        |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                     | September 30,                          |        |       | December 31, |  
|                                   |                                     | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                     |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                     |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents           |                                        | $      | 34    |              |   | $      | 263   |      
|                                   | Restricted cash and investments     |                                        |        | 3     |              |   |        | 26    |      
|                                   | Accounts receivable, net            |                                        |        |       |              |   |        |       |      
|                                   |                                     | Customer                               |        |       | 566          |   |        |       | 525   | 
|                                   |                                     | Other                                  |        |       | 150          |   |        |       | 209   | 
|                                   | Mark-to-market derivative assets    |                                        |        | 1,240 |              |   |        | 403   |      
|                                   | Receivables from affiliates         |                                        |        | 394   |              |   |        | 332   |      
|                                   | Inventories, at average cost        |                                        |        |       |              |   |        |       |      
|                                   |                                     | Fossil fuel                            |        |       | 112          |   |        |       | 112   | 
|                                   |                                     | Materials and supplies                 |        |       | 276          |   |        |       | 255   | 
|                                   | Deferred income taxes               |                                        |        | 51    |              |   |        | 48    |      
|                                   | Other                               |                                        |        | 381   |              |   |        | 148   |      
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total current assets                   |        |       | 3,207        |   |        |       | 2,321 | 
|                                   |                                     |                                        |        |       |              |  
|Property, plant and equipment, net |                                     |                                        | 7,247  |       |              |   | 7,536  |      
|Deferred debits and other assets   |                                     |                                        |        |       |              |   |        |      
|                                   | Nuclear decommissioning trust funds |                                        |        | 5,455 |              |   |        | 5,262 |      
|                                   | Investments                         |                                        |        | 119   |              |   |        | 103   |      
|                                   | Receivable from affiliate           |                                        |        | 11    |              |   |        | 11    |      
|                                   | Pension asset                       |                                        |        | 1,016 |              |   |        | 199   |      
|                                   | Mark-to-market derivative assets    |                                        |        | 367   |              |   |        | 373   |      
|                                   | Other                               |                                        |        | 140   |              |   |        | 633   |      
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total deferred debits and other assets |        |       | 7,108        |   |        |       | 6,581 | 
|                                   |                                     |                                        |        |       |              |  
|Total assets                       |                                     | $                                      | 17,562 |       |              | $ | 16,438 |      
|                                   |                                     |                                        |        |       |              |  



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                             |                                                |                                              |        |       |              |   |        |       |        | 
|-------------------------------------------- | ---------------------------------------------- | -------------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                             |                                                | September 30,                                |        |       | December 31, |  
|                                             |                                                | 2005                                         |        |       | 2004         |  
|(In millions)                                |                                                |                                              |        |       |              |  
|LIABILITIES AND MEMBERS EQUITY             
|Current liabilities                          |                                                |                                              |        |       |              |   |        |      
|                                             | Long-term debt due within one year             |                                              | $      | 12    |              |   | $      | 47    |       
|                                             | Accounts payable                               |                                              |        | 970   |              |   |        | 856   |       
|                                             | Mark-to-market derivative liabilities          |                                              |        | 1,684 |              |   |        | 598   |       
|                                             | Borrowings from Exelon intercompany money pool |                                              |        |      |              |   |        | 283   |       
|                                             | Payables to affiliates                         |                                              |        | 34    |              |   |        | 42    |       
|                                             | Accrued expenses                               |                                              |        | 330   |              |   |        | 367   |       
|                                             | Other                                          |                                              |        | 395   |              |   |        | 223   |       
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total current liabilities                    |        |       | 3,425        |   |        |       | 2,416  | 
|                                             |                                                |                                              |        |       |              |  
|Long-term debt                               |                                                |                                              | 1,788  |       |              |   | 2,583  |      
|Deferred credits and other liabilities       |                                                |                                              |        |       |              |   |        |      
|                                             | Asset retirement obligation                    |                                              |        | 3,871 |              |   |        | 3,980 |       
|                                             | Pension obligation                             |                                              |        | 12    |              |   |        | 21    |       
|                                             | Non-pension postretirement benefits obligation |                                              |        | 587   |              |   |        | 584   |       
|                                             | Spent nuclear fuel obligation                  |                                              |        | 897   |              |   |        | 878   |       
|                                             | Deferred income taxes                          |                                              |        | 613   |              |   |        | 506   |       
|                                             | Unamortized investment tax credits             |                                              |        | 203   |              |   |        | 210   |       
|                                             | Payable to affiliates                          |                                              |        | 1,565 |              |   |        | 1,479 |       
|                                             | Mark-to-market derivative liabilities          |                                              |        | 481   |              |   |        | 323   |       
|                                             | Other                                          |                                              |        | 311   |              |   |        | 375   |       
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total deferred credits and other liabilities |        |       | 8,540        |   |        |       | 8,356  | 
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total liabilities                            |        |       | 13,753       |   |        |       | 13,355 | 
|                                             |                                                |                                              |        |       |              |  
|Commitments and contingencies                |                                                |                                              |        |       |              |   |        |      
|Minority interest of consolidated subsidiary |                                                |                                              | 2      |       |              |   | 44     |      
|Members equity                              |                                                |                                              |        |       |              |   |        |      
|                                             | Membership interest                            |                                              |        | 3,204 |              |   |        | 2,361 |       
|                                             | Undistributed earnings                         |                                              |        | 963   |              |   |        | 761   |       
|                                             | Accumulated other comprehensive loss           |                                              |        | (360  | )            |   |        | (83   | )     
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total members equity                        |        |       | 3,807        |   |        |       | 3,039  | 
|                                             |                                                |                                              |        |       |              |  
|Total liabilities and members equity        |                                                | $                                            | 17,562 |       |              | $ | 16,438 |      
|                                             |                                                |                                              |        |       |              |  



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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      |             |      | Loss          |       |   | Equity   |  
|                                              |  |            |       |  |               |             |      |               |       |   |          |  
|Balance, December 31, 2004                    |  | $          | 2,361 |  |               | $           | 761  |               |       | $ | (83      | ) |  | $ | 3,039 |  
|Net income                                    |  |            |      |  |               |             | 951  |               |       |   |         |   |  |   | 951   |  
|Distribution to member                        |  |            |      |  |               |             | (749 | )             |       |   |         |   |  |   | (749  | )
|Contribution from member                      |  |            | 843   |  |               |             |     |               |       |   |         |   |  |   | 843   |  
|Other comprehensive loss, net of income taxes |  |            |      |  |               |             |     |               |       |   | (277     | ) |  |   | (277  | )
|                                              |  |            |       |  |               |             |      |               |       |   |          |  
|Balance, September 30, 2005                   |  | $          | 3,204 |  |               | $           | 963  |               |       | $ | (360     | ) |  | $ | 3,807 |  
|                                              |  |            |       |  |               |             |      |               |       |   |          |  



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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)









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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)




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



|                                                    |  |          |   |  |                |   |   |       |  |   |   | 
|--------------------------------------------------- |  | -------- | - |  | -------------- | - | - | ----- |  | - | - | 
|Three Months Ended September 30, 2005(a)            |  | Sithe(b) |   |  | Enterprises(c) |   |   | Total | 
|                                                    |  |          |   |  |                |   |   |       | 
|Total operating revenues                            |  | $        |  |  |                | $ | 5 |       |  | $ | 5 | 
|Operating income (loss)                             |  |          |  |  |                |   |  |       |  |   |  | 
|Income before income taxes and minority interest(d) |  |          | 2 |  |                |   |  |       |  |   | 2 | 






|    |  |                                                                                                                                                                                                                                               
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Results of AllEnergy were immaterial for the three months ended
    September 30, 2005.                                                                                                                                                       
|(b) |  | Sithe was sold on January 31, 2005. Accordingly, there are
    no operating results for the three months ended
    September 30, 2005. See Note 4 
    Acquisitions and Dispositions for further information regarding
    the sale of Sithe.
|(c) |  | Excludes certain investments.                                                                                                                                                                                                                 
|(d) |  | Represents an adjustment to the gain on sale of Sithe as a
    result of the expiration of certain tax indemnifications.                                                                                                                      

|                                                           |  |          |    |  |                |   |    |       |  |   |    | 
|---------------------------------------------------------- |  | -------- | -- |  | -------------- | - | -- | ----- |  | - | -- | 
|Nine Months Ended September 30, 2005(a)                    |  | Sithe(b) |    |  | Enterprises(c) |   |    | Total | 
|                                                           |  |          |    |  |                |   |    |       | 
|Total operating revenues                                   |  | $        | 30 |  |                | $ | 14 |       |  | $ | 44 | 
|Operating income (loss)                                    |  |          | 5  |  |                |   | (4 | )     |  |   | 1  | 
|Income (loss) before income taxes and minority interest(d) |  |          | 20 |  |                |   | (4 | )     |  |   | 16 | 






|    |  |                                                                                                                                                                                                           
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Results of AllEnergy were immaterial for the nine months ended
    September 30, 2005.                                                                                                                    
|(b) |  | Sithe was sold on January 31, 2005. Accordingly, results
    include only one month of operations. See
    Note 4  Acquisitions and Dispositions for
    further information regarding the sale of Sithe.
|(c) |  | Excludes certain investments.                                                                                                                                                                             
|(d) |  | Sithe includes a pre-tax gain on sale of $21 million.                                                                                                                                                     

|                                                        |  |       |     |  |                |   |     |       |  |   |     | 
|------------------------------------------------------- |  | ----- | --- |  | -------------- | - | --- | ----- |  | - | --- | 
|Three Months Ended September 30, 2004(a)                |  | Sithe |     |  | Enterprises(b) |   |     | Total | 
|                                                        |  |       |     |  |                |   |     |       | 
|Total operating revenues                                |  | $     | 102 |  |                | $ | 15  |       |  | $ | 117 | 
|Operating income (loss)                                 |  |       | 34  |  |                |   | (3  | )     |  |   | 31  | 
|Income (loss) before income taxes and minority interest |  |       | 15  |  |                |   | (10 | )     |  |   | 5   | 






|    |  |                                                                                        
|--- |  | ---------------------------------------------------------------------------------------
|(a) |  | Results of AllEnergy were immaterial for the three months ended
    September 30, 2004.
|(b) |  | Excludes certain investments.                                                          

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)


|                                                        |  |          |     |   |                |   |     |           |  |   |       |   |  |   |     |  
|------------------------------------------------------- |  | -------- | --- | - | -------------- | - | --- | --------- |  | - | ----- | - |  | - | --- | -
|Nine Months Ended September 30, 2004                    |  | Sithe(a) |     |   | Enterprises(b) |   |     | AllEnergy |  |   | Total |  
|                                                        |  |          |     |   |                |   |     |           |  |   |       |  
|Total operating revenues                                |  | $        | 168 |   |                | $ | 147 |           |  | $ | 7     |   |  | $ | 322 |  
|Operating income (loss)                                 |  |          | 16  |   |                |   | (43 | )         |  |   | (3    | ) |  |   | (30 | )
|Income (loss) before income taxes and minority interest |  |          | (17 | ) |                |   | 9   |           |  |   | (3    | ) |  |   | (11 | )






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | In accordance with FIN 46-R, Exelon and Generation
    consolidated Sithe, formerly a 50% owned subsidiary of
    Generation, as of March 31, 2004. As Sithe was a
    nonconsolidated subsidiary during the three months ended
    March 31, 2004, Sithes results of operations are not
    included in discontinued operations for that period. See
    Note 1 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K for
    further information regarding the adoption of FIN 46-R and
    resulting consolidation of Sithe.
|   
|(b) |  | Excludes certain investments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    



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



| |          
| | ---------
| | EITF 03-1





| |             
| | ------------
| | SFAS No. 151





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



29



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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  |     |      | Nine Months   |  
|                                                                                                                             |                                | Ended         |     |      | Ended         |  
|                                                                                                                             |                                | September 30, |     |      | September 30, |  
|                                                                                                                             |                                |               |     |      |               |  
|                                                                                                                             |                                | 2005          |     |      | 2004          |   |     | 2005 |  |   | 2004  |     
|                                                                                                                             |                                |               |     |      |               |   |     |      |  |   |       |     
|Net income  as reported                                                                                                     |                                | $             | 725 |      |               | $ | 568 |      |  | $ | 1,760 |      |  | $ | 1,501 |     
|Add: Stock-based compensation expense included in reported net
    income, net of income taxes                               |                                |               | 10  |      |               |   | 9   |      |  |   | 27    |      |  |   | 25    |     
|Deduct: Total stock-based compensation expense determined under
    fair-value method for all awards, net of income taxes(a) |                                |               | (14 | )    |               |   | (14 | )    |  |   | (38   | )    |  |   | (40   | )   
|                                                                                                                             |                                |               |     |      |               |   |     |      |  |   |       |     
|Pro forma net income                                                                                                         |                                | $             | 721 |      |               | $ | 563 |      |  | $ | 1,749 |      |  | $ | 1,486 |     
|                                                                                                                             |                                |               |     |      |               |   |     |      |  |   |       |     
|Earnings per share:                                                                                                          |                                |               |     |      |               |   |     |      |  |   |       |      |  |   |       |     
|                                                                                                                             | Basic earnings  as reported   |               | $   | 1.08 |               |   | $   | 0.86 |  |   | $     | 2.63 |  |   | $     | 2.27 | 
|                                                                                                                             | Basic earnings  pro forma     |               | $   | 1.08 |               |   | $   | 0.85 |  |   | $     | 2.61 |  |   | $     | 2.25 | 
|                                                                                                                             | Diluted earnings  as reported |               | $   | 1.07 |               |   | $   | 0.85 |  |   | $     | 2.60 |  |   | $     | 2.25 | 
|                                                                                                                             | Diluted earnings  pro forma   |               | $   | 1.06 |               |   | $   | 0.84 |  |   | $     | 2.59 |  |   | $     | 2.23 | 






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

30



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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. 153





| |       
| | ------
| | FIN 47





| |             
| | ------------
| | SFAS No. 154



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)






|   |                                                      
|-- | -----------------------------------------------------
|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)














| |                              
| | -----------------------------
| | Sithe (Exelon 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    |   |  | Three Months Ended    |  
|                   |  | September 30, 2005(a) |   |  | September 30, 2004(b) |  
|                   |  |                       |   |  |                       |  
|Operating revenues |  | $                     |  |  |                       | $ | 99 | 
|Operating income   |  |                       |  |  |                       |   | 26 | 
|Net income(c)      |  |                       | 1 |  |                       |   |   | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Sithe was sold on January 31, 2005. As such, there are no
    operating results for the three months ended September 30,
    2005.                                                                                                                                                                                                                                                                                                                                                                        
|   
|(b) |  | Results include transmission congestion contract
    (TCC) revenues for the three months ended
    September 30, 2004, and are not included in the
    discontinued operations of Sithe (see Note 2 
    Discontinued Operations for further information regarding the
    disposal of Sithe). These equity-method losses and TCC revenues
    are presented within income from continuing operations on the
    Consolidated Statements of Income and Comprehensive Income of
    Exelon and Generation.
|   
|(c) |  | Represents an adjustment to the gain on sale of Sithe as a
    result of the expiration of certain tax indemnifications.                                                                                                                                                                                                                                                                                                                                                                                  

|                     |  |                       |    |  |                       |   |     |  
|-------------------- |  | --------------------- | -- |  | --------------------- | - | --- | -
|                     |  | Nine Months Ended     |    |  | Nine Months Ended     |  
|                     |  | September 30, 2005(a) |    |  | September 30, 2004(b) |  
|                     |  |                       |    |  |                       |  
|Operating revenues   |  | $                     | 30 |  |                       | $ | 169 |  
|Operating income     |  |                       | 5  |  |                       |   | 7   |  
|Net income (loss)(c) |  |                       | 16 |  |                       |   | (12 | )






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Sithe was sold on January 31, 2005. As such, results only
    include one month of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(b) |  | Results during the nine months ended September 30, 2004
    include Generations equity-method losses from Sithe prior
    to its consolidation on March 31, 2004, as well as
    transmission congestion contract (TCC) revenues for the nine
    months ended September 30, 2004, and are not included in
    the discontinued operations of Sithe (see
    Note 2  Discontinued Operations for further
    information regarding the disposal of Sithe). These
    equity-method losses and TCC revenues are presented within
    income from continuing operations on the Consolidated Statements
    of Income and Comprehensive Income of Exelon and Generation.
|   
|(c) |  | During the nine months ended September 30, 2005, this
    amount includes a pre-tax gain on sale of Sithe of
    $21 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



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)




| |                                                                                 
| | --------------------------------------------------------------------------------
| | Sale of Ownership Interest in Boston Generating, LLC
    (Exelon and Generation)





|                   |  |                    |     |  
|------------------ |  | ------------------ | --- | -
|                   |  | Nine Months        |    
|                   |  | Ended              |    
|                   |  | September 30, 2004 |    
|                   |  |                    |    
|Operating revenues |  | $                  | 248 |  
|Operating loss     |  |                    | (47 | )
|Net income(a)      |  |                    | 24  |  






|    |  |                                                                                                                                              
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Net income for 2004 includes an after-tax gain of
    $52 million related to the sale of Boston Generating in the
    second quarter of 2004.



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



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

Illinois Procurement Filing.




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)










Illinois Rate Case.


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)






Exelon and PECO


Partial Settlement before PAPUC.


Exelon, ComEd and PECO


Through and Out Rates/SECA.


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)






Regulatory Accounting.


Exelon and Generation


Market-Based Rates Filing.






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)






Exelon, ComEd, PECO and Generation


The Energy Policy Act of 2005.








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)




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



| |                            
| | ---------------------------
| | Goodwill (Exelon and ComEd)





|                                     |  |   |       |  
|------------------------------------ |  | - | ----- | -
|Balance as of January 1, 2005(a)     |  | $ | 4,705 |  
|Resolution of certain tax matters(b) |  |   | (9    | )
|                                     |  |   |      
|Balance as of September 30, 2005(a)  |  | $ | 4,696 |  
|                                     |  |   |      






|    |  |                                                                                                                                                                                                                                         
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Exelons goodwill balance at January 1 and
    September 30, 2005 is held at ComEd, which is included in
    the Energy Delivery segment. See Note 15 
    Segment Information for further information regarding
    Exelons segments.
|   
|(b) |  | Adjustment related to income tax refund claims and interest
    thereon. See Note 13  Commitments and
    Contingencies for further information.                                                                                       

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)




| |                                                
| | -----------------------------------------------
| | Other Intangible Assets (Exelon and Generation)



|                                             |                               |                    |     |             |                   |   |      |      |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |     | 
|-------------------------------------------- | ----------------------------- | ------------------ | --- | ----------- | ----------------- | - | ---- | ---- | - | - | ----------- | --- |  | ------------ | --- | --- | --- | - | --- | --- | - | - | --- | --- | 
|                                             |                               | September 30, 2005 |     |             | December 31, 2004 |  
|                                             |                               |                    |     |             |                   |  
|                                             |                               |                    |     | Accumulated |                   |   |      |      |   |   | Accumulated |     |  |             
|                                             |                               | Gross              |     |             | Amortization      |   |      | Net  |   |   | Gross       |     |  | Amortization |     |     | Net |  
|                                             |                               |                    |     |             |                   |   |      |      |   |   |             |     |  |              |     |     |     |  
|Generation amortized intangible assets:      |                               |                    |     |             |                   |   |      |      |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |    
|                                             | Energy purchase agreement(a)  |                    | $   |            |                   |   | $    |     |   |   | $           |    |  |              | $   | 384 |     |   | $   | (27 | ) |   | $   | 357 | 
|                                             | Tolling agreement(a)          |                    |     |            |                   |   |      |     |   |   |             |    |  |              |     | 73  |     |   |     | (5  | ) |   |     | 68  | 
|                                             | Other                         |                    |     |            |                   |   |      |     |   |   |             |    |  |              |     | 6   |     |   |     | (6  | ) |   |     |    | 
|                                             |                               |                    |     |             |                   |   |      |      |   |   |             |     |  |              |     |     |     |  
|Total Generation amortized intangible assets |                               |                    |    |             |                   |   |     |      |   |   |            |     |  |              | 463 |     |     |   | (38 | )   |   |   | 425 |    
|Exelon amortized intangible assets:          |                               |                    |     |             |                   |   |      |      |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |    
|                                             | Synthetic fuel investments(b) |                    |     | 264         |                   |   |      | (104 | ) |   |             | 160 |  |              |     | 264 |     |   |     | (56 | ) |   |     | 208 | 
|                                             |                               |                    |     |             |                   |   |      |      |   |   |             |     |  |              |     |     |     |  
|Total Exelon amortized intangible assets     |                               |                    | 264 |             |                   |   | (104 | )    |   |   | 160         |     |  |              | 727 |     |     |   | (94 | )   |   |   | 633 |    
|Exelon other intangible assets:              |                               |                    |     |             |                   |   |      |      |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |    
|                                             | Intangible pension asset      |                    |     | 171         |                   |   |      |     |   |   |             | 171 |  |              |     | 171 |     |   |     |    |   |   |     | 171 | 
|                                             |                               |                    |     |             |                   |   |      |      |   |   |             |     |  |              |     |     |     |  
|Total Exelon intangible assets               |                               | $                  | 435 |             |                   | $ | (104 | )    |   | $ | 331         |     |  | $            | 898 |     |     | $ | (94 | )   |   | $ | 804 |    
|                                             |                               |                    |     |             |                   |   |      |      |   |   |             |     |  |              |     |     |     |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Note 3 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K for a
    description of Sithes intangible assets. These intangible
    assets were eliminated from the Consolidated Balance Sheets of
    Exelon and Generation upon the sale of Sithe on January 31,
    2005. See Note 4  Acquisitions and Dispositions
    for further information regarding the sale of Sithe.
|   
|(b) |  | See Note 2 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 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.                                                                                                                                          





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)






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



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



|           |  |                    |     |  |                   |   |     | 
|---------- |  | ------------------ | --- |  | ----------------- | - | --- | 
|Borrower   |  | September 30, 2005 |     |  | December 31, 2004 |  
|           |  |                    |     |  |                   |  
|Exelon     |  | $                  |    |  |                   | $ | 490 | 
|ComEd      |  |                    | 146 |  |                   |   |    | 
|PECO       |  |                    |    |  |                   |   |    | 
|Generation |  |                    |    |  |                   |   |    | 



| |                
| | ---------------
| | Short-Term Debt





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



|                   |  |      |                                 |          |      |  |          |          |  |  |               |  |  |   |       | 
|------------------ |  | ---- | ------------------------------- | -------- | ---- |  | -------- | -------- |  |  | ------------- |  |  | - | ----- | 
|                   |  |      |                                 | Interest |      |  |          |          | 
|Company            |  | Type |                                 |          | Rate |  |          | Maturity |  |  | Amount        | 
|                   |  |      |                                 |          |      |  |          |          |  |  |               | 
|Exelon             |  |      | Senior notes                    |          |      |  | 4.45%    |          |  |  | June 15, 2010 |  |  | $ | 400   | 
|Exelon             |  |      | Senior notes                    |          |      |  | 4.90%    |          |  |  | June 15, 2015 |  |  |   | 800   | 
|Exelon             |  |      | Senior notes                    |          |      |  | 5.625%   |          |  |  | June 15, 2035 |  |  |   | 500   | 
|ComEd              |  |      | Pollution Control Revenue Bonds |          |      |  | Variable |          |  |  | March 1, 2017 |  |  |   | 91    | 
|                   |  |      |                                 |          |      |  |          |          |  |  |               | 
|Total issuances(a) |  |      |                                 |          |      |  |          |          |  |  |               |  |  | $ | 1,791 | 
|                   |  |      |                                 |          |      |  |          |          |  |  |               | 






|    |  |                                              
|--- |  | ---------------------------------------------
|(a) |  | Issuances exclude unamortized bond discounts.

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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)




| |                                              
| | ---------------------------------------------
| | Retirements and Redemptions of Long-Term Debt



|                  |  |                                                                          |  |               |              |   |          |  |               |        |  |   |     | 
|----------------- |  | ------------------------------------------------------------------------ |  | ------------- | ------------ | - | -------- |  | ------------- | ------ |  | - | --- | 
|Company           |  | Type                                                                     |  | Interest Rate |              |   | Maturity |  |               | Amount | 
|                  |  |                                                                          |  |               |              |   |          |  |               |        | 
|Exelon            |  | Notes payable for investments in synthetic fuel-producing
    facilities |  |               | 6.00 to 8.00 | % |          |  | January 2008  |        |  | $ | 46  | 
|ComEd             |  | Pollution Control Revenue Bonds                                          |  |               | 6.75         | % |          |  | March 1, 2015 |        |  |   | 91  | 
|ComEd             |  | First Mortgage Bonds                                                     |  |               | 9.875        | % |          |  | June 15, 2020 |        |  |   | 54  | 
|ComEd             |  | First Mortgage Bonds                                                     |  |               | 7.00         | % |          |  | July 1, 2005  |        |  |   | 163 | 
|Other             |  |                                                                          |  |               |              |   |          |  |               |        |  |   | 28  | 
|                  |  |                                                                          |  |               |              |   |          |  |               |        | 
|Total retirements |  |                                                                          |  |               |              |   |          |  |               |        |  | $ | 382 | 
|                  |  |                                                                          |  |               |              |   |          |  |               |        | 









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





|                                                                        |  |       |    |   |      |        |   |          |  |   |            |   |  |       |    |   |        |   |    |   |  |   |     |  
|----------------------------------------------------------------------- |  | ----- | -- | - | ---- | ------ | - | -------- |  | - | ---------- | - |  | ----- | -- | - | ------ | - | -- | - |  | - | --- | -
|                                                                        |  |       |    |   |      | Energy |   |          |  |   |            |   | 
|Salary Continuance Severance                                            |  | ComEd |    |   | PECO |        |   | Delivery |  |   | Generation |   |  | Other |    |   | Exelon |  
|                                                                        |  |       |    |   |      |        |   |          |  |   |            |   |  |       |    |   |        |  
|Expense (income) recorded for three months ended
    September 30, 2005 |  | $     | (5 | ) |      | $      |  |          |  | $ | (5         | ) |  | $     | (2 | ) |        | $ | (2 | ) |  | $ | (9  | )
|Expense (income) recorded for nine months ended
    September 30, 2005  |  |       | (8 | ) |      |        | 1 |          |  |   | (7         | ) |  |       | (4 | ) |        |   | (1 | ) |  |   | (12 | )

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)


|                                                                        |  |       |    |  |      |        |    |          |  |   |            |  |  |       |   |  |        |   |   |  |  |   |    | 
|----------------------------------------------------------------------- |  | ----- | -- |  | ---- | ------ | -- | -------- |  | - | ---------- |  |  | ----- | - |  | ------ | - | - |  |  | - | -- | 
|                                                                        |  |       |    |  |      | Energy |    |          |  |   |            |  | 
|Salary Continuance Severance                                            |  | ComEd |    |  | PECO |        |    | Delivery |  |   | Generation |  |  | Other |   |  | Exelon |  
|                                                                        |  |       |    |  |      |        |    |          |  |   |            |  |  |       |   |  |        |  
|Expense (income) recorded for three months ended
    September 30, 2004 |  | $     | 11 |  |      | $      | (1 | )        |  | $ | 10         |  |  | $     | 6 |  |        | $ | 3 |  |  | $ | 19 | 
|Expense recorded for nine months ended September 30, 2004               |  |       | 11 |  |      |        | 3  |          |  |   | 14         |  |  |       | 1 |  |        |   | 8 |  |  |   | 23 | 



|                                      |  |       |     |   |      |   |    |            |  |   |       |      |  |        |    |   |  |   |     |     
|------------------------------------- |  | ----- | --- | - | ---- | - | -- | ---------- |  | - | ----- | ---- |  | ------ | -- | - |  | - | --- | ----
|Salary Continuance Obligations        |  | ComEd |     |   | PECO |   |    | Generation |  |   | Other |      |  | Exelon |   
|                                      |  |       |     |   |      |   |    |            |  |   |       |      |  |        |   
|Balance at January 1, 2005            |  | $     | 28  |   |      | $ | 7  |            |  | $ | 16    |      |  | $      | 18 |   |  | $ | 69  |     
|Severance (benefits) charges recorded |  |       | (8  | ) |      |   | 1  |            |  |   | (4    | )(a) |  |        | (1 | ) |  |   | (12 | )(a)
|Cash payments                         |  |       | (10 | ) |      |   | (5 | )          |  |   | (4    | )    |  |        | (9 | ) |  |   | (28 | )   
|                                      |  |       |     |   |      |   |    |            |  |   |       |      |  |        |   
|Balance at September 30, 2005         |  | $     | 10  |   |      | $ | 3  |            |  | $ | 8     |      |  | $      | 8  |   |  | $ | 29  |     
|                                      |  |       |     |   |      |   |    |            |  |   |       |      |  |        |   






|    |  |                                                                                                                              
|--- |  | -----------------------------------------------------------------------------------------------------------------------------
|(a) |  | Excludes severance charges of $5 million related to Salem,
    of which Generation owns 42.59% and which is operated by PSEG.



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





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)




|                                       |                               |                    |      |                |                |       |      |      |   |   |      |     |   |   |     |     |  
|-------------------------------------- | ----------------------------- | ------------------ | ---- | -------------- | -------------- | ----- | ---- | ---- | - | - | ---- | --- | - | - | --- | --- | -
|                                       |                               |                    |      |                |                | Other |     
|                                       |                               |                    |      | Postretirement |               
|                                       |                               | Pension Benefits   |      |                | Benefits Three |      
|                                       |                               | Three Months Ended |      |                | Months Ended   |      
|                                       |                               | September 30,      |      |                | September 30,  |      
|                                       |                               |                    |      |                |                |      
|                                       |                               | 2005               |      |                | 2004           |       |      | 2005 |   |   | 2004 |    
|                                       |                               |                    |      |                |                |       |      |      |   |   |      |    
|Service cost                           |                               | $                  | 32   |                |                | $     | 31   |      |   | $ | 20   |     |   | $ | 19  |    
|Interest cost                          |                               |                    | 132  |                |                |       | 139  |      |   |   | 45   |     |   |   | 38  |    
|Expected return on assets              |                               |                    | (190 | )(a)           |                |       | (152 | )    |   |   | (25  | )   |   |   | (22 | )  
|Amortization of:                       |                               |                    |      |                |                |       |      |      |   |   |      |     |   |   |     |    
|                                       | Transition obligation (asset) |                    |      | (1             | )              |       |      | (1   | ) |   |      | 2   |   |   |     | 3   |  
|                                       | Prior service cost (benefit)  |                    |      | 4              |                |       |      | 3    |   |   |      | (23 | ) |   |     | (22 | )
|                                       | Actuarial loss                |                    |      | 30             |                |       |      | 22   |   |   |      | 28  |   |   |     | 7   |  
|Special termination benefits charge(b) |                               |                    |     |                |                |       |     |      |   |   |     |     |   |   | 8   |    
|                                       |                               |                    |      |                |                |       |      |      |   |   |      |    
|Net periodic benefit cost              |                               | $                  | 7    |                |                | $     | 42   |      |   | $ | 47   |     |   | $ | 31  |    
|                                       |                               |                    |      |                |                |       |      |      |   |   |      |    






|    |  |                                                                                                                                                                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Increase in expected return on pension assets for the three
    months ended September 30, 2005 compared to 2004 was
    primarily attributable to discretionary pension contributions of
    $2 billion made during the first quarter of 2005.
|   
|(b) |  | ComEd and Generation were allocated special termination benefit
    charges related to other postretirement benefits of
    $6 million and $2 million, respectively.                                                                           

|                                       |                               |                   |      |                |               |       |      |      |   |   |      |     |   |   |     |     |  
|-------------------------------------- | ----------------------------- | ----------------- | ---- | -------------- | ------------- | ----- | ---- | ---- | - | - | ---- | --- | - | - | --- | --- | -
|                                       |                               |                   |      |                |               | Other |     
|                                       |                               |                   |      | Postretirement |              
|                                       |                               | Pension Benefits  |      |                | Benefits Nine |      
|                                       |                               | Nine Months Ended |      |                | Months Ended  |      
|                                       |                               | September 30,     |      |                | September 30, |      
|                                       |                               |                   |      |                |               |      
|                                       |                               | 2005              |      |                | 2004          |       |      | 2005 |   |   | 2004 |    
|                                       |                               |                   |      |                |               |       |      |      |   |   |      |    
|Service cost                           |                               | $                 | 108  |                |               | $     | 97   |      |   | $ | 67   |     |   | $ | 59  |    
|Interest cost                          |                               |                   | 410  |                |               |       | 407  |      |   |   | 131  |     |   |   | 127 |    
|Expected return on assets              |                               |                   | (576 | )(a)           |               |       | (459 | )    |   |   | (74  | )   |   |   | (68 | )  
|Amortization of:                       |                               |                   |      |                |               |       |      |      |   |   |      |     |   |   |     |    
|                                       | Transition obligation (asset) |                   |      | (3             | )             |       |      | (3   | ) |   |      | 7   |   |   |     | 7   |  
|                                       | Prior service cost (benefit)  |                   |      | 12             |               |       |      | 11   |   |   |      | (68 | ) |   |     | (60 | )
|                                       | Actuarial loss                |                   |      | 91             |               |       |      | 52   |   |   |      | 61  |   |   |     | 37  |  
|Curtailment charge(b)                  |                               |                   |     |                |               |       | 5    |      |   |   |     |     |   |   | 3   |    
|Special termination benefits charge(c) |                               |                   |     |                |               |       |     |      |   |   |     |     |   |   | 16  |    
|                                       |                               |                   |      |                |               |       |      |      |   |   |      |    
|Net periodic benefit cost              |                               | $                 | 42   |                |               | $     | 110  |      |   | $ | 124  |     |   | $ | 121 |    
|                                       |                               |                   |      |                |               |       |      |      |   |   |      |    






|    |  |                                                                                                                                                                                                                                               
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Increase in expected return on pension assets for the nine
    months ended September 30, 2005 compared to 2004 was
    primarily attributable to discretionary pension contributions of
    $2 billion made during the first quarter of 2005.

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)




|    |  |                                                                                                                                                                                           
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | ComEd, PECO and Generation were allocated curtailment charges
    for pension and other postretirement benefits of
    $3 million, $2 million and $3 million,
    respectively.           
|   
|(c) |  | ComEd, PECO and Generation were allocated special termination
    benefit charges related to other postretirement benefits of
    $8 million, $2 million and $4 million,
    respectively.



|                                            |  |               |    |  |               |   |    |      |  |   |      |  |  |   |    | 
|------------------------------------------- |  | ------------- | -- |  | ------------- | - | -- | ---- |  | - | ---- |  |  | - | -- | 
|                                            |  | Three Months  |    |  | Nine Months   |  
|                                            |  | Ended         |    |  | Ended         |  
|                                            |  | September 30, |    |  | September 30, |  
|                                            |  |               |    |  |               |  
|Pension and Postretirement Benefit Costs(a) |  | 2005          |    |  | 2004          |   |    | 2005 |  |   | 2004 | 
|                                            |  |               |    |  |               |   |    |      |  |   |      | 
|ComEd                                       |  | $             | 8  |  |               | $ | 20 |      |  | $ | 46   |  |  | $ | 67 | 
|PECO                                        |  |               | 11 |  |               |   | 8  |      |  |   | 22   |  |  |   | 25 | 
|Generation                                  |  |               | 24 |  |               |   | 27 |      |  |   | 73   |  |  |   | 89 | 






|    |  |                                                        
|--- |  | -------------------------------------------------------
|(a) |  | Includes capital and operating and maintenance expense.



|                                    |  |               |    |  |               |   |    |      |  |   |      |  |  |   |    | 
|----------------------------------- |  | ------------- | -- |  | ------------- | - | -- | ---- |  | - | ---- |  |  | - | -- | 
|                                    |  | Three Months  |    |  | Nine Months   |  
|                                    |  | Ended         |    |  | Ended         |  
|                                    |  | September 30, |    |  | September 30, |  
|                                    |  |               |    |  |               |  
|Savings Plan Matching Contributions |  | 2005          |    |  | 2004          |   |    | 2005 |  |   | 2004 | 
|                                    |  |               |    |  |               |   |    |      |  |   |      | 
|Exelon                              |  | $             | 15 |  |               | $ | 15 |      |  | $ | 44   |  |  | $ | 43 | 
|ComEd                               |  |               | 4  |  |               |   | 4  |      |  |   | 12   |  |  |   | 12 | 
|PECO                                |  |               | 2  |  |               |   | 2  |      |  |   | 5    |  |  |   | 5  | 
|Generation                          |  |               | 7  |  |               |   | 7  |      |  |   | 21   |  |  |   | 20 | 

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)




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



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



|                            |                                                       |               |      |      |               |  |      |      |   |  |      |      |   |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------- | ---- | ---- | ------------- |  | ---- | ---- | - |  | ---- | ---- | - |  | ---- | ---- | -
|                            |                                                       | Three Months  |      |      | Nine Months   | 
|                            |                                                       | Ended         |      |      | Ended         | 
|                            |                                                       | September 30, |      |      | September 30, | 
|                            |                                                       |               |      |      |               | 
|                            |                                                       | 2005          |      |      | 2004          |  |      | 2005 |   |  | 2004 |     
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     
|U.S. Federal statutory rate |                                                       |               | 35.0 | %    |               |  | 35.0 | %    |   |  | 35.0 | %    |   |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |               |      |      |               |  |      |      |   |  |      |      |   |  |      |     
|                            | State income taxes, net of Federal income tax benefit |               |      | 4.3  |               |  |      | 3.4  |   |  |      | 3.9  |   |  |      | 3.0  |  
|                            | Synthetic fuel-producing facilities credit(a)         |               |      | (6.6 | )             |  |      | (6.6 | ) |  |      | (7.5 | ) |  |      | (6.9 | )
|                            | Qualified nuclear decommissioning trust fund income   |               |      | 0.3  |               |  |      | 0.4  |   |  |      | 0.5  |   |  |      | 0.5  |  
|                            | Tax-exempt income                                     |               |      | (0.2 | )             |  |      | (0.3 | ) |  |      | (0.3 | ) |  |      | (0.3 | )
|                            | Amortization of investment tax credit                 |               |      | (0.2 | )             |  |      | (0.1 | ) |  |      | (0.3 | ) |  |      | (0.3 | )
|                            | Nontaxable postretirement benefits                    |               |      | (0.4 | )             |  |      | (0.2 | ) |  |      | (0.3 | ) |  |      | (0.2 | )
|                            | Low-income housing credit                             |               |      |     |               |  |      | (0.4 | ) |  |      |     |   |  |      | (0.5 | )
|                            | Manufacturers deduction                              |               |      | (0.5 | )             |  |      |     |   |  |      | (0.4 | ) |  |      |     |  
|                            | Other                                                 |               |      | 0.5  |               |  |      | 1.5  |   |  |      | 0.2  |   |  |      | 0.7  |  
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     
|Effective income tax rate   |                                                       |               | 32.2 | %    |               |  | 32.7 | %    |   |  | 30.8 | %    |   |  | 31.0 | %   
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     






|    |                                                                                                                                                                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | See Note 2 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K for
    further information regarding investments in synthetic
    fuel-producing facilities.



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



|                            |                                                       |               |      |      |               |  |      |      |   |  |      |      |   |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------- | ---- | ---- | ------------- |  | ---- | ---- | - |  | ---- | ---- | - |  | ---- | ---- | -
|                            |                                                       | Three Months  |      |      | Nine Months   | 
|                            |                                                       | Ended         |      |      | Ended         | 
|                            |                                                       | September 30, |      |      | September 30, | 
|                            |                                                       |               |      |      |               | 
|                            |                                                       | 2005          |      |      | 2004          |  |      | 2005 |   |  | 2004 |     
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     
|U.S. Federal statutory rate |                                                       |               | 35.0 | %    |               |  | 35.0 | %    |   |  | 35.0 | %    |   |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |               |      |      |               |  |      |      |   |  |      |      |   |  |      |     
|                            | State income taxes, net of Federal income tax benefit |               |      | 4.8  |               |  |      | 4.8  |   |  |      | 4.8  |   |  |      | 4.8  |  
|                            | Plant basis differences                               |               |      |     |               |  |      | 2.4  |   |  |      |     |   |  |      | 0.6  |  
|                            | Amortization of regulatory asset                      |               |      | 0.7  |               |  |      | 0.6  |   |  |      | 0.7  |   |  |      | 0.6  |  
|                            | Amortization of investment tax credit                 |               |      | (0.2 | )             |  |      | (0.3 | ) |  |      | (0.3 | ) |  |      | (0.3 | )
|                            | Nontaxable postretirement benefits                    |               |      | (0.2 | )             |  |      | (0.3 | ) |  |      | (0.3 | ) |  |      | (0.3 | )
|                            | Other                                                 |               |      | 0.8  |               |  |      | 1.2  |   |  |      | 0.5  |   |  |      | 0.3  |  
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     
|Effective income tax rate   |                                                       |               | 40.9 | %    |               |  | 43.4 | %    |   |  | 40.4 | %    |   |  | 40.7 | %   
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     

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)




| |     
| | ----
| | PECO



|                            |                                                       |               |      |      |               |  |      |      |   |  |      |      |   |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------- | ---- | ---- | ------------- |  | ---- | ---- | - |  | ---- | ---- | - |  | ---- | ---- | -
|                            |                                                       | Three Months  |      |      | Nine Months   | 
|                            |                                                       | Ended         |      |      | Ended         | 
|                            |                                                       | September 30, |      |      | September 30, | 
|                            |                                                       |               |      |      |               | 
|                            |                                                       | 2005          |      |      | 2004          |  |      | 2005 |   |  | 2004 |     
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     
|U.S. Federal statutory rate |                                                       |               | 35.0 | %    |               |  | 35.0 | %    |   |  | 35.0 | %    |   |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |               |      |      |               |  |      |      |   |  |      |      |   |  |      |     
|                            | State income taxes, net of Federal income tax benefit |               |      | 1.4  |               |  |      | (0.2 | ) |  |      | (0.3 | ) |  |      | (0.1 | )
|                            | Amortization of investment tax credit                 |               |      | (0.2 | )             |  |      | (0.3 | ) |  |      | (0.3 | ) |  |      | (0.3 | )
|                            | Nontaxable postretirement benefits                    |               |      | (0.2 | )             |  |      | (0.2 | ) |  |      | (0.2 | ) |  |      | (0.2 | )
|                            | Plant basis differences                               |               |      | (0.5 | )             |  |      | 1.9  |   |  |      | (0.3 | ) |  |      |     |  
|                            | Other                                                 |               |      | (2.4 | )             |  |      | 1.2  |   |  |      | (0.8 | ) |  |      |     |  
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     
|Effective income tax rate   |                                                       |               | 33.1 | %    |               |  | 37.4 | %    |   |  | 33.1 | %    |   |  | 34.4 | %   
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     



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



|                            |                                                       |               |      |      |               |  |      |      |   |  |      |      |   |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------- | ---- | ---- | ------------- |  | ---- | ---- | - |  | ---- | ---- | - |  | ---- | ---- | -
|                            |                                                       | Three Months  |      |      | Nine Months   | 
|                            |                                                       | Ended         |      |      | Ended         | 
|                            |                                                       | September 30, |      |      | September 30, | 
|                            |                                                       |               |      |      |               | 
|                            |                                                       | 2005          |      |      | 2004          |  |      | 2005 |   |  | 2004 |     
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     
|U.S. Federal statutory rate |                                                       |               | 35.0 | %    |               |  | 35.0 | %    |   |  | 35.0 | %    |   |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |               |      |      |               |  |      |      |   |  |      |      |   |  |      |     
|                            | State income taxes, net of Federal income tax benefit |               |      | 5.1  |               |  |      | 3.7  |   |  |      | 4.8  |   |  |      | 3.6  |  
|                            | Qualified nuclear decommissioning trust income        |               |      | 0.6  |               |  |      | 0.8  |   |  |      | 0.9  |   |  |      | 1.2  |  
|                            | Tax-exempt income                                     |               |      | (0.5 | )             |  |      | (0.5 | ) |  |      | (0.5 | ) |  |      | (0.8 | )
|                            | Amortization of investment tax credit                 |               |      | (0.2 | )             |  |      |     |   |  |      | (0.2 | ) |  |      | (0.2 | )
|                            | Nontaxable postretirement benefits                    |               |      | (0.3 | )             |  |      | (0.2 | ) |  |      | (0.3 | ) |  |      | (0.3 | )
|                            | Manufacturers deduction                              |               |      | (1.0 | )             |  |      |     |   |  |      | (0.6 | ) |  |      |     |  
|                            | Other                                                 |               |      | 0.9  |               |  |      | (0.4 | ) |  |      | (0.2 | ) |  |      | (0.2 | )
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     
|Effective income tax rate   |                                                       |               | 39.6 | %    |               |  | 38.4 | %    |   |  | 38.9 | %    |   |  | 38.3 | %   
|                            |                                                       |               |      |      |               |  |      |      |   |  |      |     



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

Background.


48



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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)




Ownership Structure.


Phase-Out of Credits Based on Crude Oil Prices.




|                             |  |        |    |  |           |   |    |    
|---------------------------- |  | ------ | -- |  | --------- | - | -- | ---
|                             |  | Actual |    |  | Estimated |  
|                             |  | 2004   |    |  | 2005      |  
|                             |  |        |    |  |           |  
|Beginning of Phase-Out Range |  | $      | 51 |  |           | $ | 52 | (a)
|End of Phase-Out Range       |  |        | 64 |  |           |   | 66 | (a)
|Annual Reference Price       |  |        | 37 |  |           |   | 52 |    






|    |  |                                                                                                                                                                                            
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 2005 phase-out range was 2%.





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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)






|                                |  |           |    | 
|------------------------------- |  | --------- | -- | 
|                                |  | Estimated |   
|                                |  | 2005      |   
|                                |  |           |   
|Beginning of Phase-Out Range(a) |  | $         | 58 | 
|End of Phase-Out Range(a)       |  |           | 73 | 
|Annual Reference Price          |  |           | 58 | 






|    |  |                                                                                                                                                                                            
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 2005 phase-out range was 2%.



Hedging Activity.




|                             |  |      |    | 
|---------------------------- |  | ---- | -- | 
|                             |  | 2005 |   
|                             |  |      |   
|After-Tax Non-Operating Loss |  | $    | 70 | 
|Income from Derivatives      |  |      | 14 | 
|                             |  |      |   
|After-Tax Net Loss           |  | $    | 56 | 
|                             |  |      |   

Impact on Financial Statements.




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)








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





|    |                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------
|11. | Nuclear Decommissioning and Nuclear Decommissioning
    Trust Fund Investments (Exelon and Generation)



| |                        
| | -----------------------
| | Nuclear Decommissioning



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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)










|                                                                       |  |            |       |   |        |   |       |  
|---------------------------------------------------------------------- |  | ---------- | ----- | - | ------ | - | ----- | -
|                                                                       |  | Generation |       |   | Exelon |  
|                                                                       |  |            |       |   |        |  
|Asset retirement obligation at January 1, 2005                         |  | $          | 3,980 |   |        | $ | 3,981 |  
|Net decrease resulting from updates to estimated future cash
    flows |  |            | (281  | ) |        |   | (281  | )
|Liabilities disposed(a)                                                |  |            | (3    | ) |        |   | (3    | )
|Accretion expense                                                      |  |            | 185   |   |        |   | 185   |  
|Payments to decommission retired plants                                |  |            | (10   | ) |        |   | (10   | )
|                                                                       |  |            |       |   |        |  
|Asset retirement obligation at September 30, 2005                      |  | $          | 3,871 |   |        | $ | 3,872 |  
|                                                                       |  |            |       |   |        |  






|    |                                                                                           
|--- | ------------------------------------------------------------------------------------------
|(a) | The ARO of Sithe was removed from the balance sheet upon its
    sale on January 31, 2005.



| |                                                   
| | --------------------------------------------------
| | Nuclear Decommissioning
    Trust Fund Investments



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)










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



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



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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)






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



|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |      |  |   |       |      | 
|----------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------------- | --- | ---- | ------------- | - | --- | ----- | - | - | ----- | ---- |  | - | ----- | ---- | 
|                                                                        |                                                                         | Three Months  |     |      | Nine Months   |  
|                                                                        |                                                                         | Ended         |     |      | Ended         |  
|                                                                        |                                                                         | September 30, |     |      | September 30, |  
|                                                                        |                                                                         |               |     |      |               |  
|                                                                        |                                                                         | 2005          |     |      | 2004          |   |     | 2005  |   |   | 2004  |     
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|Income from continuing operations                                       |                                                                         | $             | 724 |      |               | $ | 577 |       |   | $ | 1,747 |      |  | $ | 1,477 |     
|Income from discontinued operations                                     |                                                                         |               | 1   |      |               |   |    |       |   |   | 13    |      |  |   | 1     |     
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|Income before cumulative effect of changes in accounting
    principles |                                                                         |               | 725 |      |               |   | 577 |       |   |   | 1,760 |      |  |   | 1,478 |     
|Cumulative effect of changes in accounting principles                   |                                                                         |               |    |      |               |   | (9  | )     |   |   |      |      |  |   | 23    |     
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|Net income                                                              |                                                                         | $             | 725 |      |               | $ | 568 |       |   | $ | 1,760 |      |  | $ | 1,501 |     
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|Average common shares outstanding  basic                               |                                                                         |               | 670 |      |               |   | 661 |       |   |   | 669   |      |  |   | 660   |     
|Assumed exercise of stock options                                       |                                                                         |               | 7   |      |               |   | 8   |       |   |   | 7     |      |  |   | 8     |     
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|Average common shares outstanding  diluted                             |                                                                         |               | 677 |      |               |   | 669 |       |   |   | 676   |      |  |   | 668   |     
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|Earnings per average common share  Basic:                              |                                                                         |               |     |      |               |   |     |       |   |   |       |      |  |   |       |     
|                                                                        | Income from continuing operations                                       |               | $   | 1.08 |               |   | $   | 0.87  |   |   | $     | 2.61 |  |   | $     | 2.23 | 
|                                                                        | Income from discontinued operations                                     |               |     |     |               |   |     |      |   |   |       | 0.02 |  |   |       |     | 
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|                                                                        | Income before cumulative effect of changes in accounting
    principles |               |     | 1.08 |               |   |     | 0.87  |   |   |       | 2.63 |  |   |       | 2.23 | 
|                                                                        | Cumulative effect of changes in accounting principles                   |               |     |     |               |   |     | (0.01 | ) |   |       |     |  |   |       | 0.04 | 
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|                                                                        | Net income                                                              |               | $   | 1.08 |               |   | $   | 0.86  |   |   | $     | 2.63 |  |   | $     | 2.27 | 
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|Earnings per average common share  Diluted:                            |                                                                         |               |     |      |               |   |     |       |   |   |       |      |  |   |       |     
|                                                                        | Income from continuing operations                                       |               | $   | 1.07 |               |   | $   | 0.86  |   |   | $     | 2.58 |  |   | $     | 2.21 | 
|                                                                        | Income from discontinued operations                                     |               |     |     |               |   |     |      |   |   |       | 0.02 |  |   |       |     | 
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|                                                                        | Income before cumulative effect of changes in accounting
    principles |               |     | 1.07 |               |   |     | 0.86  |   |   |       | 2.60 |  |   |       | 2.21 | 
|                                                                        | Cumulative effect of changes in accounting principles                   |               |     |     |               |   |     | (0.01 | ) |   |       |     |  |   |       | 0.04 | 
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     
|                                                                        | Net income                                                              |               | $   | 1.07 |               |   | $   | 0.85  |   |   | $     | 2.60 |  |   | $     | 2.25 | 
|                                                                        |                                                                         |               |     |      |               |   |     |       |   |   |       |     



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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)




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





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





| |   |                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Power-only sales commitments of $395 million and minimum
    fuel purchase commitments of $217 million were eliminated
    after the sale of Sithe on January 31, 2005.                                                                                                   
|
| |  | During the second quarter of 2005, in the normal course of
    business, Generation entered into long-term contracts for
    uranium enrichment services, increasing commitments by
    $122 million and $272 million for 2008-2009 and 2010
    and beyond, respectively.
|
| |  | During the third quarter of 2005, in the normal course of
    business, Generation entered into long-term contracts for
    uranium, increasing commitments by $132 million and
    $128 million for 2008-2009 and 2010 and beyond,
    respectively.                     



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





| |   |                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Letters of credit decreased $109 million, primarily as a
    result of the sale of Sithe. See Note 4 
    Acquisitions and Dispositions for further discussion.                                                                                                                                  
|
| |  | Guarantees decreased $1.6 billion, primarily as a result of
    American Nuclear Insurers release of Exelon from the
    parent guarantee of $1.4 billion for Generations
    obligations and the release of guarantees of $200 million
    related to the wind-down of Enterprises operations.



| |                          
| | -------------------------
| | 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     |  
|September 30, 2005 |  | Reserve           |     |  | and Remediation(a)       |  
|                   |  |                   |     |  |                          |  
|ComEd              |  | $                 | 55  |  |                          | $ | 49 | 
|PECO               |  |                   | 50  |  |                          |   | 44 | 
|Generation         |  |                   | 13  |  |                          |   |   | 
|                   |  |                   |     |  |                          |  
|Exelon             |  | $                 | 118 |  |                          | $ | 93 | 
|                   |  |                   |     |  |                          |  






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

|                  |  |                   |     |  |                          |   |    | 
|----------------- |  | ----------------- | --- |  | ------------------------ | - | -- | 
|                  |  | Total             |     |  |                         
|                  |  | Environmental     |     |  |                         
|                  |  | Investigation and |     |  | Portion of Total Related |  
|                  |  | Remediation       |     |  | to MGP Investigation     |  
|December 31, 2004 |  | Reserve           |     |  | and Remediation(a)       |  
|                  |  |                   |     |  |                          |  
|ComEd             |  | $                 | 61  |  |                          | $ | 55 | 
|PECO              |  |                   | 47  |  |                          |   | 41 | 
|Generation        |  |                   | 16  |  |                          |   |   | 
|                  |  |                   |     |  |                          |  
|Exelon            |  | $                 | 124 |  |                          | $ | 96 | 
|                  |  |                   |     |  |                          |  






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



Section 316(b) of the Clean Water Act.


Cotter Corporation.


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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)


Voluntary Greenhouse Gas Emissions Reductions.




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





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the third quarter of 2005, Exelon Business Services Company
    (BSC) entered into an operating lease to rent a portion of a
    building from January 1, 2007 through September 30,
    2022. BSC is obligated to pay its proportionate share of the
    buildings property taxes and operating expenses. Total
    rent expense over the life of the lease agreement will be
    approximately $51.4 million, which includes fixed
    escalation clauses. In addition, the lease provides for two
    five-year renewal options.



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



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

PJM Billing Dispute.






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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)




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

Asbestos Claims.








58



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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)






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

Real Estate Tax Appeals.






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

Reverse-Employment Discrimination Claim.


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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 Tax Refund Claims











| |                                     
| | ------------------------------------
| | Jointly Owned Electric Utility Plant



60



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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)






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



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



|                                                             |                                                                              |               |     |     |               |   |      |      |   |   |      |     |   |   |      |      |  
|------------------------------------------------------------ | ---------------------------------------------------------------------------- | ------------- | --- | --- | ------------- | - | ---- | ---- | - | - | ---- | --- | - | - | ---- | ---- | -
|                                                             |                                                                              | Three Months  |     |     | Nine Months   |  
|                                                             |                                                                              | Ended         |     |     | Ended         |  
|                                                             |                                                                              | September 30, |     |     | September 30, |  
|                                                             |                                                                              |               |     |     |               |  
|Exelon                                                       |                                                                              | 2005          |     |     | 2004          |   |      | 2005 |   |   | 2004 |    
|                                                             |                                                                              |               |     |     |               |   |      |      |   |   |      |    
|Investment income                                            |                                                                              | $             | 2   |     |               | $ | 1    |      |   | $ | 7    |     |   | $ | 5    |     
|Gain on disposition of assets and investments, net(a)        |                                                                              |               | 1   |     |               |   | 1    |      |   |   | 9    |     |   |   | 14   |     
|Impairment of investments                                    |                                                                              |               |    |     |               |   | (9   | )    |   |   |     |     |   |   | (14  | )   
|Gain on sale of Boston Generating                            |                                                                              |               |    |     |               |   |     |      |   |   |     |     |   |   | 85   |     
|Net loss on extinguishment of long-term debt                 |                                                                              |               |    |     |               |   | (106 | )    |   |   |     |     |   |   | (106 | )   
|Loss on settlement of cash-flow interest-rate swaps(b)       |                                                                              |               | (15 | )   |               |   |     |      |   |   | (15  | )   |   |   |     |     
|Decommissioning-related activities:                          |                                                                              |               |     |     |               |   |      |      |   |   |      |     |   |   |      |     
|                                                             | Decommissioning trust fund income(c)                                         |               |     | 27  |               |   |      | 31   |   |   |      | 106 |   |   |      | 89   |  
|                                                             | Decommissioning trust fund income  AmerGen(c)                               |               |     | 9   |               |   |      | 9    |   |   |      | 68  |   |   |      | 28   |  
|                                                             | Other-than-temporary impairment of decommissioning trust funds(d)            |               |     |    |               |   |      | (260 | ) |   |      | (12 | ) |   |      | (260 | )
|                                                             | Other-than-temporary impairment of decommissioning trust
    funds  AmerGen |               |     |    |               |   |      | (7   | ) |   |      | (2  | ) |   |      | (7   | )
|                                                             | Regulatory offset to non-operating decommissioning-related
    activities(e) |               |     | (27 | )             |   |      | 229  |   |   |      | (94 | ) |   |      | 171  |  
|Net direct financing lease income                            |                                                                              |               | 5   |     |               |   | 6    |      |   |   | 16   |     |   |   | 17   |     
|Allowance for funds used during construction (AFUDC), equity |                                                                              |               | 1   |     |               |   | 1    |      |   |   | 4    |     |   |   | 3    |     
|Other                                                        |                                                                              |               | 9   |     |               |   | 2    |      |   |   | 24   |     |   |   | 21   |     
|                                                             |                                                                              |               |     |     |               |   |      |      |   |   |      |    
|Other, net                                                   |                                                                              | $             | 12  |     |               | $ | (102 | )    |   | $ | 111  |     |   | $ | 46   |     
|                                                             |                                                                              |               |     |     |               |   |      |      |   |   |      |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                    
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Note 4  Acquisitions and Dispositions for
    further discussion. Excludes gains (losses) related to Sithe and
    certain components of Enterprises as they have been classified
    as discontinued operations.                                                                                                                                             
|   
|(b) |  | See Note 17  Derivative Financial Instruments
    for further discussion of the loss on settlement of cash-flow
    interest-rate swaps.                                                                                                                                                                                                                          
|   
|(c) |  | Includes investment income and realized gains and losses.                                                                                                                                                                                                                                                                                                          
|   
|(d) |  | As both realized and unrealized losses are included as a
    reduction in the fair value of the investments and in the fair
    value of the regulatory liability, the realization of these
    losses associated with the former ComEd and PECO plants had no
    impact on Exelons or Generations results of
    operations or financial position.             
|   
|(e) |  | 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 14 and 16
    of Exelons Notes to Consolidated Financial Statements

61



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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)




| |  |                                                                                                                                                                                                                                                                                            
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | within Exelons Annual Report on 2004 Form 10-K and
    Form 8-K filed on May 13, 2005 to recast information
    contained in Exelons and Generations 2004 Annual
    Report on Form 10-K for more information regarding the
    regulatory accounting applied for certain nuclear units.

|                                                          |  |               |     |   |               |   |    |      |  |   |      |   |  |   |   | 
|--------------------------------------------------------- |  | ------------- | --- | - | ------------- | - | -- | ---- |  | - | ---- | - |  | - | - | 
|                                                          |  | Three Months  |     |   | Nine Months   |  
|                                                          |  | Ended         |     |   | Ended         |  
|                                                          |  | September 30, |     |   | September 30, |  
|                                                          |  |               |     |   |               |  
|ComEd                                                     |  | 2005          |     |   | 2004          |   |    | 2005 |  |   | 2004 |  
|                                                          |  |               |     |   |               |   |    |      |  |   |      |  
|Investment income                                         |  | $             | 1   |   |               | $ | 1  |      |  | $ | 3    |   |  | $ | 2 | 
|Gain (loss) on disposition of assets and investments, net |  |               |    |   |               |   | (1 | )    |  |   | 4    |   |  |   | 1 | 
|Loss on settlement of cash-flow interest-rate swaps(a)    |  |               | (15 | ) |               |   |   |      |  |   | (15  | ) |  |   |  | 
|AFUDC, equity                                             |  |               | 1   |   |               |   |   |      |  |   | 3    |   |  |   | 2 | 
|Other                                                     |  |               | 3   |   |               |   | (1 | )    |  |   | 5    |   |  |   | 1 | 
|                                                          |  |               |     |   |               |   |    |      |  |   |      |  
|Other, net                                                |  | $             | (10 | ) |               | $ | (1 | )    |  | $ |     |   |  | $ | 6 | 
|                                                          |  |               |     |   |               |   |    |      |  |   |      |  






|    |  |                                                                                                                                          
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Note 17  Derivative Financial Instruments
    for further discussion of the loss on settlement of cash-flow
    interest-rate swaps.

|                                                   |  |               |   |  |               |   |   |      |  |   |      |  |  |   |   | 
|-------------------------------------------------- |  | ------------- | - |  | ------------- | - | - | ---- |  | - | ---- |  |  | - | - | 
|                                                   |  | Three Months  |   |  | Nine Months   |  
|                                                   |  | Ended         |   |  | Ended         |  
|                                                   |  | September 30, |   |  | September 30, |  
|                                                   |  |               |   |  |               |  
|PECO                                               |  | 2005          |   |  | 2004          |   |   | 2005 |  |   | 2004 | 
|                                                   |  |               |   |  |               |   |   |      |  |   |      | 
|Investment income                                  |  | $             | 1 |  |               | $ |  |      |  | $ | 4    |  |  | $ | 3 | 
|Gain on disposition of assets and investments, net |  |               | 1 |  |               |   | 2 |      |  |   | 5    |  |  |   | 4 | 
|AFUDC, equity                                      |  |               |  |  |               |   | 1 |      |  |   | 1    |  |  |   | 1 | 
|                                                   |  |               |   |  |               |   |   |      |  |   |      | 
|Other, net                                         |  | $             | 2 |  |               | $ | 3 |      |  | $ | 10   |  |  | $ | 8 | 
|                                                   |  |               |   |  |               |   |   |      |  |   |      | 

62



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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  |    |     | Nine Months   |  
|                                    |                                                                              | Ended,        |    |     | Ended         |  
|                                    |                                                                              | September 30, |    |     | September 30, |  
|                                    |                                                                              |               |    |     |               |  
|Generation                          |                                                                              | 2005          |    |     | 2004          |   |   | 2005 |   |   | 2004 |    
|                                    |                                                                              |               |    |     |               |   |   |      |   |   |      |    
|Decommissioning-related activities: |                                                                              |               |    |     |               |   |   |      |   |   |      |     |   |   |     |     
|                                    | Decommissioning trust fund income(a)                                         |               | $  | 27  |               |   | $ | 31   |   |   | $    | 106 |   |   | $   | 89   |  
|                                    | Decommissioning trust fund income  AmerGen(a)                               |               |    | 9   |               |   |   | 9    |   |   |      | 68  |   |   |     | 28   |  
|                                    | Other-than-temporary impairment of decommissioning trust funds(b)            |               |    |    |               |   |   | (260 | ) |   |      | (12 | ) |   |     | (260 | )
|                                    | Other-than-temporary impairment of decommissioning trust
    funds  AmerGen |               |    |    |               |   |   | (7   | ) |   |      | (2  | ) |   |     | (7   | )
|                                    | Regulatory offset to non-operating decommissioning-related
    activities(c) |               |    | (27 | )             |   |   | 229  |   |   |      | (94 | ) |   |     | 171  |  
|Gain on sale of Boston Generating   |                                                                              |               |   |     |               |   |  |      |   |   |     |     |   |   | 85  |     
|Other                               |                                                                              |               | 4  |     |               |   | 2 |      |   |   | 16   |     |   |   | 12  |     
|                                    |                                                                              |               |    |     |               |   |   |      |   |   |      |    
|Other, net(d)                       |                                                                              | $             | 13 |     |               | $ | 4 |      |   | $ | 82   |     |   | $ | 118 |     
|                                    |                                                                              |               |    |     |               |   |   |      |   |   |      |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Includes investment income and realized gains and losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(b) |  | As both realized and unrealized losses are included as a
    reduction in the fair value of the investments and in the fair
    value of the regulatory liability, the realization of these
    losses associated with the former ComEd and PECO plants had no
    impact on Exelons or Generations results of
    operations or financial position.                                                                                                                                                                                                                                                                                                             
|   
|(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 14 and 16
    of Exelons Notes to Consolidated Financial Statements
    within Exelons Annual Report on 2004 Form 10-K and
    Form 8-K filed on May 13, 2005 to recast information
    contained in Exelons and Generations 2004 Annual
    Report on Form 10-K for more information regarding the
    regulatory accounting applied for certain nuclear units.
|   
|(d) |  | Excludes gains (losses) related to Sithe, which have been
    classified as discontinued operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               



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



|                                                         |  |               |        |   |              |   |        |  
|-------------------------------------------------------- |  | ------------- | ------ | - | ------------ | - | ------ | -
|                                                         |  | September 30, |        |   | December 31, |  
|Exelon and ComEd                                         |  | 2005          |        |   | 2004         |  
|                                                         |  |               |        |   |              |  
|Regulatory assets (liabilities)                          |  |               |        |   |              |   |        |  
|Nuclear decommissioning                                  |  | $             | (1,505 | ) |              | $ | (1,433 | )
|Removal costs                                            |  |               | (1,040 | ) |              |   | (1,011 | )
|Reacquired debt costs and interest-rate swap settlements |  |               | 110    |   |              |   | 118    |  
|Recoverable transition costs                             |  |               | 55     |   |              |   | 87     |  
|Deferred income taxes                                    |  |               | 6      |   |              |   | 4      |  
|Other                                                    |  |               | 31     |   |              |   | 31     |  
|                                                         |  |               |        |   |              |  
|Total                                                    |  | $             | (2,343 | ) |              | $ | (2,204 | )
|                                                         |  |               |        |   |              |  

63



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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)


|                                                   |  |               |       |   |              |   |       |  
|-------------------------------------------------- |  | ------------- | ----- | - | ------------ | - | ----- | -
|                                                   |  | September 30, |       |   | December 31, |  
|Exelon and PECO                                    |  | 2005          |       |   | 2004         |  
|                                                   |  |               |       |   |              |  
|Regulatory assets (liabilities)                    |  |               |       |   |              |   |       |  
|Competitive transition charge                      |  | $             | 3,625 |   |              | $ | 3,936 |  
|Deferred income taxes                              |  |               | 762   |   |              |   | 747   |  
|Non-pension postretirement benefits                |  |               | 47    |   |              |   | 52    |  
|Reacquired debt costs                              |  |               | 38    |   |              |   | 42    |  
|MGP regulatory asset(a)                            |  |               | 25    |   |              |   | 32    |  
|U.S. Department of Energy facility decommissioning |  |               | 15    |   |              |   | 19    |  
|Nuclear decommissioning                            |  |               | (61   | ) |              |   | (46   | )
|Other                                              |  |               | 9     |   |              |   | 8     |  
|                                                   |  |               |       |   |              |  
|Long-term regulatory assets                        |  |               | 4,460 |   |              |   | 4,790 |  
|Deferred energy costs (current asset)              |  |               | 24    |   |              |   | 71    |  
|                                                   |  |               |       |   |              |  
|Total                                              |  | $             | 4,484 |   |              | $ | 4,861 |  
|                                                   |  |               |       |   |              |  






|    |                                                                         
|--- | ------------------------------------------------------------------------
|(a) | See Note 13  Commitments and Contingencies for
    further information.



|                               |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |       | 
|------------------------------ | ------------------------------------ | ------ | - | ----- | ----- |  | - | ----- |  |  | ---------- | ----- |  |  | - | ----- | 
|September 30, 2005             |                                      | Exelon |   |       | ComEd |  |   | PECO  |  |  | Generation |      
|                               |                                      |        |   |       |       |  |   |       |  |  |            |      
|Property, plant and equipment: |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Accumulated depreciation             |        | $ | 7,685 |       |  | $ | 1,170 |  |  | $          | 2,179 |  |  | $ | 4,215 | 
|Accounts receivable:           |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Allowance for uncollectible accounts |        |   | 74    |       |  |   | 19    |  |  |            | 37    |  |  |   | 16    | 

|                               |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |       | 
|------------------------------ | ------------------------------------ | ------ | - | ----- | ----- |  | - | ----- |  |  | ---------- | ----- |  |  | - | ----- | 
|December 31, 2004              |                                      | Exelon |   |       | ComEd |  |   | PECO  |  |  | Generation |      
|                               |                                      |        |   |       |       |  |   |       |  |  |            |      
|Property, plant and equipment: |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Accumulated depreciation             |        | $ | 7,229 |       |  | $ | 1,008 |  |  | $          | 2,165 |  |  | $ | 3,949 | 
|Accounts receivable:           |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Allowance for uncollectible accounts |        |   | 93    |       |  |   | 16    |  |  |            | 52    |  |  |   | 19    | 



|                           |                                           |               |   |     |              |  |   |    | 
|-------------------------- | ----------------------------------------- | ------------- | - | --- | ------------ |  | - | -- | 
|                           |                                           | September 30, |   |     | December 31, | 
|Exelon and Generation      |                                           | 2005          |   |     | 2004         | 
|                           |                                           |               |   |     |              | 
|Other current assets:      |                                           |               |   |     |              |  |   |   
|                           | Counterparty collateral deposits paid     |               | $ | 244 |              |  | $ | 41 | 
|Other current liabilities: |                                           |               |   |     |              |  |   |   
|                           | Counterparty collateral deposits received |               |   | 148 |              |  |   | 44 | 

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)




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









| |                                               
| | ----------------------------------------------
| | Three Months Ended September 30, 2005 and 2004



|                                                                                        |  |          |       |  |            |   |       |          |              |   |              |   |  |        |        |   |  |   |       |  
|--------------------------------------------------------------------------------------- |  | -------- | ----- |  | ---------- | - | ----- | -------- | ------------ | - | ------------ | - |  | ------ | ------ | - |  | - | ----- | -
|                                                                                        |  | Energy   |       |  |            |   |       |          | Intersegment |   |              |  
|                                                                                        |  | Delivery |       |  | Generation |   |       | Other(a) |              |   | Eliminations |   |  | Exelon |       
|                                                                                        |  |          |       |  |            |   |       |          |              |   |              |   |  |        |       
|Total revenues:(b)                                                                      |  |          |       |  |            |   |       |          |              |   |              |   |  |        |        |   |  |   |       |  
|2005                                                                                    |  | $        | 3,270 |  |            | $ | 2,711 |          |              | $ | 190          |   |  | $      | (1,698 | ) |  | $ | 4,473 |  
|2004                                                                                    |  |          | 2,844 |  |            |   | 2,151 |          |              |   | 172          |   |  |        | (1,419 | ) |  |   | 3,748 |  
|Intersegment revenues:                                                                 
|2005                                                                                    |  | $        | 4     |  |            | $ | 1,504 |          |              | $ | 190          |   |  | $      | (1,698 | ) |  | $ |      |  
|2004                                                                                    |  |          | 3     |  |            |   | 1,244 |          |              |   | 172          |   |  |        | (1,419 | ) |  |   |      |  
|Income (loss) from continuing operations before income taxes
    and minority interest:
|2005                                                                                    |  | $        | 626   |  |            | $ | 553   |          |              | $ | (111         | ) |  | $      |       |   |  | $ | 1,068 |  
|2004                                                                                    |  |          | 440   |  |            |   | 502   |          |              |   | (89          | ) |  |        |       |   |  |   | 853   |  
|Income taxes:                                                                          
|2005                                                                                    |  | $        | 237   |  |            | $ | 219   |          |              | $ | (112         | ) |  | $      |       |   |  | $ | 344   |  
|2004                                                                                    |  |          | 178   |  |            |   | 193   |          |              |   | (92          | ) |  |        |       |   |  |   | 279   |  
|Income from continuing operations:                                                     
|2005                                                                                    |  | $        | 389   |  |            | $ | 334   |          |              | $ | 1            |   |  | $      |       |   |  | $ | 724   |  
|2004                                                                                    |  |          | 262   |  |            |   | 313   |          |              |   | 2            |   |  |        |       |   |  |   | 577   |  
|Income (loss) from discontinued operations:                                            
|2005                                                                                    |  | $        |      |  |            | $ | 1     |          |              | $ |             |   |  | $      |       |   |  | $ | 1     |  
|2004                                                                                    |  |          |      |  |            |   | 6     |          |              |   | (6           | ) |  |        |       |   |  |   |      |  
|Cumulative effect of a change in accounting principle:                                 
|2005                                                                                    |  | $        |      |  |            | $ |      |          |              | $ |             |   |  | $      |       |   |  | $ |      |  
|2004                                                                                    |  |          |      |  |            |   |      |          |              |   | (9           | ) |  |        |       |   |  |   | (9    | )
|Net income (loss):                                                                      |  |          |       |  |            |   |       |          |              |   |              |   |  |        |        |   |  |   |       |  
|2005                                                                                    |  | $        | 389   |  |            | $ | 335   |          |              | $ | 1            |   |  | $      |       |   |  | $ | 725   |  
|2004                                                                                    |  |          | 262   |  |            |   | 319   |          |              |   | (13          | ) |  |        |       |   |  |   | 568   |  






|    |  |                                                                                                                                                                                                                                                                                                                                                           
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including BSC, Enterprises and investments in synthetic
    fuel-producing facilities.                                                                                                                                                                                                  
|   
|(b) |  | Utility taxes of $71 million and $55 million are
    included in revenues and expenses for the three months ended
    September 30, 2005 and 2004, respectively, for ComEd.
    Utility taxes of $72 million and $59 million are
    included in revenues and expenses for the three months ended
    September 30, 2005 and 2004, respectively, for PECO.

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)




| |                                              
| | ---------------------------------------------
| | Nine Months Ended September 30, 2005 and 2004



|                                                                                        |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|--------------------------------------------------------------------------------------- |  | -------- | ------ |  | ---------- | - | ------ | -------- | ------------ | - | ------------ | - |  | ------ | ------- | - |  | - | ------ | 
|                                                                                        |  | Energy   |        |  |            |   |        |          | Intersegment |   |              |  
|                                                                                        |  | Delivery |        |  | Generation |   |        | Other(a) |              |   | Eliminations |   |  | Exelon |        
|                                                                                        |  |          |        |  |            |   |        |          |              |   |              |   |  |        |        
|Total revenues:(b)                                                                      |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|2005                                                                                    |  | $        | 8,483  |  |            | $ | 6,836  |          |              | $ | 533          |   |  | $      | (4,333  | ) |  | $ | 11,519 | 
|2004                                                                                    |  |          | 7,853  |  |            |   | 5,978  |          |              |   | 507          |   |  |        | (3,517  | ) |  |   | 10,821 | 
|Intersegment revenues:                                                                  |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|2005                                                                                    |  | $        | 12     |  |            | $ | 3,789  |          |              | $ | 532          |   |  | $      | (4,333  | ) |  | $ |       | 
|2004                                                                                    |  |          | 24     |  |            |   | 2,994  |          |              |   | 499          |   |  |        | (3,517  | ) |  |   |       | 
|Income (loss) from continuing operations before income taxes
    and minority interest:
|2005                                                                                    |  | $        | 1,278  |  |            | $ | 1,530  |          |              | $ | (282         | ) |  | $      |        |   |  | $ | 2,526  | 
|2004                                                                                    |  |          | 1,426  |  |            |   | 920    |          |              |   | (211         | ) |  |        |        |   |  |   | 2,135  | 
|Income taxes:                                                                           |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|2005                                                                                    |  | $        | 473    |  |            | $ | 595    |          |              | $ | (289         | ) |  | $      |        |   |  | $ | 779    | 
|2004                                                                                    |  |          | 546    |  |            |   | 352    |          |              |   | (237         | ) |  |        |        |   |  |   | 661    | 
|Income from continuing operations:                                                     
|2005                                                                                    |  | $        | 805    |  |            | $ | 935    |          |              | $ | 7            |   |  | $      |        |   |  | $ | 1,747  | 
|2004                                                                                    |  |          | 880    |  |            |   | 571    |          |              |   | 26           |   |  |        |        |   |  |   | 1,477  | 
|Income (loss) from discontinued operations:                                            
|2005                                                                                    |  | $        |       |  |            | $ | 16     |          |              | $ | (3           | ) |  | $      |        |   |  | $ | 13     | 
|2004                                                                                    |  |          |       |  |            |   | (4     | )        |              |   | 5            |   |  |        |        |   |  |   | 1      | 
|Cumulative effect of changes in accounting principles:                                 
|2005                                                                                    |  | $        |       |  |            | $ |       |          |              | $ |             |   |  | $      |        |   |  | $ |       | 
|2004                                                                                    |  |          |       |  |            |   | 32     |          |              |   | (9           | ) |  |        |        |   |  |   | 23     | 
|Net income:                                                                             |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|2005                                                                                    |  | $        | 805    |  |            | $ | 951    |          |              | $ | 4            |   |  | $      |        |   |  | $ | 1,760  | 
|2004                                                                                    |  |          | 880    |  |            |   | 599    |          |              |   | 22           |   |  |        |        |   |  |   | 1,501  | 
|Total assets:                                                                           |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|September 30, 2005                                                                      |  | $        | 28,425 |  |            | $ | 17,562 |          |              | $ | 13,851       |   |  | $      | (16,686 | ) |  | $ | 43,152 | 
|December 31, 2004                                                                       |  |          | 27,574 |  |            |   | 16,438 |          |              |   | 13,268       |   |  |        | (14,510 | ) |  |   | 42,770 | 






|    |  |                                                                                                                                                                                                                                                                                                                                                             
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including BSC, Enterprises and investments in synthetic
    fuel-producing facilities.                                                                                                                                                                                                    
|   
|(b) |  | Utility taxes of $192 million and $174 million are
    included in revenues and expenses for the nine months ended
    September 30, 2005 and 2004, respectively, for ComEd.
    Utility taxes of $177 million and $160 million are
    included in revenues and expenses for the nine months ended
    September 30, 2005 and 2004, respectively, for PECO.

66



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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)




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



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



|                                              |                                  |               |   |    |               |  |   |      |  |  |      |    |  |  |   |    | 
|--------------------------------------------- | -------------------------------- | ------------- | - | -- | ------------- |  | - | ---- |  |  | ---- | -- |  |  | - | -- | 
|                                              |                                  | Three Months  |   |    | Nine Months   | 
|                                              |                                  | Ended         |   |    | Ended         | 
|                                              |                                  | September 30, |   |    | September 30, | 
|                                              |                                  |               |   |    |               | 
|                                              |                                  | 2005          |   |    | 2004          |  |   | 2005 |  |  | 2004 |   
|                                              |                                  |               |   |    |               |  |   |      |  |  |      |   
|Operating revenues from affiliates            |                                  |               |   |    |               |  |   |      |  |  |      |    |  |  |   |   
|                                              | ComEd Transitional Funding Trust |               | $ | 1  |               |  | $ |     |  |  | $    | 2  |  |  | $ |   | 
|Interest expense to affiliates                |                                  |               |   |    |               |  |   |      |  |  |      |    |  |  |   |   
|                                              | ComEd Transitional Funding Trust |               |   | 15 |               |  |   | 21   |  |  |      | 51 |  |  |   | 65 | 
|                                              | ComEd Financing II               |               |   | 3  |               |  |   | 3    |  |  |      | 10 |  |  |   | 10 | 
|                                              | ComEd Financing III              |               |   | 4  |               |  |   | 3    |  |  |      | 10 |  |  |   | 10 | 
|Equity in losses of unconsolidated affiliates |                                  |               |   |    |               |  |   |      |  |  |      |    |  |  |   |   
|                                              | ComEd Funding LLC                |               |   | 3  |               |  |   | 4    |  |  |      | 11 |  |  |   | 13 | 

|                                                                                                                  |                                  |               |   |       |              |  |   |       | 
|----------------------------------------------------------------------------------------------------------------- | -------------------------------- | ------------- | - | ----- | ------------ |  | - | ----- | 
|                                                                                                                  |                                  | September 30, |   |       | December 31, | 
|                                                                                                                  |                                  | 2005          |   |       | 2004         | 
|                                                                                                                  |                                  |               |   |       |              | 
|Receivables from affiliates (current)                                                                             |                                  |               |   |       |              |  |   |      
|                                                                                                                  | ComEd Transitional Funding Trust |               | $ | 15    |              |  | $ | 9     | 
|Investment in affiliates                                                                                          |                                  |               |   |       |              |  |   |      
|                                                                                                                  | ComEd Funding LLC                |               |   | 22    |              |  |   | 36    | 
|                                                                                                                  | ComEd Financing II               |               |   | 10    |              |  |   | 10    | 
|                                                                                                                  | ComEd Financing III              |               |   | 6     |              |  |   | 6     | 
|Receivable from affiliates (noncurrent)                                                                           |                                  |               |   |       |              |  |   |      
|                                                                                                                  | ComEd Transitional Funding Trust |               |   | 13    |              |  |   | 10    | 
|Payables to affiliates (current)                                                                                  |                                  |               |   |       |              |  |   |      
|                                                                                                                  | ComEd Financing II               |               |   | 3     |              |  |   | 6     | 
|                                                                                                                  | ComEd Financing III              |               |   | 1     |              |  |   | 4     | 
|Long-term debt to ComEd Transitional Funding Trust and other
    financing trusts (including due within one year) |                                  |               |   |       |              |  |   |      
|                                                                                                                  | ComEd Transitional Funding Trust |               |   | 1,063 |              |  |   | 1,341 | 
|                                                                                                                  | ComEd Financing II               |               |   | 155   |              |  |   | 155   | 
|                                                                                                                  | ComEd Financing III              |               |   | 206   |              |  |   | 206   | 

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)




|                                           |                                   |               |     |     |               |  |     |      |  |  |      |       |  |  |     |       | 
|------------------------------------------ | --------------------------------- | ------------- | --- | --- | ------------- |  | --- | ---- |  |  | ---- | ----- |  |  | --- | ----- | 
|                                           |                                   | Three Months  |     |     | Nine Months   | 
|                                           |                                   | Ended         |     |     | Ended         | 
|                                           |                                   | September 30, |     |     | September 30, | 
|                                           |                                   |               |     |     |               | 
|                                           |                                   | 2005          |     |     | 2004          |  |     | 2005 |  |  | 2004 |      
|                                           |                                   |               |     |     |               |  |     |      |  |  |      |      
|Operating revenues from affiliates         |                                   |               |     |     |               |  |     |      |  |  |      |       |  |  |     |      
|                                           | Generation(a)                     |               | $   | 2   |               |  | $   |     |  |  | $    | 6     |  |  | $   | 16    | 
|                                           | Enterprises(a)                    |               |     |    |               |  |     |     |  |  |      |      |  |  |     | 1     | 
|Purchased power from affiliate             |                                   |               |     |     |               |  |     |      |  |  |      |       |  |  |     |      
|                                           | PPA with Generation(b)            |               |     | 991 |               |  |     | 827  |  |  |      | 2,514 |  |  |     | 1,870 | 
|Operations and maintenance from affiliates |                                   |               |     |     |               |  |     |      |  |  |      |       |  |  |     |      
|                                           | BSC(c)                            |               |     | 50  |               |  |     | 42   |  |  |      | 139   |  |  |     | 125   | 
|Interest income from affiliates            |                                   |               |     |     |               |  |     |      |  |  |      |       |  |  |     |      
|                                           | UII(d)                            |               |     |    |               |  |     | 5    |  |  |      |      |  |  |     | 13    | 
|                                           | Exelon intercompany money pool(e) |               |     |    |               |  |     | 1    |  |  |      | 3     |  |  |     | 2     | 
|                                           | Other                             |               |     |    |               |  |     |     |  |  |      |      |  |  |     | 1     | 
|Capitalized costs                          |                                   |               |     |     |               |  |     |      |  |  |      |       |  |  |     |      
|                                           | BSC(c)                            |               |     | 16  |               |  |     | 17   |  |  |      | 46    |  |  |     | 45    | 
|Cash dividends paid to parent              |                                   |               | 107 |     |               |  | 112 |      |  |  | 352  |       |  |  | 320 |      

|                                                   |                               |               |     |       |              |  |     |       | 
|-------------------------------------------------- | ----------------------------- | ------------- | --- | ----- | ------------ |  | --- | ----- | 
|                                                   |                               | September 30, |     |       | December 31, | 
|                                                   |                               | 2005          |     |       | 2004         | 
|                                                   |                               |               |     |       |              | 
|Receivables from affiliates (current)              |                               |               |     |       |              |  |     |      
|                                                   | Other                         |               | $   | 1     |              |  | $   | 1     | 
|Contributions to Exelon intercompany money pool(e) |                               |               |    |       |              |  | 308 |      
|Receivables from affiliates (noncurrent)           |                               |               |     |       |              |  |     |      
|                                                   | Generation(f)                 |               |     | 1,504 |              |  |     | 1,433 | 
|                                                   | Exelon Enterprises(g)         |               |     | 22    |              |  |     |      | 
|Payables to affiliates (current)                   |                               |               |     |       |              |  |     |      
|                                                   | Generation decommissioning(h) |               |     | 11    |              |  |     | 11    | 
|                                                   | Generation(a, b)              |               |     | 233   |              |  |     | 189   | 
|                                                   | BSC(c)                        |               |     | 18    |              |  |     | 17    | 
|Borrowings from Exelon intercompany money pool(e)  |                               |               | 110 |       |              |  |    |      
|Payables to affiliates (noncurrent)                |                               |               |     |       |              |  |     |      
|                                                   | Generation decommissioning(h) |               |     | 11    |              |  |     | 11    | 
|                                                   | Other                         |               |     | 5     |              |  |     | 6     | 
|Shareholders equity  receivable from parent(i)   |                               |               |    |       |              |  | 125 |      






|    |  |                                                                                                                                                                                                                                                                                                            
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | ComEd provides retail electric and ancillary services to
    Generation. ComEd provided electric and ancillary services to
    certain Enterprises companies which were sold in 2004. Prior to
    joining PJM on May 1, 2004, ComEd also provided
    transmission services to Generation and Enterprises.

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)




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | ComEd has entered into a full-requirements purchase power
    agreement (PPA), as amended, with Generation. See Note 15
    of ComEds Notes to Consolidated Financial Statements
    within ComEds 2004 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 had a note and interest receivable with a variable rate of
    the one month forward LIBOR rate plus 50 basis points from
    UII, LLC (successor to Unicom Investments Inc.) relating to
    ComEds December 1999 fossil plant sale. The note was paid
    in full during 2004.                                                                                                                                                                                                                      
|   
|(e) |  | ComEd participates in Exelons intercompany money pool.
    ComEd 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.                                                                                                                                                                                                                                                                                        
|   
|(f) |  | 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 decommissioning,
    such amounts are due back to ComEd for payment to ComEds
    customers. For further information see Note 10 of
    ComEds Notes to Consolidated Financial Statements within
    ComEds 2004 Annual Report on Form 10-K information.
|   
|(g) |  | As of September 30, 2005 and December 31, 2004, ComEd
    had an outstanding note receivable from Exelon Enterprises in
    the amount of $22 million. The note matures on
    December 31, 2008. As of December 31, 2004, ComEd also
    had a note payable to Exelon Enterprises in the amount of
    $22 million, which was repaid during the third quarter of
    2005.                                                                                                                                  
|   
|(h) |  | ComEd has a short-term and long-term payable to Generation,
    primarily representing ComEds legal requirements to remit
    collections of nuclear decommissioning costs from its customers
    to Generation.                                                                                                                                                                                                                                                                                            
|   
|(i) |  | ComEd had a non-interest bearing receivable from Exelon related
    to a corporate restructuring in 2001. The receivable was settled
    in 2005.                                                                                                                                                                                                                                                                                                                                                            



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



|                                              |                |               |   |    |               |  |   |      |  |  |      |     |  |  |   |     | 
|--------------------------------------------- | -------------- | ------------- | - | -- | ------------- |  | - | ---- |  |  | ---- | --- |  |  | - | --- | 
|                                              |                | Three Months  |   |    | Nine Months   | 
|                                              |                | Ended         |   |    | Ended         | 
|                                              |                | September 30, |   |    | September 30, | 
|                                              |                |               |   |    |               | 
|                                              |                | 2005          |   |    | 2004          |  |   | 2005 |  |  | 2004 |    
|                                              |                |               |   |    |               |  |   |      |  |  |      |    
|Operating revenues from affiliate             |                |               |   |    |               |  |   |      |  |  |      |     |  |  |   |    
|                                              | PETT(a)        |               | $ | 2  |               |  | $ | 2    |  |  | $    | 7   |  |  | $ | 7   | 
|Interest expense to affiliates                |                |               |   |    |               |  |   |      |  |  |      |     |  |  |   |    
|                                              | PETT           |               |   | 52 |               |  |   | 58   |  |  |      | 162 |  |  |   | 178 | 
|                                              | PECO Trust III |               |   | 2  |               |  |   | 2    |  |  |      | 5   |  |  |   | 5   | 
|                                              | PECO Trust IV  |               |   | 1  |               |  |   | 1    |  |  |      | 4   |  |  |   | 4   | 
|Equity in losses of unconsolidated affiliates |                |               |   |    |               |  |   |      |  |  |      |     |  |  |   |    
|                                              | PETT           |               |   | 4  |               |  |   | 6    |  |  |      | 12  |  |  |   | 19  | 

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)


|                                                                                      |                          |               |   |       |              |  |   |       | 
|------------------------------------------------------------------------------------- | ------------------------ | ------------- | - | ----- | ------------ |  | - | ----- | 
|                                                                                      |                          | September 30, |   |       | December 31, | 
|                                                                                      |                          | 2005          |   |       | 2004         | 
|                                                                                      |                          |               |   |       |              | 
|Investment in affiliates                                                              |                          |               |   |       |              |  |   |      
|                                                                                      | PETT                     |               | $ | 67    |              |  | $ | 77    | 
|                                                                                      | 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                     |               |   | 3,095 |              |  |   | 3,456 | 
|                                                                                      | 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.



|                                          |               |               |     |     |               |  |    |      |  |  |      |       |  |  |     |       | 
|----------------------------------------- | ------------- | ------------- | --- | --- | ------------- |  | -- | ---- |  |  | ---- | ----- |  |  | --- | ----- | 
|                                          |               | Three Months  |     |     | Nine Months   | 
|                                          |               | Ended         |     |     | Ended         | 
|                                          |               | September 30, |     |     | September 30, | 
|                                          |               |               |     |     |               | 
|                                          |               | 2005          |     |     | 2004          |  |    | 2005 |  |  | 2004 |      
|                                          |               |               |     |     |               |  |    |      |  |  |      |      
|Operating revenues from affiliate         |               |               |     |     |               |  |    |      |  |  |      |       |  |  |     |      
|                                          | Generation(a) |               | $   | 2   |               |  | $  | 3    |  |  | $    | 6     |  |  | $   | 7     | 
|Purchased power from affiliate            |               |               |     |     |               |  |    |      |  |  |      |       |  |  |     |      
|                                          | Generation(b) |               |     | 513 |               |  |    | 409  |  |  |      | 1,273 |  |  |     | 1,108 | 
|Fuel from affiliate                       |               |               |     |     |               |  |    |      |  |  |      |       |  |  |     |      
|                                          | Generation(c) |               |     |    |               |  |    | 7    |  |  |      | 1     |  |  |     | 14    | 
|Operating and maintenance from affiliates |               |               |     |     |               |  |    |      |  |  |      |       |  |  |     |      
|                                          | BSC(d)        |               |     | 28  |               |  |    | 26   |  |  |      | 80    |  |  |     | 77    | 
|                                          | Other         |               |     |    |               |  |    |     |  |  |      | 1     |  |  |     |      | 
|Interest income from affiliates           |               |               |     |     |               |  |    |      |  |  |      |       |  |  |     |      
|                                          | Other         |               |     |    |               |  |    |     |  |  |      | 1     |  |  |     |      | 
|Capitalized costs                         |               |               |     |     |               |  |    |      |  |  |      |       |  |  |     |      
|                                          | BSC(d)        |               |     | 14  |               |  |    | 6    |  |  |      | 26    |  |  |     | 15    | 
|Cash dividends paid to parent             |               |               | 116 |     |               |  | 96 |      |  |  | 347  |       |  |  | 276 |      

70



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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)


|                                                   |                               |               |       |     |              |   |       |     | 
|-------------------------------------------------- | ----------------------------- | ------------- | ----- | --- | ------------ | - | ----- | --- | 
|                                                   |                               | September 30, |       |     | December 31, |  
|                                                   |                               | 2005          |       |     | 2004         |  
|                                                   |                               |               |       |     |              |  
|Contributions to Exelon intercompany money pool(e) |                               | $             |      |     |              | $ | 34    |    
|Receivable from affiliate (noncurrent)             |                               |               |       |     |              |   |       |    
|                                                   | Generation decommissioning(f) |               |       | 61  |              |   |       | 46  | 
|Payables to affiliates (current)                   |                               |               |       |     |              |   |       |    
|                                                   | Generation(b)                 |               |       | 150 |              |   |       | 125 | 
|                                                   | BSC(d)                        |               |       | 32  |              |   |       | 20  | 
|Borrowings from Exelon intercompany money pool(e)  |                               |               | 7     |     |              |   |      |    
|Shareholders equity  receivable from parent(g)   |                               |               | 1,267 |     |              |   | 1,482 |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | PECO provides energy to Generation for Generations own use.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(b) |  | PECO has entered into a PPA with Generation. See Note 14 of
    PECOs Notes to Consolidated Financial Statements within
    PECOs 2004 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, and pays interest on its borrowings
    from the money pool at a market rate of interest.                                                                                                                                                                                                                                                
|   
|(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 2004 Annual Report on
    Form 10-K for further 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 2005 through 2010.                                                                                                                                                                                                                                                                                                           

71



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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  |     |     | Nine Months   | 
|                                          |                                   | Ended         |     |     | Ended         | 
|                                          |                                   | September 30, |     |     | September 30, | 
|                                          |                                   |               |     |     |               | 
|                                          |                                   | 2005          |     |     | 2004          |  |    | 2005 |   |  | 2004 |      
|                                          |                                   |               |     |     |               |  |    |      |   |  |      |      
|Operating revenues from affiliates        |                                   |               |     |     |               |  |    |      |   |  |      |       |  |  |     |      
|                                          | ComEd(a)                          |               | $   | 991 |               |  | $  | 827  |   |  | $    | 2,514 |  |  | $   | 1,870 | 
|                                          | PECO(a)                           |               |     | 513 |               |  |    | 416  |   |  |      | 1,274 |  |  |     | 1,122 | 
|                                          | BSC(c)                            |               |     |    |               |  |    | 1    |   |  |      | 1     |  |  |     | 2     | 
|Purchased power from affiliates           |                                   |               |     |     |               |  |    |      |   |  |      |       |  |  |     |      
|                                          | ComEd(b)                          |               |     |    |               |  |    | (2   | ) |  |      |      |  |  |     | 10    | 
|Fuel from affiliates                      |                                   |               |     |     |               |  |    |      |   |  |      |       |  |  |     |      
|                                          | PECO(b)                           |               |     |    |               |  |    | 1    |   |  |      | 1     |  |  |     | 1     | 
|Operating and maintenance from affiliates |                                   |               |     |     |               |  |    |      |   |  |      |       |  |  |     |      
|                                          | ComEd(b)                          |               |     | 2   |               |  |    | 2    |   |  |      | 6     |  |  |     | 6     | 
|                                          | PECO(a)                           |               |     | 2   |               |  |    | 2    |   |  |      | 5     |  |  |     | 6     | 
|                                          | BSC(c)                            |               |     | 64  |               |  |    | 62   |   |  |      | 190   |  |  |     | 188   | 
|Interest expense to affiliates            |                                   |               |     |     |               |  |    |      |   |  |      |       |  |  |     |      
|                                          | Exelon intercompany money pool(d) |               |     |    |               |  |    | 1    |   |  |      | 2     |  |  |     | 3     | 
|Cash distribution paid to member          |                                   |               | 430 |     |               |  | 61 |      |   |  | 749  |       |  |  | 170 |      
|Cash contribution received from member    |                                   |               |    |     |               |  |   |      |   |  | 843  |       |  |  | 6   |      

72



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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)


|                                                  |                          |               |   |       |              |  |     |       | 
|------------------------------------------------- | ------------------------ | ------------- | - | ----- | ------------ |  | --- | ----- | 
|                                                  |                          | September 30, |   |       | December 31, | 
|                                                  |                          | 2005          |   |       | 2004         | 
|                                                  |                          |               |   |       |              | 
|Receivables from affiliates (current)             |                          |               |   |       |              |  |     |      
|                                                  | ComEd(a)                 |               | $ | 233   |              |  | $   | 189   | 
|                                                  | ComEd decommissioning(f) |               |   | 11    |              |  |     | 11    | 
|                                                  | PECO(a)                  |               |   | 150   |              |  |     | 125   | 
|                                                  | BSC(c)                   |               |   |      |              |  |     | 7     | 
|Note receivable from affiliate (noncurrent)       |                          |               |   |       |              |  |     |      
|                                                  | ComEd decommissioning(f) |               |   | 11    |              |  |     | 11    | 
|Payables to affiliates (current)                  |                          |               |   |       |              |  |     |      
|                                                  | Exelon(e)                |               |   | 3     |              |  |     | 42    | 
|                                                  | BSC(c)                   |               |   | 31    |              |  |     |      | 
|Borrowings from Exelon intercompany money pool(d) |                          |               |  |       |              |  | 283 |      
|Payables to affiliates (noncurrent)               |                          |               |   |       |              |  |     |      
|                                                  | ComEd decommissioning(g) |               |   | 1,504 |              |  |     | 1,433 | 
|                                                  | PECO decommissioning(g)  |               |   | 61    |              |  |     | 46    | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Generation has entered into PPAs with ComEd and PECO, as
    amended, to provide the full energy requirements of ComEd and
    PECO. Effective April 1, 2004, Generation entered into a
    one-year gas supply agreement with PECO. See Note 16 of
    Generations Notes to Consolidated Financial Statements
    within Generations 2004 Annual Report on Form 10-K
    and Form 8-K filed on May 13, 2005 to recast
    information contained in Exelons and Generations
    2004 Annual Report on Form 10-K.                                                                                                                                                                                                                                                      
|   
|(b) |  | Generation purchases retail 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. See Note 16 of Generations Notes to
    Consolidated Financial Statements within Generations 2004
    Annual Report on Form 10-K and Form 8-K filed on
    May 13, 2005 to recast information contained in
    Exelons and Generations 2004 Annual Report on
    Form 10-K.
|   
|(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 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) |  | In order to facilitate payment processing, Exelon processes
    certain invoice payments on behalf of Generation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(f) |  | Generation has a short-term and a long-term receivable from
    ComEd, primarily representing ComEds legal requirements to
    remit collections of nuclear decommissioning costs from its
    customers to Generation resulting from the 2001 corporate
    restructuring. See Note 13 of Generations Notes to
    Consolidated Financial Statements within Generations 2004
    Annual Report on Form 10-K and Form 8-K filed on
    May 13, 2005 to recast information contained in
    Exelons and Generations 2004 Annual Report on
    Form 10-K.                                                                                                                                                                                                              
|   
|(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 their respective
    customers. See Note 13 of Generations Notes to
    Consolidated Financial Statements within Generations 2004
    Annual Report on                                                                                                                                                                                                                                                                                           

73



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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)




| |  |                                                                                                                                                   
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K.



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



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



|                     |  |          |     |  |              |                    |                   |               |       |            |              |      |            |  |  |   |   | 
|-------------------- |  | -------- | --- |  | ------------ | ------------------ | ----------------- | ------------- | ----- | ---------- | ------------ | ---- | ---------- |  |  | - | - | 
|                     |  |          |     |  |              |                    |                   | September 30, |       |            | December 31, |     
|                     |  | Notional |     |  |              |                    |                   |               | 2005  |            |              | 2004 |           
|Company              |  | Amount   |     |  | Company Pays |                    | Counterparty Pays |               |       | Fair Value |              |      | Fair Value | 
|                     |  |          |     |  |              |                    |                   |               |       |            |              |      |            | 
|Fair-Value Hedges(a) |  |          |     |  |              |                    |                   |               |       |            |              |      |            |  |  |   |   | 
|ComEd                |  | $        | 240 |  |              | 3 Month LIBOR      |                   |               | 6.15% |            |              | $    | 1          |  |  | $ | 9 | 
|                     |  |          |     |  |              | plus 1.12%  1.60% |                   |               |       |            |              |      |            |  |  |   |   | 
|                     |  |          |     |  |              |                    |                   |               |       |            |              |      |            | 
|Net deferred gains   |  |          |     |  |              |                    |                   |               |       |            |              | $    | 1          |  |  | $ | 9 | 
|                     |  |          |     |  |              |                    |                   |               |       |            |              |      |            | 






|    |  |                                                                                                                                           
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | At September 30, 2005, the Registrants did not have
    any interest-rate swaps outstanding that were designated as
    cash-flow hedges.

Fair-Value Hedges.


Cash Flow Hedges.


74



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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 and Generation)







|                                                              |  |            |        |   |             |   |        |             |  |   |          |   |          |             |        |                |                |   |    |  |  |   |        |  
|------------------------------------------------------------- |  | ---------- | ------ | - | ----------- | - | ------ | ----------- |  | - | -------- | - | -------- | ----------- | ------ | -------------- | -------------- | - | -- |  |  | - | ------ | -
|                                                              |  | Generation |        |   |             |   |       
|                                                              |  |            |        |   |             |   | Exelon |            
|                                                              |  | Cash-Flow  |        |   | Other       |   |        | Proprietary |  |   |          |   | Other(a) |             |        | Energy-Related |               
|Derivatives                                                   |  | Hedges     |        |   | Derivatives |   |        | Trading     |  |   | SubTotal |   |          | Derivatives |        |                | Derivatives(b) |  
|                                                              |  |            |        |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Current assets                                                |  | $          | 772    |   |             | $ | 458    |             |  | $ | 10       |   |          | $           | 1,240  |                |                | $ |   |  |  | $ | 1,240  |  
|Noncurrent assets                                             |  |            | 184    |   |             |   | 42     |             |  |   | 141      |   |          |             | 367    |                |                |   | 28 |  |  |   | 395    |  
|                                                              |  |            |        |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Total mark-to-market energy contract assets                   |  | $          | 956    |   |             | $ | 500    |             |  | $ | 151      |   |          | $           | 1,607  |                |                | $ | 28 |  |  | $ | 1,635  |  
|                                                              |  |            |        |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Current liabilities                                           |  | $          | (1,332 | ) |             | $ | (348   | )           |  | $ | (4       | ) |          | $           | (1,684 | )              |                | $ |   |  |  | $ | (1,684 | )
|Noncurrent liabilities                                        |  |            | (295   | ) |             |   | (46    | )           |  |   | (140     | ) |          |             | (481   | )              |                |   |   |  |  |   | (481   | )
|                                                              |  |            |        |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Total mark-to-market energy contract liabilities              |  | $          | (1,627 | ) |             | $ | (394   | )           |  | $ | (144     | ) |          | $           | (2,165 | )              |                | $ |   |  |  | $ | (2,165 | )
|                                                              |  |            |        |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Total mark-to-market energy contract net assets (liabilities) |  | $          | (671   | ) |             | $ | 106    |             |  | $ | 7        |   |          | $           | (558   | )              |                | $ | 28 |  |  | $ | (530   | )
|                                                              |  |            |        |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  

75



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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)







|    |  |                                                                                                                                                                                            
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including Exelon Business Services Company (BSC), Enterprises
    and investments in synthetic fuel-producing facilities.
|   
|(b) |  | Excludes Exelons interest-rate swaps.                                                                                                                                                     

Normal Operations and Hedging Activities.




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



|                                                      |  |                     |      |  
|----------------------------------------------------- |  | ------------------- | ---- | -
|                                                      |  | Total Cash-Flow     |     
|                                                      |  | Hedge OCI Activity, |     
|Three Months Ended September 30, 2005                 |  | Net of Income Tax   |     
|                                                      |  |                     |     
|Accumulated OCI derivative loss at July 1, 2005       |  | $                   | (224 | )
|Changes in fair value                                 |  |                     | (273 | )
|Reclassifications from OCI to net income              |  |                     | 92   |  
|                                                      |  |                     |     
|Accumulated OCI derivative loss at September 30, 2005 |  | $                   | (405 | )
|                                                      |  |                     |     

|                                                      |  |                     |      |  
|----------------------------------------------------- |  | ------------------- | ---- | -
|                                                      |  | Total Cash-Flow     |     
|                                                      |  | Hedge OCI Activity, |     
|Nine Months Ended September 30, 2005                  |  | Net of Income Tax   |     
|                                                      |  |                     |     
|Accumulated OCI derivative loss at January 1, 2005    |  | $                   | (137 | )
|Changes in fair value                                 |  |                     | (477 | )
|Reclassifications from OCI to net income              |  |                     | 209  |  
|                                                      |  |                     |     
|Accumulated OCI derivative loss at September 30, 2005 |  | $                   | (405 | )
|                                                      |  |                     |     

|                                                      |  |                     |      |  
|----------------------------------------------------- |  | ------------------- | ---- | -
|                                                      |  | Total Cash-Flow     |     
|                                                      |  | Hedge OCI Activity, |     
|Three Months Ended September 30, 2004                 |  | Net of Income Tax   |     
|                                                      |  |                     |     
|Accumulated OCI derivative loss at July 1, 2004       |  | $                   | (290 | )
|Changes in fair value                                 |  |                     | (1   | )
|Reclassifications from OCI to net income              |  |                     | 75   |  
|                                                      |  |                     |     
|Accumulated OCI derivative loss at September 30, 2004 |  | $                   | (216 | )
|                                                      |  |                     |     

76



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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 Cash-Flow     |     
|                                                      |  | Hedge OCI Activity, |     
|Nine Months Ended September 30, 2004                  |  | Net of Income Tax   |     
|                                                      |  |                     |     
|Accumulated OCI derivative loss at January 1, 2004    |  | $                   | (133 | )
|Changes in fair value                                 |  |                     | (311 | )
|Reclassifications from OCI to net income              |  |                     | 226  |  
|Exelon Energy opening balance                         |  |                     | 2    |  
|                                                      |  |                     |     
|Accumulated OCI derivative loss at September 30, 2004 |  | $                   | (216 | )
|                                                      |  |                     |     







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





Proprietary Trading Activities.


77



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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)








|    |                                     
|--- | ------------------------------------
|18. | Subsequent Events (Exelon and ComEd)



78



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##### Table of Contents








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



General






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







Critical Accounting Policies and Estimates




Goodwill (Exelon and ComEd)




79



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##### Table of Contents









Regulatory Accounting (Exelon, ComEd and PECO)






80



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##### Table of Contents







New Accounting Pronouncements







EXELON CORPORATION


Executive Overview


Financial Results.




| |   |                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------
| |  | higher margins on Generations wholesale market sales;                                                                               
|
| |  | increased retail deliveries at ComEd and PECO due to favorable
    weather;                                                          
|
| |  | unrealized mark-to-market gains from non-trading activities;                                                                         
|
| |  | reduced severance and severance-related charges;                                                                                     
|
| |  | and premiums and other charges associated with the 2004 debt
    repurchases under ComEds accelerated liability management
    plan.





| |   |                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | increased purchased power expense at Generation due to
    i) higher market prices, ii) increased sales to ComEd
    and PECO at fixed, below-market rates resulting from hot summer
    weather and an increase in the number of customers returning
    from alternative electric suppliers, and iii) increased
    unplanned outage days for Generations nuclear units;
|
| |  | increased operating and maintenance expenses; and                                                                                                                                                                                                                                                                                                                          
|
| |  | a gain recorded in 2004 from the reimbursement of costs incurred
    prior to 2004 under the Department of Energy settlement (DOE
    Settlement) related to spent nuclear fuel storage.                                                                                                                                                                                   





| |   |                                                                                                 
| | - | ------------------------------------------------------------------------------------------------
| |  | higher margins on Generations wholesale market sales;                                          
|
| |  | favorable weather;                                                                              
|
| |  | unrealized mark-to-market gains from non-trading activities;                                    
|
| |  | realized gains related to the decommissioning trust fund
    investments for the AmerGen plants;

81



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##### Table of Contents





| |   |                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------
| |  | lower interest expense due to debt retirements;                                                                                       
|
| |  | reduced severance and severance-related charges; and                                                                                  
|
| |  | premiums and other charges associated with the 2004 debt
    repurchases related to ComEds accelerated liability
    management plan.





| |   |                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a reserve recorded for estimated future asbestos-related bodily
    injury claims;                                                                                                                                                                                      
|
| |  | the sale of Boston Generating in 2004;                                                                                                                                                                                                                                  
|
| |  | a gain recorded in 2004 as a cumulative effect of a change in
    accounting principle due to Financial Accounting Standards Board
    (FASB) Interpretation No. (FIN) 46 (revised December
    2003), Consolidation of Variable Interest Entities
    (FIN 46-R); and
|
| |  | a gain recorded in 2004 from the reimbursement of costs incurred
    prior to 2004 under the DOE Settlement related to spent nuclear
    fuel storage.                                                                                                                  

Investment Strategy.




| |   |                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Proposed Merger with PSEG  On July 19,
    2005, the shareholders of Public Service Enterprise Group
    Incorporated (PSEG) approved the proposed merger of PSEG
    with and into Exelon (Merger). On July 22, 2005,
    Exelons shareholders approved the issuance of Exelon
    shares pursuant to the Merger.







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Sale of Sithe Energies, Inc. (Sithe)  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 closed on the acquisition of Reservoir Capital
    Groups 50% interest in Sithe and the sale of 100% of Sithe
    to Dynegy, Inc. (Dynegy). Prior to closing on the sale to
    Dynegy, subsidiaries of Generation received from Sithe
    approximately $65 million in cash distributions. As a
    result of the sale, Exelon and Generation deconsolidated from
    their balance sheets approximately $820 million of debt and
    were released from approximately $125 million of credit
    support. Dynegy acquired $32 million of cash as part of the
    sale of Sithe. Additionally, Exelon and Generation recorded
    $55 million of liabilities related to certain
    indemnifications provided by Generation to Dynegy and other
    liabilities directly resulting from the transaction. These
    liabilities were taken into account in the determination of the
    net gain on sale of $19 million (before income taxes).
    During the three months ended September 30, 2005, Exelon
    and Generation recorded a $2 million decrease in such
    liabilities as a result of the expiration of certain tax
    indemnifications. As a result, Exelon and Generations
    liabilities and gain (before income taxes) related to the
    transaction as of September 30, 2005 were $53 million
    and $21 million, respectively. See Note 4 of the
    Combined Notes to Consolidated Financial Statements for further
    information regarding the sale of Generations investment
    in Sithe.

Financing Activities.


82



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##### Table of Contents







| |   |                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------
| |  | On July 1, 2005, ComEd retired $163 million of 7%
    First Mortgage Bonds on the scheduled maturity date using
    internally generated cash.

Regulatory Developments  Illinois.








Partial Settlement before PAPUC.


Market-Based Rates Filing.


83



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##### Table of Contents





Repeal of the Public Utility Holding Company Act of 1935
(PUHCA).




Outlook for the Remainder of 2005 and Beyond.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | If the price at which ComEd is allowed to sell energy beginning
    in 2007 is below ComEds cost to procure electricity, there
    may be material adverse consequences to ComEd and, possibly,
    Exelon. Depending upon the resolution of various issues and
    whether a compromise settlement is achieved, these consequences
    range from operating losses; increased costs and difficulty in
    financing due to loss of ComEds investment grade credit
    rating and a possible reduction in the other Registrants
    credit ratings; limited or lost access for ComEd to credit
    markets to finance operations and capital investment; increased
    costs and difficulty of procuring power due to loss of
    ComEds capacity to enter into bilateral long-term energy
    procurement contracts, which could likely force ComEd to procure
    electricity at more volatile and potentially higher prices in
    the spot market; and, under certain circumstances, possible
    insolvency and bankruptcy. Moreover, to the extent ComEd is not
    permitted to recover its costs, ComEds ability to maintain
    and improve service may diminish and its ability to maintain
    reliability may be impaired. In the nearer term, these prospects
    could have adverse effects on ComEds liquidity if vendors
    reduce credit or shorten payment terms or if ComEds
    financing alternatives become more limited and significantly
    less flexible.

84



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelon, through three wholly owned subsidiaries has investments
    in synthetic fuel- producing facilities. Section 29 of the
    Internal Revenue Code provides tax credits for the sale of
    synthetic fuel produced from coal. However, Section 29
    contains a provision under which credits are phased out (i.e.,
    eliminated) in the event crude oil prices for a year exceed
    certain thresholds. Based on the actual pricing to date and
    expected futures prices for the remaining three months of 2005,
    Exelon estimates that it will not exceed the threshold for a
    phase out of tax credits in 2005.



| |                                                                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The following table (in dollars) provides the estimated
    phase-out prices per barrel of oil and the annual Reference
    Price for 2006 and 2007 based on the New York Mercantile
    Exchange, Inc. index (NYMEX):

|                                |  |           |    |  |           |   |    | 
|------------------------------- |  | --------- | -- |  | --------- | - | -- | 
|                                |  | Estimated |    |  | Estimated |  
|                                |  | 2006      |    |  | 2007      |  
|                                |  |           |    |  |           |  
|Beginning of Phase-Out Range(a) |  | $         | 59 |  |           | $ | 61 | 
|End of Phase-Out Range(a)       |  |           | 75 |  |           |   | 76 | 
|Annual Reference Price          |  |           | 66 |  |           |   | 65 | 



| | 
| | 
| | 



| |     |                                                                                                                                                                                                      
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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 2006 and 2007 phase-out ranges was 2%.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Based on the table above, the estimated annual Reference Price
    based on the NYMEX would have to exceed $59 and $61 in 2006 and
    2007, respectively, for a phase-out to begin. As of
    September 30, 2005, Exelon estimates that there could be a
    significant phase out of tax credits in 2006 and 2007 based on
    the expected futures prices.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | The variable components of the purchase price are subject to
    refund from the operators of the facilities to the extent that
    there is a tax credit phase-out. Given the refundable nature of
    the variable components of the purchase price and operating
    losses paid to the sellers and operators of the facilities,
    respectively, Exelons results of operations and cash flows
    are not anticipated to be affected by a phase-out of tax credits
    due to a rise in crude oil prices to the extent of these
    variable components (notwithstanding the differences in the
    timing of refundable variable payments and the associated
    refunds). However, Exelons results of operations and cash
    flows could be negatively affected to the extent that Exelon is
    not allocated enough tax credits to cover the principal and
    interest payments due on the non-recourse notes representing the
    non-refundable fixed component of the purchase price.
|
| | Absent any efforts to mitigate market price exposure, a phase
    out could result in the reduction of the non-operating net
    income generated by the investments and could result in an
    estimated after-tax non-operating loss of up to $70 million
    per year in the event all tax credits are completely eliminated.
    In 2005, Exelon and Generation entered into certain derivatives
    in the normal course of trading operations to economically hedge
    a portion of this exposure. These derivatives could result in
    after-tax cash proceeds to Exelon of up to $14 million,
    $42 million and $42 million in 2005, 2006 and 2007,
    respectively, in the event the tax credits are completely
    phased-out. See Note 10 of the Combined Notes to the
    Consolidated Financial Statements for further information
    regarding Exelons investments in synthetic fuel-producing
    facilities.                                                                  



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As of September 30, 2005, Hurricanes Katrina and Rita have
    not significantly affected the Registrants results of
    operations and cash flows. However, the cost of certain supplies
    and lead time to order these supplies may increase significantly
    in 2006. The Registrants are currently assessing and will
    continue to monitor these potential impacts.                                                                                                                                                                                                                                                                                                                                                   
|
| |  | The Governor of Pennsylvania issued a press release on
    October 19, 2005 requesting the utility companies within
    Pennsylvania to make various concessions to low income customers
    during the upcoming heating season, including increasing the
    Customer Assistance Program participation, amortizing the cost
    of gas price increases over greater than the normal twelve-month
    period and deferring rate increases until after the heating
    season. This request is in response to the anticipated high
    costs of gas this coming winter. PECO is currently reviewing the
    request of the Governor and has not yet determined the impact,
    if any, on its results of operations or cash flows.

85



---



##### Table of Contents



Results of Operations  Exelon Corporation




| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | Three Months Ended September 30, 2005 Compared To Three
    Months Ended September 30, 2004

|                                                                                |  |               |       |   |               |   |       |          |  |   |      |  
|------------------------------------------------------------------------------- |  | ------------- | ----- | - | ------------- | - | ----- | -------- |  | - | ---- | -
|                                                                                |  | Three Months  |       |   |              
|                                                                                |  | Ended         |       |   |              
|                                                                                |  | September 30, |       |   | Favorable     |  
|                                                                                |  |               |       |   | (Unfavorable) |  
|                                                                                |  | 2005          |       |   | 2004          |   |       | Variance | 
|                                                                                |  |               |       |   |               |   |       |          | 
|Operating revenues                                                              |  | $             | 4,473 |   |               | $ | 3,748 |          |  | $ | 725  |  
|Purchased power and fuel expense                                                |  |               | 1,681 |   |               |   | 1,233 |          |  |   | (448 | )
|Operating and maintenance expense                                               |  |               | 911   |   |               |   | 778   |          |  |   | (133 | )
|Depreciation and amortization                                                   |  |               | 358   |   |               |   | 362   |          |  |   | 4    |  
|Operating income                                                                |  |               | 1,312 |   |               |   | 1,198 |          |  |   | 114  |  
|Other income and deductions                                                     |  |               | (244  | ) |               |   | (345  | )        |  |   | 101  |  
|Income from continuing operations before income taxes and
    minority interest |  |               | 1,068 |   |               |   | 853   |          |  |   | 215  |  
|Income from continuing operations                                               |  |               | 724   |   |               |   | 577   |          |  |   | 147  |  
|Income from discontinued operations                                             |  |               | 1     |   |               |   |      |          |  |   | 1    |  
|Income before cumulative effect of a change in accounting
    principle         |  |               | 725   |   |               |   | 577   |          |  |   | 148  |  
|Net income                                                                      |  |               | 725   |   |               |   | 568   |          |  |   | 157  |  
|Diluted earnings per share                                                      |  |               | 1.07  |   |               |   | 0.85  |          |  |   | 0.22 |  

Operating Revenues.


Purchased Power and Fuel Expense.


Operating and Maintenance Expense.


Depreciation and Amortization Expense.


Operating Income.


86



---



##### Table of Contents



Other Income and Deductions.


Effective Income Tax Rate.


Discontinued Operations.






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







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

|                |  |               |     |  |               |   |     |          |  |   |     |  
|--------------- |  | ------------- | --- |  | ------------- | - | --- | -------- |  | - | --- | -
|                |  | Three Months  |     |  |              
|                |  | Ended         |     |  |              
|                |  | September 30, |     |  | Favorable     |  
|                |  |               |     |  | (Unfavorable) |  
|                |  | 2005          |     |  | 2004          |   |     | Variance | 
|                |  |               |     |  |               |   |     |          | 
|Energy Delivery |  | $             | 389 |  |               | $ | 262 |          |  | $ | 127 |  
|Generation      |  |               | 334 |  |               |   | 313 |          |  |   | 21  |  
|Other(a)        |  |               | 1   |  |               |   | 2   |          |  |   | (1  | )
|                |  |               |     |  |               |   |     |          | 
|Total           |  | $             | 724 |  |               | $ | 577 |          |  | $ | 147 |  
|                |  |               |     |  |               |   |     |          | 






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

87



---



##### Table of Contents





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

|                |  |               |     |  |               |   |     |          |  |   |     | 
|--------------- |  | ------------- | --- |  | ------------- | - | --- | -------- |  | - | --- | 
|                |  | Three Months  |     |  |              
|                |  | Ended         |     |  |              
|                |  | September 30, |     |  | Favorable     |  
|                |  |               |     |  | (Unfavorable) |  
|                |  | 2005          |     |  | 2004          |   |     | Variance | 
|                |  |               |     |  |               |   |     |          | 
|Energy Delivery |  | $             | 389 |  |               | $ | 262 |          |  | $ | 127 | 
|Generation      |  |               | 335 |  |               |   | 319 |          |  |   | 16  | 
|Other(a)        |  |               | 1   |  |               |   | (13 | )        |  |   | 14  | 
|                |  |               |     |  |               |   |     |          | 
|Total           |  | $             | 725 |  |               | $ | 568 |          |  | $ | 157 | 
|                |  |               |     |  |               |   |     |          | 






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



| |                                        
| | ---------------------------------------
| | Results of Operations  Energy Delivery

|                            |                                                       |                                   |       |       |               |   |       |          |       |   |     |      |      |  
|--------------------------- | ----------------------------------------------------- | --------------------------------- | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | --- | ---- | ---- | -
|                            |                                                       | Three Months                      |       |       |              
|                            |                                                       | Ended                             |       |       |              
|                            |                                                       | September 30,                     |       |       | Favorable     |  
|                            |                                                       |                                   |       |       | (Unfavorable) |  
|                            |                                                       | 2005                              |       |       | 2004          |   |       | Variance |      
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating revenues          |                                                       | $                                 | 3,270 |       |               | $ | 2,844 |          |       | $ | 426 |     
|Operating expenses          |                                                       |                                   |       |       |               |   |       |          |       |   |     |     
|                            | Purchased power and fuel expense                      |                                   |       | 1,708 |               |   |       | 1,400    |       |   |     | (308 | )   
|                            | Operating and maintenance                             |                                   |       | 354   |               |   |       | 353      |       |   |     | (1   | )   
|                            | Depreciation and amortization                         |                                   |       | 270   |               |   |       | 248      |       |   |     | (22  | )   
|                            | Taxes other than income                               |                                   |       | 155   |               |   |       | 132      |       |   |     | (23  | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total operating expense           |       |       | 2,487         |   |       |          | 2,133 |   |     |      | (354 | )
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating income            |                                                       |                                   | 783   |       |               |   | 711   |          |       |   | 72  |     
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Other income and deductions |                                                       |                                   |       |       |               |   |       |          |       |   |     |     
|                            | Interest expense                                      |                                   |       | (141  | )             |   |       | (162     | )     |   |     | 21   |     
|                            | Distributions on preferred securities of subsidiaries |                                   |       | (1    | )             |   |       | (1       | )     |   |     |     |     
|                            | Equity in losses of unconsolidated affiliates         |                                   |       | (7    | )             |   |       | (10      | )     |   |     | 3    |     
|                            | Net loss on extinguishment of long-term debt          |                                   |       |      |               |   |       | (106     | )     |   |     | 106  |     
|                            | Other, net                                            |                                   |       | (8    | )             |   |       | 8        |       |   |     | (16  | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total other income and deductions |       |       | (157          | ) |       |          | (271  | ) |     |      | 114  |  
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Income before income taxes  |                                                       |                                   | 626   |       |               |   | 440   |          |       |   | 186 |     
|Income taxes                |                                                       |                                   | 237   |       |               |   | 178   |          |       |   | (59 | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Net income                  |                                                       | $                                 | 389   |       |               | $ | 262   |          |       | $ | 127 |     
|                            |                                                       |                                   |       |       |               |   |       |          |      

Net Income.


88



---



##### Table of Contents



Operating Revenues.


|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |    |   |  |   |     |     | 
|------------------------------------ | -------------- | -------- | --- | --- | -------- | - | --- | -------- |  | ----- | ---- | --- |  | ---------- | -- | - |  | - | --- | --- | 
|                                     |                |          |     |     |          |   |     |          |  | Total |     
|                                     |                | ComEd    |     |     | PECO     |   |     | Total    |  |       | PECO |     |  | Increase   |   
|                                     |                | Electric |     |     | Electric |   |     | Electric |  |       | Gas  |     |  | (Decrease) |   
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |   
|Weather                              |                | $        | 287 |     |          | $ | 61  |          |  | $     | 348  |     |  | $          |   |   |  | $ | 348 |    
|Customer choice                      |                |          | 20  |     |          |   | 40  |          |  |       | 60   |     |  |            |   |   |  |   | 60  |    
|Volume                               |                |          | (33 | )   |          |   | 61  |          |  |       | 28   |     |  |            | (1 | ) |  |   | 27  |    
|Rate changes and mix                 |                |          | (38 | )   |          |   | 32  |          |  |       | (6   | )   |  |            | 4  |   |  |   | (2  | )  
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |   
|                                     | Retail revenue |          |     | 236 |          |   |     | 194      |  |       |      | 430 |  |            |    | 3 |  |   |     | 433 | 
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |   
|PJM transmission                     |                |          | (12 | )   |          |   |    |          |  |       | (12  | )   |  |            |   |   |  |   | (12 | )  
|T&O/SECA rates                       |                |          | (3  | )   |          |   | 1   |          |  |       | (2   | )   |  |            |   |   |  |   | (2  | )  
|Other                                |                |          | 7   |     |          |   | (4  | )        |  |       | 3    |     |  |            | 4  |   |  |   | 7   |    
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |   
|Wholesale and miscellaneous revenues |                |          | (8  | )   |          |   | (3  | )        |  |       | (11  | )   |  |            | 4  |   |  |   | (7  | )  
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |   
|Increase in operating revenues       |                | $        | 228 |     |          | $ | 191 |          |  | $     | 419  |     |  | $          | 7  |   |  | $ | 426 |    
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |   

Weather.


Customer choice.




|                                                                                               |                                       |               |  |        |               |  |  |        |    |  |      |        |   |  |  |         |  
|---------------------------------------------------------------------------------------------- | ------------------------------------- | ------------- |  | ------ | ------------- |  |  | ------ | -- |  | ---- | ------ | - |  |  | ------- | -
|                                                                                               |                                       | ComEd         |  |        | PECO          | 
|                                                                                               |                                       | Three Months  |  |        | Three Months  | 
|                                                                                               |                                       | Ended         |  |        | Ended         | 
|                                                                                               |                                       | September 30, |  |        | September 30, | 
|                                                                                               |                                       |               |  |        |               | 
|                                                                                               |                                       | 2005          |  |        | 2004          |  |  | 2005   |    |  | 2004 |       
|                                                                                               |                                       |               |  |        |               |  |  |        |    |  |      |       
|Retail customers purchasing energy from an alternative electric
    supplier:                  |                                       |               |  |        |               |  |  |        |    |  |      |        |   |  |  |        
|                                                                                               | Volume (in gigawatthours (GWhs))(a)   |               |  | 5,176  |               |  |  | 5,331  |    |  |      | 516    |   |  |  | 1,309   |  
|                                                                                               | Percentage of total retail deliveries |               |  | 19     | %             |  |  | 23     | %  |  |      | 5      | % |  |  | 13      | %
|Retail customers purchasing energy from an alternative electric
    supplier or the ComEd PPO: |                                       |               |  |        |               |  |  |        |    |  |      |        |   |  |  |        
|                                                                                               | Number of customers                   |               |  | 21,500 |               |  |  | 21,600 |    |  |      | 65,500 |   |  |  | 281,600 |  
|                                                                                               | Percentage of total retail customers  |               |  | (b     | )%            |  |  | (b     | )% |  |      | 4      | % |  |  | 18      | %
|                                                                                               | Volume (GWhs)                         |               |  | 8,367  |               |  |  | 8,106  |    |  |      | 516    |   |  |  | 1,309   |  
|                                                                                               | Percentage of total retail deliveries |               |  | 31     | %             |  |  | 34     | %  |  |      | 5      | % |  |  | 13      | %






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



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

89



---



##### Table of Contents





Volume.


Rate changes and mix.






PJM transmission.


T&O/SECA rates.


90



---



##### Table of Contents



Purchased Power and Fuel Expense.


|                                             |  |          |     |   |          |   |     |          |  |       |      |   |  |            |   |  |  |   |     |  
|-------------------------------------------- |  | -------- | --- | - | -------- | - | --- | -------- |  | ----- | ---- | - |  | ---------- | - |  |  | - | --- | -
|                                             |  |          |     |   |          |   |     |          |  | Total |     
|                                             |  | ComEd    |     |   | PECO     |   |     | Total    |  |       | PECO |   |  | Increase   |  
|                                             |  | Electric |     |   | Electric |   |     | Electric |  |       | Gas  |   |  | (Decrease) |  
|                                             |  |          |     |   |          |   |     |          |  |       |      |   |  |            |  
|Weather                                      |  | $        | 148 |   |          | $ | 24  |          |  | $     | 172  |   |  | $          |  |  |  | $ | 172 |  
|Prices                                       |  |          | 25  |   |          |   | 34  |          |  |       | 59   |   |  |            | 4 |  |  |   | 63  |  
|Customer choice                              |  |          | 18  |   |          |   | 40  |          |  |       | 58   |   |  |            |  |  |  |   | 58  |  
|Volume                                       |  |          | (7  | ) |          |   | 22  |          |  |       | 15   |   |  |            |  |  |  |   | 15  |  
|T&O collections                              |  |          | 9   |   |          |   |    |          |  |       | 9    |   |  |            |  |  |  |   | 9   |  
|SECA rates                                   |  |          | (13 | ) |          |   | 3   |          |  |       | (10  | ) |  |            |  |  |  |   | (10 | )
|PJM transmission                             |  |          | (12 | ) |          |   | 3   |          |  |       | (9   | ) |  |            |  |  |  |   | (9  | )
|Other                                        |  |          | 7   |   |          |   |    |          |  |       | 7    |   |  |            | 3 |  |  |   | 10  |  
|                                             |  |          |     |   |          |   |     |          |  |       |      |   |  |            |  
|Increase in purchased power and fuel expense |  | $        | 175 |   |          | $ | 126 |          |  | $     | 301  |   |  | $          | 7 |  |  | $ | 308 |  
|                                             |  |          |     |   |          |   |     |          |  |       |      |   |  |            |  

Weather.


Prices.


Customer choice.


Volume.


T&O collections/SECA rates.




PJM transmission.


91



---



##### Table of Contents



Operating and Maintenance Expense.


|                                                                        |  |       |     |   |      |          |    |            |  |   |     |  
|----------------------------------------------------------------------- |  | ----- | --- | - | ---- | -------- | -- | ---------- |  | - | --- | -
|                                                                        |  |       |     |   |      | Total    |   
|                                                                        |  |       |     |   |      | Increase |   
|                                                                        |  | ComEd |     |   | PECO |          |    | (Decrease) | 
|                                                                        |  |       |     |   |      |          |    |            | 
|Corporate allocations                                                   |  | $     | 8   |   |      | $        | 3  |            |  | $ | 11  |  
|Injuries and damages(a)                                                 |  |       |    |   |      |          | 6  |            |  |   | 6   |  
|Storm costs                                                             |  |       | 4   |   |      |          | 1  |            |  |   | 5   |  
|Payroll                                                                 |  |       | 2   |   |      |          | 3  |            |  |   | 5   |  
|Allowance for uncollectible accounts                                    |  |       | (1  | ) |      |          | 4  |            |  |   | 3   |  
|Severance-related expenses(b)                                           |  |       | (23 | ) |      |          |   |            |  |   | (23 | )
|Pension expense(c)                                                      |  |       | (9  | ) |      |          |   |            |  |   | (9  | )
|Reversal of professional fees related to income tax refund
    claim(d) |  |       |    |   |      |          | (6 | )          |  |   | (6  | )
|Other                                                                   |  |       | (1  | ) |      |          | 10 |            |  |   | 9   |  
|                                                                        |  |       |     |   |      |          |    |            | 
|Increase (decrease) in operating and maintenance expense                |  | $     | (20 | ) |      | $        | 21 |            |  | $ | 1   |  
|                                                                        |  |       |     |   |      |          |    |            | 






|    |                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------
|(a) | The increase in injuries and damages at PECO resulted from an
    annual actuarial study performed in the third quarter of 2005.



|    |                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Consists of salary continuance severance costs, curtailment
    charges for pension and other postretirement benefits, and
    special termination benefit charges related to other
    postretirement benefits. The decrease reflects reduced
    severance-related activity in 2005 as compared to 2004.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) | Pension expense in 2005 is lower than in 2004 due in large part
    to significant pension plan contributions made in the first
    quarter of 2005. PECO made an adjustment in the third quarter
    due to an actuarial study, which caused pension expense to be
    equal to 2004. PECO expects pension expense will be lower in
    2005 than in 2004 on an annual basis. See Note 9 of the Combined
    Notes to Consolidated Financial Statements for additional
    information.



|    |                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------
|(d) | See Note 13 of the Combined Notes to Consolidated Financial
    Statements for additional information.

Depreciation and Amortization Expense.


|                                                  |  |       |    |   |      |          |    |            |  |   |    |  
|------------------------------------------------- |  | ----- | -- | - | ---- | -------- | -- | ---------- |  | - | -- | -
|                                                  |  |       |    |   |      | Total    |   
|                                                  |  |       |    |   |      | Increase |   
|                                                  |  | ComEd |    |   | PECO |          |    | (Decrease) | 
|                                                  |  |       |    |   |      |          |    |            | 
|Recoverable transition costs/ CTC amortization    |  | $     | 6  |   |      | $        | 10 |            |  | $ | 16 |  
|Depreciation expense                              |  |       | 4  |   |      |          | 1  |            |  |   | 5  |  
|Accelerated amortization of PECO billing system   |  |       |   |   |      |          | 3  |            |  |   | 3  |  
|Other amortization expense                        |  |       | (3 | ) |      |          | 1  |            |  |   | (2 | )
|                                                  |  |       |    |   |      |          |    |            | 
|Increase in depreciation and amortization expense |  | $     | 7  |   |      | $        | 15 |            |  | $ | 22 |  
|                                                  |  |       |    |   |      |          |    |            | 







92



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##### Table of Contents







Taxes Other Than Income.


|                                    |  |       |    |  |      |          |    |            |  |   |    |  
|----------------------------------- |  | ----- | -- |  | ---- | -------- | -- | ---------- |  | - | -- | -
|                                    |  |       |    |  |      | Total    |   
|                                    |  |       |    |  |      | Increase |   
|                                    |  | ComEd |    |  | PECO |          |    | (Decrease) | 
|                                    |  |       |    |  |      |          |    |            | 
|Taxes on utility revenues(a)        |  | $     | 4  |  |      | $        | 12 |            |  | $ | 16 |  
|Tax refund(b)                       |  |       | 8  |  |      |          |   |            |  |   | 8  |  
|Other                               |  |       | 1  |  |      |          | (2 | )          |  |   | (1 | )
|                                    |  |       |    |  |      |          |    |            | 
|Increase in taxes other than income |  | $     | 13 |  |      | $        | 10 |            |  | $ | 23 |  
|                                    |  |       |    |  |      |          |    |            | 






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



|    |                                                                                    
|--- | -----------------------------------------------------------------------------------
|(b) | During 2004, a refund was received for Illinois electricity
    distribution taxes.

Interest Expense.


Equity in Losses of Unconsolidated Affiliates.


Net Loss on Extinguishment of Long-Term Debt.


93



---



##### Table of Contents



Other, Net.


|                                                         |  |       |     |   |      |          |    |            |  |   |     |  
|-------------------------------------------------------- |  | ----- | --- | - | ---- | -------- | -- | ---------- |  | - | --- | -
|                                                         |  |       |     |   |      | Total    |   
|                                                         |  |       |     |   |      | Increase |   
|                                                         |  | ComEd |     |   | PECO |          |    | (Decrease) | 
|                                                         |  |       |     |   |      |          |    |            | 
|Loss on settlement of cash-flow swaps(a)                 |  | $     | (15 | ) |      | $        |   |            |  | $ | (15 | )
|Interest income on long-term receivable from UII, LLC(b) |  |       | (4  | ) |      |          |   |            |  |   | (4  | )
|Other                                                    |  |       | 4   |   |      |          | (1 | )          |  |   | 3   |  
|                                                         |  |       |     |   |      |          |    |            | 
|Decrease in other, net                                   |  | $     | (15 | ) |      | $        | (1 | )          |  | $ | (16 | )
|                                                         |  |       |     |   |      |          |    |            | 






|    |                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------
|(a) | See Note 17 of the Combined Notes to Consolidated Financial
    Statements for further information.



|    |                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------
|(b) | The decrease in interest income on the long-term receivable from
    UII, LLC resulted from this receivable being repaid in late 2004.

Income Taxes.




94



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| |                                                            
| | -----------------------------------------------------------
| | Energy Delivery Operating Statistics and Revenue
    Detail



|                                        |                             |               |        |        |      |  |        |          |  |  |          |       |   |  |        |       |  
|--------------------------------------- | --------------------------- | ------------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ----- | - |  | ------ | ----- | -
|                                        |                             | Three Months  |        |        |      |  |       
|                                        |                             | Ended         |        |        |      |  |       
|                                        |                             | September 30, |        |        |      |  |       
|                                        |                             |               |        |        |      |  |       
|Retail Deliveries  in GWhs(a)          |                             | 2005          |        |        | 2004 |  |        | Variance |  |  | % Change |      
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|Full service(b)                         |                             |               |        |        |      |  |        |          |  |  |          |       |   |  |        |      
|Residential                             |                             |               | 13,922 |        |      |  | 10,340 |          |  |  | 3,582    |       |   |  | 34.6   | %    
|Small commercial & industrial           |                             |               | 8,047  |        |      |  | 7,386  |          |  |  | 661      |       |   |  | 8.9    | %    
|Large commercial & industrial           |                             |               | 6,238  |        |      |  | 5,757  |          |  |  | 481      |       |   |  | 8.4    | %    
|Public authorities & electric railroads |                             |               | 718    |        |      |  | 850    |          |  |  | (132     | )     |   |  | (15.5) | %    
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        | Total full service          |               |        | 28,925 |      |  |        | 24,333   |  |  |          | 4,592 |   |  |        | 18.9  | %
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|PPO (ComEd only)                        |                             |               |        |        |      |  |        |          |  |  |          |       |   |  |        |      
|Small commercial & industrial           |                             |               | 1,667  |        |      |  | 1,292  |          |  |  | 375      |       |   |  | 29.0   | %    
|Large commercial & industrial           |                             |               | 1,524  |        |      |  | 1,483  |          |  |  | 41       |       |   |  | 2.8    | %    
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        |                             |               | 3,191  |        |      |  | 2,775  |          |  |  | 416      |       |   |  | 15.0   | %    
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|Delivery only(c)                        |                             |               |        |        |      |  |        |          |  |  |          |       |   |  |        |      
|Residential                             |                             |               | 95     |        |      |  | 636    |          |  |  | (541     | )     |   |  | (85.1) | %    
|Small commercial & industrial           |                             |               | 1,717  |        |      |  | 2,055  |          |  |  | (338     | )     |   |  | (16.4) | %    
|Large commercial & industrial           |                             |               | 3,880  |        |      |  | 3,949  |          |  |  | (69      | )     |   |  | (1.7)  | %    
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        |                             |               | 5,692  |        |      |  | 6,640  |          |  |  | (948     | )     |   |  | (14.3) | %    
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        | Total PPO and delivery only |               |        | 8,883  |      |  |        | 9,415    |  |  |          | (532  | ) |  |        | (5.7) | %
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|Total retail deliveries                 |                             |               | 37,808 |        |      |  | 33,748 |          |  |  | 4,060    |       |   |  | 12.0   | %    
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      






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



|    |                                                                                                  
|--- | -------------------------------------------------------------------------------------------------
|(b) | Full service reflects deliveries to customers taking generation
    service under tariffed rates.



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

95



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|                                        |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |       |   
|--------------------------------------- | -------------------------------------- | ------------- | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | --- | - |  | ----- | ----- | --
|                                        |                                        | Three Months  |       |       |      |   |      
|                                        |                                        | Ended         |       |       |      |   |      
|                                        |                                        | September 30, |       |       |      |   |      
|                                        |                                        |               |       |       |      |   |      
|Electric Revenue                        |                                        | 2005          |       |       | 2004 |   |       | Variance |  |   | % Change |    
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |      
|Residential                             |                                        | $             | 1,481 |       |      | $ | 1,108 |          |  | $ | 373      |     |   |  | 33.7  | %    
|Small commercial & industrial           |                                        |               | 749   |       |      |   | 684   |          |  |   | 65       |     |   |  | 9.5   | %    
|Large commercial & industrial           |                                        |               | 440   |       |      |   | 397   |          |  |   | 43       |     |   |  | 10.8  | %    
|Public authorities & electric railroads |                                        |               | 50    |       |      |   | 58    |          |  |   | (8       | )   |   |  | (13.8 | )%   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service                     |               |       | 2,720 |      |   |       | 2,247    |  |   |          | 473 |   |  |       | 21.1  | % 
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|PPO (ComEd only)(b)                     |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |      
|Small commercial & industrial           |                                        |               | 120   |       |      |   | 89    |          |  |   | 31       |     |   |  | 34.8  | %    
|Large commercial & industrial           |                                        |               | 94    |       |      |   | 91    |          |  |   | 3        |     |   |  | 3.3   | %    
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |               | 214   |       |      |   | 180   |          |  |   | 34       |     |   |  | 18.9  | %    
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Delivery only(c)                        |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |      
|Residential                             |                                        |               | 8     |       |      |   | 50    |          |  |   | (42      | )   |   |  | (84.0 | )%   
|Small commercial & industrial           |                                        |               | 37    |       |      |   | 55    |          |  |   | (18      | )   |   |  | (32.7 | )%   
|Large commercial & industrial           |                                        |               | 42    |       |      |   | 59    |          |  |   | (17      | )   |   |  | (28.8 | )%   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |               | 87    |       |      |   | 164   |          |  |   | (77      | )   |   |  | (47.0 | )%   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total PPO and delivery only            |               |       | 301   |      |   |       | 344      |  |   |          | (43 | ) |  |       | (12.5 | )%
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                                        |               | 3,021 |       |      |   | 2,591 |          |  |   | 430      |     |   |  | 16.6  | %    
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Wholesale and miscellaneous revenue(d) |               |       | 182   |      |   |       | 193      |  |   |          | (11 | ) |  |       | (5.7  | )%
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Total electric and other revenue        |                                        | $             | 3,203 |       |      | $ | 2,784 |          |  | $ | 419      |     |   |  | 15.1  | %    
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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. PECOs tariffed rates also include a CTC. See
    Note 5 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K for
    further information regarding CTC.
|   
|(b) |  | Revenues from customers choosing ComEds PPO include an
    energy charge at market rates, transmission and distribution
    charges, and a CTC.                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(c) |  | Delivery only revenue reflects revenue under tariffed rates from
    customers electing to receive generation service from an
    alternative electric supplier, which rates include 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.                                                                                                                                                                                                                                                                                                                                                                                                               

96



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##### Table of Contents





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



|                                        |                             |               |        |        |      |  |        |          |  |  |          |       |  |  |       |      |  
|--------------------------------------- | --------------------------- | ------------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ----- |  |  | ----- | ---- | -
|                                        |                             | Three Months  |        |        |      |  |       
|                                        |                             | Ended         |        |        |      |  |       
|                                        |                             | September 30, |        |        |      |  |       
|                                        |                             |               |        |        |      |  |       
|Retail Deliveries  (in GWhs)           |                             | 2005          |        |        | 2004 |  |        | Variance |  |  | % Change |      
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|Full service(a)                         |                             |               |        |        |      |  |        |          |  |  |          |       |  |  |       |     
|Residential                             |                             |               | 9,847  |        |      |  | 7,434  |          |  |  | 2,413    |       |  |  | 32.5  | %   
|Small commercial & industrial           |                             |               | 5,872  |        |      |  | 5,596  |          |  |  | 276      |       |  |  | 4.9   | %   
|Large commercial & industrial           |                             |               | 2,024  |        |      |  | 1,808  |          |  |  | 216      |       |  |  | 11.9  | %   
|Public authorities & electric railroads |                             |               | 496    |        |      |  | 616    |          |  |  | (120     | )     |  |  | (19.5 | )%  
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        | Total full service          |               |        | 18,239 |      |  |        | 15,454   |  |  |          | 2,785 |  |  |       | 18.0 | %
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|PPO                                     |                             |               |        |        |      |  |        |          |  |  |          |       |  |  |       |     
|Small commercial & industrial           |                             |               | 1,667  |        |      |  | 1,292  |          |  |  | 375      |       |  |  | 29.0  | %   
|Large commercial & industrial           |                             |               | 1,524  |        |      |  | 1,483  |          |  |  | 41       |       |  |  | 2.8   | %   
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        |                             |               | 3,191  |        |      |  | 2,775  |          |  |  | 416      |       |  |  | 15.0  | %   
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|Delivery only(b)                        |                             |               |        |        |      |  |        |          |  |  |          |       |  |  |       |     
|Small commercial & industrial           |                             |               | 1,391  |        |      |  | 1,611  |          |  |  | (220     | )     |  |  | (13.7 | )%  
|Large commercial & industrial           |                             |               | 3,785  |        |      |  | 3,720  |          |  |  | 65       |       |  |  | 1.7   | %   
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        |                             |               | 5,176  |        |      |  | 5,331  |          |  |  | (155     | )     |  |  | (2.9  | )%  
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        | Total PPO and delivery only |               |        | 8,367  |      |  |        | 8,106    |  |  |          | 261   |  |  |       | 3.2  | %
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|Total retail deliveries                 |                             |               | 26,606 |        |      |  | 23,560 |          |  |  | 3,046    |       |  |  | 12.9  | %   
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      






|    |  |                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------
|(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.

97



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|                                        |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |      |   
|--------------------------------------- | -------------------------------------- | ------------- | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | --- | - |  | ----- | ---- | --
|                                        |                                        | Three Months  |       |       |      |   |      
|                                        |                                        | Ended         |       |       |      |   |      
|                                        |                                        | September 30, |       |       |      |   |      
|                                        |                                        |               |       |       |      |   |      
|Electric Revenue                        |                                        | 2005          |       |       | 2004 |   |       | Variance |  |   | % Change |    
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        | $             | 903   |       |      | $ | 699   |          |  | $ | 204      |     |   |  | 29.2  | %   
|Small commercial & industrial           |                                        |               | 492   |       |      |   | 471   |          |  |   | 21       |     |   |  | 4.5   | %   
|Large commercial & industrial           |                                        |               | 115   |       |      |   | 107   |          |  |   | 8        |     |   |  | 7.5   | %   
|Public authorities & electric railroads |                                        |               | 31    |       |      |   | 38    |          |  |   | (7       | )   |   |  | (18.4 | )%  
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service                     |               |       | 1,541 |      |   |       | 1,315    |  |   |          | 226 |   |  |       | 17.2 | % 
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|PPO(b)                                  |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Small commercial & industrial           |                                        |               | 120   |       |      |   | 89    |          |  |   | 31       |     |   |  | 34.8  | %   
|Large commercial & industrial           |                                        |               | 94    |       |      |   | 91    |          |  |   | 3        |     |   |  | 3.3   | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |               | 214   |       |      |   | 180   |          |  |   | 34       |     |   |  | 18.9  | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Delivery only(c)                        |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Small commercial & industrial           |                                        |               | 20    |       |      |   | 31    |          |  |   | (11      | )   |   |  | (35.5 | )%  
|Large commercial & industrial           |                                        |               | 40    |       |      |   | 53    |          |  |   | (13      | )   |   |  | (24.5 | )%  
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |               | 60    |       |      |   | 84    |          |  |   | (24      | )   |   |  | (28.6 | )%  
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total PPO and delivery only            |               |       | 274   |      |   |       | 264      |  |   |          | 10  |   |  |       | 3.8  | % 
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                                        |               | 1,815 |       |      |   | 1,579 |          |  |   | 236      |     |   |  | 14.9  | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Wholesale and miscellaneous revenue(d) |               |       | 133   |      |   |       | 141      |  |   |          | (8  | ) |  |       | (5.7 | )%
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Total operating revenues                |                                        | $             | 1,948 |       |      | $ | 1,720 |          |  | $ | 228      |     |   |  | 13.3  | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    






|    |  |                                                                                                                                                                                                                      
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 tariffed 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.                                                    

98



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



|                                        |                     |               |        |        |      |  |        |          |  |  |          |       |   |  |       |       |   
|--------------------------------------- | ------------------- | ------------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ----- | - |  | ----- | ----- | --
|                                        |                     | Three Months  |        |        |      |  |       
|                                        |                     | Ended         |        |        |      |  |       
|                                        |                     | September 30, |        |        |      |  |       
|                                        |                     |               |        |        |      |  |       
|Retail Deliveries  (in GWhs)           |                     | 2005          |        |        | 2004 |  |        | Variance |  |  | % Change |      
|                                        |                     |               |        |        |      |  |        |          |  |  |          |      
|Full service(a)                         |                     |               |        |        |      |  |        |          |  |  |          |       |   |  |       |      
|Residential                             |                     |               | 4,075  |        |      |  | 2,906  |          |  |  | 1,169    |       |   |  | 40.2  | %    
|Small commercial & industrial           |                     |               | 2,175  |        |      |  | 1,790  |          |  |  | 385      |       |   |  | 21.5  | %    
|Large commercial & industrial           |                     |               | 4,214  |        |      |  | 3,949  |          |  |  | 265      |       |   |  | 6.7   | %    
|Public authorities & electric railroads |                     |               | 222    |        |      |  | 234    |          |  |  | (12      | )     |   |  | (5.1  | )%   
|                                        |                     |               |        |        |      |  |        |          |  |  |          |      
|                                        | Total full service  |               |        | 10,686 |      |  |        | 8,879    |  |  |          | 1,807 |   |  |       | 20.4  | % 
|                                        |                     |               |        |        |      |  |        |          |  |  |          |      
|Delivery only(b)                        |                     |               |        |        |      |  |        |          |  |  |          |       |   |  |       |      
|Residential                             |                     |               | 95     |        |      |  | 636    |          |  |  | (541     | )     |   |  | (85.1 | )%   
|Small commercial & industrial           |                     |               | 326    |        |      |  | 444    |          |  |  | (118     | )     |   |  | (26.6 | )%   
|Large commercial & industrial           |                     |               | 95     |        |      |  | 229    |          |  |  | (134     | )     |   |  | (58.5 | )%   
|                                        |                     |               |        |        |      |  |        |          |  |  |          |      
|                                        | Total delivery only |               |        | 516    |      |  |        | 1,309    |  |  |          | (793  | ) |  |       | (60.6 | )%
|                                        |                     |               |        |        |      |  |        |          |  |  |          |      
|Total retail deliveries                 |                     |               | 11,202 |        |      |  | 10,188 |          |  |  | 1,014    |       |   |  | 10.0  | %    
|                                        |                     |               |        |        |      |  |        |          |  |  |          |      






|    |  |                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------
|(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         |       |       |      |   |      
|                                        |                     | September 30, |       |       |      |   |      
|                                        |                     |               |       |       |      |   |      
|Electric Revenue                        |                     | 2005          |       |       | 2004 |   |       | Variance |  |   | % Change |    
|                                        |                     |               |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                     |               |       |       |      |   |       |          |  |   |          |     |   |  |       |      
|Residential                             |                     | $             | 578   |       |      | $ | 409   |          |  | $ | 169      |     |   |  | 41.3  | %    
|Small commercial & industrial           |                     |               | 257   |       |      |   | 213   |          |  |   | 44       |     |   |  | 20.7  | %    
|Large commercial & industrial           |                     |               | 325   |       |      |   | 290   |          |  |   | 35       |     |   |  | 12.1  | %    
|Public authorities & electric railroads |                     |               | 19    |       |      |   | 20    |          |  |   | (1       | )   |   |  | (5.0  | )%   
|                                        |                     |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service  |               |       | 1,179 |      |   |       | 932      |  |   |          | 247 |   |  |       | 26.5  | % 
|                                        |                     |               |       |       |      |   |       |          |  |   |          |    
|Delivery only(b)                        |                     |               |       |       |      |   |       |          |  |   |          |     |   |  |       |      
|Residential                             |                     |               | 8     |       |      |   | 50    |          |  |   | (42      | )   |   |  | (84.0 | )%   
|Small commercial & industrial           |                     |               | 17    |       |      |   | 24    |          |  |   | (7       | )   |   |  | (29.2 | )%   
|Large commercial & industrial           |                     |               | 2     |       |      |   | 6     |          |  |   | (4       | )   |   |  | (66.7 | )%   
|                                        |                     |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total delivery only |               |       | 27    |      |   |       | 80       |  |   |          | (53 | ) |  |       | (66.3 | )%
|                                        |                     |               |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                     |               | 1,206 |       |      |   | 1,012 |          |  |   | 194      |     |   |  | 19.2  | %    
|                                        |                     |               |       |       |      |   |       |          |  |   |          |    
|Wholesale and miscellaneous revenue(c)  |                     |               | 49    |       |      |   | 52    |          |  |   | (3       | )   |   |  | (5.8  | )%   
|                                        |                     |               |       |       |      |   |       |          |  |   |          |    
|Total electric and other revenue        |                     | $             | 1,255 |       |      | $ | 1,064 |          |  | $ | 191      |     |   |  | 18.0  | %    
|                                        |                     |               |       |       |      |   |       |          |  |   |          |    






|    |  |                                                                                                                                                                                                                             
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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) |  | Wholesale and miscellaneous revenues include transmission
    revenue from PJM and other wholesale energy sales.                                                                                                            

99



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| |                                                                         
| | ------------------------------------------------------------------------
| | Energy Deliverys and PECOs Gas Sales
    Statistics and Revenue Detail



|                                                       |  |               |       |  |      |  |        |          |  |  |          |   |  |  |      |   
|------------------------------------------------------ |  | ------------- | ----- |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ---- | --
|                                                       |  | Three Months  |       |  |      |  |       
|                                                       |  | Ended         |       |  |      |  |       
|                                                       |  | September 30, |       |  |      |  |       
|                                                       |  |               |       |  |      |  |       
|Deliveries to customers (in million cubic feet (mmcf)) |  | 2005          |       |  | 2004 |  |        | Variance |  |  | % Change |  
|                                                       |  |               |       |  |      |  |        |          |  |  |          |  
|Retail sales                                           |  |               | 3,786 |  |      |  | 3,866  |          |  |  | (80      | ) |  |  | (2.1 | )%
|Transportation                                         |  |               | 5,755 |  |      |  | 6,167  |          |  |  | (412     | ) |  |  | (6.7 | )%
|                                                       |  |               |       |  |      |  |        |          |  |  |          |  
|Total                                                  |  |               | 9,541 |  |      |  | 10,033 |          |  |  | (492     | ) |  |  | (4.9 | )%
|                                                       |  |               |       |  |      |  |        |          |  |  |          |  

|                  |  |               |    |  |      |   |    |          |  |   |          |  |  |  |      |  
|----------------- |  | ------------- | -- |  | ---- | - | -- | -------- |  | - | -------- |  |  |  | ---- | -
|                  |  | Three Months  |    |  |      |   |   
|                  |  | Ended         |    |  |      |   |   
|                  |  | September 30, |    |  |      |   |   
|                  |  |               |    |  |      |   |   
|Revenue           |  | 2005          |    |  | 2004 |   |    | Variance |  |   | % Change | 
|                  |  |               |    |  |      |   |    |          |  |   |          | 
|Retail sales      |  | $             | 58 |  |      | $ | 55 |          |  | $ | 3        |  |  |  | 5.5  | %
|Transportation    |  |               | 4  |  |      |   | 4  |          |  |   |         |  |  |  |     |  
|Resales and other |  |               | 5  |  |      |   | 1  |          |  |   | 4        |  |  |  | n.m. |  
|                  |  |               |    |  |      |   |    |          |  |   |          | 
|Total gas revenue |  | $             | 67 |  |      | $ | 60 |          |  | $ | 7        |  |  |  | 11.7 | %
|                  |  |               |    |  |      |   |    |          |  |   |          | 



| | 
| | 
| | 



100



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

|                                                                                |                                               |                                     |       |       |           |   |       |               |       |   |     |      |      |  
|------------------------------------------------------------------------------- | --------------------------------------------- | ----------------------------------- | ----- | ----- | --------- | - | ----- | ------------- | ----- | - | --- | ---- | ---- | -
|                                                                                |                                               | Three Months                        |       |       |          
|                                                                                |                                               | Ended                               |       |       |          
|                                                                                |                                               | September 30,                       |       |       |          
|                                                                                |                                               |                                     |       |       | Favorable |  
|                                                                                |                                               | 2005                                |       |       | 2004      |   |       | (Unfavorable) |      
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|Operating revenues                                                              |                                               | $                                   | 2,711 |       |           | $ | 2,151 |               |       | $ | 560 |     
|Operating expenses                                                              |                                               |                                     |       |       |           |   |       |               |       |   |     |     
|                                                                                | Purchased power                               |                                     |       | 1,047 |           |   |       | 757           |       |   |     | (290 | )   
|                                                                                | Fuel                                          |                                     |       | 441   |           |   |       | 318           |       |   |     | (123 | )   
|                                                                                | Operating and maintenance                     |                                     |       | 537   |           |   |       | 414           |       |   |     | (123 | )   
|                                                                                | Depreciation and amortization                 |                                     |       | 63    |           |   |       | 93            |       |   |     | 30   |     
|                                                                                | Taxes other than income                       |                                     |       | 48    |           |   |       | 41            |       |   |     | (7   | )   
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|                                                                                |                                               | Total operating expenses            |       |       | 2,136     |   |       |               | 1,623 |   |     |      | (513 | )
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|Operating income                                                                |                                               |                                     | 575   |       |           |   | 528   |               |       |   | 47  |     
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|Other income and deductions                                                     |                                               |                                     |       |       |           |   |       |               |       |   |     |     
|                                                                                | Interest expense                              |                                     |       | (33   | )         |   |       | (25           | )     |   |     | (8   | )   
|                                                                                | Equity in losses of unconsolidated affiliates |                                     |       | (2    | )         |   |       | (5            | )     |   |     | 3    |     
|                                                                                | Other, net                                    |                                     |       | 13    |           |   |       | 4             |       |   |     | 9    |     
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|                                                                                |                                               | Total other income and deductions   |       |       | (22       | ) |       |               | (26   | ) |     |      | 4    |  
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|Income from continuing operations before income taxes and
    minority interest |                                               |                                     | 553   |       |           |   | 502   |               |       |   | 51  |     
|Income taxes                                                                    |                                               |                                     | 219   |       |           |   | 193   |               |       |   | (26 | )   
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|Income from continuing operations before minority interest                      |                                               |                                     | 334   |       |           |   | 309   |               |       |   | 25  |     
|Minority interest                                                               |                                               |                                     |      |       |           |   | 4     |               |       |   | (4  | )   
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|Income from continuing operations                                               |                                               |                                     | 334   |       |           |   | 313   |               |       |   | 21  |     
|Discontinued operations                                                         |                                               |                                     |       |       |           |   |       |               |       |   |     |     
|                                                                                | Income from discontinued operations           |                                     |       |      |           |   |       | 11            |       |   |     | (11  | )   
|                                                                                | Gain on disposal of discontinued operations   |                                     |       | 2     |           |   |       |              |       |   |     | 2    |     
|                                                                                | Income taxes                                  |                                     |       | 1     |           |   |       | 5             |       |   |     | 4    |     
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|                                                                                |                                               | Income from discontinued operations |       |       | 1         |   |       |               | 6     |   |     |      | (5   | )
|                                                                                |                                               |                                     |       |       |           |   |       |               |      
|Net income                                                                      |                                               | $                                   | 335   |       |           | $ | 319   |               |       | $ | 16  |     
|                                                                                |                                               |                                     |       |       |           |   |       |               |      

Operating Revenues.


|                                    |  |               |       |  |      |   |       |          |  |   |          |   |  |  |      |   
|----------------------------------- |  | ------------- | ----- |  | ---- | - | ----- | -------- |  | - | -------- | - |  |  | ---- | --
|                                    |  | Three Months  |       |  |      |   |      
|                                    |  | Ended         |       |  |      |   |      
|                                    |  | September 30, |       |  |      |   |      
|                                    |  |               |       |  |      |   |      
|Revenue                             |  | 2005          |       |  | 2004 |   |       | Variance |  |   | % Change |  
|                                    |  |               |       |  |      |   |       |          |  |   |          |  
|Electric sales to affiliates        |  | $             | 1,484 |  |      | $ | 1,218 |          |  | $ | 266      |   |  |  | 21.8 | % 
|Wholesale and retail electric sales |  |               | 1,038 |  |      |   | 759   |          |  |   | 279      |   |  |  | 36.8 | % 
|                                    |  |               |       |  |      |   |       |          |  |   |          |  
|Total energy sales revenue          |  |               | 2,522 |  |      |   | 1,977 |          |  |   | 545      |   |  |  | 27.6 | % 
|                                    |  |               |       |  |      |   |       |          |  |   |          |  
|Retail gas sales                    |  |               | 77    |  |      |   | 55    |          |  |   | 22       |   |  |  | 40.0 | % 
|Trading portfolio                   |  |               | 4     |  |      |   | 1     |          |  |   | 3        |   |  |  | n.m. |   
|Other revenue(a)                    |  |               | 108   |  |      |   | 118   |          |  |   | (10      | ) |  |  | (8.5 | )%
|                                    |  |               |       |  |      |   |       |          |  |   |          |  
|Total revenue                       |  | $             | 2,711 |  |      | $ | 2,151 |          |  | $ | 560      |   |  |  | 26.0 | % 
|                                    |  |               |       |  |      |   |       |          |  |   |          |  






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



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|                                    |  |               |        |  |      |  |        |          |  |  |          |   |  |  |       |   
|----------------------------------- |  | ------------- | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ----- | --
|                                    |  | Three Months  |        |  |      |  |       
|                                    |  | Ended         |        |  |      |  |       
|                                    |  | September 30, |        |  |      |  |       
|                                    |  |               |        |  |      |  |       
|Sales (in GWhs)                     |  | 2005          |        |  | 2004 |  |        | Variance |  |  | % Change |  
|                                    |  |               |        |  |      |  |        |          |  |  |          |  
|Electric sales to affiliates        |  |               | 35,773 |  |      |  | 30,040 |          |  |  | 5,733    |   |  |  | 19.1  | % 
|Wholesale and retail electric sales |  |               | 19,525 |  |      |  | 21,894 |          |  |  | (2,369   | ) |  |  | (10.8 | )%
|                                    |  |               |        |  |      |  |        |          |  |  |          |  
|Total sales                         |  |               | 55,298 |  |      |  | 51,934 |          |  |  | 3,364    |   |  |  | 6.5   | % 
|                                    |  |               |        |  |      |  |        |          |  |  |          |  



Electric sales to affiliates.


Wholesale and retail electric sales.


|                                                |  |            |     |  
|----------------------------------------------- |  | ---------- | --- | -
|                                                |  | Increase   |    
|                                                |  | (Decrease) |    
|                                                |  |            |    
|Price                                           |  | $          | 303 |  
|Volume                                          |  |            | (24 | )
|                                                |  |            |    
|Increase in wholesale and retail electric sales |  | $          | 279 |  
|                                                |  |            |    



Retail gas sales.


Other revenues.


Purchased Power and Fuel Expense.


|                                    |  |               |        |  |      |  |        |          |  |  |          |  |  |  |      |  
|----------------------------------- |  | ------------- | ------ |  | ---- |  | ------ | -------- |  |  | -------- |  |  |  | ---- | -
|                                    |  | Three Months  |        |  |      |  |       
|                                    |  | Ended         |        |  |      |  |       
|                                    |  | September 30, |        |  |      |  |       
|                                    |  |               |        |  |      |  |       
|Supply Source (in GWhs)             |  | 2005          |        |  | 2004 |  |        | Variance |  |  | % Change | 
|                                    |  |               |        |  |      |  |        |          |  |  |          | 
|Nuclear generation                  |  |               | 35,584 |  |      |  | 35,303 |          |  |  | 281      |  |  |  | 0.8  | %
|Purchases  non-trading portfolio   |  |               | 15,393 |  |      |  | 13,563 |          |  |  | 1,830    |  |  |  | 13.5 | %
|Fossil and hydroelectric generation |  |               | 4,321  |  |      |  | 3,068  |          |  |  | 1,253    |  |  |  | 40.8 | %
|                                    |  |               |        |  |      |  |        |          |  |  |          | 
|Total supply                        |  |               | 55,298 |  |      |  | 51,934 |          |  |  | 3,364    |  |  |  | 6.5  | %
|                                    |  |               |        |  |      |  |        |          |  |  |          | 

102



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|                                              |  |            |     |  
|--------------------------------------------- |  | ---------- | --- | -
|                                              |  | Increase   |    
|                                              |  | (Decrease) |    
|                                              |  |            |    
|Price                                         |  | $          | 213 |  
|Volume                                        |  |            | 241 |  
|Mark-to-market adjustments on economic hedges |  |            | (29 | )
|Other                                         |  |            | (12 | )
|                                              |  |            |    
|Increase in purchased power and fuel expense  |  | $          | 413 |  
|                                              |  |            |    

Price.


Volume.


Economic hedges.


Other.




|                                                                      |                                         |               |       |       |      |   |       |          |  |  |      |      |  
|--------------------------------------------------------------------- | --------------------------------------- | ------------- | ----- | ----- | ---- | - | ----- | -------- |  |  | ---- | ---- | -
|                                                                      |                                         | Three Months  |       |       |     
|                                                                      |                                         | Ended         |       |       |     
|                                                                      |                                         | September 30, |       |       |     
|                                                                      |                                         |               |       |       |     
|($/MWh)                                                               |                                         | 2005          |       |       | 2004 |   |       | % Change | 
|                                                                      |                                         |               |       |       |      |   |       |          | 
|Average electric revenue                                              |                                         |               |       |       |      |   |       |          |  |  |      |     
|                                                                      | Electric sales to affiliates(a)         |               | $     | 41.48 |      |   | $     | 40.55    |  |  |      | 2.3  | %
|                                                                      | Wholesale and retail electric sales     |               |       | 53.16 |      |   |       | 34.67    |  |  |      | 53.3 | %
|                                                                      | Total  excluding the trading portfolio |               |       | 45.61 |      |   |       | 38.07    |  |  |      | 19.8 | %
|Average electric supply cost(b)  excluding the
    trading portfolio |                                         | $             | 25.53 |       |      | $ | 19.56 |          |  |  | 30.5 | %   
|Average margin  excluding the trading portfolio                      |                                         | $             | 20.08 |       |      | $ | 18.51 |          |  |  | 8.5  | %   






|    |  |                                                                                                                                                                                                                       
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The increase in $/ MWh is due to higher prices in 2005
    associated with Generations PPA with ComEd.                                                                                                               
|   
|(b) |  | Average supply cost includes purchased power and fuel costs
    associated with electric sales. Average electric supply cost
    does not include purchased power and fuel costs associated with
    retail gas sales.

103



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Operating and Maintenance Expense.


|                                              |  |            |     | 
|--------------------------------------------- |  | ---------- | --- | 
|                                              |  | Increase   |    
|                                              |  | (Decrease) |    
|                                              |  |            |    
|DOE Settlement(a)                             |  | $          | 52  | 
|Decommissioning-related activity              |  |            | 30  | 
|Payroll, benefits and pension cost            |  |            | 14  | 
|Nuclear operating costs                       |  |            | 14  | 
|Tamuin International                          |  |            | 8   | 
|Other                                         |  |            | 5   | 
|                                              |  |            |    
|Increase in operating and maintenance expense |  | $          | 123 | 
|                                              |  |            |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                              
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Note 14 of Exelons Notes to Consolidated
    Financial Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K for a
    full discussion of the spent nuclear fuel storage settlement
    agreement reached with the DOE.





|                                                              |  |               |       |   |      |   |       |  
|------------------------------------------------------------- |  | ------------- | ----- | - | ---- | - | ----- | -
|                                                              |  | Three Months  |      
|                                                              |  | Ended         |      
|                                                              |  | September 30, |      
|                                                              |  |               |      
|                                                              |  | 2005          |       |   | 2004 |  
|                                                              |  |               |       |   |      |  
|Nuclear fleet capacity factor(a)                              |  |               | 95.0  | % |      |   | 95.8  | %
|Nuclear fleet production cost per MWh(a)                      |  | $             | 11.77 |   |      | $ | 10.92 |  
|Average purchased power cost for wholesale operations per MWh |  | $             | 68.02 |   |      | $ | 55.81 |  






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





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Depreciation and Amortization.


Taxes Other Than Income.


Other, Net.


Effective Income Tax Rate.


Discontinued Operations.


105



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##### Table of Contents



Results of Operations  Exelon Corporation




| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | Nine Months Ended September 30, 2005 Compared To Nine
    Months Ended September 30, 2004

|                                                                                |  |               |        |   |               |   |        |          |  |   |      |  
|------------------------------------------------------------------------------- |  | ------------- | ------ | - | ------------- | - | ------ | -------- |  | - | ---- | -
|                                                                                |  | Nine Months   |        |   |              
|                                                                                |  | Ended         |        |   |              
|                                                                                |  | September 30, |        |   | Favorable     |  
|                                                                                |  |               |        |   | (Unfavorable) |  
|                                                                                |  | 2005          |        |   | 2004          |   |        | Variance | 
|                                                                                |  |               |        |   |               |   |        |          | 
|Operating revenues                                                              |  | $             | 11,519 |   |               | $ | 10,821 |          |  | $ | 698  |  
|Purchased power and fuel expense                                                |  |               | 4,012  |   |               |   | 3,781  |          |  |   | (231 | )
|Operating and maintenance expense                                               |  |               | 2,804  |   |               |   | 2,696  |          |  |   | (108 | )
|Depreciation and amortization                                                   |  |               | 1,003  |   |               |   | 974    |          |  |   | (29  | )
|Operating income                                                                |  |               | 3,140  |   |               |   | 2,822  |          |  |   | 318  |  
|Other income and deductions                                                     |  |               | (614   | ) |               |   | (687   | )        |  |   | 73   |  
|Income from continuing operations before income taxes and
    minority interest |  |               | 2,526  |   |               |   | 2,135  |          |  |   | 391  |  
|Income from continuing operations                                               |  |               | 1,747  |   |               |   | 1,477  |          |  |   | 270  |  
|Income from discontinued operations                                             |  |               | 13     |   |               |   | 1      |          |  |   | 12   |  
|Income before cumulative effect of changes in accounting
    principles         |  |               | 1,760  |   |               |   | 1,478  |          |  |   | 282  |  
|Net income                                                                      |  |               | 1,760  |   |               |   | 1,501  |          |  |   | 259  |  
|Diluted earnings per share                                                      |  |               | 2.60   |   |               |   | 2.25   |          |  |   | 0.35 |  

Operating Revenues.


Purchased Power and Fuel Expense.


Operating and Maintenance Expense.


Depreciation and Amortization Expense.


106



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Operating Income.


Other Income and Deductions.


Effective Income Tax Rate.


Discontinued Operations.






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







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

|                |  |               |       |  |               |   |       |          |  |   |     |  
|--------------- |  | ------------- | ----- |  | ------------- | - | ----- | -------- |  | - | --- | -
|                |  | Nine Months   |       |  |              
|                |  | Ended         |       |  |              
|                |  | September 30, |       |  | Favorable     |  
|                |  |               |       |  | (Unfavorable) |  
|                |  | 2005          |       |  | 2004          |   |       | Variance | 
|                |  |               |       |  |               |   |       |          | 
|Energy Delivery |  | $             | 805   |  |               | $ | 880   |          |  | $ | (75 | )
|Generation      |  |               | 935   |  |               |   | 571   |          |  |   | 364 |  
|Other(a)        |  |               | 7     |  |               |   | 26    |          |  |   | (19 | )
|                |  |               |       |  |               |   |       |          | 
|Total           |  | $             | 1,747 |  |               | $ | 1,477 |          |  | $ | 270 |  
|                |  |               |       |  |               |   |       |          | 






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

107



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| |                                      
| | -------------------------------------
| | Net Income (Loss) by Business Segment

|                |  |               |       |  |               |   |       |          |  |   |     |  
|--------------- |  | ------------- | ----- |  | ------------- | - | ----- | -------- |  | - | --- | -
|                |  | Nine Months   |       |  |              
|                |  | Ended         |       |  |              
|                |  | September 30, |       |  | Favorable     |  
|                |  |               |       |  | (Unfavorable) |  
|                |  | 2005          |       |  | 2004          |   |       | Variance | 
|                |  |               |       |  |               |   |       |          | 
|Energy Delivery |  | $             | 805   |  |               | $ | 880   |          |  | $ | (75 | )
|Generation      |  |               | 951   |  |               |   | 599   |          |  |   | 352 |  
|Other(a)        |  |               | 4     |  |               |   | 22    |          |  |   | (18 | )
|                |  |               |       |  |               |   |       |          | 
|Total           |  | $             | 1,760 |  |               | $ | 1,501 |          |  | $ | 259 |  
|                |  |               |       |  |               |   |       |          | 






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





| |                                        
| | ---------------------------------------
| | Results of Operations  Energy Delivery

|                            |                                                       |                                   |       |       |               |   |       |          |       |   |      |      |      |  
|--------------------------- | ----------------------------------------------------- | --------------------------------- | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | ---- | ---- | ---- | -
|                            |                                                       | Nine Months                       |       |       |              
|                            |                                                       | Ended                             |       |       |              
|                            |                                                       | September 30,                     |       |       | Favorable     |  
|                            |                                                       |                                   |       |       | (Unfavorable) |  
|                            |                                                       | 2005                              |       |       | 2004          |   |       | Variance |      
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating revenues          |                                                       | $                                 | 8,483 |       |               | $ | 7,853 |          |       | $ | 630  |     
|Operating expenses          |                                                       |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Purchased power and fuel expense                      |                                   |       | 4,588 |               |   |       | 3,639    |       |   |      | (949 | )   
|                            | Operating and maintenance                             |                                   |       | 1,010 |               |   |       | 1,056    |       |   |      | 46   |     
|                            | Depreciation and amortization                         |                                   |       | 739   |               |   |       | 704      |       |   |      | (35  | )   
|                            | Taxes other than income                               |                                   |       | 421   |               |   |       | 400      |       |   |      | (21  | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total operating expense           |       |       | 6,758         |   |       |          | 5,799 |   |      |      | (959 | )
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating income            |                                                       |                                   | 1,725 |       |               |   | 2,054 |          |       |   | (329 | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Other income and deductions |                                                       |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Interest expense                                      |                                   |       | (435  | )             |   |       | (517     | )     |   |      | 82   |     
|                            | Distributions on preferred securities of subsidiaries |                                   |       | (3    | )             |   |       | (3       | )     |   |      |     |     
|                            | Equity in losses of unconsolidated affiliates         |                                   |       | (23   | )             |   |       | (32      | )     |   |      | 9    |     
|                            | Net loss on extinguishment of long-term debt          |                                   |       |      |               |   |       | (106     | )     |   |      | 106  |     
|                            | Other, net                                            |                                   |       | 14    |               |   |       | 30       |       |   |      | (16  | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total other income and deductions |       |       | (447          | ) |       |          | (628  | ) |      |      | 181  |  
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Income before income taxes  |                                                       |                                   | 1,278 |       |               |   | 1,426 |          |       |   | (148 | )   
|Income taxes                |                                                       |                                   | 473   |       |               |   | 546   |          |       |   | 73   |     
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Net income                  |                                                       | $                                 | 805   |       |               | $ | 880   |          |       | $ | (75  | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      

Net Income.


108



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Operating Revenues.


|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |     |    |  |   |     |     | 
|------------------------------------ | -------------- | -------- | --- | --- | -------- | - | --- | -------- |  | ----- | ---- | --- |  | ---------- | --- | -- |  | - | --- | --- | 
|                                     |                |          |     |     |          |   |     |          |  | Total |     
|                                     |                | ComEd    |     |     | PECO     |   |     | Total    |  |       | PECO |     |  | Increase   |    
|                                     |                | Electric |     |     | Electric |   |     | Electric |  |       | Gas  |     |  | (Decrease) |    
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |    
|Weather                              |                | $        | 371 |     |          | $ | 44  |          |  | $     | 415  |     |  | $          | 6   |    |  | $ | 421 |    
|Customer choice                      |                |          | 58  |     |          |   | 88  |          |  |       | 146  |     |  |            |    |    |  |   | 146 |    
|Volume                               |                |          | (26 | )   |          |   | 75  |          |  |       | 49   |     |  |            | (16 | )  |  |   | 33  |    
|Rate changes and mix                 |                |          | (70 | )   |          |   | 51  |          |  |       | (19  | )   |  |            | 27  |    |  |   | 8   |    
|Other                                |                |          | (7  | )   |          |   |    |          |  |       | (7   | )   |  |            |    |    |  |   | (7  | )  
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |    
|                                     | Retail revenue |          |     | 326 |          |   |     | 258      |  |       |      | 584 |  |            |     | 17 |  |   |     | 601 | 
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |    
|PJM transmission                     |                |          | 49  |     |          |   | (2  | )        |  |       | 47   |     |  |            |    |    |  |   | 47  |    
|T&O/ SECA rates                      |                |          | (27 | )   |          |   | 2   |          |  |       | (25  | )   |  |            |    |    |  |   | (25 | )  
|Other                                |                |          | 16  |     |          |   | 3   |          |  |       | 19   |     |  |            | (12 | )  |  |   | 7   |    
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |    
|Wholesale and miscellaneous revenues |                |          | 38  |     |          |   | 3   |          |  |       | 41   |     |  |            | (12 | )  |  |   | 29  |    
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |    
|Increase in operating revenues       |                | $        | 364 |     |          | $ | 261 |          |  | $     | 625  |     |  | $          | 5   |    |  | $ | 630 |    
|                                     |                |          |     |     |          |   |     |          |  |       |      |     |  |            |    

Weather.


Customer choice.




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|                                                                                               |                                       |               |  |        |               |  |  |        |    |  |      |        |  |  |  |         |  
|---------------------------------------------------------------------------------------------- | ------------------------------------- | ------------- |  | ------ | ------------- |  |  | ------ | -- |  | ---- | ------ |  |  |  | ------- | -
|                                                                                               |                                       | ComEd         |  |        | PECO          | 
|                                                                                               |                                       | Nine Months   |  |        | Nine Months   | 
|                                                                                               |                                       | Ended         |  |        | Ended         | 
|                                                                                               |                                       | September 30, |  |        | September 30, | 
|                                                                                               |                                       |               |  |        |               | 
|                                                                                               |                                       | 2005          |  |        | 2004          |  |  | 2005   |    |  | 2004 |       
|                                                                                               |                                       |               |  |        |               |  |  |        |    |  |      |       
|Retail customers purchasing energy from an alternative electric
    supplier:                  |                                       |               |  |        |               |  |  |        |    |  |      |        |  |  |  |        
|                                                                                               | Volume (GWhs)(a)                      |               |  | 14,827 |               |  |  | 15,787 |    |  |      | 1,738  |  |  |  | 3,576   |  
|                                                                                               | Percentage of total retail deliveries |               |  | 21%    |               |  |  | 24%    |    |  |      | 6%     |  |  |  | 12      | %
|Retail customers purchasing energy from an alternative electric
    supplier or the ComEd PPO: |                                       |               |  |        |               |  |  |        |    |  |      |        |  |  |  |        
|                                                                                               | Number of customers                   |               |  | 21,500 |               |  |  | 21,600 |    |  |      | 65,500 |  |  |  | 281,600 |  
|                                                                                               | Percentage of total retail customers  |               |  | (b     | )%            |  |  | (b     | )% |  |      | 4%     |  |  |  | 18      | %
|                                                                                               | Volume (GWhs)                         |               |  | 23,595 |               |  |  | 22,798 |    |  |      | 1,738  |  |  |  | 3,576   |  
|                                                                                               | Percentage of total retail deliveries |               |  | 34%    |               |  |  | 34%    |    |  |      | 6%     |  |  |  | 12      | %






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



Volume.


Rate changes and mix.






110



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PJM transmission.


T&O/ SECA rates.


Other wholesale and miscellaneous revenues.


Purchased Power and Fuel Expense.


|                        |                                              |          |     |     |          |   |    |          |  |       |      |     |  |            |     |   |  |   |     |     | 
|----------------------- | -------------------------------------------- | -------- | --- | --- | -------- | - | -- | -------- |  | ----- | ---- | --- |  | ---------- | --- | - |  | - | --- | --- | 
|                        |                                              |          |     |     |          |   |    |          |  | Total |     
|                        |                                              | ComEd    |     |     | PECO     |   |    | Total    |  |       | PECO |     |  | Increase   |    
|                        |                                              | Electric |     |     | Electric |   |    | Electric |  |       | Gas  |     |  | (Decrease) |    
|                        |                                              |          |     |     |          |   |    |          |  |       |      |     |  |            |    
|Prices                  |                                              | $        | 466 |     |          | $ | 54 |          |  | $     | 520  |     |  | $          | 27  |   |  | $ | 547 |    
|Weather                 |                                              |          | 183 |     |          |   | 17 |          |  |       | 200  |     |  |            | 4   |   |  |   | 204 |    
|Customer choice         |                                              |          | 49  |     |          |   | 88 |          |  |       | 137  |     |  |            |    |   |  |   | 137 |    
|PJM transmission        |                                              |          | 49  |     |          |   | 8  |          |  |       | 57   |     |  |            |    |   |  |   | 57  |    
|T&O collections         |                                              |          | 13  |     |          |   |   |          |  |       | 13   |     |  |            |    |   |  |   | 13  |    
|Volume                  |                                              |          | (6  | )   |          |   | 23 |          |  |       | 17   |     |  |            | (12 | ) |  |   | 5   |    
|PJM administrative fees |                                              |          | 5   |     |          |   |   |          |  |       | 5    |     |  |            |    |   |  |   | 5   |    
|SECA rates              |                                              |          | (30 | )   |          |   | 7  |          |  |       | (23  | )   |  |            |    |   |  |   | (23 | )  
|Other                   |                                              |          | 18  |     |          |   |   |          |  |       | 18   |     |  |            | (14 | ) |  |   | 4   |    
|                        |                                              |          |     |     |          |   |    |          |  |       |      |     |  |            |    
|                        | Increase in purchased power and fuel expense |          | $   | 747 |          |   | $  | 197      |  |       | $    | 944 |  |            | $   | 5 |  |   | $   | 949 | 
|                        |                                              |          |     |     |          |   |    |          |  |       |      |     |  |            |    

Prices.


Weather.


Customer choice.


PJM transmission.


111



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T&O collections/SECA rates.




Volume.


PJM administrative fees.


Other.


Operating and Maintenance Expense.


|                                                         |  |       |     |   |      |          |    |            |  |   |     |  
|-------------------------------------------------------- |  | ----- | --- | - | ---- | -------- | -- | ---------- |  | - | --- | -
|                                                         |  |       |     |   |      | Total    |   
|                                                         |  |       |     |   |      | Increase |   
|                                                         |  | ComEd |     |   | PECO |          |    | (Decrease) | 
|                                                         |  |       |     |   |      |          |    |            | 
|Severance-related expenses(a)                            |  | $     | (36 | ) |      | $        | (9 | )          |  | $ | (45 | )
|Pension expense(b)                                       |  |       | (17 | ) |      |          | (6 | )          |  |   | (23 | )
|Employee fringe benefits(c)                              |  |       | (14 | ) |      |          | (1 | )          |  |   | (15 | )
|Allowance for uncollectible accounts                     |  |       | (5  | ) |      |          | (4 | )          |  |   | (9  | )
|Environmental                                            |  |       | (3  | ) |      |          | (2 | )          |  |   | (5  | )
|Contractors(d)                                           |  |       | 13  |   |      |          | 6  |            |  |   | 19  |  
|Storm costs                                              |  |       | 9   |   |      |          | 5  |            |  |   | 14  |  
|Corporate allocations                                    |  |       | 7   |   |      |          | 2  |            |  |   | 9   |  
|Injuries and damages(e)                                  |  |       | 1   |   |      |          | 6  |            |  |   | 7   |  
|PSEG Merger integration costs                            |  |       |    |   |      |          | 4  |            |  |   | 4   |  
|Other                                                    |  |       | (10 | ) |      |          | 8  |            |  |   | (2  | )
|                                                         |  |       |     |   |      |          |    |            | 
|Increase (decrease) in operating and maintenance expense |  | $     | (55 | ) |      | $        | 9  |            |  | $ | (46 | )
|                                                         |  |       |     |   |      |          |    |            | 






|    |  |                                                                                                                                                                                                                                                                                                           
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Consists of salary continuance severance costs, curtailment
    charges for pension and other postretirement benefits, and
    special termination benefit charges related to other
    postretirement benefits. The decrease reflects reduced
    severance-related activity in 2005 as compared to 2004.
|   
|(b) |  | Pension expense in 2005 is lower than in 2004 due in large part
    to significant pension plan contributions made in the first
    quarter of 2005. See Note 9 of the Combined Notes to
    Consolidated Financial Statements for additional information.                                                

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|    |  |                                                                                                                                                                                                                                                                                                                                                                  
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) |  | Excludes severance-related expenses and pension expense.
    Reflects fewer employees compared to prior year and an
    adjustment in 2005 related to medical plan fees.                                                                                                                                                                                         
|   
|(d) |  | The increase was primarily due to increases in vegetation
    management services compared to the prior year at ComEd and PECO
    and consulting services at ComEd related to various regulatory
    proceedings. See Note 5 of the Combined Notes to
    Consolidated Financial Statements for additional information
    regarding the regulatory proceedings.
|   
|(e) |  | The increase in injuries and damages at PECO resulted from an
    annual actuarial study performed in the third quarter of 2005.                                                                                                                                                                                                                                 

Depreciation and Amortization Expense.


|                                                             |  |       |     |   |      |          |    |            |  |   |     |  
|------------------------------------------------------------ |  | ----- | --- | - | ---- | -------- | -- | ---------- |  | - | --- | -
|                                                             |  |       |     |   |      | Total    |   
|                                                             |  |       |     |   |      | Increase |   
|                                                             |  | ComEd |     |   | PECO |          |    | (Decrease) | 
|                                                             |  |       |     |   |      |          |    |            | 
|Recoverable transition costs/ CTC amortization               |  | $     | (1  | ) |      | $        | 29 |            |  | $ | 28  |  
|Depreciation expense                                         |  |       | 12  |   |      |          | 2  |            |  |   | 14  |  
|Accelerated amortization of PECO billing system              |  |       |    |   |      |          | 9  |            |  |   | 9   |  
|Other amortization expense                                   |  |       | (12 | ) |      |          | (4 | )          |  |   | (16 | )
|                                                             |  |       |     |   |      |          |    |            | 
|Increase (decrease) in depreciation and amortization expense |  | $     | (1  | ) |      | $        | 36 |            |  | $ | 35  |  
|                                                             |  |       |     |   |      |          |    |            | 











Taxes Other Than Income.


|                                                |  |       |    |   |      |          |    |            |  |   |    |  
|----------------------------------------------- |  | ----- | -- | - | ---- | -------- | -- | ---------- |  | - | -- | -
|                                                |  |       |    |   |      | Total    |   
|                                                |  |       |    |   |      | Increase |   
|                                                |  | ComEd |    |   | PECO |          |    | (Decrease) | 
|                                                |  |       |    |   |      |          |    |            | 
|Taxes on utility revenues(a)                    |  | $     | 8  |   |      | $        | 17 |            |  | $ | 25 |  
|Tax refund(b)                                   |  |       | 8  |   |      |          |   |            |  |   | 8  |  
|Reduction in real estate tax accrual in 2005(c) |  |       |   |   |      |          | (6 | )          |  |   | (6 | )
|Other                                           |  |       | (3 | ) |      |          | (3 | )          |  |   | (6 | )
|                                                |  |       |    |   |      |          |    |            | 
|Increase in taxes other than income             |  | $     | 13 |   |      | $        | 8  |            |  | $ | 21 |  
|                                                |  |       |    |   |      |          |    |            | 

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|    |  |                                                                                                                                                                                                                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | As these taxes were collected from customers and remitted to the
    taxing authorities and included in revenues and expenses, the
    increase in taxes expense was offset by a corresponding increase
    in revenues.                                                                       
|   
|(b) |  | During 2004 a refund was received for Illinois electricity
    distribution taxes.                                                                                                                                                                                                             
|   
|(c) |  | Represents a $6 million 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 the
    Financial Statements for additional information.

Interest Expense.


Equity in Losses of Unconsolidated Affiliates.


Net Loss on Extinguishment of Long-Term Debt.


Other, Net.


|                                                         |  |       |     |   |      |          |   |            |  |   |     |  
|-------------------------------------------------------- |  | ----- | --- | - | ---- | -------- | - | ---------- |  | - | --- | -
|                                                         |  |       |     |   |      | Total    |  
|                                                         |  |       |     |   |      | Increase |  
|                                                         |  | ComEd |     |   | PECO |          |   | (Decrease) | 
|                                                         |  |       |     |   |      |          |   |            | 
|Loss on settlement of cash-flow swaps(a)                 |  | $     | (15 | ) |      | $        |  |            |  | $ | (15 | )
|Interest income on long-term receivable from UII, LLC(b) |  |       | (13 | ) |      |          |  |            |  |   | (13 | )
|Gain on disposition of assets and investment, net        |  |       | 3   |   |      |          | 1 |            |  |   | 4   |  
|Other                                                    |  |       | 6   |   |      |          | 2 |            |  |   | 8   |  
|                                                         |  |       |     |   |      |          |   |            | 
|Increase (decrease) in other, net                        |  | $     | (19 | ) |      | $        | 3 |            |  | $ | (16 | )
|                                                         |  |       |     |   |      |          |   |            | 






|    |  |                                                                                                                                       
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Note 17 of the Combined Notes to Consolidated Financial
    Statements for further information.                                   
|   
|(b) |  | The decrease in interest income on the long-term receivable from
    UII, LLC resulted from this receivable being repaid in late 2004.

Income Taxes.




114



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| |                                                            
| | -----------------------------------------------------------
| | Energy Delivery Operating Statistics and Revenue
    Detail



|                                        |                             |               |        |        |      |  |        |          |  |  |          |        |   |  |       |      |   
|--------------------------------------- | --------------------------- | ------------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ------ | - |  | ----- | ---- | --
|                                        |                             | Nine Months   |        |        |      |  |       
|                                        |                             | Ended         |        |        |      |  |       
|                                        |                             | September 30, |        |        |      |  |       
|                                        |                             |               |        |        |      |  |       
|Retail Deliveries  (GWhs)(a)           |                             | 2005          |        |        | 2004 |  |        | Variance |  |  | % Change |       
|                                        |                             |               |        |        |      |  |        |          |  |  |          |       
|Full service(b)                         |                             |               |        |        |      |  |        |          |  |  |          |        |   |  |       |     
|Residential                             |                             |               | 33,223 |        |      |  | 28,162 |          |  |  | 5,061    |        |   |  | 18.0  | %   
|Small commercial & industrial           |                             |               | 21,720 |        |      |  | 21,465 |          |  |  | 255      |        |   |  | 1.2   | %   
|Large commercial & industrial           |                             |               | 17,336 |        |      |  | 16,278 |          |  |  | 1,058    |        |   |  | 6.5   | %   
|Public authorities & electric railroads |                             |               | 2,201  |        |      |  | 2,528  |          |  |  | (327     | )      |   |  | (12.9 | )%  
|                                        |                             |               |        |        |      |  |        |          |  |  |          |       
|                                        | Total full service          |               |        | 74,480 |      |  |        | 68,433   |  |  |          | 6,047  |   |  |       | 8.8  | % 
|                                        |                             |               |        |        |      |  |        |          |  |  |          |       
|PPO (ComEd only)                        |                             |               |        |        |      |  |        |          |  |  |          |        |   |  |       |     
|Small commercial & industrial           |                             |               | 4,126  |        |      |  | 3,189  |          |  |  | 937      |        |   |  | 29.4  | %   
|Large commercial & industrial           |                             |               | 4,642  |        |      |  | 3,822  |          |  |  | 820      |        |   |  | 21.5  | %   
|                                        |                             |               |        |        |      |  |        |          |  |  |          |       
|                                        |                             |               | 8,768  |        |      |  | 7,011  |          |  |  | 1,757    |        |   |  | 25.1  | %   
|                                        |                             |               |        |        |      |  |        |          |  |  |          |       
|Delivery only(c)                        |                             |               |        |        |      |  |        |          |  |  |          |        |   |  |       |     
|Residential                             |                             |               | 273    |        |      |  | 1,706  |          |  |  | (1,433   | )      |   |  | (84.0 | )%  
|Small commercial & industrial           |                             |               | 5,592  |        |      |  | 5,990  |          |  |  | (398     | )      |   |  | (6.6  | )%  
|Large commercial & industrial           |                             |               | 10,700 |        |      |  | 11,667 |          |  |  | (967     | )      |   |  | (8.3  | )%  
|                                        |                             |               |        |        |      |  |        |          |  |  |          |       
|                                        |                             |               | 16,565 |        |      |  | 19,363 |          |  |  | (2,798   | )      |   |  | (14.5 | )%  
|                                        |                             |               |        |        |      |  |        |          |  |  |          |       
|                                        | Total PPO and delivery only |               |        | 25,333 |      |  |        | 26,374   |  |  |          | (1,041 | ) |  |       | (3.9 | )%
|                                        |                             |               |        |        |      |  |        |          |  |  |          |       
|Total retail deliveries                 |                             |               | 99,813 |        |      |  | 94,807 |          |  |  | 5,006    |        |   |  | 5.3   | %   
|                                        |                             |               |        |        |      |  |        |          |  |  |          |       






|    |  |                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------
|(a) |  | One GWh is the equivalent of one million kilowatthours (kWh).                                                             
|   
|(b) |  | Full service reflects deliveries to customers taking generation
    service under tariffed rates.                         
|   
|(c) |  | Delivery only service reflects customers electing to receive
    generation service from an alternative electric supplier.

115



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|                                        |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |      |   
|--------------------------------------- | -------------------------------------- | ------------- | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | --- | - |  | ----- | ---- | --
|                                        |                                        | Nine Months   |       |       |      |   |      
|                                        |                                        | Ended         |       |       |      |   |      
|                                        |                                        | September 30, |       |       |      |   |      
|                                        |                                        |               |       |       |      |   |      
|Electric Revenue                        |                                        | 2005          |       |       | 2004 |   |       | Variance |  |   | % Change |    
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        | $             | 3,349 |       |      | $ | 2,801 |          |  | $ | 548      |     |   |  | 19.6  | %   
|Small commercial & industrial           |                                        |               | 1,919 |       |      |   | 1,845 |          |  |   | 74       |     |   |  | 4.0   | %   
|Large commercial & industrial           |                                        |               | 1,179 |       |      |   | 1,126 |          |  |   | 53       |     |   |  | 4.7   | %   
|Public authorities & electric railroads |                                        |               | 155   |       |      |   | 179   |          |  |   | (24      | )   |   |  | (13.4 | )%  
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service                     |               |       | 6,602 |      |   |       | 5,951    |  |   |          | 651 |   |  |       | 10.9 | % 
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|PPO (ComEd only)(b)                     |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Small commercial & industrial           |                                        |               | 285   |       |      |   | 213   |          |  |   | 72       |     |   |  | 33.8  | %   
|Large commercial & industrial           |                                        |               | 265   |       |      |   | 221   |          |  |   | 44       |     |   |  | 19.9  | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |               | 550   |       |      |   | 434   |          |  |   | 116      |     |   |  | 26.7  | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Delivery only(c)                        |                                        |               |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        |               | 21    |       |      |   | 131   |          |  |   | (110     | )   |   |  | (84.0 | )%  
|Small commercial & industrial           |                                        |               | 130   |       |      |   | 165   |          |  |   | (35      | )   |   |  | (21.2 | )%  
|Large commercial & industrial           |                                        |               | 131   |       |      |   | 169   |          |  |   | (38      | )   |   |  | (22.5 | )%  
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |               | 282   |       |      |   | 465   |          |  |   | (183     | )   |   |  | (39.4 | )%  
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total PPO and delivery only            |               |       | 832   |      |   |       | 899      |  |   |          | (67 | ) |  |       | (7.5 | )%
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                                        |               | 7,434 |       |      |   | 6,850 |          |  |   | 584      |     |   |  | 8.5   | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Wholesale and miscellaneous revenue(d) |               |       | 521   |      |   |       | 480      |  |   |          | 41  |   |  |       | 8.5  | % 
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Total electric and other revenue        |                                        | $             | 7,955 |       |      | $ | 7,330 |          |  | $ | 625      |     |   |  | 8.5   | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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. PECOs tariffed rates also include a CTC. See
    Note 5 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K for
    further information regarding CTC.
|   
|(c) |  | Revenues from customers choosing ComEds PPO include an
    energy charge at market rates, transmission and distribution
    charges and a CTC.                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(d) |  | Delivery only revenue reflects revenue under tariffed rates from
    customers electing to receive generation service from an
    alternative electric supplier, which rates include a
    distribution charge and a CTC. Prior to ComEds full
    integration into PJM on May 1, 2004, ComEds
    transmission charges received from alternative electric
    suppliers were included in wholesale and miscellaneous revenue.                                                                                                                                                
|   
|(d) |  | Wholesale and miscellaneous revenues include transmission
    revenue (including revenue from PJM), sales to municipalities
    and other wholesale energy sales.                                                                                                                                                                                                                                                                                                                                                                                                               

116



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



|                                        |                             |               |        |        |      |  |        |          |  |  |          |       |  |  |       |     |  
|--------------------------------------- | --------------------------- | ------------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ----- |  |  | ----- | --- | -
|                                        |                             | Nine Months   |        |        |      |  |       
|                                        |                             | Ended         |        |        |      |  |       
|                                        |                             | September 30, |        |        |      |  |       
|                                        |                             |               |        |        |      |  |       
|Retail Deliveries  (in GWhs)           |                             | 2005          |        |        | 2004 |  |        | Variance |  |  | % Change |      
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|Full service(a)                         |                             |               |        |        |      |  |        |          |  |  |          |       |  |  |       |    
|Residential                             |                             |               | 23,193 |        |      |  | 20,240 |          |  |  | 2,953    |       |  |  | 14.6  | %  
|Small commercial & industrial           |                             |               | 16,083 |        |      |  | 16,305 |          |  |  | (222     | )     |  |  | (1.4  | )% 
|Large commercial & industrial           |                             |               | 5,907  |        |      |  | 5,008  |          |  |  | 899      |       |  |  | 18.0  | %  
|Public authorities & electric railroads |                             |               | 1,548  |        |      |  | 1,842  |          |  |  | (294     | )     |  |  | (16.0 | )% 
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        | Total full service          |               |        | 46,731 |      |  |        | 43,395   |  |  |          | 3,336 |  |  |       | 7.7 | %
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|PPO                                     |                             |               |        |        |      |  |        |          |  |  |          |       |  |  |       |    
|Small commercial & industrial           |                             |               | 4,126  |        |      |  | 3,189  |          |  |  | 937      |       |  |  | 29.4  | %  
|Large commercial & industrial           |                             |               | 4,642  |        |      |  | 3,822  |          |  |  | 820      |       |  |  | 21.5  | %  
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        |                             |               | 8,768  |        |      |  | 7,011  |          |  |  | 1,757    |       |  |  | 25.1  | %  
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|Delivery only(b)                        |                             |               |        |        |      |  |        |          |  |  |          |       |  |  |       |    
|Small commercial & industrial           |                             |               | 4,554  |        |      |  | 4,689  |          |  |  | (135     | )     |  |  | (2.9  | )% 
|Large commercial & industrial           |                             |               | 10,273 |        |      |  | 11,098 |          |  |  | (825     | )     |  |  | (7.4  | )% 
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        |                             |               | 14,827 |        |      |  | 15,787 |          |  |  | (960     | )     |  |  | (6.1  | )% 
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|                                        | Total PPO and delivery only |               |        | 23,595 |      |  |        | 22,798   |  |  |          | 797   |  |  |       | 3.5 | %
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      
|Total retail deliveries                 |                             |               | 70,326 |        |      |  | 66,193 |          |  |  | 4,133    |       |  |  | 6.2   | %  
|                                        |                             |               |        |        |      |  |        |          |  |  |          |      






|    |  |                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------
|(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.

117



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|                                        |                                        |               |       |       |      |   |       |          |  |   |          |     |  |  |       |      |  
|--------------------------------------- | -------------------------------------- | ------------- | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | --- |  |  | ----- | ---- | -
|                                        |                                        | Nine Months   |       |       |      |   |      
|                                        |                                        | Ended         |       |       |      |   |      
|                                        |                                        | September 30, |       |       |      |   |      
|                                        |                                        |               |       |       |      |   |      
|Electric Revenue                        |                                        | 2005          |       |       | 2004 |   |       | Variance |  |   | % Change |    
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                                        |               |       |       |      |   |       |          |  |   |          |     |  |  |       |     
|Residential                             |                                        | $             | 2,027 |       |      | $ | 1,780 |          |  | $ | 247      |     |  |  | 13.9  | %   
|Small commercial & industrial           |                                        |               | 1,276 |       |      |   | 1,258 |          |  |   | 18       |     |  |  | 1.4   | %   
|Large commercial & industrial           |                                        |               | 308   |       |      |   | 286   |          |  |   | 22       |     |  |  | 7.7   | %   
|Public authorities & electric railroads |                                        |               | 96    |       |      |   | 119   |          |  |   | (23      | )   |  |  | (19.3 | )%  
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service                     |               |       | 3,707 |      |   |       | 3,443    |  |   |          | 264 |  |  |       | 7.7  | %
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|PPO(b)                                  |                                        |               |       |       |      |   |       |          |  |   |          |     |  |  |       |     
|Small commercial & industrial           |                                        |               | 285   |       |      |   | 213   |          |  |   | 72       |     |  |  | 33.8  | %   
|Large commercial & industrial           |                                        |               | 265   |       |      |   | 221   |          |  |   | 44       |     |  |  | 19.9  | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |               | 550   |       |      |   | 434   |          |  |   | 116      |     |  |  | 26.7  | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Delivery only(c)                        |                                        |               |       |       |      |   |       |          |  |   |          |     |  |  |       |     
|Small commercial & industrial           |                                        |               | 78    |       |      |   | 98    |          |  |   | (20      | )   |  |  | (20.4 | )%  
|Large commercial & industrial           |                                        |               | 120   |       |      |   | 154   |          |  |   | (34      | )   |  |  | (22.1 | )%  
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |               | 198   |       |      |   | 252   |          |  |   | (54      | )   |  |  | (21.4 | )%  
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|                                        | Total PPO and delivery only            |               |       | 748   |      |   |       | 686      |  |   |          | 62  |  |  |       | 9.0  | %
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                                        |               | 4,455 |       |      |   | 4,129 |          |  |   | 326      |     |  |  | 7.9   | %   
|                                        | Wholesale and miscellaneous revenue(d) |               |       | 367   |      |   |       | 329      |  |   |          | 38  |  |  |       | 11.6 | %
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    
|Total operating revenues                |                                        | $             | 4,822 |       |      | $ | 4,458 |          |  | $ | 364      |     |  |  | 8.2   | %   
|                                        |                                        |               |       |       |      |   |       |          |  |   |          |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 tariffed rates from
    customers electing to receive generation service from an
    alternative electric supplier, which includes a distribution
    charge and a CTC. Prior to ComEds full integration into
    PJM on May 1, 2004, ComEds transmission charges
    received from alternative electric suppliers were included in
    wholesale and miscellaneous revenue.
|   
|(d) |  | Wholesale and miscellaneous revenues include transmission
    revenue (including revenue from PJM), sales to municipalities
    and other wholesale energy sales.                                                                                                                                                                                                                                                          

118



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



|                                        |                     |               |        |        |      |  |        |          |  |  |          |        |   |  |       |       |   
|--------------------------------------- | ------------------- | ------------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ------ | - |  | ----- | ----- | --
|                                        |                     | Nine Months   |        |        |      |  |       
|                                        |                     | Ended         |        |        |      |  |       
|                                        |                     | September 30, |        |        |      |  |       
|                                        |                     |               |        |        |      |  |       
|Retail Deliveries  (in GWhs)           |                     | 2005          |        |        | 2004 |  |        | Variance |  |  | % Change |       
|                                        |                     |               |        |        |      |  |        |          |  |  |          |       
|Full service(a)                         |                     |               |        |        |      |  |        |          |  |  |          |        |   |  |       |      
|Residential                             |                     |               | 10,030 |        |      |  | 7,922  |          |  |  | 2,108    |        |   |  | 26.6  | %    
|Small commercial & industrial           |                     |               | 5,637  |        |      |  | 5,160  |          |  |  | 477      |        |   |  | 9.2   | %    
|Large commercial & industrial           |                     |               | 11,429 |        |      |  | 11,270 |          |  |  | 159      |        |   |  | 1.4   | %    
|Public authorities & electric railroads |                     |               | 653    |        |      |  | 686    |          |  |  | (33      | )      |   |  | (4.8  | )%   
|                                        |                     |               |        |        |      |  |        |          |  |  |          |       
|                                        | Total full service  |               |        | 27,749 |      |  |        | 25,038   |  |  |          | 2,711  |   |  |       | 10.8  | % 
|                                        |                     |               |        |        |      |  |        |          |  |  |          |       
|Delivery only(b)                        |                     |               |        |        |      |  |        |          |  |  |          |        |   |  |       |      
|Residential                             |                     |               | 273    |        |      |  | 1,706  |          |  |  | (1,433   | )      |   |  | (84.0 | )%   
|Small commercial & industrial           |                     |               | 1,038  |        |      |  | 1,301  |          |  |  | (263     | )      |   |  | (20.2 | )%   
|Large commercial & industrial           |                     |               | 427    |        |      |  | 569    |          |  |  | (142     | )      |   |  | (25.0 | )%   
|                                        |                     |               |        |        |      |  |        |          |  |  |          |       
|                                        | Total delivery only |               |        | 1,738  |      |  |        | 3,576    |  |  |          | (1,838 | ) |  |       | (51.4 | )%
|                                        |                     |               |        |        |      |  |        |          |  |  |          |       
|Total retail deliveries                 |                     |               | 29,487 |        |      |  | 28,614 |          |  |  | 873      |        |   |  | 3.1   | %    
|                                        |                     |               |        |        |      |  |        |          |  |  |          |       






|    |  |                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------
|(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.

|                                        |                     |               |       |       |      |   |       |          |  |   |          |      |   |  |       |       |   
|--------------------------------------- | ------------------- | ------------- | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | ---- | - |  | ----- | ----- | --
|                                        |                     | Nine Months   |       |       |      |   |      
|                                        |                     | Ended         |       |       |      |   |      
|                                        |                     | September 30, |       |       |      |   |      
|                                        |                     |               |       |       |      |   |      
|Electric Revenue                        |                     | 2005          |       |       | 2004 |   |       | Variance |  |   | % Change |     
|                                        |                     |               |       |       |      |   |       |          |  |   |          |     
|Full service(a)                         |                     |               |       |       |      |   |       |          |  |   |          |      |   |  |       |      
|Residential                             |                     | $             | 1,322 |       |      | $ | 1,021 |          |  | $ | 301      |      |   |  | 29.5  | %    
|Small commercial & industrial           |                     |               | 643   |       |      |   | 587   |          |  |   | 56       |      |   |  | 9.5   | %    
|Large commercial & industrial           |                     |               | 871   |       |      |   | 840   |          |  |   | 31       |      |   |  | 3.7   | %    
|Public authorities & electric railroads |                     |               | 59    |       |      |   | 60    |          |  |   | (1       | )    |   |  | (1.7  | )%   
|                                        |                     |               |       |       |      |   |       |          |  |   |          |     
|                                        | Total full service  |               |       | 2,895 |      |   |       | 2,508    |  |   |          | 387  |   |  |       | 15.4  | % 
|                                        |                     |               |       |       |      |   |       |          |  |   |          |     
|Delivery only(b)                        |                     |               |       |       |      |   |       |          |  |   |          |      |   |  |       |      
|Residential                             |                     |               | 21    |       |      |   | 131   |          |  |   | (110     | )    |   |  | (84.0 | )%   
|Small commercial & industrial           |                     |               | 52    |       |      |   | 67    |          |  |   | (15      | )    |   |  | (22.4 | )%   
|Large commercial & industrial           |                     |               | 11    |       |      |   | 15    |          |  |   | (4       | )    |   |  | (26.7 | )%   
|                                        |                     |               |       |       |      |   |       |          |  |   |          |     
|                                        | Total delivery only |               |       | 84    |      |   |       | 213      |  |   |          | (129 | ) |  |       | (60.6 | )%
|                                        |                     |               |       |       |      |   |       |          |  |   |          |     
|Total electric retail revenues          |                     |               | 2,979 |       |      |   | 2,721 |          |  |   | 258      |      |   |  | 9.5   | %    
|Wholesale and miscellaneous revenue(c)  |                     |               | 154   |       |      |   | 151   |          |  |   | 3        |      |   |  | 2.0   | %    
|                                        |                     |               |       |       |      |   |       |          |  |   |          |     
|Total electric and other revenue        |                     | $             | 3,133 |       |      | $ | 2,872 |          |  | $ | 261      |      |   |  | 9.1   | %    
|                                        |                     |               |       |       |      |   |       |          |  |   |          |     






|    |  |                                                                                                                                                                                                                             
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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) |  | Wholesale and miscellaneous revenues include transmission
    revenue from PJM and other wholesale energy sales.                                                                                                            

119



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##### Table of Contents





| |                                                                         
| | ------------------------------------------------------------------------
| | Energy Deliverys and PECOs Gas Sales
    Statistics and Revenue Detail



|                                                       |  |               |        |  |      |  |        |          |  |  |          |   |  |  |      |   
|------------------------------------------------------ |  | ------------- | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ---- | --
|                                                       |  | Nine Months   |        |  |      |  |       
|                                                       |  | Ended         |        |  |      |  |       
|                                                       |  | September 30, |        |  |      |  |       
|                                                       |  |               |        |  |      |  |       
|Deliveries to customers (in million cubic feet (mmcf)) |  | 2005          |        |  | 2004 |  |        | Variance |  |  | % Change |  
|                                                       |  |               |        |  |      |  |        |          |  |  |          |  
|Retail sales                                           |  |               | 41,318 |  |      |  | 41,831 |          |  |  | (513     | ) |  |  | (1.2 | )%
|Transportation                                         |  |               | 19,319 |  |      |  | 19,709 |          |  |  | (390     | ) |  |  | (2.0 | )%
|                                                       |  |               |        |  |      |  |        |          |  |  |          |   |  |  |      |   
|Total                                                  |  |               | 60,637 |  |      |  | 61,540 |          |  |  | (903     | ) |  |  | (1.5 | )%
|                                                       |  |               |        |  |      |  |        |          |  |  |          |   |  |  |      |   

|                  |  |               |     |  |      |   |     |          |  |   |          |   |  |  |       |   
|----------------- |  | ------------- | --- |  | ---- | - | --- | -------- |  | - | -------- | - |  |  | ----- | --
|                  |  | Nine Months   |     |  |      |   |    
|                  |  | Ended         |     |  |      |   |    
|                  |  | September 30, |     |  |      |   |    
|                  |  |               |     |  |      |   |    
|Revenue           |  | 2005          |     |  | 2004 |   |     | Variance |  |   | % Change |  
|                  |  |               |     |  |      |   |     |          |  |   |          |  
|Retail sales      |  | $             | 503 |  |      | $ | 485 |          |  | $ | 18       |   |  |  | 3.7   | % 
|Transportation    |  |               | 12  |  |      |   | 13  |          |  |   | (1       | ) |  |  | (7.7  | )%
|Resales and other |  |               | 13  |  |      |   | 25  |          |  |   | (12      | ) |  |  | (48.0 | )%
|                  |  |               |     |  |      |   |     |          |  |   |          |  
|Total gas revenue |  | $             | 528 |  |      | $ | 523 |          |  | $ | 5        |   |  |  | 1.0   | % 
|                  |  |               |     |  |      |   |     |          |  |   |          |  

120



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

|                                                                                               |                                                          |                                            |       |       |           |   |       |               |       |   |      |      |      |  
|---------------------------------------------------------------------------------------------- | -------------------------------------------------------- | ------------------------------------------ | ----- | ----- | --------- | - | ----- | ------------- | ----- | - | ---- | ---- | ---- | -
|                                                                                               |                                                          | Nine Months                                |       |       |          
|                                                                                               |                                                          | Ended                                      |       |       |          
|                                                                                               |                                                          | September 30,                              |       |       |          
|                                                                                               |                                                          |                                            |       |       | Favorable |  
|                                                                                               |                                                          | 2005                                       |       |       | 2004      |   |       | (Unfavorable) |      
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|Operating revenues                                                                             |                                                          | $                                          | 6,836 |       |           | $ | 5,978 |               |       | $ | 858  |     
|Operating expenses                                                                             |                                                          |                                            |       |       |           |   |       |               |       |   |      |     
|                                                                                               | Purchased power                                          |                                            |       | 2,014 |           |   |       | 1,863         |       |   |      | (151 | )   
|                                                                                               | Fuel                                                     |                                            |       | 1,227 |           |   |       | 1,276         |       |   |      | 49   |     
|                                                                                               | Operating and maintenance                                |                                            |       | 1,748 |           |   |       | 1,605         |       |   |      | (143 | )   
|                                                                                               | Depreciation and amortization                            |                                            |       | 188   |           |   |       | 212           |       |   |      | 24   |     
|                                                                                               | Taxes other than income                                  |                                            |       | 122   |           |   |       | 134           |       |   |      | 12   |     
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|                                                                                               |                                                          | Total operating expenses                   |       |       | 5,299     |   |       |               | 5,090 |   |      |      | (209 | )
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|Operating income                                                                               |                                                          |                                            | 1,537 |       |           |   | 888   |               |       |   | 649  |     
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|Other income and deductions                                                                    |                                                          |                                            |       |       |           |   |       |               |       |   |      |     
|                                                                                               | Interest expense                                         |                                            |       | (91   | )         |   |       | (79           | )     |   |      | (12  | )   
|                                                                                               | Equity in earnings (losses) of unconsolidated affiliates |                                            |       | 2     |           |   |       | (7            | )     |   |      | 9    |     
|                                                                                               | Other, net                                               |                                            |       | 82    |           |   |       | 118           |       |   |      | (36  | )   
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|                                                                                               |                                                          | Total other income and deductions          |       |       | (7        | ) |       |               | 32    |   |      |      | (39  | )
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|Income from continuing operations before income taxes and
    minority interest                |                                                          |                                            | 1,530 |       |           |   | 920   |               |       |   | 610  |     
|Income taxes                                                                                   |                                                          |                                            | 595   |       |           |   | 352   |               |       |   | (243 | )   
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|Income from continuing operations before minority interest                                     |                                                          |                                            | 935   |       |           |   | 568   |               |       |   | 367  |     
|Minority interest                                                                              |                                                          |                                            |      |       |           |   | 3     |               |       |   | (3   | )   
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|Income from continuing operations                                                              |                                                          |                                            | 935   |       |           |   | 571   |               |       |   | 364  |     
|Discontinued operations                                                                        |                                                          |                                            |       |       |           |   |       |               |       |   |      |     
|                                                                                               | Loss from discontinued operations                        |                                            |       | (1    | )         |   |       | (13           | )     |   |      | 12   |     
|                                                                                               | Gain on disposal of discontinued operations              |                                            |       | 21    |           |   |       |              |       |   |      | 21   |     
|                                                                                               | Income taxes                                             |                                            |       | 4     |           |   |       | (9            | )     |   |      | (13  | )   
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|                                                                                               |                                                          | Income (loss) from discontinued operations |       |       | 16        |   |       |               | (4    | ) |      |      | 20   |  
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|Income before cumulative effect of a change in accounting
    principle                        |                                                          |                                            | 951   |       |           |   | 567   |               |       |   | 384  |     
|Cumulative effect of a change in accounting principle (net of
    income taxes of $22 million) |                                                          |                                            |      |       |           |   | 32    |               |       |   | (32  | )   
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      
|Net income                                                                                     |                                                          | $                                          | 951   |       |           | $ | 599   |               |       | $ | 352  |     
|                                                                                               |                                                          |                                            |       |       |           |   |       |               |      

121



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Operating Revenues.


|                                    |  |               |       |  |      |   |       |          |  |   |          |   |  |  |      |   
|----------------------------------- |  | ------------- | ----- |  | ---- | - | ----- | -------- |  | - | -------- | - |  |  | ---- | --
|                                    |  | Nine Months   |       |  |      |   |      
|                                    |  | Ended         |       |  |      |   |      
|                                    |  | September 30, |       |  |      |   |      
|                                    |  |               |       |  |      |   |      
|Revenue                             |  | 2005          |       |  | 2004 |   |       | Variance |  |   | % Change |  
|                                    |  |               |       |  |      |   |       |          |  |   |          |  
|Electric sales to affiliates        |  | $             | 3,735 |  |      | $ | 2,924 |          |  | $ | 811      |   |  |  | 27.7 | % 
|Wholesale and retail electric sales |  |               | 2,481 |  |      |   | 2,501 |          |  |   | (20      | ) |  |  | (0.8 | )%
|                                    |  |               |       |  |      |   |       |          |  |   |          |  
|Total energy sales revenue          |  |               | 6,216 |  |      |   | 5,425 |          |  |   | 791      |   |  |  | 14.6 | % 
|                                    |  |               |       |  |      |   |       |          |  |   |          |  
|Retail gas sales                    |  |               | 361   |  |      |   | 308   |          |  |   | 53       |   |  |  | 17.2 | % 
|Trading portfolio                   |  |               | 13    |  |      |   | (2    | )        |  |   | 15       |   |  |  | n.m. |   
|Other revenue(a)                    |  |               | 246   |  |      |   | 247   |          |  |   | (1       | ) |  |  | (0.4 | )%
|                                    |  |               |       |  |      |   |       |          |  |   |          |  
|Total revenue                       |  | $             | 6,836 |  |      | $ | 5,978 |          |  | $ | 858      |   |  |  | 14.4 | % 
|                                    |  |               |       |  |      |   |       |          |  |   |          |  






|     |  |                                                                                                                       
|---- |  | ----------------------------------------------------------------------------------------------------------------------
|(a)  |  | Includes sales related to tolling agreements, fossil fuel sales
    and decommissioning revenues from Energy Delivery.
|    
|n.m. |  | not meaningful.                                                                                                       

|                                    |  |               |         |  |      |  |         |          |  |  |          |   |  |  |       |   
|----------------------------------- |  | ------------- | ------- |  | ---- |  | ------- | -------- |  |  | -------- | - |  |  | ----- | --
|                                    |  | Nine Months   |         |  |      |  |        
|                                    |  | Ended         |         |  |      |  |        
|                                    |  | September 30, |         |  |      |  |        
|                                    |  |               |         |  |      |  |        
|Sales (in GWhs)                     |  | 2005          |         |  | 2004 |  |         | Variance |  |  | % Change |  
|                                    |  |               |         |  |      |  |         |          |  |  |          |  
|Electric sales to affiliates        |  |               | 92,808  |  |      |  | 83,637  |          |  |  | 9,171    |   |  |  | 11.0  | % 
|Wholesale and retail electric sales |  |               | 54,945  |  |      |  | 70,853  |          |  |  | (15,908  | ) |  |  | (22.5 | )%
|                                    |  |               |         |  |      |  |         |          |  |  |          |  
|Total sales                         |  |               | 147,753 |  |      |  | 154,490 |          |  |  | (6,737   | ) |  |  | (4.4  | )%
|                                    |  |               |         |  |      |  |         |          |  |  |          |  



Electric sales to affiliates.


Wholesale and retail electric sales.


|                                                |  |            |      |  
|----------------------------------------------- |  | ---------- | ---- | -
|                                                |  | Increase   |     
|                                                |  | (Decrease) |     
|                                                |  |            |     
|Price                                           |  | $          | 436  |  
|Volume                                          |  |            | (217 | )
|Sale of Boston Generating(a)                    |  |            | (239 | )
|                                                |  |            |     
|Decrease in wholesale and retail electric sales |  | $          | (20  | )
|                                                |  |            |     






|    |  |                                                                                       
|--- |  | --------------------------------------------------------------------------------------
|(a) |  | Sales of Boston Generating of $9 million were included in
    other revenues for 2004.



122



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Retail gas sales.


Other revenues.


Purchased Power and Fuel Expense.


|                                       |  |               |         |  |      |  |         |          |  |  |          |   |  |  |       |   
|-------------------------------------- |  | ------------- | ------- |  | ---- |  | ------- | -------- |  |  | -------- | - |  |  | ----- | --
|                                       |  | Nine Months   |         |  |      |  |        
|                                       |  | Ended         |         |  |      |  |        
|                                       |  | September 30, |         |  |      |  |        
|                                       |  |               |         |  |      |  |        
|Supply Source (in GWhs)                |  | 2005          |         |  | 2004 |  |         | Variance |  |  | % Change |  
|                                       |  |               |         |  |      |  |         |          |  |  |          |  
|Nuclear generation                     |  |               | 103,049 |  |      |  | 102,968 |          |  |  | 81       |   |  |  | 0.1   | % 
|Purchases  non-trading portfolio      |  |               | 34,000  |  |      |  | 37,158  |          |  |  | (3,158   | ) |  |  | (8.5  | )%
|Fossil and hydroelectric generation(a) |  |               | 10,704  |  |      |  | 14,364  |          |  |  | (3,660   | ) |  |  | (25.5 | )%
|                                       |  |               |         |  |      |  |         |          |  |  |          |  
|Total supply                           |  |               | 147,753 |  |      |  | 154,490 |          |  |  | (6,737   | ) |  |  | (4.4  | )%
|                                       |  |               |         |  |      |  |         |          |  |  |          |  






|    |  |                                                                                                                                                                 
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Fossil and hydroelectric supply mix changed 4,978 GWhs as a
    result of decreased fossil fuel generation due to the sale of
    Boston Generating in May 2004.



|                                              |  |            |      |  
|--------------------------------------------- |  | ---------- | ---- | -
|                                              |  | Increase   |     
|                                              |  | (Decrease) |     
|                                              |  |            |     
|Price                                         |  | $          | 482  |  
|Boston Generating                             |  |            | (226 | )
|Mark-to-market adjustments on economic hedges |  |            | (87  | )
|Volume                                        |  |            | (19  | )
|Other                                         |  |            | (48  | )
|                                              |  |            |     
|Increase in purchased power and fuel expense  |  | $          | 102  |  
|                                              |  |            |     

Price.


Boston Generating.


Economic hedges.


123



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Volume.


Other.




|                                                                      |                                         |               |       |       |      |   |       |          |  |  |      |      |  
|--------------------------------------------------------------------- | --------------------------------------- | ------------- | ----- | ----- | ---- | - | ----- | -------- |  |  | ---- | ---- | -
|                                                                      |                                         | Nine Months   |       |       |     
|                                                                      |                                         | Ended         |       |       |     
|                                                                      |                                         | September 30, |       |       |     
|                                                                      |                                         |               |       |       |     
|($/MWh)                                                               |                                         | 2005          |       |       | 2004 |   |       | % Change | 
|                                                                      |                                         |               |       |       |      |   |       |          | 
|Average electric revenue                                              |                                         |               |       |       |      |   |       |          |  |  |      |     
|                                                                      | Electric sales to affiliates(a)         |               | $     | 40.24 |      |   | $     | 34.96    |  |  |      | 15.1 | %
|                                                                      | Wholesale and retail electric sales     |               |       | 45.15 |      |   |       | 35.30    |  |  |      | 27.9 | %
|                                                                      | Total  excluding the trading portfolio |               |       | 42.07 |      |   |       | 35.12    |  |  |      | 19.8 | %
|Average electric supply cost(b)  excluding the
    trading portfolio |                                         | $             | 19.59 |       |      | $ | 18.35 |          |  |  | 6.8  | %   
|Average margin  excluding the trading portfolio                      |                                         | $             | 22.48 |       |      | $ | 16.77 |          |  |  | 34.1 | %   






|    |  |                                                                                                                                                                                                                       
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The increase in $/ MWh is due to the higher prices in 2005
    associated with Generations PPA with ComEd.                                                                                                           
|   
|(b) |  | Average supply cost includes purchased power and fuel costs
    associated with electric sales. Average electric supply cost
    does not include purchased power and fuel costs associated with
    retail gas sales.

Operating and Maintenance Expense.


|                                                                       |  |            |     |  
|---------------------------------------------------------------------- |  | ---------- | --- | -
|                                                                       |  | Increase   |    
|                                                                       |  | (Decrease) |    
|                                                                       |  |            |    
|Boston Generating                                                      |  | $          | (57 | )
|DOE Settlement(a)                                                      |  |            | 52  |  
|Nuclear operating costs                                                |  |            | 48  |  
|Accrual for estimated future asbestos-related bodily injury
    claims |  |            | 43  |  
|Tamuin International                                                   |  |            | 34  |  
|Decommissioning-related activity                                       |  |            | 19  |  
|Other                                                                  |  |            | 4   |  
|                                                                       |  |            |    
|Increase in operating and maintenance expense                          |  | $          | 143 |  
|                                                                       |  |            |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                              
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Note 14 of Exelons Notes to Consolidated
    Financial Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K for a
    full discussion of the spent nuclear fuel storage settlement
    agreement reached with the DOE.



124



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##### Table of Contents







|                                                              |  |               |       |   |      |   |       |  
|------------------------------------------------------------- |  | ------------- | ----- | - | ---- | - | ----- | -
|                                                              |  | Nine Months   |      
|                                                              |  | Ended         |      
|                                                              |  | September 30, |      
|                                                              |  |               |      
|                                                              |  | 2005          |       |   | 2004 |  
|                                                              |  |               |       |   |      |  
|Nuclear fleet capacity factor(a)                              |  |               | 93.5  | % |      |   | 94.1  | %
|Nuclear fleet production cost per MWh(a)                      |  | $             | 12.73 |   |      | $ | 11.99 |  
|Average purchased power cost for wholesale operations per MWh |  | $             | 59.24 |   |      | $ | 50.14 |  






|    |  |                                                                                              
|--- |  | ---------------------------------------------------------------------------------------------
|(a) |  | Excludes Salem, which is operated by Public Service Enterprise
    Group Incorporated (PSEG).





Depreciation and Amortization.


Taxes Other Than Income.


Other, Net.


125



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##### Table of Contents





Effective Income Tax Rate.


Discontinued Operations.


Liquidity and Capital Resources






Cash Flows from Operating Activities




126



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##### Table of Contents





potential consequences
include the following:






|                                                                              |  |                    |        |   |      |   |       |          |  |   |        |  
|----------------------------------------------------------------------------- |  | ------------------ | ------ | - | ---- | - | ----- | -------- |  | - | ------ | -
|                                                                              |  | Nine Months Ended, |        |   |     
|                                                                              |  | September 30,      |        |   |     
|                                                                              |  |                    |        |   |     
|                                                                              |  | 2005               |        |   | 2004 |   |       | Variance | 
|                                                                              |  |                    |        |   |      |   |       |          | 
|Net income                                                                    |  | $                  | 1,760  |   |      | $ | 1,501 |          |  | $ | 259    |  
|Non-cash operating activities(a)                                              |  |                    | 2,105  |   |      |   | 1,774 |          |  |   | 331    |  
|Income taxes                                                                  |  |                    | 257    |   |      |   | 149   |          |  |   | 108    |  
|Changes in working capital and other noncurrent assets and
    liabilities(b) |  |                    | (640   | ) |      |   | (11   | )        |  |   | (629   | )
|Pension contributions and postretirement healthcare benefit
    payments, net |  |                    | (1,893 | ) |      |   | (259  | )        |  |   | (1,634 | )
|                                                                              |  |                    |        |   |      |   |       |          | 
|Net cash flows provided by operations                                         |  | $                  | 1,589  |   |      | $ | 3,154 |          |  | $ | (1,565 | )
|                                                                              |  |                    |        |   |      |   |       |          | 






|    |  |                                                                                                                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Represents depreciation, amortization and accretion, deferred
    income taxes, cumulative effect of a change in accounting
    principle, impairment of investments and long-lived assets 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.                                           

127



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|           |  |               |       |  |      |   |       | 
|---------- |  | ------------- | ----- |  | ---- | - | ----- | 
|           |  | Nine Months   |      
|           |  | Ended         |      
|           |  | September 30, |      
|           |  |               |      
|           |  | 2005          |       |  | 2004 |  
|           |  |               |       |  |      |  
|Exelon     |  | $             | 1,589 |  |      | $ | 3,154 | 
|ComEd      |  |               | 58    |  |      |   | 867   | 
|PECO       |  |               | 600   |  |      |   | 790   | 
|Generation |  |               | 831   |  |      |   | 1,508 | 







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



| |   |                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In January 2005, Exelon received a $102 million Federal
    income tax refund for capital losses generated in 2003 related
    to its investment in Sithe, which were carried back to prior
    periods.



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



| |   |                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In the third quarter of 2005, ComEd settled $325 million of
    interest rate swaps that were designated as cash flow hedges for
    a loss of $15 million which was paid in October 2005. This
    was recorded as a pre-tax charge to net income because the
    underlying transaction for which these interest rate swaps were
    entered into is no longer probable of occurring.
|
| |  | During the third quarter of 2004, ComEd paid $63 million
    for call premiums on the retirement of debt.                                                                                                                                                                                                                                                                              



| |     
| | ----
| | PECO



| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | There were no significant non-recurring operating cash flows
    during the nine months ended September 30, 2005 and 2004.



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



| |   |                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | During the nine months ended September 30, 2005, Generation
    had net payments of counterparty collateral deposits of
    $99 million compared to $59 million of net collections
    of counterparty collateral deposits during the same period in
    2004.

128



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



|           |  |                   |        |   |      |   |        |  
|---------- |  | ----------------- | ------ | - | ---- | - | ------ | -
|           |  | Nine Months Ended |       
|           |  | September 30,     |       
|           |  |                   |       
|           |  | 2005              |        |   | 2004 |  
|           |  |                   |        |   |      |  
|Exelon     |  | $                 | (1,728 | ) |      | $ | (1,207 | )
|ComEd      |  |                   | (286   | ) |      |   | 355    |  
|PECO       |  |                   | (145   | ) |      |   | (189   | )
|Generation |  |                   | (861   | ) |      |   | (732   | )



|                                  |  |               |       |  |           |   |       |      |  |   |       | 
|--------------------------------- |  | ------------- | ----- |  | --------- | - | ----- | ---- |  | - | ----- | 
|                                  |  | Nine Months   |       |  |          
|                                  |  | Ended         |       |  |          
|                                  |  | September 30, |       |  |          
|                                  |  |               |       |  | Projected |  
|                                  |  | 2005          |       |  | 2004      |   |       | 2005 | 
|                                  |  |               |       |  |           |   |       |      | 
|ComEd                             |  | $             | 597   |  |           | $ | 518   |      |  | $ | 742   | 
|PECO                              |  |               | 210   |  |           |   | 162   |      |  |   | 281   | 
|                                  |  |               |       |  |           |   |       |      | 
|Energy Delivery                   |  |               | 807   |  |           |   | 680   |      |  |   | 1,023 | 
|                                  |  |               |       |  |           |   |       |      | 
|Generation                        |  |               | 704   |  |           |   | 608   |      |  |   | 1,073 | 
|Other(a)                          |  |               | 10    |  |           |   | 7     |      |  |   | 56    | 
|                                  |  |               |       |  |           |   |       |      | 
|Total Exelon capital expenditures |  | $             | 1,521 |  |           | $ | 1,295 |      |  | $ | 2,152 | 
|                                  |  |               |       |  |           |   |       |      | 






|    |  |                                                  
|--- |  | -------------------------------------------------
|(a) |  | Other primarily consists of corporate operations.



ComEd and PECO.


Generation.






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



| |   |                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelon contributed $92 million and $32 million to its
    investments in synthetic fuel-producing facilities during the
    nine months ended September 30, 2005 and 2004, respectively.                                                                                                                                 
|
| |  | Cash proceeds of $212 million were received during the nine
    months ended September 30, 2004 from the sales of Exelon
    Thermal Holdings, Inc., certain businesses of Exelon Services,
    Inc. and Enterprises investments in PECO Telcove and other
    equity method investments. Additionally, cash proceeds of

129



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| |   |                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | $24 million were received during the nine months ended
    September 30, 2004 from the sale of certain businesses of
    Sithe.                                                                        
|
| |  | Early settlement of an acquisition note receivable from the 2003
    disposition of InfraSource, Inc. resulted in cash proceeds of
    $30 million during the nine months ended September 30,
    2004.



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



| |   |                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As a result of its prior contributions to the Exelon
    intercompany money pool, $308 million and $405 million
    were returned to ComEd during the nine months ended
    September 30, 2005 and 2004, respectively.



| |     
| | ----
| | PECO



| |   |                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As a result of its prior contributions to the Exelon
    intercompany money pool, $34 million was returned to PECO
    during the nine months ended September 30, 2005, and PECO
    contributed $26 million to the Exelon intercompany money
    pool during the nine months ended September 30, 2004.
|
| |  | During the nine months ended September 30, 2005, there was
    a net decrease in restricted cash that provided $27 million
    of cash.                                                                                                                                                                



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



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | During the nine months ended September 30, 2005, Generation
    received approximately $52 million from Generations
    nuclear decommissioning trust funds for reimbursement of
    expenditures previously incurred for nuclear plant
    decommissioning activities related to the retired units.                                                                                                                                                                                                                                      
|
| |  | 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 closed on the acquisition of Reservoir Capital
    Groups 50% interest in Sithe for cash proceeds of
    $97 million and the sale of 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.
|
| |  | On March 31, 2004, Generation consolidated the assets and
    liabilities of Sithe under the provisions of FIN 46-R,
    which resulted in an increase in cash of $19 million. See
    Note 1 and Note 4 of the Combined Notes to
    Consolidated Financial Statements for further information
    regarding the FIN 46-R consolidation of Sithe.                                                                                                                                                                                         
|
| |  | Generation received cash proceeds of $42 million from the
    January 2004 sale of three gas turbines that were classified as
    assets held for sale at December 31, 2003.                                                                                                                                                                                                                                                                                                                                                               
|
| |  | During the nine months ended September 30, 2004, Generation
    provided $19 million of restricted cash related to
    Sithes operating activities and used $11 million of
    restricted cash to support the operations of Boston Generating.                                                                                                                                                                                                                                                                                            



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



|           |  |                   |      |   |      |   |        |  
|---------- |  | ----------------- | ---- | - | ---- | - | ------ | -
|           |  | Nine Months Ended |     
|           |  | September 30,     |     
|           |  |                   |     
|           |  | 2005              |      |   | 2004 |  
|           |  |                   |      |   |      |  
|Exelon     |  | $                 | (207 | ) |      | $ | (1,885 | )
|ComEd      |  |                   | 236  |   |      |   | (1,240 | )
|PECO       |  |                   | (504 | ) |      |   | (503   | )
|Generation |  |                   | (199 | ) |      |   | (664   | )

130



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|           |  |               |     |  |      |   |     | 
|---------- |  | ------------- | --- |  | ---- | - | --- | 
|           |  | Nine Months   |    
|           |  | Ended         |    
|           |  | September 30, |    
|           |  |               |    
|           |  | 2005          |     |  | 2004 |  
|           |  |               |     |  |      |  
|Exelon     |  | $             | 804 |  |      | $ | 565 | 
|ComEd      |  |               | 352 |  |      |   | 320 | 
|PECO       |  |               | 350 |  |      |   | 279 | 
|Generation |  |               | 749 |  |      |   | 170 | 





Intercompany Money Pool.




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

Exelon Credit Facility.


131



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|                 |  |             |     |  |             |             |     |            |  |   |     | 
|---------------- |  | ----------- | --- |  | ----------- | ----------- | --- | ---------- |  | - | --- | 
|                 |  |             |     |  |             | Outstanding |    
|                 |  | Bank        |     |  | Available   |             |     | Commercial | 
|Borrower         |  | Sublimit(a) |     |  | Capacity(b) |             |     | Paper      | 
|                 |  |             |     |  |             |             |     |            | 
|Exelon Corporate |  | $           | 550 |  |             | $           | 550 |            |  | $ |    | 
|ComEd            |  |             | 450 |  |             |             | 423 |            |  |   | 146 | 
|PECO             |  |             | 100 |  |             |             | 100 |            |  |   |    | 
|Generation       |  |             | 400 |  |             |             | 338 |            |  |   |    | 






|    |  |                                                                                                                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Sublimits under the credit agreements can change upon written
    notification to the bank group.                                                                                                                         
|   
|(b) |  | Available capacity represents primarily the bank sublimit net of
    outstanding letters of credit. The amount of commercial paper
    outstanding does not reduce the available capacity under the
    credit agreements.





|                           |  |        |           |  |       |  |           |      |  |  |            |  |  |  |           | 
|-------------------------- |  | ------ | --------- |  | ----- |  | --------- | ---- |  |  | ---------- |  |  |  | --------- | 
|                           |  | 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                  |  |              | 35 | % |       |  | 24 | %       |  |  | 19         | % |  |  | 32 | %
|Long-term debt to affiliates(b) |  |              | 20 |   |       |  | 12 |         |  |  | 53         |   |  |  |   |  
|Common equity                   |  |              | 43 |   |       |  | 62 |         |  |  | 26         |   |  |  |   |  
|Members equity                 |  |              |   |   |       |  |   |         |  |  |           |   |  |  | 68 |  
|Preferred securities            |  |              |   |   |       |  |   |         |  |  | 2          |   |  |  |   |  
|Notes payable                   |  |              | 2  |   |       |  | 2  |         |  |  |           |   |  |  |   |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | As of September 30, 2005, PECOs capital structure,
    excluding the deduction from shareholders equity of the
    $1.3 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
    39% common equity, 1% preferred securities and 60% long-term
    debt, including long-term debt to unconsolidated affiliates.

132



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|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Includes $4.7 billion, $1.4 billion and
    $3.3 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 Energy
    Delivery or mandatorily redeemable preferred securities. See
    Note 1 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K for
    further information regarding FIN 46-R.

Intercompany Money Pool.


|                 |  |             |     |  |          |               |     |             |  |   |      |  
|---------------- |  | ----------- | --- |  | -------- | ------------- | --- | ----------- |  | - | ---- | -
|                 |  |             |     |  |          | September 30, |    
|                 |  |             |     |  |          | 2005          |    
|                 |  | Maximum     |     |  | Maximum  |               |     | Contributed | 
|                 |  | Contributed |     |  | Borrowed |               |     | (Borrowed)  | 
|                 |  |             |     |  |          |               |     |             | 
|ComEd            |  | $           | 517 |  |          | $             | 110 |             |  | $ | (110 | )
|PECO             |  |             | 210 |  |          |               | 17  |             |  |   | (7   | )
|Generation       |  |             | 51  |  |          |               | 540 |             |  |   |     |  
|BSC              |  |             | 11  |  |          |               | 156 |             |  |   | (22  | )
|UII, LLC         |  |             | 3   |  |          |               |    |             |  |   |     |  
|Exelon Corporate |  |             | 163 |  |          |               |    |             |  |   | 139  |  

|                 |  |                     |   |  |          |   |   | 
|---------------- |  | ------------------- | - |  | -------- | - | - | 
|                 |  | For the nine months |  
|                 |  | ended               |  
|                 |  | September 30, 2005  |  
|                 |  |                     |  
|                 |  | Interest            |   |  | Interest |  
|                 |  | Received            |   |  | Paid     |  
|                 |  |                     |   |  |          |  
|ComEd            |  | $                   | 2 |  |          | $ |  | 
|PECO             |  |                     | 1 |  |          |   |  | 
|Generation       |  |                     |  |  |          |   | 2 | 
|BSC              |  |                     |  |  |          |   | 1 | 
|UII, LLC         |  |                     |  |  |          |   |  | 
|Exelon Corporate |  |                     |  |  |          |   |  | 

Sithe Long-Term Debt.


Security Ratings.


133



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|                      |  |        |     |  |       |  |     |      |  |  |            |  |  |  |      | 
|--------------------- |  | ------ | --- |  | ----- |  | --- | ---- |  |  | ---------- |  |  |  | ---- | 
|                      |  | Exelon |     |  | ComEd |  |     | PECO |  |  | Generation | 
|                      |  |        |     |  |       |  |     |      |  |  |            | 
|Senior Unsecured Debt |  |        | BBB |  |       |  | BBB |      |  |  | BBB        |  |  |  | BBB+ | 
|Senior Secured Debt   |  |        | N/A |  |       |  | A-  |      |  |  | A-         |  |  |  | N/A  | 
|Commercial Paper      |  |        | A2  |  |       |  | A2  |      |  |  | A2         |  |  |  | A2   | 





Shelf Registration.


Fund Transfer Restrictions.




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| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Contractual Obligations, Commercial Commitments and
    Off-Balance Sheet Obligations





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



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Interest payments of $71 million, $132 million,
    $115 million and $849 million for payments due in
    2005, 2006-2007, 2008-2009 and 2010 and beyond, respectively,
    were eliminated due to the sale of Sithe on January 31,
    2005. See Note 4 of the Combined Notes to Consolidated
    Financial Statements for information regarding the sale of
    Generations investment in Sithe.                                                                                             
|
| |  | Letters of credit decreased $109 million, primarily as a
    result of the sale of Sithe. See Note 4 of the Combined
    Notes to Consolidated Financial Statements for further
    discussion.                                                                                                                                                                                                                                                                                                 
|
| |  | Guarantees decreased $1.6 billion, primarily as a result of
    American Nuclear Insurers release of Exelon from the
    parent guarantee of $1.4 billion for Generations
    obligations and the release of guarantees of $200 million
    related to the wind-down of Enterprises operations.                                                                                                                                                                                              
|
| |  | In the third quarter of 2005, BSC entered into an operating
    lease to rent a portion of a building from January 1, 2007
    through September 30, 2022. BSC is obligated to pay its
    proportionate share of the buildings property taxes and
    operating expenses. Total rent expense over the life of the
    lease agreement will be approximately $51.4 million, which
    includes fixed escalation clauses. In addition, the lease
    provides for two five-year renewal options.





| |               
| | --------------
| | ComEd and PECO



| |   |                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | IRS Refund Claims.ComEd and PECO have several
    pending tax refund claims seeking acceleration of certain tax
    deductions and additional tax credits. ComEd and PECO are unable
    to estimate the ultimate outcome of these refund claims and will
    account for any amounts received in the period the matters are
    settled with the IRS.

135



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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | ComEd and PECO had entered into several agreements with a tax
    consultant related to the filing of these refund claims with the
    IRS. ComEd and PECO previously made refundable prepayments to
    the tax consultants of $11 million and $5 million,
    respectively. The fees for these agreements are contingent upon
    a successful outcome of the claims and are based upon a
    percentage of the refunds recovered from the IRS, if any. These
    potential tax benefits and associated fees could be material to
    the financial position, results of operations and cash flows of
    ComEd and PECO. A portion of ComEds tax benefits,
    including any associated interest for periods prior to the
    merger among PECO, Unicom Corporation (Unicom), the former
    parent company of ComEd, and Exelon (PECO / Unicom Merger) would
    be recorded as a reduction of goodwill pursuant to a
    reallocation of the PECO / Unicom Merger purchase price. ComEd
    and PECO cannot predict the timing of the final resolution of
    these refund claims.
|
| |  | In 2004, the IRS granted preliminary approval for one of
    ComEds refund claims and final approval was obtained in
    the first quarter of 2005. The refund and associated interest
    have been recorded in the financial statements. Approximately
    $14 million of tax and interest benefit received in the
    second quarter of 2005 has been reflected in the financial
    statements of which $12 million ($9 million after-tax)
    was recorded to goodwill under the provisions of EITF Issue
    93-7, Uncertainties Related to Income Taxes in a Purchase
    Business Combination. As a result, ComEd recorded
    consulting expenses of $5 million (pre-tax) in 2004.                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Based on negotiations with the IRS during the first half of
    2005, PECO believed it would receive a tax refund related to one
    of its claims and recorded a $6 million (pre-tax) charge
    related to expected consulting charges through the second
    quarter of 2005. However, as the result of a recent unfavorable
    tax court decision involving another utility that related to a
    similar type of refund claim, PECO no longer believes payment of
    the consulting fees is probable and reversed the $6 million
    (pre-tax) charge during the third quarter 2005. PECO is unable
    to predict the final impact of its future negotiations with the
    IRS on this matter.                                                                                                                                                                                                                                                                                                                                                                                  







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



| |   |                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Interest payments of $71 million, $132 million,
    $115 million and $849 million for payments due in
    2005, 2006-2007, 2008-2009 and 2010 and beyond, respectively
    were eliminated due to the sale of Sithe on January 31,
    2005. See Note 4 of the Combined Notes to Consolidated
    Financial Statements for information regarding the sale of
    Generations investment in Sithe.
|
| |  | Letters of credit decreased $110 million and guarantees
    decreased $29 million, both primarily as a result of the
    sale of Sithe. See Note 4 of the Combined Notes to
    Consolidated Financial Statements for further discussion.                                                                                                                                                         
|
| |  | During the second quarter of 2005, in the normal course of
    business, Generation entered into long-term contracts for
    uranium enrichment services, increasing commitments by
    $122 million and $272 million for 2008-2009 and 2010
    and beyond, respectively.                                                                                                                        
|
| |  | During the third quarter of 2005, in the normal course of
    business, Generation entered into long-term contracts for
    uranium, increasing commitments by $132 million and
    $128 million for 2008-2009 and 2010 and beyond,
    respectively.                                                                                                                                             



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COMMONWEALTH EDISON COMPANY




| |        
| | -------
| | General





| |                   
| | ------------------
| | Executive Overview





| |                      
| | ---------------------
| | Results of Operations



| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | Three Months Ended September 30, 2005 Compared to Three
    Months Ended September 30, 2004

|                            |                                                  |                                   |       |       |               |   |       |          |       |   |     |      |      |  
|--------------------------- | ------------------------------------------------ | --------------------------------- | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | --- | ---- | ---- | -
|                            |                                                  | Three Months                      |       |       |              
|                            |                                                  | Ended                             |       |       |              
|                            |                                                  | September 30,                     |       |       | Favorable     |  
|                            |                                                  |                                   |       |       | (Unfavorable) |  
|                            |                                                  | 2005                              |       |       | 2004          |   |       | Variance |      
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Operating revenues          |                                                  | $                                 | 1,948 |       |               | $ | 1,720 |          |       | $ | 228 |     
|Operating expenses          |                                                  |                                   |       |       |               |   |       |          |       |   |     |     
|                            | Purchased power                                  |                                   |       | 1,082 |               |   |       | 907      |       |   |     | (175 | )   
|                            | Operating and maintenance                        |                                   |       | 211   |               |   |       | 231      |       |   |     | 20   |     
|                            | Depreciation and amortization                    |                                   |       | 111   |               |   |       | 104      |       |   |     | (7   | )   
|                            | Taxes other than income                          |                                   |       | 81    |               |   |       | 68       |       |   |     | (13  | )   
|                            |                                                  |                                   |       |       |               |   |       |          |      
|                            |                                                  | Total operating expense           |       |       | 1,485         |   |       |          | 1,310 |   |     |      | (175 | )
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Operating income            |                                                  |                                   | 463   |       |               |   | 410   |          |       |   | 53  |     
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Other income and deductions |                                                  |                                   |       |       |               |   |       |          |       |   |     |     
|                            | Interest expense                                 |                                   |       | (71   | )             |   |       | (86      | )     |   |     | 15   |     
|                            | Equity in losses of unconsolidated affiliates    |                                   |       | (3    | )             |   |       | (4       | )     |   |     | 1    |     
|                            | Net loss on the extinguishment of long-term debt |                                   |       |      |               |   |       | (106     | )     |   |     | 106  |     
|                            | Other, net                                       |                                   |       | (10   | )             |   |       | 5        |       |   |     | (15  | )   
|                            |                                                  |                                   |       |       |               |   |       |          |      
|                            |                                                  | Total other income and deductions |       |       | (84           | ) |       |          | (191  | ) |     |      | 107  |  
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Income before income taxes  |                                                  |                                   | 379   |       |               |   | 219   |          |       |   | 160 |     
|Income taxes                |                                                  |                                   | 155   |       |               |   | 95    |          |       |   | (60 | )   
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Net income                  |                                                  | $                                 | 224   |       |               | $ | 124   |          |       | $ | 100 |     
|                            |                                                  |                                   |       |       |               |   |       |          |      



137



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| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | Nine Months Ended September 30, 2005 Compared to Nine
    Months Ended September 30, 2004

|                            |                                                  |                                   |       |       |               |   |       |          |       |   |      |      |      |  
|--------------------------- | ------------------------------------------------ | --------------------------------- | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | ---- | ---- | ---- | -
|                            |                                                  | Nine Months                       |       |       |              
|                            |                                                  | Ended                             |       |       |              
|                            |                                                  | September 30,                     |       |       | Favorable     |  
|                            |                                                  |                                   |       |       | (Unfavorable) |  
|                            |                                                  | 2005                              |       |       | 2004          |   |       | Variance |      
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Operating revenues          |                                                  | $                                 | 4,822 |       |               | $ | 4,458 |          |       | $ | 364  |     
|Operating expenses          |                                                  |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Purchased power                                  |                                   |       | 2,761 |               |   |       | 2,014    |       |   |      | (747 | )   
|                            | Operating and maintenance                        |                                   |       | 614   |               |   |       | 669      |       |   |      | 55   |     
|                            | Depreciation and amortization                    |                                   |       | 308   |               |   |       | 309      |       |   |      | 1    |     
|                            | Taxes other than income                          |                                   |       | 232   |               |   |       | 219      |       |   |      | (13  | )   
|                            |                                                  |                                   |       |       |               |   |       |          |      
|                            |                                                  | Total operating expense           |       |       | 3,915         |   |       |          | 3,211 |   |      |      | (704 | )
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Operating income            |                                                  |                                   | 907   |       |               |   | 1,247 |          |       |   | (340 | )   
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Other income and deductions |                                                  |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Interest expense                                 |                                   |       | (223  | )             |   |       | (288     | )     |   |      | 65   |     
|                            | Equity in losses of unconsolidated affiliates    |                                   |       | (11   | )             |   |       | (13      | )     |   |      | 2    |     
|                            | Net loss on the extinguishment of long-term debt |                                   |       |      |               |   |       | (106     | )     |   |      | 106  |     
|                            | Other, net                                       |                                   |       | 3     |               |   |       | 22       |       |   |      | (19  | )   
|                            |                                                  |                                   |       |       |               |   |       |          |      
|                            |                                                  | Total other income and deductions |       |       | (231          | ) |       |          | (385  | ) |      |      | 154  |  
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Income before income taxes  |                                                  |                                   | 676   |       |               |   | 862   |          |       |   | (186 | )   
|Income taxes                |                                                  |                                   | 273   |       |               |   | 351   |          |       |   | 78   |     
|                            |                                                  |                                   |       |       |               |   |       |          |      
|Net income                  |                                                  | $                                 | 403   |       |               | $ | 511   |          |       | $ | (108 | )   
|                            |                                                  |                                   |       |       |               |   |       |          |      



Liquidity and Capital Resources








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



138



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





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





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





| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Contractual Obligations, Commercial Commitments and
    Off-Balance Sheet Obligations



139



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##### Table of Contents






PECO ENERGY COMPANY




| |        
| | -------
| | General





| |                   
| | ------------------
| | Executive Overview





| |                      
| | ---------------------
| | Results of Operations



| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | Three Months Ended September 30, 2005 Compared to Three
    Months Ended September 30, 2004

|                            |                                               |                                   |       |     |               |   |       |          |     |   |     |      |      |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | --- | ------------- | - | ----- | -------- | --- | - | --- | ---- | ---- | -
|                            |                                               | Three Months                      |       |     |              
|                            |                                               | Ended                             |       |     |              
|                            |                                               | September 30,                     |       |     | Favorable     |  
|                            |                                               |                                   |       |     | (Unfavorable) |  
|                            |                                               | 2005                              |       |     | 2004          |   |       | Variance |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|Operating revenues          |                                               | $                                 | 1,322 |     |               | $ | 1,124 |          |     | $ | 198 |     
|Operating expenses          |                                               |                                   |       |     |               |   |       |          |     |   |     |     
|                            | Purchased power                               |                                   |       | 584 |               |   |       | 458      |     |   |     | (126 | )   
|                            | Fuel                                          |                                   |       | 42  |               |   |       | 35       |     |   |     | (7   | )   
|                            | Operating and maintenance                     |                                   |       | 143 |               |   |       | 122      |     |   |     | (21  | )   
|                            | Depreciation and amortization                 |                                   |       | 159 |               |   |       | 144      |     |   |     | (15  | )   
|                            | Taxes other than income                       |                                   |       | 74  |               |   |       | 64       |     |   |     | (10  | )   
|                            |                                               |                                   |       |     |               |   |       |          |    
|                            |                                               | Total operating expenses          |       |     | 1,002         |   |       |          | 823 |   |     |      | (179 | )
|                            |                                               |                                   |       |     |               |   |       |          |    
|Operating income            |                                               |                                   | 320   |     |               |   | 301   |          |     |   | 19  |     
|                            |                                               |                                   |       |     |               |   |       |          |    
|Other income and deductions |                                               |                                   |       |     |               |   |       |          |     |   |     |     
|                            | Interest expense                              |                                   |       | (70 | )             |   |       | (76      | )   |   |     | 6    |     
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (4  | )             |   |       | (6       | )   |   |     | 2    |     
|                            | Other, net                                    |                                   |       | 2   |               |   |       | 3        |     |   |     | (1   | )   
|                            |                                               |                                   |       |     |               |   |       |          |    
|                            |                                               | Total other income and deductions |       |     | (72           | ) |       |          | (79 | ) |     |      | 7    |  
|                            |                                               |                                   |       |     |               |   |       |          |    
|Income before income taxes  |                                               |                                   | 248   |     |               |   | 222   |          |     |   | 26  |     
|Income taxes                |                                               |                                   | 82    |     |               |   | 83    |          |     |   | 1   |     
|                            |                                               |                                   |       |     |               |   |       |          |    
|Net income                  |                                               |                                   | 166   |     |               |   | 139   |          |     |   | 27  |     
|Preferred stock dividends   |                                               |                                   | 1     |     |               |   | 1     |          |     |   |    |     
|                            |                                               |                                   |       |     |               |   |       |          |    
|Net income on common stock  |                                               | $                                 | 165   |     |               | $ | 138   |          |     | $ | 27  |     
|                            |                                               |                                   |       |     |               |   |       |          |    



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| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | Nine Months Ended September 30, 2005 Compared to Nine
    Months Ended September 30, 2004

|                            |                                               |                                   |       |       |               |   |       |          |       |   |     |      |      |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | --- | ---- | ---- | -
|                            |                                               | Nine Months                       |       |       |              
|                            |                                               | Ended                             |       |       |              
|                            |                                               | September 30,                     |       |       | Favorable     |  
|                            |                                               |                                   |       |       | (Unfavorable) |  
|                            |                                               | 2005                              |       |       | 2004          |   |       | Variance |      
|                            |                                               |                                   |       |       |               |   |       |          |      
|Operating revenues          |                                               | $                                 | 3,661 |       |               | $ | 3,395 |          |       | $ | 266 |     
|Operating expenses          |                                               |                                   |       |       |               |   |       |          |       |   |     |     
|                            | Purchased power                               |                                   |       | 1,454 |               |   |       | 1,257    |       |   |     | (197 | )   
|                            | Fuel                                          |                                   |       | 373   |               |   |       | 368      |       |   |     | (5   | )   
|                            | Operating and maintenance                     |                                   |       | 396   |               |   |       | 387      |       |   |     | (9   | )   
|                            | Depreciation and amortization                 |                                   |       | 431   |               |   |       | 395      |       |   |     | (36  | )   
|                            | Taxes other than income                       |                                   |       | 189   |               |   |       | 181      |       |   |     | (8   | )   
|                            |                                               |                                   |       |       |               |   |       |          |      
|                            |                                               | Total operating expenses          |       |       | 2,843         |   |       |          | 2,588 |   |     |      | (255 | )
|                            |                                               |                                   |       |       |               |   |       |          |      
|Operating income            |                                               |                                   | 818   |       |               |   | 807   |          |       |   | 11  |     
|                            |                                               |                                   |       |       |               |   |       |          |      
|Other income and deductions |                                               |                                   |       |       |               |   |       |          |       |   |     |     
|                            | Interest expense                              |                                   |       | (212  | )             |   |       | (229     | )     |   |     | 17   |     
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (12   | )             |   |       | (19      | )     |   |     | 7    |     
|                            | Other, net                                    |                                   |       | 11    |               |   |       | 8        |       |   |     | 3    |     
|                            |                                               |                                   |       |       |               |   |       |          |      
|                            |                                               | Total other income and deductions |       |       | (213          | ) |       |          | (240  | ) |     |      | 27   |  
|                            |                                               |                                   |       |       |               |   |       |          |      
|Income before income taxes  |                                               |                                   | 605   |       |               |   | 567   |          |       |   | 38  |     
|Income taxes                |                                               |                                   | 200   |       |               |   | 195   |          |       |   | (5  | )   
|                            |                                               |                                   |       |       |               |   |       |          |      
|Net income                  |                                               |                                   | 405   |       |               |   | 372   |          |       |   | 33  |     
|Preferred stock dividends   |                                               |                                   | 3     |       |               |   | 3     |          |       |   |    |     
|                            |                                               |                                   |       |       |               |   |       |          |      
|Net income on common stock  |                                               | $                                 | 402   |       |               | $ | 369   |          |       | $ | 33  |     
|                            |                                               |                                   |       |       |               |   |       |          |      



Liquidity and Capital Resources






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





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





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





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





| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Contractual Obligations, Commercial Commitments and
    Off-Balance Sheet Obligations



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EXELON GENERATION COMPANY, LLC




| |        
| | -------
| | General





| |                   
| | ------------------
| | Executive Overview





| |                      
| | ---------------------
| | Results of Operations



| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | Three Months Ended September 30, 2005 Compared to Three
    Months Ended September 30, 2004





| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | Nine Months Ended September 30, 2005 Compared to Nine
    Months Ended September 30, 2004



Liquidity and Capital Resources








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





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



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





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





| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Contractual Obligations, Commercial Commitments and
    Off-Balance Sheet Obligations



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



Commodity Price Risk (Exelon and Generation)










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

Normal Operations and Hedging Activities.


145



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Proprietary Trading Activities.








146



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|                                                                                         |  |       |      |  
|---------------------------------------------------------------------------------------- |  | ----- | ---- | -
|                                                                                         |  | Total |     
|                                                                                         |  |       |     
|Total mark-to-market energy contract net liabilities at
    January 1, 2005              |  | $     | (145 | )
|Total change in fair value during 2005 of contracts recorded in
    earnings             |  |       | 206  |  
|Reclassification to realized at settlement of contracts recorded
    in earnings         |  |       | (67  | )
|Reclassification to realized at settlement from OCI                                      |  |       | 340  |  
|Effective portion of changes in fair value  recorded
    in OCI                         |  |       | (788 | )
|Purchase/sale/fair value adjustments of existing contracts
    subject to mark-to-market |  |       | (104 | )
|                                                                                         |  |       |     
|Total mark-to-market energy contract net liabilities at
    September 30, 2005           |  | $     | (558 | )
|                                                                                         |  |       |     



|                                                     |  |               |        |   |              |   |      |  
|---------------------------------------------------- |  | ------------- | ------ | - | ------------ | - | ---- | -
|                                                     |  | September 30, |        |   | December 31, |  
|                                                     |  | 2005          |        |   | 2004         |  
|                                                     |  |               |        |   |              |  
|Current assets                                       |  | $             | 1,240  |   |              | $ | 403  |  
|Noncurrent assets                                    |  |               | 367    |   |              |   | 373  |  
|                                                     |  |               |        |   |              |  
|Total mark-to-market energy contract assets          |  |               | 1,607  |   |              |   | 776  |  
|                                                     |  |               |        |   |              |  
|Current liabilities                                  |  |               | (1,684 | ) |              |   | (598 | )
|Noncurrent liabilities                               |  |               | (481   | ) |              |   | (323 | )
|                                                     |  |               |        |   |              |  
|Total mark-to-market energy contract liabilities     |  |               | (2,165 | ) |              |   | (921 | )
|                                                     |  |               |        |   |              |  
|Total mark-to-market energy contract net liabilities |  | $             | (558   | ) |              | $ | (145 | )
|                                                     |  |               |        |   |              |  





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|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   |  |  |   |   |  |  |   |      |  
|--------------------------------------------------------------- | ------------------------------------------------ | ----------------- | - | -------- | ---- | ---------- | - | ---- | - |  | ---- | --- | - | ---- | - | ------ | - | ----- | - | - |  |  | - | - |  |  | - | ---- | -
|                                                                |                                                  | Maturities Within |   |         
|                                                                |                                                  |                   |   |         
|                                                                |                                                  |                   |   | 2010 and |      | Total Fair |  
|(In millions)                                                   |                                                  | 2005              |   |          | 2006 |            |   | 2007 |   |  | 2008 |     |   | 2009 |   | Beyond |   | Value |  
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |  
|Normal Operations, qualifying cash-flow hedge
    contracts(a): |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   |  |  |   |   |  |  |   |     
|                                                                | Actively quoted prices                           |                   | $ | 3        |      |            | $ | 4    |   |  | $    |    |   |      | $ |       |   |       | $ |  |  |  | $ |  |  |  | $ | 7    |  
|                                                                | Prices provided by other external sources        |                   |   | (245     | )    |            |   | (372 | ) |  |      | (65 | ) |      |   | 4      |   |       |   |  |  |  |   |  |  |  |   | (678 | )
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   | 
|                                                                | Total                                            |                   | $ | (242     | )    |            | $ | (368 | ) |  | $    | (65 | ) |      | $ | 4      |   |       | $ |  |  |  | $ |  |  |  | $ | (671 | )
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   | 
|Normal Operations, other derivative contracts(b):               |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   |  |  |   |   |  |  |   |     
|                                                                | Actively quoted prices                           |                   | $ | 69       |      |            | $ | 117  |   |  | $    | (24 | ) |      | $ | 3      |   |       | $ |  |  |  | $ |  |  |  | $ | 165  |  
|                                                                | Prices provided by other external sources        |                   |   | (25      | )    |            |   | (66  | ) |  |      | 21  |   |      |   | (3     | ) |       |   |  |  |  |   |  |  |  |   | (73  | )
|                                                                | Prices based on model or other valuation methods |                   |   | 23       |      |            |   | 2    |   |  |      | (4  | ) |      |   |       |   |       |   |  |  |  |   |  |  |  |   | 21   |  
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   | 
|                                                                | Total                                            |                   | $ | 67       |      |            | $ | 53   |   |  | $    | (7  | ) |      | $ |       |   |       | $ |  |  |  | $ |  |  |  | $ | 113  |  
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   | 






|    |  |                                                                                                                                                                
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Mark-to-market gains and losses on contracts that qualify as
    cash-flow hedges are recorded in other comprehensive income.                                  
|   
|(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, 2005    |  | $                                   | (137 | ) |               | $ | (9 | )         |  | $ | (146 | )
|Changes in fair value                                 |  |                                     | (477 | ) |               |   | 2  |           |  |   | (475 | )
|Reclassifications from OCI to net income              |  |                                     | 209  |   |               |   |   |           |  |   | 209  |  
|                                                      |  |                                     |      |   |               |   |    |           | 
|Accumulated OCI derivative loss at September 30, 2005 |  | $                                   | (405 | ) |               | $ | (7 | )         |  | $ | (412 | )
|                                                      |  |                                     |      |   |               |   |    |           | 

Credit Risk (Exelon and Generation)




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



148



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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 September 30, 2005(a) |                                         | Collateral    |     |    | Collateral |   |     | Exposure |                |   | of Net Exposure  |                 |  | of Net Exposure  |  
|                                   |                                         |               |     |    |            |   |     |          |                |   |                  |                 |  |                  |  
|Investment grade                   |                                         | $             | 339 |    |            | $ | 88  |          |                | $ | 251              |                 |  |                  | 1 |   |  | $ | 61 |  
|Non-investment grade               |                                         |               | 43  |    |            |   | 16  |          |                |   | 27               |                 |  |                  |  |   |  |   |   |  
|No external ratings                |                                         |               |     |    |            |   |     |          |                |   |                  |                 |  |                  |   |   |  |   |    |  
|                                   | Internally rated  investment grade     |               |     | 40 |            |   |     | 14       |                |   |                  | 26              |  |                  |   |  |  |   |    |  | 
|                                   | Internally rated  non-investment grade |               |     | 15 |            |   |     |         |                |   |                  | 15              |  |                  |   |  |  |   |    |  | 
|                                   |                                         |               |     |    |            |   |     |          |                |   |                  |                 |  |                  |  
|Total                              |                                         | $             | 437 |    |            | $ | 118 |          |                | $ | 319              |                 |  |                  | 1 |   |  | $ | 61 |  
|                                   |                                         |               |     |    |            |   |     |          |                |   |                  |                 |  |                  |  






|    |  |                                                                                                                   
|--- |  | ------------------------------------------------------------------------------------------------------------------
|(a) |  | This table does not include accounts receivable exposure and
    forward credit exposure related to Exelon Energy.

|                                   |                                         |                                  |     |          |           |   |                |         |  |               |            |   |  |   |     |    | 
|---------------------------------- | --------------------------------------- | -------------------------------- | --- | -------- | --------- | - | -------------- | ------- |  | ------------- | ---------- | - |  | - | --- | -- | 
|                                   |                                         | Maturity of Credit Risk Exposure |    
|                                   |                                         |                                  |    
|                                   |                                         |                                  |     | Exposure |           |   | Total Exposure |        
|                                   |                                         | Less than                        |     |          |           |   | Greater than   |         |  | Before Credit |           
|Rating as of September 30, 2005(a) |                                         | 2 Years                          |     |          | 2-5 Years |   |                | 5 Years |  |               | Collateral |  
|                                   |                                         |                                  |     |          |           |   |                |         |  |               |            |  
|Investment grade                   |                                         | $                                | 337 |          |           | $ | 2              |         |  | $             |           |   |  | $ | 339 |   
|Non-investment grade               |                                         |                                  | 39  |          |           |   | 4              |         |  |               |           |   |  |   | 43  |   
|No external ratings                |                                         |                                  |     |          |           |   |                |         |  |               |            |   |  |   |     |   
|                                   | Internally rated  investment grade     |                                  |     | 36       |           |   |                | 4       |  |               |            |  |  |   |     | 40 | 
|                                   | Internally rated  non-investment grade |                                  |     | 4        |           |   |                | 7       |  |               |            | 4 |  |   |     | 15 | 
|                                   |                                         |                                  |     |          |           |   |                |         |  |               |            |  
|Total                              |                                         | $                                | 416 |          |           | $ | 17             |         |  | $             | 4          |   |  | $ | 437 |   
|                                   |                                         |                                  |     |          |           |   |                |         |  |               |            |  






|    |  |                                                                                                                   
|--- |  | ------------------------------------------------------------------------------------------------------------------
|(a) |  | This table does not include accounts receivable exposure and
    forward credit exposure related to Exelon Energy.

Collateral.


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ISOs.




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



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




| |                   
| | ------------------
| | Variable Rate Debt





| |                 
| | ----------------
| | Cash-Flow Hedges



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





| |                  
| | -----------------
| | Fair-Value Hedges



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



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Exelon, PECO and
Generation




Equity Price Risk (Exelon and Generation)




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








PART II  OTHER INFORMATION







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



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





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





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



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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     | 
|                                 |  |              |           |  |                |                  |                     |                 |                  |                  |                 | 
|July 1  July 31, 2005           |  |              | 4,258     |  |                | $                | 51.73               |                 |                  |                  |                |  |  |  | (b | )
|August 1  August 31, 2005       |  |              | 3,552,351 |  |                | $                | 51.77               |                 |                  |                  | 3,548,700       |  |  |  | (b | )
|September 1  September 30, 2005 |  |              | 1,275,166 |  |                | $                | 55.14               |                 |                  |                  | 1,274,900       |  |  |  | (b | )
|                                 |  |              |           |  |                |                  |                     |                 |                  |                  |                 | 
|Total                            |  |              | 4,831,775 |  |                | $                | 52.62               |                 |                  |                  | 4,823,600       |  |  |  | (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.






|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders

Exelon








|                  |  |           |             |  |                |  |            | 
|----------------- |  | --------- | ----------- |  | -------------- |  | ---------- | 
|                  |  | Votes For |             |  | Votes Withheld | 
|                  |  |           |             |  |                | 
|Edward A. Brennan |  |           | 540,074,368 |  |                |  | 16,198,513 | 
|Bruce DeMars      |  |           | 546,893,807 |  |                |  | 9,379,074  | 
|Nelson A. Diaz    |  |           | 523,099,821 |  |                |  | 33,173,060 | 
|John W. Rowe      |  |           | 532,229,365 |  |                |  | 24,043,516 | 
|Ronald Rubin      |  |           | 543,172,236 |  |                |  | 13,100,645 | 



153



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|        |                  
|------- | -----------------
|Item 5. | Other Information

Exelon




PECO






154



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##### Table of Contents








|        |         
|------- | --------
|Item 6. | Exhibits

|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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. 1-01401, 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 for Exelon Corporation
    (File No. 1-16169, Form 10-Q for the quarter ended
    June 30, 2004, Exhibit 3-1).                                                                                                                                                                                                                                                                                                                       
|     
|3-3   |  | Amended and Restated Bylaws of Exelon Corporation, adopted
    January 27, 2004 (File No. 1-16169, 2003
    Form 10-K, Exhibit 3-2).                                                                                                                                                                                                                                                                                                                                        
|     
|3-4   |  | Amended and Restated Articles of Incorporation of PECO Energy
    Company (File No. 1-01401, 2000 Form 10-K,
    Exhibit 3-3).                                                                                                                                                                                                                                                                                                                                              
|     
|3-5   |  | 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).                                                                                                                                                                                                                                                                                                                              
|     
|3-6   |  | 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).
|     
|3-7   |  | Bylaws of Commonwealth Edison Company, effective
    September 2, 1998, as amended through October 20, 2000
    (File No. 1-1839, 2000 Form 10-K, Exhibit 3-6).                                                                                                                                                                                                                                                                                                             
|     
|3-8   |  | Certificate of Formation of Exelon Generation Company, LLC
    (Registration Statement No. 333-85496, Form S-4,
    Exhibit 3-1).                                                                                                                                                                                                                                                                                                                                           
|     
|3-9   |  | 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).                                                                                                                                                                                                                                                                                                  
|     
|3-10  |  | Amendment to Articles of Incorporation of Exelon Corporation.                                                                                                                                                                                                                                                                                                                                                                                                               
|     
|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 (First Union
    National Bank, successor), (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    | 
|December 1, 1984  |  | 1-01401, 1984 Form 10-K |  |             | 4-2(b)  | 
|April 1, 1991     |  | 1-01401, 1991 Form 10-K |  |             | 4(e)-76 | 

155



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|                   |  |                                         |  |             |         | 
|------------------ |  | --------------------------------------- |  | ----------- | ------- | 
|Dated as of        |  | File Reference                          |  | Exhibit No. |        
|                   |  |                                         |  |             |        
|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 | 
|April 13, 1984    |  | 2-99665, Form S-3 |  |             | 4-3 | 
|April 15, 1985    |  | 2-99665, Form S-3 |  |             | 4-3 | 

156



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|                   |  |                                                         |  |             |       | 
|------------------ |  | ------------------------------------------------------- |  | ----------- | ----- | 
|Dated as of        |  | File Reference                                          |  | Exhibit No. |      
|                   |  |                                                         |  |             |      
|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       |  | 1-1839, 2001 Form 10-K                                  |  |             | 4-4-1 | 
|June 1, 2002       |  | 1-1839, 2001 Form 10-K                                  |  |             | 4-4-1 | 
|October 7, 2002    |  | 1-1839, 2001 Form 10-K                                  |  |             | 4-4-1 | 
|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 | 

|      |  |                                                                                                                                                                                                                                                                                                                
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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).                                                                                                                               
|4-4-1 |  | Supplemental Indentures to aforementioned Indenture.                                                                                                                                                                                                                                                           

|                  |  |                        |  |             |       | 
|----------------- |  | ---------------------- |  | ----------- | ----- | 
|Dated as of       |  | File Reference         |  | Exhibit No. |      
|                  |  |                        |  |             |      
|September 1, 1987 |  | 33-32929, Form S-3     |  |             | 4-16  | 
|January 1, 1997   |  | 1-1839, 1999 Form 10-K |  |             | 4-21  | 
|September 1, 2000 |  | 1-1839, 2000 Form 10-K |  |             | 4-7-3 | 

|    |  |                                                                                                                                                                                                                                                                                   
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4-5 |  | Indenture dated June 1, 2001 between Generation and First
    Union National Bank (now Wachovia Bank, National Association)
    (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 (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 (File
    No. 0-16844, PECO Energy Company Form 10-Q for the
    quarter ended June 30, 2003, Exhibit 4.1).

157



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|     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    
|4-8  |  | Preferred Securities Guarantee Agreement between PECO Energy
    Company, as Guarantor, and Wachovia Trust Company, National
    Association, 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, 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 |  | $500 million term loan agreement dated April 1, 2005 among
    Exelon Corporation, lenders named within the agreement and
    Dresdner Bank AG, New York and Grand Cayman Branches, as
    Administrative Agent (File No. 1-16169, Exelon Corporation
    Form 8-K dated April 1, 2005, Exhibit 99).                                                                                                                                                    
|    
|10-2 |  | Amended and Restated Employment Agreement by and between Exelon
    Corporation and John W. Rowe, dated as of July 22, 2005
    (File No. 1-16169, Exelon Corporation Form 10-Q for
    the quarter ended June 30, 2005, Exhibit 10-2).                                                                                                                                                                                                                 



|     |  |   |  |                                                              
|---- |  | - |  | -------------------------------------------------------------
|31-1 |  |  |  | Filed by John W. Rowe for Exelon Corporation                 
|    
|31-2 |  |  |  | Filed by John F. Young for Exelon Corporation                
|    
|31-3 |  |  |  | Filed by J. Barry Mitchell for Exelon Corporation            
|    
|31-4 |  |  |  | Filed by John L. Skolds for Commonwealth Edison Company      
|    
|31-5 |  |  |  | Filed by J. Barry Mitchell for Commonwealth Edison Company   
|    
|31-6 |  |  |  | Filed by John L. Skolds for PECO Energy Company              
|    
|31-7 |  |  |  | Filed by J. Barry Mitchell for PECO Energy Company           
|    
|31-8 |  |  |  | Filed by John L. Skolds for Exelon Generation Company, LLC   
|    
|31-9 |  |  |  | Filed by J. Barry Mitchell for Exelon Generation Company, LLC

158



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|     |  |   |  |                                                                  
|---- |  | - |  | -----------------------------------------------------------------
|32-1 |  |  |  | Filed by John W. Rowe for Exelon Corporation                     
|    
|32-2 |  |  |  | Filed by John F. Young for Exelon Corporation                    
|    
|32-3 |  |  |  | Filed by J. Barry Mitchell for Exelon Corporation                
|    
|32-4 |  |  |  | Filed by John L. Skolds for Commonwealth Edison Company          
|    
|32-5 |  |  |  | Filed by J. Barry Mitchell for Commonwealth Edison Company       
|    
|32-6 |  |  |  | Filed by John L. Skolds for PECO Energy Company                  
|    
|32-7 |  |  |  | Filed by J. Barry Mitchell for PECO Energy Company               
|    
|32-8 |  |  |  | Filed by John L. Skolds for Exelon Generation Company, LLC       
|    
|32-9 |  |  |  | Filed by J. Barry Mitchell for Exelon Generation Company,
    LLC

159



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##### Table of Contents






SIGNATURES







EXELON CORPORATION


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








COMMONWEALTH EDISON COMPANY


|                                                                                                                                        |  |                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                       
|/s/ John L. SkoldsJohn L. Skolds
    President, Exelon Energy Delivery
    (Principal Executive Officer)                                |  | /s/ J. Barry MitchellJ. Barry Mitchell
    Senior Vice President, Chief Financial Officer and Treasurer
    (Principal Financial Officer)
|                                                                                                                                       
|/s/ Matthew F.
    HilzingerMatthew F. Hilzinger
    Vice President and Corporate Controller, Exelon
    (Principal Accounting Officer) |  | /s/ Frank M. ClarkFrank M. Clark
    President, ComEd                                                                                    



160



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##### Table of Contents








PECO ENERGY COMPANY


|                                                                                                                                        |  |                                                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                       
|/s/ John L. SkoldsJohn L. Skolds
    President, Exelon Energy Delivery
    (Principal Executive Officer)                                |  | /s/ J. Barry MitchellJ. Barry Mitchell
    Senior Vice President, Chief Financial
    Officer and Treasurer
    (Principal Financial Officer)
|                                                                                                                                       
|/s/ Matthew F.
    HilzingerMatthew F. Hilzinger
    Vice President and Corporate Controller, Exelon
    (Principal Accounting Officer) |  | /s/ Denis P.
    OBrienDenis P. OBrien
    President, PECO                                                                                 








EXELON GENERATION COMPANY, LLC


|                                                                                                      |  |                                                                                                                                              
|----------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                     
|/s/ John L. SkoldsJohn L. Skolds
    President
    (Principal Executive Officer)                      |  | /s/ J. Barry MitchellJ. Barry Mitchell
    Senior Vice President, Chief Financial
    Officer and Treasurer
    (Principal Financial Officer)
|                                                                                                     
|/s/ Jon D. VeurinkJon D. Veurink
    Vice President and Controller
    (Principal Accounting Officer) |  |                                                                                                                                              



161