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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 March 31, 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 | 

þ o




|                                                           |  |               
|---------------------------------------------------------- |  | --------------
|Exelon Corporation Common Stock, without par value         |  | 668,505,172   
|Commonwealth Edison Company Common Stock, $12.50 par value |  | 127,016,502   
|PECO Energy Company Common Stock, without par value        |  | 170,478,507   
|Exelon Generation Company, LLC                             |  | not applicable

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TABLE OF CONTENTS


|                               |  |                                                                                          |   |                                                                |     |  |     | 
|------------------------------ |  | ---------------------------------------------------------------------------------------- | - | -------------------------------------------------------------- | --- |  | --- | 
|                               |  |                                                                                          |   | Page No.                                                       |    
|                               |  |                                                                                          |   |                                                                |    
|FILING FORMAT                  |  |                                                                                          | 3 |                                                               
|FORWARD-LOOKING STATEMENTS     |  |                                                                                          | 3 |                                                               
|WHERE TO FIND MORE INFORMATION |  |                                                                                          | 3 |                                                               
|                              
|PART I.                        |  | FINANCIAL INFORMATION                                                                    |   |                                                                | 5   | 
|Item 1.                        |  | Financial Statements                                                                     |   |                                                                | 5   | 
|                               |  |                                                                                          |   | Exelon Corporation                                             |     |  |     | 
|                               |  |                                                                                          |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 6   | 
|                               |  |                                                                                          |   | Consolidated Statements of Cash
    Flows                      |     |  | 7   | 
|                               |  |                                                                                          |   | Consolidated Balance Sheets                                    |     |  | 8   | 
|                               |  |                                                                                          |   | Consolidated Statement of
    Changes in Shareholders Equity  |     |  | 10  | 
|                               |  |                                                                                          |   | Commonwealth Edison Company                                    |     |  |     | 
|                               |  |                                                                                          |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 11  | 
|                               |  |                                                                                          |   | Consolidated Statements of Cash
    Flows                      |     |  | 12  | 
|                               |  |                                                                                          |   | Consolidated Balance Sheets                                    |     |  | 13  | 
|                               |  |                                                                                          |   | Consolidated Statement of
    Changes in Shareholders Equity  |     |  | 15  | 
|                               |  |                                                                                          |   | PECO Energy Company                                            |     |  |     | 
|                               |  |                                                                                          |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 16  | 
|                               |  |                                                                                          |   | Consolidated Statements of Cash
    Flows                      |     |  | 17  | 
|                               |  |                                                                                          |   | Consolidated Balance Sheets                                    |     |  | 18  | 
|                               |  |                                                                                          |   | Consolidated Statement of
    Changes in Shareholders Equity  |     |  | 20  | 
|                               |  |                                                                                          |   | Exelon Generation Company, LLC                                 |     |  |     | 
|                               |  |                                                                                          |   | Consolidated Statements of
    Income and Comprehensive Income |     |  | 21  | 
|                               |  |                                                                                          |   | Consolidated Statements of Cash
    Flows                      |     |  | 22  | 
|                               |  |                                                                                          |   | Consolidated Balance Sheets                                    |     |  | 23  | 
|                               |  |                                                                                          |   | Consolidated Statement of
    Changes in Members Equity       |     |  | 25  | 
|                               |  |                                                                                          |   | Combined Notes to Consolidated Financial
    Statements        |     |  | 26  | 
|Item 2.                        |  | Managements Discussion and
    Analysis of Financial Condition and Results of Operation |   |                                                                | 64  | 
|                               |  |                                                                                          |   | Exelon Corporation                                             |     |  | 64  | 
|                               |  |                                                                                          |   | Commonwealth Edison Company                                    |     |  | 95  | 
|                               |  |                                                                                          |   | PECO Energy Company                                            |     |  | 99  | 
|                               |  |                                                                                          |   | Exelon Generation Company, LLC                                 |     |  | 99  | 
|Item 3.                        |  | Quantitative and Qualitative Disclosures
    About Market Risk                           |   |                                                                | 101 | 
|Item 4.                        |  | Controls and Procedures                                                                  |   |                                                                | 108 | 
|                              
|PART II.                       |  | OTHER INFORMATION                                                                        |   |                                                                |     | 
|Item 1.                        |  | Legal Proceedings                                                                        |   |                                                                | 108 | 
|                               |  |                                                                                          |   | Exelon Corporation                                             |     |  | 108 | 
|                               |  |                                                                                          |   | Commonwealth Edison Company                                    |     |  | 108 | 
|                               |  |                                                                                          |   | PECO Energy Company                                            |     |  | 108 | 
|                               |  |                                                                                          |   | Exelon Generation Company, LLC                                 |     |  | 108 | 

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|                                                                      |  |                                                                 |     |                                |     |  |     | 
|--------------------------------------------------------------------- |  | --------------------------------------------------------------- | --- | ------------------------------ | --- |  | --- | 
|                                                                      |  |                                                                 |     | Page No.                       |    
|                                                                      |  |                                                                 |     |                                |    
|Item 2.                                                               |  | Unregistered Sales of Equity Securities
    and Use of Proceeds |     |                                | 109 | 
|                                                                      |  |                                                                 |     | Exelon Corporation             |     |  | 109 | 
|Item 5.                                                               |  | Other Information                                               |     |                                | 109 | 
|                                                                      |  |                                                                 |     | Exelon Corporation             |     |  | 109 | 
|                                                                      |  |                                                                 |     | Commonwealth Edison Company    |     |  | 109 | 
|                                                                      |  |                                                                 |     | Exelon Generation Company, LLC |     |  | 109 | 
|Item 6.                                                               |  | Exhibits                                                        |     |                                | 111 | 
|SIGNATURES                                                            |  |                                                                 | 115 |                               
|                                                                      |  |                                                                 |     | Exelon Corporation             |     |  | 115 | 
|                                                                      |  |                                                                 |     | Commonwealth Edison Company    |     |  | 115 | 
|                                                                      |  |                                                                 |     | PECO Energy Company            |     |  | 116 | 
|                                                                      |  |                                                                 |     | Exelon Generation Company, LLC |     |  | 116 | 
|Supplemental Indentures to Commonwealth Edison Mortgage              
|Certification by John W. Rowe for Exelon Corporation                 
|Certification by John F. Young for Exelon Corporation                
|Certification by J. Barry Mitchell for Exelon Corporation            
|Certification by John L. Skolds for Commonwealth Edison Company      
|Certification by J. Barry Mitchell for Commonwealth Edison Company   
|Certification by John L. Skolds for PECO Energy Company              
|Certification by J. Barry Mitchell for PECO Energy Company           
|Certification by John L. Skolds for Exelon Generation Company, LLC   
|Certification by J. Barry Mitchell for Exelon Generation Company, LLC
|Certification by John W. Rowe for Exelon Corporation                 
|Certification by John F. Young for Exelon Corporation                
|Certification by J. Barry Mitchell for Exelon Corporation            
|Certification by John L. Skolds for Commonwealth Edison Company      
|Certification by J. Barry Mitchell for Commonwealth Edison Company   
|Certification by John L. Skolds for PECO Energy Company              
|Certification by J. Barry Mitchell for PECO Energy Company           
|Certification by John L. Skolds for Exelon Generation Company, LLC   
|Certification by J. Barry Mitchell for Exelon Generation Company, LLC



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FILING FORMAT







FORWARD-LOOKING STATEMENTS







WHERE TO FIND MORE INFORMATION




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4



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PART I. FINANCIAL INFORMATION





Item 1.     Financial
Statements


5



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EXELON CORPORATION





EXELON CORPORATION AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                                                       |                                                                                                           |                                          |       |      |       |   |       |       |       |  
|-------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------- | ---------------------------------------- | ----- | ---- | ----- | - | ----- | ----- | ----- | -
|                                                                                       |                                                                                                           | Three Months                             |      
|                                                                                       |                                                                                                           | Ended                                    |      
|                                                                                       |                                                                                                           | March 31,                                |      
|                                                                                       |                                                                                                           |                                          |      
|                                                                                       |                                                                                                           | 2005                                     |       |      | 2004  |  
|(In millions, except per share data)                                                   |                                                                                                           |                                          |       |      |       |  
|Operating revenues                                                                     |                                                                                                           | $                                        | 3,561 |      |       | $ | 3,635 |      
|Operating expenses                                                                     |                                                                                                           |                                          |       |      |       |   |       |      
|                                                                                       | Purchased power                                                                                           |                                          |       | 568  |       |   |       | 573   |      
|                                                                                       | Fuel                                                                                                      |                                          |       | 622  |       |   |       | 822   |      
|                                                                                       | Operating and maintenance                                                                                 |                                          |       | 949  |       |   |       | 979   |      
|                                                                                       | Depreciation and amortization                                                                             |                                          |       | 319  |       |   |       | 301   |      
|                                                                                       | Taxes other than income                                                                                   |                                          |       | 172  |       |   |       | 189   |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|                                                                                       |                                                                                                           | Total operating expenses                 |       |      | 2,630 |   |       |       | 2,864 |  
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Operating income                                                                       |                                                                                                           |                                          | 931   |      |       |   | 771   |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Other income and deductions                                                            |                                                                                                           |                                          |       |      |       |   |       |      
|                                                                                       | Interest expense                                                                                          |                                          |       | (106 | )     |   |       | (128  | )    
|                                                                                       | Interest expense to affiliates                                                                            |                                          |       | (84  | )     |   |       | (93   | )    
|                                                                                       | Distributions on preferred securities of subsidiaries                                                     |                                          |       | (1   | )     |   |       | (1    | )    
|                                                                                       | Equity in losses of unconsolidated affiliates                                                             |                                          |       | (36  | )     |   |       | (24   | )    
|                                                                                       | Other, net                                                                                                |                                          |       | 30   |       |   |       | 32    |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|                                                                                       |                                                                                                           | Total other income and deductions        |       |      | (197  | ) |       |       | (214  | )
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Income from continuing operations before income taxes and
    minority interest        |                                                                                                           |                                          | 734   |      |       |   | 557   |      
|Income taxes                                                                           |                                                                                                           |                                          | 227   |      |       |   | 159   |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Income from continuing operations before minority interest                             |                                                                                                           |                                          | 507   |      |       |   | 398   |      
|Minority interest                                                                      |                                                                                                           |                                          |      |      |       |   | (1    | )    
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Income from continuing operations                                                      |                                                                                                           |                                          | 507   |      |       |   | 397   |      
|Discontinued operations                                                                |                                                                                                           |                                          |       |      |       |   |       |      
|                                                                                       | Loss from discontinued operations (net of income taxes of ($1)
    and ($8), respectively)                |                                          |       | (1   | )     |   |       | (14   | )    
|                                                                                       | Gain (loss) on disposal of discontinued operations (net of
    income taxes of $4 and ($2), respectively) |                                          |       | 15   |       |   |       | (3    | )    
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|                                                                                       |                                                                                                           | Income (loss) on discontinued operations |       |      | 14    |   |       |       | (17   | )
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Income before cumulative effect of a change in accounting
    principle                |                                                                                                           |                                          | 521   |      |       |   | 380   |      
|Cumulative effect of a change in accounting principle (net of
    income taxes of $22) |                                                                                                           |                                          |      |      |       |   | 32    |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Net income                                                                             |                                                                                                           |                                          | 521   |      |       |   | 412   |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Other comprehensive loss, net of income taxes                                          |                                                                                                           |                                          |       |      |       |   |       |      
|                                                                                       | Minimum pension liability                                                                                 |                                          |       | 2    |       |   |       |      |      
|                                                                                       | Change in net unrealized loss on cash-flow hedges                                                         |                                          |       | (101 | )     |   |       | (193  | )    
|                                                                                       | Foreign currency translation adjustment                                                                   |                                          |       | (1   | )     |   |       | 2     |      
|                                                                                       | Unrealized loss (gain) on marketable securities                                                           |                                          |       | (15  | )     |   |       | 40    |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|                                                                                       |                                                                                                           | Total other comprehensive loss           |       |      | (115  | ) |       |       | (151  | )
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Total comprehensive income                                                             |                                                                                                           | $                                        | 406   |      |       | $ | 261   |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Average shares of common stock outstanding 
    Basic                                 |                                                                                                           |                                          | 666   |      |       |   | 659   |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Average shares of common stock outstanding 
    Diluted                               |                                                                                                           |                                          | 675   |      |       |   | 665   |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Earnings per average common share  Basic:                                             |                                                                                                           |                                          |       |      |       |   |       |      
|                                                                                       | Income from continuing operations                                                                         |                                          | $     | 0.76 |       |   | $     | 0.60  |      
|                                                                                       | Discontinued operations                                                                                   |                                          |       | 0.02 |       |   |       | (0.02 | )    
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|                                                                                       | Income before cumulative effect of a change in accounting
    principle                                   |                                          |       | 0.78 |       |   |       | 0.58  |      
|                                                                                       | Cumulative effect of a change in accounting principle                                                     |                                          |       |     |       |   |       | 0.05  |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|                                                                                       | Net income                                                                                                |                                          | $     | 0.78 |       |   | $     | 0.63  |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Earnings per average common share  Diluted:                                           |                                                                                                           |                                          |       |      |       |   |       |      
|                                                                                       | Income from continuing operations                                                                         |                                          | $     | 0.75 |       |   | $     | 0.59  |      
|                                                                                       | Discontinued operations                                                                                   |                                          |       | 0.02 |       |   |       | (0.02 | )    
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|                                                                                       | Income before cumulative effect of a change in accounting
    principle                                   |                                          |       | 0.77 |       |   |       | 0.57  |      
|                                                                                       | Cumulative effect of a change in accounting principle                                                     |                                          |       |     |       |   |       | 0.05  |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|                                                                                       | Net income                                                                                                |                                          | $     | 0.77 |       |   | $     | 0.62  |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  
|Dividends per common share                                                             |                                                                                                           | $                                        | 0.400 |      |       | $ | 0.275 |      
|                                                                                       |                                                                                                           |                                          |       |      |       |  



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                                                     |                                                                                                                                                |                                                                                 |                                                                         |       |      |        |      |      |     |      |  
|------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ----- | ---- | ------ | ---- | ---- | --- | ---- | -
|                                                                                     |                                                                                                                                                | Three Months                                                                    |                                                                        
|                                                                                     |                                                                                                                                                | Ended                                                                           |                                                                        
|                                                                                     |                                                                                                                                                | March 31,                                                                       |                                                                        
|                                                                                     |                                                                                                                                                |                                                                                 |                                                                        
|                                                                                     |                                                                                                                                                | 2005                                                                            |                                                                         |       | 2004 |       
|(In millions)                                                                        |                                                                                                                                                |                                                                                 |                                                                         |       |      |       
|Cash flows from operating activities                                                 |                                                                                                                                                |                                                                                 |                                                                         |       |      |        |      |     
|                                                                                     | Net income                                                                                                                                     |                                                                                 | $                                                                       | 521   |      |        | $    | 412  |    
|                                                                                     | Adjustments to reconcile net income to net cash flows (used in)
    provided by operating activities:                                          |                                                                                 |                                                                         |       |      |        |      |      |    
|                                                                                     |                                                                                                                                                | Depreciation, amortization and accretion, including nuclear fuel                |                                                                         |       | 478  |        |      |      | 445 |     
|                                                                                     |                                                                                                                                                | Other decommissioning-related activities                                        |                                                                         |       | (13  | )      |      |      | 13  |     
|                                                                                     |                                                                                                                                                | Cumulative effect of a change in accounting principle (net of
    income taxes) |                                                                         |       |     |        |      |      | (32 | )   
|                                                                                     |                                                                                                                                                | Deferred income taxes and amortization of investment tax credits                |                                                                         |       | 634  |        |      |      | 40  |     
|                                                                                     |                                                                                                                                                | Provision for uncollectible accounts                                            |                                                                         |       | 12   |        |      |      | 23  |     
|                                                                                     |                                                                                                                                                | Equity in losses of unconsolidated affiliates                                   |                                                                         |       | 36   |        |      |      | 24  |     
|                                                                                     |                                                                                                                                                | Loss (gain) on sales of investments and wholly owned
    subsidiaries           |                                                                         |       | (19  | )      |      |      | 3   |     
|                                                                                     |                                                                                                                                                | Net realized gains on nuclear decommissioning trust funds                       |                                                                         |       | (1   | )      |      |      | (3  | )   
|                                                                                     |                                                                                                                                                | Other non-cash operating activities                                             |                                                                         |       | (2   | )      |      |      | (7  | )   
|                                                                                     |                                                                                                                                                | Changes in assets and liabilities:                                              |                                                                         |       |      |        |      |      |     |     
|                                                                                     |                                                                                                                                                |                                                                                 | Accounts receivable                                                     |       |      | 101    |      |      |     | 50   |  
|                                                                                     |                                                                                                                                                |                                                                                 | Inventories                                                             |       |      | 74     |      |      |     | 71   |  
|                                                                                     |                                                                                                                                                |                                                                                 | Other current assets                                                    |       |      | (201   | )    |      |     | (113 | )
|                                                                                     |                                                                                                                                                |                                                                                 | Accounts payable, accrued expenses and other current liabilities        |       |      | (230   | )    |      |     | (174 | )
|                                                                                     |                                                                                                                                                |                                                                                 | Income taxes                                                            |       |      | (344   | )    |      |     | 180  |  
|                                                                                     |                                                                                                                                                |                                                                                 | Net realized and unrealized mark-to-market and hedging
    transactions |       |      | (83    | )    |      |     | 34   |  
|                                                                                     |                                                                                                                                                |                                                                                 | Pension and non-pension postretirement benefits obligations             |       |      | (1,962 | )    |      |     | (93  | )
|                                                                                     |                                                                                                                                                |                                                                                 | Other noncurrent assets and liabilities                                 |       |      | (10    | )    |      |     | (24  | )
|                                                                                     |                                                                                                                                                |                                                                                 |                                                                         |       |      |       
|Net cash flows (used in) provided by operating activities                            |                                                                                                                                                |                                                                                 | (1,009                                                                  | )     |      |        | 849  |     
|                                                                                     |                                                                                                                                                |                                                                                 |                                                                         |       |      |       
|Cash flows from investing activities                                                 |                                                                                                                                                |                                                                                 |                                                                         |       |      |        |      |     
|                                                                                     | Capital expenditures                                                                                                                           |                                                                                 |                                                                         | (489  | )    |        |      | (437 | )  
|                                                                                     | Proceeds from nuclear decommissioning trust fund sales                                                                                         |                                                                                 |                                                                         | 782   |      |        |      | 307  |    
|                                                                                     | Investment in nuclear decommissioning trust funds                                                                                              |                                                                                 |                                                                         | (834  | )    |        |      | (378 | )  
|                                                                                     | Proceeds from sales of investments and wholly owned
    subsidiaries, net of $32 of cash sold during the three months
    ended March 31, 2005 |                                                                                 |                                                                         | 103   |      |        |      | 5    |    
|                                                                                     | Proceeds from sales of long-lived assets                                                                                                       |                                                                                 |                                                                         | 2     |      |        |      | 48   |    
|                                                                                     | Acquisition of businesses                                                                                                                      |                                                                                 |                                                                         | (97   | )    |        |      |     |    
|                                                                                     | Investment in synthetic fuel-producing facilities                                                                                              |                                                                                 |                                                                         | (28   | )    |        |      | (8   | )  
|                                                                                     | Change in restricted cash                                                                                                                      |                                                                                 |                                                                         | (8    | )    |        |      | 70   |    
|                                                                                     | Net cash increase from consolidation of Sithe Energies,
    Inc.                                                                               |                                                                                 |                                                                         |      |      |        |      | 19   |    
|                                                                                     | Other investing activities                                                                                                                     |                                                                                 |                                                                         | 3     |      |        |      | 3    |    
|                                                                                     |                                                                                                                                                |                                                                                 |                                                                         |       |      |       
|Net cash flows used in investing activities                                          |                                                                                                                                                |                                                                                 | (566                                                                    | )     |      |        | (371 | )   
|                                                                                     |                                                                                                                                                |                                                                                 |                                                                         |       |      |       
|Cash flows from financing activities                                                 |                                                                                                                                                |                                                                                 |                                                                         |       |      |        |      |     
|                                                                                     | Issuance of long-term debt                                                                                                                     |                                                                                 |                                                                         | 91    |      |        |      |     |    
|                                                                                     | Retirement of long-term debt                                                                                                                   |                                                                                 |                                                                         | (111  | )    |        |      | (182 | )  
|                                                                                     | Retirement of long-term debt to financing affiliates                                                                                           |                                                                                 |                                                                         | (205  | )    |        |      | (181 | )  
|                                                                                     | Change in short-term debt                                                                                                                      |                                                                                 |                                                                         | 1,836 |      |        |      | (10  | )  
|                                                                                     | Payment on acquisition note payable to Sithe Energies, Inc.                                                                                    |                                                                                 |                                                                         |      |      |        |      | (27  | )  
|                                                                                     | Dividends paid on common stock                                                                                                                 |                                                                                 |                                                                         | (267  | )    |        |      | (181 | )  
|                                                                                     | Proceeds from employee stock plans                                                                                                             |                                                                                 |                                                                         | 103   |      |        |      | 106  |    
|                                                                                     | Purchase of treasury stock                                                                                                                     |                                                                                 |                                                                         | (8    | )    |        |      |     |    
|                                                                                     | Other financing activities                                                                                                                     |                                                                                 |                                                                         | (3    | )    |        |      | 3    |    
|                                                                                     |                                                                                                                                                |                                                                                 |                                                                         |       |      |       
|Net cash flows provided by (used in) financing activities                            |                                                                                                                                                |                                                                                 | 1,436                                                                   |       |      |        | (472 | )   
|                                                                                     |                                                                                                                                                |                                                                                 |                                                                         |       |      |       
|Increase (decrease) in cash and cash equivalents                                     |                                                                                                                                                |                                                                                 | (139                                                                    | )     |      |        | 6    |     
|Cash and cash equivalents at beginning of period                                     |                                                                                                                                                |                                                                                 | 499                                                                     |       |      |        | 493  |     
|                                                                                     |                                                                                                                                                |                                                                                 |                                                                         |       |      |       
|Cash and cash equivalents at end of period                                           |                                                                                                                                                | $                                                                               | 360                                                                     |       |      | $      | 499  |     
|                                                                                     |                                                                                                                                                |                                                                                 |                                                                         |       |      |       
|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   |    



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                     |                                        |        |       |              |   |        |       |        | 
|---------------------------------- | ----------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                   |                                     | March 31,                              |        |       | December 31, |  
|                                   |                                     | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                     |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                     |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents           |                                        | $      | 360   |              |   | $      | 499   |       
|                                   | Restricted cash and investments     |                                        |        | 78    |              |   |        | 60    |       
|                                   | Accounts receivable, net            |                                        |        |       |              |   |        |       |       
|                                   |                                     | Customer                               |        |       | 1,533        |   |        |       | 1,649  | 
|                                   |                                     | Other                                  |        |       | 752          |   |        |       | 409    | 
|                                   | Mark-to-market derivative assets    |                                        |        | 579   |              |   |        | 403   |       
|                                   | Inventories, at average cost        |                                        |        |       |              |   |        |       |       
|                                   |                                     | Fossil fuel                            |        |       | 155          |   |        |       | 230    | 
|                                   |                                     | Materials and supplies                 |        |       | 313          |   |        |       | 312    | 
|                                   | Deferred income taxes               |                                        |        | 99    |              |   |        | 68    |       
|                                   | Other                               |                                        |        | 473   |              |   |        | 296   |       
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total current assets                   |        |       | 4,342        |   |        |       | 3,926  | 
|                                   |                                     |                                        |        |       |              |  
|Property, plant and equipment, net |                                     |                                        | 21,413 |       |              |   | 21,482 |      
|Deferred debits and other assets   |                                     |                                        |        |       |              |   |        |      
|                                   | Regulatory assets                   |                                        |        | 4,702 |              |   |        | 4,790 |       
|                                   | Nuclear decommissioning trust funds |                                        |        | 5,207 |              |   |        | 5,262 |       
|                                   | Investments                         |                                        |        | 808   |              |   |        | 804   |       
|                                   | Goodwill                            |                                        |        | 4,696 |              |   |        | 4,705 |       
|                                   | Mark-to-market derivative assets    |                                        |        | 359   |              |   |        | 383   |       
|                                   | Other                               |                                        |        | 881   |              |   |        | 1,418 |       
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total deferred debits and other assets |        |       | 16,653       |   |        |       | 17,362 | 
|                                   |                                     |                                        |        |       |              |  
|Total assets                       |                                     | $                                      | 42,408 |       |              | $ | 42,770 |      
|                                   |                                     |                                        |        |       |              |  



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                                                        |                                                                                                             |                                              |        |        |              |   |        |        |        | 
|--------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | -------------------------------------------- | ------ | ------ | ------------ | - | ------ | ------ | ------ | 
|                                                                                        |                                                                                                             | March 31,                                    |        |        | December 31, |  
|                                                                                        |                                                                                                             | 2005                                         |        |        | 2004         |  
|(In millions)                                                                           |                                                                                                             |                                              |        |        |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY                                                   
|Current liabilities                                                                     |                                                                                                             |                                              |        |        |              |   |        |       
|                                                                                        | Notes payable                                                                                               |                                              | $      | 2,326  |              |   | $      | 490    |       
|                                                                                        | Long-term debt due within one year                                                                          |                                              |        | 389    |              |   |        | 427    |       
|                                                                                        | Long-term debt to ComEd Transitional Funding Trust and PECO
    Energy Transition Trust due within one year |                                              |        | 622    |              |   |        | 486    |       
|                                                                                        | Accounts payable                                                                                            |                                              |        | 1,235  |              |   |        | 1,255  |       
|                                                                                        | Mark-to-market derivative liabilities                                                                       |                                              |        | 865    |              |   |        | 598    |       
|                                                                                        | Accrued expenses                                                                                            |                                              |        | 907    |              |   |        | 1,143  |       
|                                                                                        | Other                                                                                                       |                                              |        | 496    |              |   |        | 483    |       
|                                                                                        |                                                                                                             |                                              |        |        |              |  
|                                                                                        |                                                                                                             | Total current liabilities                    |        |        | 6,840        |   |        |        | 4,882  | 
|                                                                                        |                                                                                                             |                                              |        |        |              |  
|Long-term debt                                                                          |                                                                                                             |                                              | 6,482  |        |              |   | 7,292  |       
|Long-term debt to ComEd Transitional Funding Trust and PECO
    Energy Transition Trust |                                                                                                             |                                              | 3,970  |        |              |   | 4,311  |       
|Long-term debt to other financing trusts                                                |                                                                                                             |                                              | 545    |        |              |   | 545    |       
|Deferred credits and other liabilities                                                  |                                                                                                             |                                              |        |        |              |   |        |       
|                                                                                        | Deferred income taxes                                                                                       |                                              |        | 4,971  |              |   |        | 4,488  |       
|                                                                                        | Unamortized investment tax credits                                                                          |                                              |        | 272    |              |   |        | 275    |       
|                                                                                        | Asset retirement obligation                                                                                 |                                              |        | 4,039  |              |   |        | 3,981  |       
|                                                                                        | Pension obligations                                                                                         |                                              |        | 7      |              |   |        | 1,993  |       
|                                                                                        | Non-pension postretirement benefits obligations                                                             |                                              |        | 1,089  |              |   |        | 1,065  |       
|                                                                                        | Spent nuclear fuel obligation                                                                               |                                              |        | 884    |              |   |        | 878    |       
|                                                                                        | Regulatory liabilities                                                                                      |                                              |        | 2,167  |              |   |        | 2,204  |       
|                                                                                        | Mark-to-market derivative liabilities                                                                       |                                              |        | 411    |              |   |        | 323    |       
|                                                                                        | Other                                                                                                       |                                              |        | 930    |              |   |        | 981    |       
|                                                                                        |                                                                                                             |                                              |        |        |              |  
|                                                                                        |                                                                                                             | Total deferred credits and other liabilities |        |        | 14,770       |   |        |        | 16,188 | 
|                                                                                        |                                                                                                             |                                              |        |        |              |  
|                                                                                        |                                                                                                             | Total liabilities                            |        |        | 32,607       |   |        |        | 33,218 | 
|                                                                                        |                                                                                                             |                                              |        |        |              |  
|Commitments and contingencies                                                           |                                                                                                             |                                              |        |        |              |   |        |       
|Minority interest of consolidated subsidiaries                                          |                                                                                                             |                                              | 1      |        |              |   | 42     |       
|Preferred securities of subsidiaries                                                    |                                                                                                             |                                              | 87     |        |              |   | 87     |       
|Shareholders equity                                                                    |                                                                                                             |                                              |        |        |              |   |        |       
|                                                                                        | Common stock                                                                                                |                                              |        | 7,757  |              |   |        | 7,598  |       
|                                                                                        | Treasury stock, at cost                                                                                     |                                              |        | (90    | )            |   |        | (82    | )     
|                                                                                        | Retained earnings                                                                                           |                                              |        | 3,607  |              |   |        | 3,353  |       
|                                                                                        | Accumulated other comprehensive loss                                                                        |                                              |        | (1,561 | )            |   |        | (1,446 | )     
|                                                                                        |                                                                                                             |                                              |        |        |              |  
|                                                                                        |                                                                                                             | Total shareholders equity                   |        |        | 9,713        |   |        |        | 9,423  | 
|                                                                                        |                                                                                                             |                                              |        |        |              |  
|Total liabilities and shareholders equity                                              |                                                                                                             | $                                            | 42,408 |        |              | $ | 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 |  |        | $ | 7,598 |          |  | $           | (82      | ) |       | $             | 3,353 |   |               | $ | (1,446 | ) |  | $ | 9,423 |  
|Net income                                             |  |        |        |  |        |   |      |          |  |             |         |   |       |               | 521   |   |               |   |       |   |  |   | 521   |  
|Long-term incentive plan activity                      |  |        | 4,504   |  |        |   | 159   |          |  |             |         |   |       |               |      |   |               |   |       |   |  |   | 159   |  
|Common stock purchases                                 |  |        |        |  |        |   |      |          |  |             | (8       | ) |       |               |      |   |               |   |       |   |  |   | (8    | )
|Common stock dividends declared                        |  |        |        |  |        |   |      |          |  |             |         |   |       |               | (267  | ) |               |   |       |   |  |   | (267  | )
|Other comprehensive loss, net of income taxes of $(30) |  |        |        |  |        |   |      |          |  |             |         |   |       |               |      |   |               |   | (115   | ) |  |   | (115  | )
|                                                       |  |        |         |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  
|Balance, March 31, 2005                                |  |        | 671,192 |  |        | $ | 7,757 |          |  | $           | (90      | ) |       | $             | 3,607 |   |               | $ | (1,561 | ) |  | $ | 9,713 |  
|                                                       |  |        |         |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  



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COMMONWEALTH EDISON COMPANY





COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                              |                                                   |                                   |     |       |       |   |     |       |       |  
|--------------------------------------------- | ------------------------------------------------- | --------------------------------- | --- | ----- | ----- | - | --- | ----- | ----- | -
|                                              |                                                   | Three Months                      |    
|                                              |                                                   | Ended                             |    
|                                              |                                                   | March 31,                         |    
|                                              |                                                   |                                   |    
|                                              |                                                   | 2005                              |     |       | 2004  |  
|(In millions)                                 |                                                   |                                   |     |       |       |  
|Operating revenues                            |                                                   |                                   |     |       |       |   |     |      
|                                              | Operating revenues                                |                                   | $   | 1,383 |       |   | $   | 1,325 |      
|                                              | Operating revenues from affiliates                |                                   |     | 3     |       |   |     | 11    |      
|                                              |                                                   |                                   |     |       |       |  
|                                              |                                                   | Total operating revenues          |     |       | 1,386 |   |     |       | 1,336 |  
|                                              |                                                   |                                   |     |       |       |  
|Operating expenses                            |                                                   |                                   |     |       |       |   |     |      
|                                              | Purchased power                                   |                                   |     | 67    |       |   |     | 3     |      
|                                              | Purchased power from affiliate                    |                                   |     | 753   |       |   |     | 530   |      
|                                              | Operating and maintenance                         |                                   |     | 159   |       |   |     | 170   |      
|                                              | Operating and maintenance from affiliates         |                                   |     | 44    |       |   |     | 45    |      
|                                              | Depreciation and amortization                     |                                   |     | 97    |       |   |     | 102   |      
|                                              | Taxes other than income                           |                                   |     | 78    |       |   |     | 79    |      
|                                              |                                                   |                                   |     |       |       |  
|                                              |                                                   | Total operating expenses          |     |       | 1,198 |   |     |       | 929   |  
|                                              |                                                   |                                   |     |       |       |  
|Operating income                              |                                                   |                                   | 188 |       |       |   | 407 |      
|                                              |                                                   |                                   |     |       |       |  
|Other income and deductions                   |                                                   |                                   |     |       |       |   |     |      
|                                              | Interest expense                                  |                                   |     | (49   | )     |   |     | (76   | )    
|                                              | Interest expense to affiliates                    |                                   |     | (25   | )     |   |     | (30   | )    
|                                              | Equity in losses of unconsolidated affiliates     |                                   |     | (4    | )     |   |     | (3    | )    
|                                              | Interest income from affiliates                   |                                   |     | 2     |       |   |     | 6     |      
|                                              | Other, net                                        |                                   |     | 4     |       |   |     | 3     |      
|                                              |                                                   |                                   |     |       |       |  
|                                              |                                                   | Total other income and deductions |     |       | (72   | ) |     |       | (100  | )
|                                              |                                                   |                                   |     |       |       |  
|Income before income taxes                    |                                                   |                                   | 116 |       |       |   | 307 |      
|Income taxes                                  |                                                   |                                   | 46  |       |       |   | 123 |      
|                                              |                                                   |                                   |     |       |       |  
|Net income                                    |                                                   |                                   | 70  |       |       |   | 184 |      
|                                              |                                                   |                                   |     |       |       |  
|Other comprehensive loss, net of income taxes |                                                   |                                   |     |       |       |   |     |      
|                                              | Change in net unrealized loss on cash-flow hedges |                                   |     | (2    | )     |   |     |      |      
|                                              |                                                   |                                   |     |       |       |  
|                                              |                                                   | Total other comprehensive loss    |     |       | (2    | ) |     |       |      |  
|                                              |                                                   |                                   |     |       |       |  
|Total comprehensive income                    |                                                   | $                                 | 68  |       |       | $ | 184 |      
|                                              |                                                   |                                   |     |       |       |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |      |      |      |     |     |  
|--------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------------------------------------------- | ---- | ---- | ---- | ---- | ---- | --- | --- | -
|                                                          |                                                                                                       | Three Months                                                     |                                                                 
|                                                          |                                                                                                       | Ended                                                            |                                                                 
|                                                          |                                                                                                       | March 31,                                                        |                                                                 
|                                                          |                                                                                                       |                                                                  |                                                                 
|                                                          |                                                                                                       | 2005                                                             |                                                                  |      | 2004 |     
|(In millions)                                             |                                                                                                       |                                                                  |                                                                  |      |      |     
|Cash flows from operating activities                      |                                                                                                       |                                                                  |                                                                  |      |      |      |      |     
|                                                          | Net income                                                                                            |                                                                  | $                                                                | 70   |      |      | $    | 184  |    
|                                                          | Adjustments to reconcile net income to net cash flows (used in)
    provided by operating activities: |                                                                  |                                                                  |      |      |      |      |      |    
|                                                          |                                                                                                       | Depreciation and amortization                                    |                                                                  |      | 97   |      |      |      | 102 |    
|                                                          |                                                                                                       | Deferred income taxes and amortization of investment tax credits |                                                                  |      | 257  |      |      |      | 27  |    
|                                                          |                                                                                                       | Provision for uncollectible accounts                             |                                                                  |      | 6    |      |      |      | 10  |    
|                                                          |                                                                                                       | Equity in losses of unconsolidated affiliates                    |                                                                  |      | 4    |      |      |      | 3   |    
|                                                          |                                                                                                       | Other non-cash operating activities                              |                                                                  |      | 11   |      |      |      | 7   |    
|                                                          |                                                                                                       | Changes in assets and liabilities:                               |                                                                  |      |      |      |      |      |     |    
|                                                          |                                                                                                       |                                                                  | Accounts receivable                                              |      |      | 18   |      |      |     | 24  |  
|                                                          |                                                                                                       |                                                                  | Inventories                                                      |      |      | (1   | )    |      |     | (1  | )
|                                                          |                                                                                                       |                                                                  | Other current assets                                             |      |      | (4   | )    |      |     | 5   |  
|                                                          |                                                                                                       |                                                                  | Accounts payable, accrued expenses and other current liabilities |      |      | (43  | )    |      |     | (18 | )
|                                                          |                                                                                                       |                                                                  | Changes in receivables and payables to affiliates                |      |      | 47   |      |      |     | (14 | )
|                                                          |                                                                                                       |                                                                  | Income taxes                                                     |      |      | (211 | )    |      |     | 32  |  
|                                                          |                                                                                                       |                                                                  | Pension asset and non-pension postretirement benefits obligation |      |      | (785 | )    |      |     | (48 | )
|                                                          |                                                                                                       |                                                                  | Other noncurrent assets and liabilities                          |      |      | (9   | )    |      |     | (15 | )
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Net cash flows (used in) provided by operating activities |                                                                                                       |                                                                  | (543                                                             | )    |      |      | 298  |     
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Cash flows from investing activities                      |                                                                                                       |                                                                  |                                                                  |      |      |      |      |     
|                                                          | Capital expenditures                                                                                  |                                                                  |                                                                  | (184 | )    |      |      | (177 | )  
|                                                          | Changes in Exelon intercompany money pool contributions                                               |                                                                  |                                                                  | 207  |      |      |      | 179  |    
|                                                          | Change in restricted cash                                                                             |                                                                  |                                                                  | (2   | )    |      |      | 17   |    
|                                                          | Other investing activities                                                                            |                                                                  |                                                                  |     |      |      |      | 6    |    
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Net cash flows provided by investing activities           |                                                                                                       |                                                                  | 21                                                               |      |      |      | 25   |     
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Cash flows from financing activities                      |                                                                                                       |                                                                  |                                                                  |      |      |      |      |     
|                                                          | Issuance of long-term debt                                                                            |                                                                  |                                                                  | 91   |      |      |      |     |    
|                                                          | Retirement of long-term debt                                                                          |                                                                  |                                                                  | (91  | )    |      |      | (176 | )  
|                                                          | Retirement of long-term debt to ComEd Transitional Funding Trust                                      |                                                                  |                                                                  | (97  | )    |      |      | (93  | )  
|                                                          | Dividends paid on common stock                                                                        |                                                                  |                                                                  | (138 | )    |      |      | (103 | )  
|                                                          | Contributions from parent                                                                             |                                                                  |                                                                  | 834  |      |      |      | 31   |    
|                                                          | Other financing activities                                                                            |                                                                  |                                                                  | (2   | )    |      |      |     |    
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Net cash flows provided by (used in) financing activities |                                                                                                       |                                                                  | 597                                                              |      |      |      | (341 | )   
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Increase (decrease) in cash and cash equivalents          |                                                                                                       |                                                                  | 75                                                               |      |      |      | (18  | )   
|Cash and cash equivalents at beginning of period          |                                                                                                       |                                                                  | 30                                                               |      |      |      | 34   |     
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Cash and cash equivalents at end of period                |                                                                                                       | $                                                                | 105                                                              |      |      | $    | 16   |     
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                                 |                                        |        |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                                 | March 31,                              |        |       | December 31, |  
|                                   |                                                 | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                                 |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                                 |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents                       |                                        | $      | 105   |              |   | $      | 30    |      
|                                   | Restricted cash                                 |                                        |        | 2     |              |   |        |      |      
|                                   | Accounts receivable, net                        |                                        |        |       |              |   |        |       |      
|                                   |                                                 | Customer                               |        |       | 671          |   |        |       | 726   | 
|                                   |                                                 | Other                                  |        |       | 153          |   |        |       | 50    | 
|                                   | Inventories, at average cost                    |                                        |        | 50    |              |   |        | 48    |      
|                                   | Deferred income taxes                           |                                        |        | 15    |              |   |        |      |      
|                                   | Receivables from affiliates                     |                                        |        | 12    |              |   |        | 10    |      
|                                   | Contributions to Exelon intercompany money pool |                                        |        | 101   |              |   |        | 308   |      
|                                   | Other                                           |                                        |        | 28    |              |   |        | 24    |      
|                                   |                                                 |                                        |        |       |              |  
|                                   |                                                 | Total current assets                   |        |       | 1,137        |   |        |       | 1,196 | 
|                                   |                                                 |                                        |        |       |              |  
|Property, plant and equipment, net |                                                 |                                        | 9,563  |       |              |   | 9,463  |      
|Deferred debits and other assets   |                                                 |                                        |        |       |              |   |        |      
|                                   | Investments                                     |                                        |        | 38    |              |   |        | 39    |      
|                                   | Investment in affiliates                        |                                        |        | 48    |              |   |        | 52    |      
|                                   | Goodwill                                        |                                        |        | 4,696 |              |   |        | 4,705 |      
|                                   | Receivables from affiliates                     |                                        |        | 1,393 |              |   |        | 1,443 |      
|                                   | Pension asset                                   |                                        |        | 949   |              |   |        | 156   |      
|                                   | Other                                           |                                        |        | 379   |              |   |        | 387   |      
|                                   |                                                 |                                        |        |       |              |  
|                                   |                                                 | Total deferred debits and other assets |        |       | 7,503        |   |        |       | 6,782 | 
|                                   |                                                 |                                        |        |       |              |  
|Total assets                       |                                                 | $                                      | 18,203 |       |              | $ | 17,441 |      
|                                   |                                                 |                                        |        |       |              |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                   |                                                                            |                                              |        |       |              |   |        |       |        | 
|-------------------------------------------------- | -------------------------------------------------------------------------- | -------------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                                   |                                                                            | March 31,                                    |        |       | December 31, |  
|                                                   |                                                                            | 2005                                         |        |       | 2004         |  
|(In millions)                                      |                                                                            |                                              |        |       |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY              
|Current liabilities                                |                                                                            |                                              |        |       |              |   |        |      
|                                                   | Long-term debt due within one year                                         |                                              | $      | 272   |              |   | $      | 272   |       
|                                                   | Long-term debt to ComEd Transitional Funding Trust due within
    one year |                                              |        | 312   |              |   |        | 321   |       
|                                                   | Accounts payable                                                           |                                              |        | 211   |              |   |        | 196   |       
|                                                   | Accrued expenses                                                           |                                              |        | 395   |              |   |        | 589   |       
|                                                   | Payable to affiliates                                                      |                                              |        | 275   |              |   |        | 227   |       
|                                                   | Customer deposits                                                          |                                              |        | 99    |              |   |        | 93    |       
|                                                   | Deferred income taxes                                                      |                                              |        |      |              |   |        | 17    |       
|                                                   | Other                                                                      |                                              |        | 37    |              |   |        | 49    |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total current liabilities                    |        |       | 1,601        |   |        |       | 1,764  | 
|                                                   |                                                                            |                                              |        |       |              |  
|Long-term debt                                     |                                                                            |                                              | 2,892  |       |              |   | 2,901  |      
|Long-term debt to ComEd Transitional Funding Trust |                                                                            |                                              | 932    |       |              |   | 1,020  |      
|Long-term debt to other financing trusts           |                                                                            |                                              | 361    |       |              |   | 361    |      
|Deferred credits and other liabilities             |                                                                            |                                              |        |       |              |   |        |      
|                                                   | Deferred income taxes                                                      |                                              |        | 2,183 |              |   |        | 1,890 |       
|                                                   | Unamortized investment tax credits                                         |                                              |        | 45    |              |   |        | 45    |       
|                                                   | Non-pension postretirement benefits obligation                             |                                              |        | 203   |              |   |        | 195   |       
|                                                   | Payables to affiliates                                                     |                                              |        | 19    |              |   |        | 17    |       
|                                                   | Regulatory liabilities                                                     |                                              |        | 2,167 |              |   |        | 2,204 |       
|                                                   | Other                                                                      |                                              |        | 296   |              |   |        | 304   |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total deferred credits and other liabilities |        |       | 4,913        |   |        |       | 4,655  | 
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total liabilities                            |        |       | 10,699       |   |        |       | 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                                                          |                                              |        | 1,034 |              |   |        | 1,102 |       
|                                                   | Accumulated other comprehensive loss                                       |                                              |        | (2    | )            |   |        |      |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total shareholders equity                   |        |       | 7,504        |   |        |       | 6,740  | 
|                                                   |                                                                            |                                              |        |       |              |  
|Total liabilities and shareholders equity         |                                                                            | $                                            | 18,203 |       |              | $ | 17,441 |      
|                                                   |                                                                            |                                              |        |       |              |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS
EQUITY


(Unaudited)


|                                                        |  |        |       |           |            |   |       |         |  |            |        |  |          |                |             |          |              |   |       |               |  |       |               |   |  |   |    |   |  |   |       |  
|------------------------------------------------------- |  | ------ | ----- | --------- | ---------- | - | ----- | ------- |  | ---------- | ------ |  | -------- | -------------- | ----------- | -------- | ------------ | - | ----- | ------------- |  | ----- | ------------- | - |  | - | -- | - |  | - | ----- | -
|                                                        |  |        |       | Preferred |            |   |       |         |  |            |        |  |          |                | Accumulated |          |              |  
|                                                        |  |        |       | and       |            |   | Other |         |  | Receivable |        |  | Retained |                |             | Retained |              |   | Other |               |  | Total |              
|                                                        |  | Common |       |           | Preference |   |       | Paid-In |  |            | from   |  |          | Earnings       |             |          | Earnings     |   |       | Comprehensive |  |       | Shareholders |  
|                                                        |  | Stock  |       |           | Stock      |   |       | Capital |  |            | Parent |  |          | Unappropriated |             |          | Appropriated |   |       | Loss          |  |       | Equity        |  
|(In millions)                                           |  |        |       |           |            |   |       |         |  |            |        |  |          |                |             |          |              |   |       |               |  |       |               |  
|Balance, December 31, 2004                              |  | $      | 1,588 |           |            | $ | 7     |         |  | $          | 4,168  |  |          | $              | (125        | )        |              | $ |      |               |  | $     | 1,102         |   |  | $ |   |   |  | $ | 6,740 |  
|Net income                                              |  |        |      |           |            |   |      |         |  |            |       |  |          |                |            |          |              |   | 70    |               |  |       |              |   |  |   |   |   |  |   | 70    |  
|Repayment of receivable from parent                     |  |        |      |           |            |   |      |         |  |            |       |  |          |                | 125         |          |              |   |      |               |  |       |              |   |  |   |   |   |  |   | 125   |  
|Capital contribution from parent                        |  |        |      |           |            |   |      |         |  |            | 709    |  |          |                |            |          |              |   |      |               |  |       |              |   |  |   |   |   |  |   | 709   |  
|Appropriation of Retained Earnings for future dividends |  |        |      |           |            |   |      |         |  |            |       |  |          |                |            |          |              |   | (70   | )             |  |       | 70            |   |  |   |   |   |  |   |      |  
|Common stock dividends                                  |  |        |      |           |            |   |      |         |  |            |       |  |          |                |            |          |              |   |      |               |  |       | (138          | ) |  |   |   |   |  |   | (138  | )
|Other comprehensive income, net of income taxes of $2   |  |        |      |           |            |   |      |         |  |            |       |  |          |                |            |          |              |   |      |               |  |       |              |   |  |   | (2 | ) |  |   | (2    | )
|                                                        |  |        |       |           |            |   |       |         |  |            |        |  |          |                |             |          |              |   |       |               |  |       |               |  
|Balance, March 31, 2005                                 |  | $      | 1,588 |           |            | $ | 7     |         |  | $          | 4,877  |  |          | $              |            |          |              | $ |      |               |  | $     | 1,034         |   |  | $ | (2 | ) |  | $ | 7,504 |  
|                                                        |  |        |       |           |            |   |       |         |  |            |        |  |          |                |             |          |              |   |       |               |  |       |               |  



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PECO ENERGY COMPANY





PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                |                                                   |                                                   |                                   |       |      |       |     |       |   |       |  
|----------------------------------------------- | ------------------------------------------------- | ------------------------------------------------- | --------------------------------- | ----- | ---- | ----- | --- | ----- | - | ----- | -
|                                                |                                                   | Three Months                                      |                                  
|                                                |                                                   | Ended                                             |                                  
|                                                |                                                   | March 31,                                         |                                  
|                                                |                                                   |                                                   |                                  
|                                                |                                                   | 2005                                              |                                   |       | 2004 |      
|(In millions)                                   |                                                   |                                                   |                                   |       |      |      
|Operating revenues                              |                                                   |                                                   |                                   |       |      |       |     |      
|                                                | Operating revenues                                |                                                   | $                                 | 1,291 |      |       | $   | 1,235 |  
|                                                | Operating revenues from affiliates                |                                                   |                                   | 4     |      |       |     | 4     |  
|                                                |                                                   |                                                   |                                   |       |      |      
|                                                |                                                   |                                                   | Total operating revenues          |       |      | 1,295 |     |       |   | 1,239 |  
|                                                |                                                   |                                                   |                                   |       |      |      
|Operating expenses                              |                                                   |                                                   |                                   |       |      |       |     |      
|                                                | Purchased power                                   |                                                   |                                   | 51    |      |       |     | 47    |  
|                                                | Purchased power from affiliate                    |                                                   |                                   | 381   |      |       |     | 349   |  
|                                                | Fuel                                              |                                                   |                                   | 264   |      |       |     | 250   |  
|                                                | Fuel from affiliate                               |                                                   |                                   | 1     |      |       |     |      |  
|                                                | Operating and maintenance                         |                                                   |                                   | 109   |      |       |     | 111   |  
|                                                | Operating and maintenance from affiliates         |                                                   |                                   | 25    |      |       |     | 23    |  
|                                                | Depreciation and amortization                     |                                                   |                                   | 136   |      |       |     | 125   |  
|                                                | Taxes other than income                           |                                                   |                                   | 54    |      |       |     | 58    |  
|                                                |                                                   |                                                   |                                   |       |      |      
|                                                |                                                   |                                                   | Total operating expenses          |       |      | 1,021 |     |       |   | 963   |  
|                                                |                                                   |                                                   |                                   |       |      |      
|Operating income                                |                                                   |                                                   | 274                               |       |      |       | 276 |      
|                                                |                                                   |                                                   |                                   |       |      |      
|Other income and deductions                     |                                                   |                                                   |                                   |       |      |       |     |      
|                                                | Interest expense                                  |                                                   |                                   | (13   | )    |       |     | (14   | )
|                                                | Interest expense to affiliates                    |                                                   |                                   | (59   | )    |       |     | (63   | )
|                                                | Equity in losses of unconsolidated affiliates     |                                                   |                                   | (4    | )    |       |     | (7    | )
|                                                | Interest income from affiliates                   |                                                   |                                   | 1     |      |       |     |      |  
|                                                | Other, net                                        |                                                   |                                   | 1     |      |       |     | 2     |  
|                                                |                                                   |                                                   |                                   |       |      |      
|                                                |                                                   |                                                   | Total other income and deductions |       |      | (74   | )   |       |   | (82   | )
|                                                |                                                   |                                                   |                                   |       |      |      
|Income before income taxes                      |                                                   |                                                   | 200                               |       |      |       | 194 |      
|Income taxes                                    |                                                   |                                                   | 71                                |       |      |       | 62  |      
|                                                |                                                   |                                                   |                                   |       |      |      
|Net income                                      |                                                   |                                                   | 129                               |       |      |       | 132 |      
|Preferred stock dividends                       |                                                   |                                                   | 1                                 |       |      |       | 1   |      
|                                                |                                                   |                                                   |                                   |       |      |      
|Net income on common stock                      |                                                   | $                                                 | 128                               |       |      | $     | 131 |      
|                                                |                                                   |                                                   |                                   |       |      |      
|Other comprehensive income, net of income taxes |                                                   |                                                   |                                   |       |      |       |     |      
|                                                | Net income                                        |                                                   | $                                 | 129   |      |       | $   | 132   |  
|                                                | Other comprehensive income (net of income taxes): |                                                   |                                   |       |      |       |     |       |  
|                                                |                                                   | Change in net unrealized gain on cash-flow hedges |                                   |       |     |       |     |       | 1 |      
|                                                |                                                   | Unrealized gain on marketable securities          |                                   |       |     |       |     |       | 1 |      
|                                                |                                                   |                                                   |                                   |       |      |      
|                                                |                                                   |                                                   | Total other comprehensive income  |       |      |      |     |       |   | 2     |  
|                                                |                                                   |                                                   |                                   |       |      |      
|Total comprehensive income                      |                                                   | $                                                 | 129                               |       |      | $     | 134 |      
|                                                |                                                   |                                                   |                                   |       |      |      



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                 |                                                                                             |                                                                  |                                                                  |      |      |      |      |     |     |      |  
|------------------------------------------------ | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------------------------------------------- | ---- | ---- | ---- | ---- | --- | --- | ---- | -
|                                                 |                                                                                             | Three Months                                                     |                                                                 
|                                                 |                                                                                             | Ended March 31,                                                  |                                                                 
|                                                 |                                                                                             |                                                                  |                                                                 
|                                                 |                                                                                             | 2005                                                             |                                                                  |      | 2004 |     
|(In millions)                                    |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from operating activities             |                                                                                             |                                                                  |                                                                  |      |      |      |      |    
|                                                 | Net income                                                                                  |                                                                  | $                                                                | 129  |      |      | $    | 132 |    
|                                                 | Adjustments to reconcile net income to net cash flows provided
    by operating activities: |                                                                  |                                                                  |      |      |      |      |     |    
|                                                 |                                                                                             | Depreciation and amortization                                    |                                                                  |      | 136  |      |      |     | 125 |     
|                                                 |                                                                                             | Deferred income taxes and amortization of investment tax credits |                                                                  |      | (19  | )    |      |     | (31 | )   
|                                                 |                                                                                             | Provision for uncollectible accounts                             |                                                                  |      | 6    |      |      |     | 10  |     
|                                                 |                                                                                             | Equity in losses of unconsolidated affiliates                    |                                                                  |      | 4    |      |      |     | 7   |     
|                                                 |                                                                                             | Other non-cash operating activities                              |                                                                  |      | (3   | )    |      |     | (4  | )   
|                                                 |                                                                                             | Changes in assets and liabilities:                               |                                                                  |      |      |      |      |     |     |     
|                                                 |                                                                                             |                                                                  | Accounts receivable                                              |      |      | (20  | )    |     |     | (7   | )
|                                                 |                                                                                             |                                                                  | Inventories                                                      |      |      | 74   |      |     |     | 70   |  
|                                                 |                                                                                             |                                                                  | Deferred energy costs                                            |      |      | 35   |      |     |     | 30   |  
|                                                 |                                                                                             |                                                                  | Prepaid taxes                                                    |      |      | (158 | )    |     |     | (141 | )
|                                                 |                                                                                             |                                                                  | Other current assets                                             |      |      | 4    |      |     |     | (3   | )
|                                                 |                                                                                             |                                                                  | Accounts payable, accrued expenses and other current liabilities |      |      | (66  | )    |     |     | (40  | )
|                                                 |                                                                                             |                                                                  | Change in receivables and payables to affiliates, net            |      |      | 10   |      |     |     | (6   | )
|                                                 |                                                                                             |                                                                  | Income taxes                                                     |      |      | 82   |      |     |     | 82   |  
|                                                 |                                                                                             |                                                                  | Pension asset and non-pension postretirement benefits obligation |      |      | (141 | )    |     |     | 6    |  
|                                                 |                                                                                             |                                                                  | Other noncurrent assets and liabilities                          |      |      | (1   | )    |     |     | (13  | )
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows provided by operating activities  |                                                                                             |                                                                  | 72                                                               |      |      |      | 217  |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from investing activities             |                                                                                             |                                                                  |                                                                  |      |      |      |      |    
|                                                 | Capital expenditures                                                                        |                                                                  |                                                                  | (56  | )    |      |      | (47 | )  
|                                                 | Changes in Exelon intercompany money pool contributions                                     |                                                                  |                                                                  | 34   |      |      |      |    |    
|                                                 | Change in restricted cash                                                                   |                                                                  |                                                                  | (4   | )    |      |      | (1  | )  
|                                                 | Other investing activities                                                                  |                                                                  |                                                                  | 3    |      |      |      |    |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows used in investing activities      |                                                                                             |                                                                  | (23                                                              | )    |      |      | (48  | )  
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from financing activities             |                                                                                             |                                                                  |                                                                  |      |      |      |      |    
|                                                 | Retirement of long-term debt                                                                |                                                                  |                                                                  | (4   | )    |      |      |    |    
|                                                 | Retirement of long-term debt to PECO Energy Transitional Trust                              |                                                                  |                                                                  | (108 | )    |      |      | (88 | )  
|                                                 | Change in short-term debt                                                                   |                                                                  |                                                                  | 36   |      |      |      | 35  |    
|                                                 | Dividends paid on preferred and common stock                                                |                                                                  |                                                                  | (116 | )    |      |      | (91 | )  
|                                                 | Contribution from parent                                                                    |                                                                  |                                                                  | 144  |      |      |      | 35  |    
|                                                 | Other financing activities                                                                  |                                                                  |                                                                  |     |      |      |      | 2   |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows used in financing activities      |                                                                                             |                                                                  | (48                                                              | )    |      |      | (107 | )  
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Increase in cash and cash equivalents            |                                                                                             |                                                                  | 1                                                                |      |      |      | 62   |    
|Cash and cash equivalents at beginning of period |                                                                                             |                                                                  | 74                                                               |      |      |      | 18   |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash and cash equivalents at end of period       |                                                                                             | $                                                                | 75                                                               |      |      | $    | 80   |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                                 |                                        |        |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                                 | March 31,                              |        |       | December 31, |  
|                                   |                                                 | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                                 |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                                 |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents                       |                                        | $      | 75    |              |   | $      | 74    |      
|                                   | Restricted cash                                 |                                        |        | 33    |              |   |        | 29    |      
|                                   | Accounts receivable, net                        |                                        |        |       |              |   |        |       |      
|                                   |                                                 | Customer                               |        |       | 386          |   |        |       | 368   | 
|                                   |                                                 | Other                                  |        |       | 30           |   |        |       | 34    | 
|                                   | Inventories, at average cost                    |                                        |        |       |              |   |        |       |      
|                                   |                                                 | Gas                                    |        |       | 44           |   |        |       | 117   | 
|                                   |                                                 | Materials and supplies                 |        |       | 9            |   |        |       | 10    | 
|                                   | Contributions to Exelon intercompany money pool |                                        |        |      |              |   |        | 34    |      
|                                   | Deferred income taxes                           |                                        |        | 28    |              |   |        | 24    |      
|                                   | Deferred energy costs                           |                                        |        | 36    |              |   |        | 71    |      
|                                   | Prepaid taxes                                   |                                        |        | 159   |              |   |        | 1     |      
|                                   | Other                                           |                                        |        | 7     |              |   |        | 11    |      
|                                   |                                                 |                                        |        |       |              |  
|                                   |                                                 | Total current assets                   |        |       | 807          |   |        |       | 773   | 
|                                   |                                                 |                                        |        |       |              |  
|Property, plant and equipment, net |                                                 |                                        | 4,345  |       |              |   | 4,329  |      
|Deferred debits and other assets   |                                                 |                                        |        |       |              |   |        |      
|                                   | Regulatory assets                               |                                        |        | 4,702 |              |   |        | 4,790 |      
|                                   | Investments                                     |                                        |        | 22    |              |   |        | 22    |      
|                                   | Investment in affiliates                        |                                        |        | 84    |              |   |        | 87    |      
|                                   | Receivables from affiliates                     |                                        |        | 35    |              |   |        | 46    |      
|                                   | Pension asset                                   |                                        |        | 190   |              |   |        | 77    |      
|                                   | Other                                           |                                        |        | 6     |              |   |        | 9     |      
|                                   |                                                 |                                        |        |       |              |  
|                                   |                                                 | Total deferred debits and other assets |        |       | 5,039        |   |        |       | 5,031 | 
|                                   |                                                 |                                        |        |       |              |  
|Total assets                       |                                                 | $                                      | 10,191 |       |              | $ | 10,133 |      
|                                   |                                                 |                                        |        |       |              |  



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                               |                                                                        |                                              |        |        |              |   |        |        |       | 
|---------------------------------------------- | ---------------------------------------------------------------------- | -------------------------------------------- | ------ | ------ | ------------ | - | ------ | ------ | ----- | 
|                                               |                                                                        | March 31,                                    |        |        | December 31, |  
|                                               |                                                                        | 2005                                         |        |        | 2004         |  
|(In millions)                                  |                                                                        |                                              |        |        |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY          
|Current liabilities                            |                                                                        |                                              |        |        |              |   |        |       
|                                               | Commercial paper                                                       |                                              | $      | 36     |              |   | $      |       |      
|                                               | Long-term debt due within one year                                     |                                              |        | 42     |              |   |        | 46     |      
|                                               | Long-term debt to PECO Energy Transition Trust due within one
    year |                                              |        | 310    |              |   |        | 165    |      
|                                               | Accounts payable                                                       |                                              |        | 105    |              |   |        | 121    |      
|                                               | Accrued expenses                                                       |                                              |        | 297    |              |   |        | 263    |      
|                                               | Payables to affiliates                                                 |                                              |        | 156    |              |   |        | 146    |      
|                                               | Customer deposits                                                      |                                              |        | 46     |              |   |        | 42     |      
|                                               | Other                                                                  |                                              |        | 5      |              |   |        | 11     |      
|                                               |                                                                        |                                              |        |        |              |  
|                                               |                                                                        | Total current liabilities                    |        |        | 997          |   |        |        | 794   | 
|                                               |                                                                        |                                              |        |        |              |  
|Long-term debt                                 |                                                                        |                                              | 1,153  |        |              |   | 1,153  |       
|Long-term debt to PECO Energy Transition Trust |                                                                        |                                              | 3,038  |        |              |   | 3,291  |       
|Long-term debt to other financing trusts       |                                                                        |                                              | 184    |        |              |   | 184    |       
|Deferred credits and other liabilities         |                                                                        |                                              |        |        |              |   |        |       
|                                               | Deferred income taxes                                                  |                                              |        | 2,817  |              |   |        | 2,834  |      
|                                               | Unamortized investment tax credits                                     |                                              |        | 19     |              |   |        | 19     |      
|                                               | Non-pension postretirement benefits obligation                         |                                              |        | 291    |              |   |        | 319    |      
|                                               | Other                                                                  |                                              |        | 137    |              |   |        | 141    |      
|                                               |                                                                        |                                              |        |        |              |  
|                                               |                                                                        | Total deferred credits and other liabilities |        |        | 3,264        |   |        |        | 3,313 | 
|                                               |                                                                        |                                              |        |        |              |  
|                                               |                                                                        | Total liabilities                            |        |        | 8,636        |   |        |        | 8,735 | 
|                                               |                                                                        |                                              |        |        |              |  
|Commitments and contingencies                  |                                                                        |                                              |        |        |              |   |        |       
|Shareholders equity                           |                                                                        |                                              |        |        |              |   |        |       
|                                               | Common stock                                                           |                                              |        | 2,176  |              |   |        | 2,176  |      
|                                               | Preferred stock                                                        |                                              |        | 87     |              |   |        | 87     |      
|                                               | Receivable from parent                                                 |                                              |        | (1,338 | )            |   |        | (1,482 | )    
|                                               | Retained earnings                                                      |                                              |        | 620    |              |   |        | 607    |      
|                                               | Accumulated other comprehensive income                                 |                                              |        | 10     |              |   |        | 10     |      
|                                               |                                                                        |                                              |        |        |              |  
|                                               |                                                                        | Total shareholders equity                   |        |        | 1,555        |   |        |        | 1,398 | 
|                                               |                                                                        |                                              |        |        |              |  
|Total liabilities and shareholders equity     |                                                                        | $                                            | 10,191 |        |              | $ | 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                                              |  |        |      |  |           |            |   |        |  |             |         |   |  |               | 129  |   |               |   |   |  |  |   | 129   |  
|Common stock dividends                                  |  |        |      |  |           |            |   |        |  |             |         |   |  |               | (115 | ) |               |   |   |  |  |   | (115  | )
|Preferred stock dividends                               |  |        |      |  |           |            |   |        |  |             |         |   |  |               | (1   | ) |               |   |   |  |  |   | (1    | )
|Repayment of receivable from parent                     |  |        |      |  |           |            |   |        |  |             | 144      |   |  |               |     |   |               |   |   |  |  |   | 144   |  
|Other comprehensive income, net of income taxes of $(1) |  |        |      |  |           |            |   |        |  |             |         |   |  |               |     |   |               |   |   |  |  |   |      |  
|                                                        |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |  
|Balance, March 31, 2005                                 |  | $      | 2,176 |  |           | $          | 87 |        |  | $           | (1,338   | ) |  | $             | 620  |   |               | $ | 10 |  |  | $ | 1,555 |  
|                                                        |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |  



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EXELON GENERATION COMPANY, LLC





EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                                                       |                                                                             |                                                   |                                          |       |      |       |     |       |      |       |  
|-------------------------------------------------------------------------------------- | --------------------------------------------------------------------------- | ------------------------------------------------- | ---------------------------------------- | ----- | ---- | ----- | --- | ----- | ---- | ----- | -
|                                                                                       |                                                                             | Three Months                                      |                                         
|                                                                                       |                                                                             | Ended                                             |                                         
|                                                                                       |                                                                             | March 31,                                         |                                         
|                                                                                       |                                                                             |                                                   |                                         
|                                                                                       |                                                                             | 2005                                              |                                          |       | 2004 |      
|(In millions)                                                                          |                                                                             |                                                   |                                          |       |      |      
|Operating revenues                                                                     |                                                                             |                                                   |                                          |       |      |       |     |      
|                                                                                       | Operating revenues                                                          |                                                   | $                                        | 885   |      |       | $   | 1,067 |     
|                                                                                       | Operating revenues from affiliates                                          |                                                   |                                          | 1,135 |      |       |     | 879   |     
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|                                                                                       |                                                                             |                                                   | Total operating revenues                 |       |      | 2,020 |     |       |      | 1,946 |  
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Operating expenses                                                                     |                                                                             |                                                   |                                          |       |      |       |     |      
|                                                                                       | Purchased power                                                             |                                                   |                                          | 450   |      |       |     | 522   |     
|                                                                                       | Purchased power from affiliates                                             |                                                   |                                          |      |      |       |     | 8     |     
|                                                                                       | Fuel                                                                        |                                                   |                                          | 358   |      |       |     | 568   |     
|                                                                                       | Operating and maintenance                                                   |                                                   |                                          | 541   |      |       |     | 553   |     
|                                                                                       | Operating and maintenance from affiliates                                   |                                                   |                                          | 68    |      |       |     | 65    |     
|                                                                                       | Depreciation and amortization                                               |                                                   |                                          | 62    |      |       |     | 55    |     
|                                                                                       | Taxes other than income                                                     |                                                   |                                          | 35    |      |       |     | 47    |     
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|                                                                                       |                                                                             |                                                   | Total operating expenses                 |       |      | 1,514 |     |       |      | 1,818 |  
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Operating income                                                                       |                                                                             |                                                   | 506                                      |       |      |       | 128 |      
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Other income and deductions                                                            |                                                                             |                                                   |                                          |       |      |       |     |      
|                                                                                       | Interest expense                                                            |                                                   |                                          | (27   | )    |       |     | (25   | )   
|                                                                                       | Interest expense to affiliates                                              |                                                   |                                          | (2    | )    |       |     | (1    | )   
|                                                                                       | Equity in losses of unconsolidated affiliates                               |                                                   |                                          |      |      |       |     | (2    | )   
|                                                                                       | Other, net                                                                  |                                                   |                                          | 18    |      |       |     | 19    |     
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|                                                                                       |                                                                             |                                                   | Total other income and deductions        |       |      | (11   | )   |       |      | (9    | )
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Income from continuing operations before income taxes and
    minority interest        |                                                                             |                                                   | 495                                      |       |      |       | 119 |      
|Income taxes                                                                           |                                                                             |                                                   | 191                                      |       |      |       | 46  |      
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Income from continuing operations before minority interest                             |                                                                             |                                                   | 304                                      |       |      |       | 73  |      
|Minority interest                                                                      |                                                                             |                                                   |                                         |       |      |       | (2  | )    
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Income from continuing operations                                                      |                                                                             |                                                   | 304                                      |       |      |       | 71  |      
|Discontinued operations                                                                |                                                                             |                                                   |                                          |       |      |       |     |      
|                                                                                       | Loss from discontinued operations (net of income taxes of ($1)              |                                                   |                                          |      |      |       |     | (1    | )   
|                                                                                       | Gain on disposal of discontinued operations (net of income taxes
    of $5) |                                                   |                                          | 16    |      |       |     |      |     
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|                                                                                       |                                                                             |                                                   | Income (loss) on discontinued operations |       |      | 16    |     |       |      | (1    | )
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Income before cumulative effect of a change in accounting
    principle                |                                                                             |                                                   | 320                                      |       |      |       | 70  |      
|Cumulative effect of a change in accounting principle (net of
    income taxes of $22) |                                                                             |                                                   |                                         |       |      |       | 32  |      
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Net income                                                                             |                                                                             |                                                   | 320                                      |       |      |       | 102 |      
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Other comprehensive loss, net of income taxes                                          |                                                                             |                                                   |                                          |       |      |       |     |      
|                                                                                       |                                                                             | Change in net unrealized loss on cash-flow hedges |                                          |       | (124 | )     |     |       | (195 | )    
|                                                                                       |                                                                             | Unrealized gain (loss) on marketable securities   |                                          |       | (15  | )     |     |       | 39   |      
|                                                                                       |                                                                             | Foreign currency translation adjustment           |                                          |       |     |       |     |       | 2    |      
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|                                                                                       |                                                                             |                                                   | Total other comprehensive loss           |       |      | (139  | )   |       |      | (154  | )
|                                                                                       |                                                                             |                                                   |                                          |       |      |      
|Total comprehensive income (loss)                                                      |                                                                             | $                                                 | 181                                      |       |      | $     | (52 | )    
|                                                                                       |                                                                             |                                                   |                                          |       |      |      



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |     |      |    |      |     |      |  
|------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ---- | --- | ---- | -- | ---- | --- | ---- | -
|                                                                                     |                                                                                                                                       | Three Months                                                                                          |                                                                                
|                                                                                     |                                                                                                                                       | Ended                                                                                                 |                                                                                
|                                                                                     |                                                                                                                                       | March 31,                                                                                             |                                                                                
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                
|                                                                                     |                                                                                                                                       | 2005                                                                                                  |                                                                                 |                                                                         | 2004 |    
|(In millions)                                                                        |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |    
|Cash flows from operating activities                                                 |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |     |      |   
|                                                                                     |                                                                                                                                       | Net income                                                                                            |                                                                                 | $                                                                       | 320  |     |      | $  | 102  |    
|                                                                                     |                                                                                                                                       | Adjustments to reconcile net income to net cash flows (used in)
    provided by operating activities: |                                                                                 |                                                                         |      |     |      |    |      |    
|                                                                                     |                                                                                                                                       |                                                                                                       | Depreciation, amortization and accretion, including nuclear fuel                |                                                                         |      | 220 |      |    |      | 199 |     
|                                                                                     |                                                                                                                                       |                                                                                                       | Cumulative effect of a change in accounting principle (net of
    income taxes) |                                                                         |      |    |      |    |      | (32 | )   
|                                                                                     |                                                                                                                                       |                                                                                                       | Other decommissioning-related activities                                        |                                                                         |      | (5  | )    |    |      | 13  |     
|                                                                                     |                                                                                                                                       |                                                                                                       | Gain on sale of investments                                                     |                                                                         |      | (21 | )    |    |      |    |     
|                                                                                     |                                                                                                                                       |                                                                                                       | Deferred income taxes and amortization of investment tax credits                |                                                                         |      | 363 |      |    |      | 29  |     
|                                                                                     |                                                                                                                                       |                                                                                                       | Equity in losses of unconsolidated affiliates                                   |                                                                         |      |    |      |    |      | 2   |     
|                                                                                     |                                                                                                                                       |                                                                                                       | Net realized gains on nuclear decommissioning trust funds                       |                                                                         |      | (1  | )    |    |      | (3  | )   
|                                                                                     |                                                                                                                                       |                                                                                                       | Other non-cash operating activities                                             |                                                                         |      | (7  | )    |    |      | (8  | )   
|                                                                                     |                                                                                                                                       |                                                                                                       | Changes in assets and liabilities:                                              |                                                                         |      |     |      |    |      |     |     
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 | Accounts receivable                                                     |      |     | 59   |    |      |     | (37  | )
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 | Receivables and payables to affiliates, net                             |      |     | (58  | )  |      |     | 46   |  
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 | Inventories                                                             |      |     | 4    |    |      |     |     |  
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 | Other current assets                                                    |      |     | (52  | )  |      |     | 21   |  
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 | Accounts payable, accrued expenses and other current liabilities        |      |     | (58  | )  |      |     | (133 | )
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 | Income taxes                                                            |      |     | (66  | )  |      |     | 8    |  
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 | Net realized and unrealized mark-to-market and hedging
    transactions |      |     | (77  | )  |      |     | 28   |  
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 | Pension asset and non-pension postretirement benefits obligation        |      |     | (855 | )  |      |     | (29  | )
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 | Other noncurrent assets and liabilities                                 |      |     | (4   | )  |      |     | (4   | )
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |    
|Net cash flows (used in) provided by operating activities                            |                                                                                                                                       |                                                                                                       | (238                                                                            | )                                                                       |      |     | 202  |   
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |    
|Cash flows from investing activities                                                 |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |     |      |   
|                                                                                     |                                                                                                                                       | Capital expenditures                                                                                  |                                                                                 |                                                                         | (247 | )   |      |    | (213 | )  
|                                                                                     |                                                                                                                                       | Proceeds from nuclear decommissioning trust fund sales                                                |                                                                                 |                                                                         | 782  |     |      |    | 307  |    
|                                                                                     |                                                                                                                                       | Investment in nuclear decommissioning trust funds                                                     |                                                                                 |                                                                         | (834 | )   |      |    | (378 | )  
|                                                                                     |                                                                                                                                       | Acquisition of business                                                                               |                                                                                 |                                                                         | (97  | )   |      |    |     |    
|                                                                                     |                                                                                                                                       | Proceeds from sale of wholly owned subsidiaries, net of $32 of
    cash sold                          |                                                                                 |                                                                         | 103  |     |      |    |     |    
|                                                                                     |                                                                                                                                       | Net cash increase from consolidation of Sithe Energies, Inc. and
    Exelon Energy Company            |                                                                                 |                                                                         |     |     |      |    | 24   |    
|                                                                                     |                                                                                                                                       | Change in restricted cash                                                                             |                                                                                 |                                                                         | (2   | )   |      |    | 53   |    
|                                                                                     |                                                                                                                                       | Other investing activities                                                                            |                                                                                 |                                                                         | (3   | )   |      |    | 55   |    
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |    
|Net cash flows used in investing activities                                          |                                                                                                                                       |                                                                                                       | (298                                                                            | )                                                                       |      |     | (152 | ) 
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |    
|Cash flows from financing activities                                                 |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |     |      |   
|                                                                                     |                                                                                                                                       | Retirement of long-term debt                                                                          |                                                                                 |                                                                         | (1   | )   |      |    |     |    
|                                                                                     |                                                                                                                                       | Change in short-term debt                                                                             |                                                                                 |                                                                         |     |     |      |    | 165  |    
|                                                                                     |                                                                                                                                       | Payment on acquisition note payable to Sithe Energies, Inc.                                           |                                                                                 |                                                                         |     |     |      |    | (27  | )  
|                                                                                     |                                                                                                                                       | Changes in Exelon intercompany money pool borrowings                                                  |                                                                                 |                                                                         | (246 | )   |      |    | (190 | )  
|                                                                                     |                                                                                                                                       | Distribution to member                                                                                |                                                                                 |                                                                         | (239 | )   |      |    | (54  | )  
|                                                                                     |                                                                                                                                       | Contribution from member                                                                              |                                                                                 |                                                                         | 843  |     |      |    |     |    
|                                                                                     |                                                                                                                                       | Other financing activities                                                                            |                                                                                 |                                                                         |     |     |      |    | (2   | )  
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |    
|Net cash flows provided by (used in) financing activities                            |                                                                                                                                       |                                                                                                       | 357                                                                             |                                                                         |      |     | (108 | ) 
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |    
|Decrease in cash and cash equivalents                                                |                                                                                                                                       |                                                                                                       | (179                                                                            | )                                                                       |      |     | (58  | ) 
|Cash and cash equivalents at beginning of period                                     |                                                                                                                                       |                                                                                                       | 263                                                                             |                                                                         |      |     | 158  |   
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |    
|Cash and cash equivalents at end of period                                           |                                                                                                                                       | $                                                                                                     | 84                                                                              |                                                                         |      | $   | 100  |   
|                                                                                     |                                                                                                                                       |                                                                                                       |                                                                                 |                                                                         |      |    
|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 | )   



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                     |                                        |        |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                     | March 31,                              |        |       | December 31, |  
|                                   |                                     | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                     |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                     |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents           |                                        | $      | 84    |              |   | $      | 263   |      
|                                   | Restricted cash and investments     |                                        |        | 4     |              |   |        | 26    |      
|                                   | Accounts receivable, net            |                                        |        |       |              |   |        |       |      
|                                   |                                     | Customer                               |        |       | 455          |   |        |       | 525   | 
|                                   |                                     | Other                                  |        |       | 273          |   |        |       | 209   | 
|                                   | Mark-to-market derivative assets    |                                        |        | 579   |              |   |        | 403   |      
|                                   | Receivables from affiliates         |                                        |        | 386   |              |   |        | 332   |      
|                                   | Inventories, at average cost        |                                        |        |       |              |   |        |       |      
|                                   |                                     | Fossil fuel                            |        |       | 111          |   |        |       | 112   | 
|                                   |                                     | Materials and supplies                 |        |       | 253          |   |        |       | 255   | 
|                                   | Deferred income taxes               |                                        |        | 42    |              |   |        | 48    |      
|                                   | Other                               |                                        |        | 197   |              |   |        | 148   |      
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total current assets                   |        |       | 2,384        |   |        |       | 2,321 | 
|                                   |                                     |                                        |        |       |              |  
|Property, plant and equipment, net |                                     |                                        | 7,357  |       |              |   | 7,536  |      
|Deferred debits and other assets   |                                     |                                        |        |       |              |   |        |      
|                                   | Nuclear decommissioning trust funds |                                        |        | 5,207 |              |   |        | 5,262 |      
|                                   | Investments                         |                                        |        | 111   |              |   |        | 103   |      
|                                   | Receivable from affiliate           |                                        |        | 11    |              |   |        | 11    |      
|                                   | Pension asset                       |                                        |        | 1,022 |              |   |        | 199   |      
|                                   | Mark-to-market derivative assets    |                                        |        | 316   |              |   |        | 373   |      
|                                   | Other                               |                                        |        | 111   |              |   |        | 633   |      
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total deferred debits and other assets |        |       | 6,778        |   |        |       | 6,581 | 
|                                   |                                     |                                        |        |       |              |  
|Total assets                       |                                     | $                                      | 16,519 |       |              | $ | 16,438 |      
|                                   |                                     |                                        |        |       |              |  



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                             |                                                |                                              |        |       |              |   |        |       |        | 
|-------------------------------------------- | ---------------------------------------------- | -------------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                             |                                                | March 31,                                    |        |       | December 31, |  
|                                             |                                                | 2005                                         |        |       | 2004         |  
|(In millions)                                |                                                |                                              |        |       |              |  
|LIABILITIES AND MEMBERS EQUITY             
|Current liabilities                          |                                                |                                              |        |       |              |   |        |      
|                                             | Long-term debt due within one year             |                                              | $      | 12    |              |   | $      | 47    |       
|                                             | Accounts payable                               |                                              |        | 844   |              |   |        | 856   |       
|                                             | Mark-to-market derivative liabilities          |                                              |        | 865   |              |   |        | 598   |       
|                                             | Payables to affiliates                         |                                              |        | 38    |              |   |        | 42    |       
|                                             | Notes payable to affiliates                    |                                              |        | 37    |              |   |        | 283   |       
|                                             | Accrued expenses                               |                                              |        | 294   |              |   |        | 367   |       
|                                             | Other                                          |                                              |        | 253   |              |   |        | 223   |       
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total current liabilities                    |        |       | 2,343        |   |        |       | 2,416  | 
|                                             |                                                |                                              |        |       |              |  
|Long-term debt                               |                                                |                                              | 1,798  |       |              |   | 2,583  |      
|Deferred credits and other liabilities       |                                                |                                              |        |       |              |   |        |      
|                                             | Asset retirement obligation                    |                                              |        | 4,038 |              |   |        | 3,980 |       
|                                             | Pension obligation                             |                                              |        | 7     |              |   |        | 21    |       
|                                             | Non-pension postretirement benefits obligation |                                              |        | 566   |              |   |        | 584   |       
|                                             | Spent nuclear fuel obligation                  |                                              |        | 884   |              |   |        | 878   |       
|                                             | Deferred income taxes                          |                                              |        | 663   |              |   |        | 506   |       
|                                             | Unamortized investment tax credits             |                                              |        | 208   |              |   |        | 210   |       
|                                             | Payable to affiliates                          |                                              |        | 1,417 |              |   |        | 1,479 |       
|                                             | Mark-to-market derivative liabilities          |                                              |        | 407   |              |   |        | 323   |       
|                                             | Other                                          |                                              |        | 362   |              |   |        | 375   |       
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total deferred credits and other liabilities |        |       | 8,552        |   |        |       | 8,356  | 
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total liabilities                            |        |       | 12,693       |   |        |       | 13,355 | 
|                                             |                                                |                                              |        |       |              |  
|Commitments and contingencies                |                                                |                                              |        |       |              |   |        |      
|Minority interest of consolidated subsidiary |                                                |                                              | 2      |       |              |   | 44     |      
|Members equity                              |                                                |                                              |        |       |              |   |        |      
|                                             | Membership interest                            |                                              |        | 3,204 |              |   |        | 2,361 |       
|                                             | Undistributed earnings                         |                                              |        | 842   |              |   |        | 761   |       
|                                             | Accumulated other comprehensive loss           |                                              |        | (222  | )            |   |        | (83   | )     
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total Members equity                        |        |       | 3,824        |   |        |       | 3,039  | 
|                                             |                                                |                                              |        |       |              |  
|Total liabilities and Members equity        |                                                | $                                            | 16,519 |       |              | $ | 16,438 |      
|                                             |                                                |                                              |        |       |              |  



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##### Table of Contents






EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENT OF MEMBERS EQUITY


(Unaudited)


|                                                           |  |            |       |  |               |             |      |               |       |   |          |   |  |   |       |  
|---------------------------------------------------------- |  | ---------- | ----- |  | ------------- | ----------- | ---- | ------------- | ----- | - | -------- | - |  | - | ----- | -
|                                                           |  |            |       |  |               | Accumulated |      |               |      
|                                                           |  |            |       |  |               | Other       |      |               | Total |  
|                                                           |  | Membership |       |  | Undistributed |             |      | Comprehensive |       |   | Members |  
|                                                           |  | Interest   |       |  | Earnings      |             |      | Loss          |       |   | Equity   |  
|(In millions)                                              |  |            |       |  |               |             |      |               |       |   |          |  
|Balance, December 31, 2004                                 |  | $          | 2,361 |  |               | $           | 761  |               |       | $ | (83      | ) |  | $ | 3,039 |  
|Net income                                                 |  |            |      |  |               |             | 320  |               |       |   |         |   |  |   | 320   |  
|Distribution to Member                                     |  |            |      |  |               |             | (239 | )             |       |   |         |   |  |   | (239  | )
|Contribution from Member                                   |  |            | 843   |  |               |             |     |               |       |   |         |   |  |   | 843   |  
|Other comprehensive loss, net of income tax benefit of $41 |  |            |      |  |               |             |     |               |       |   | (139     | ) |  |   | (139  | )
|                                                           |  |            |       |  |               |             |      |               |       |   |          |  
|Balance, March 31, 2005                                    |  | $          | 3,204 |  |               | $           | 842  |               |       | $ | (222     | ) |  | $ | 3,824 |  
|                                                           |  |            |       |  |               |             |      |               |       |   |          |  



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


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






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



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

|                                               |  |                |     |   |           |   |    |          |  |   |     |  
|---------------------------------------------- |  | -------------- | --- | - | --------- | - | -- | -------- |  | - | --- | -
|Three Months Ended March 31, 2004              |  | Enterprises(a) |     |   | AllEnergy |   |    | Total(b) | 
|                                               |  |                |     |   |           |   |    |          | 
|Total operating revenues                       |  | $              | 90  |   |           | $ | 6  |          |  | $ | 96  |  
|Operating loss                                 |  |                | (19 | ) |           |   | (1 | )        |  |   | (20 | )
|Loss before income taxes and minority interest |  |                | (25 | ) |           |   | (1 | )        |  |   | (26 | )






|    |                              
|--- | -----------------------------
|(a) | Excludes certain investments.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | 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 were not
    included in discontinued operations for that period. See
    Note 1 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Form 10-K for further
    information regarding the adoption of FIN 46-R and
    resulting consolidation of Sithe.

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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)




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



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





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





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





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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                          |                                |              |     |      |      |   |     |      | 
|------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | ------------ | --- | ---- | ---- | - | --- | ---- | 
|                                                                                                                          |                                | Three Months |    
|                                                                                                                          |                                | Ended        |    
|                                                                                                                          |                                | March 31,    |    
|                                                                                                                          |                                |              |    
|                                                                                                                          |                                | 2005         |     |      | 2004 |  
|                                                                                                                          |                                |              |     |      |      |  
|Net income  as reported                                                                                                  |                                | $            | 521 |      |      | $ | 412 |     
|Add: Stock-based compensation expense included in reported net
    income, net of income taxes                            |                                |              | 8   |      |      |   | 9   |     
|Deduct: Total stock-based compensation expense determined under
    fair-value method for all awards, net of income taxes |                                |              | (12 | )    |      |   | (14 | )   
|                                                                                                                          |                                |              |     |      |      |  
|Pro forma net income(a)                                                                                                   |                                | $            | 517 |      |      | $ | 407 |     
|                                                                                                                          |                                |              |     |      |      |  
|Earnings per share:                                                                                                       |                                |              |     |      |      |   |     |     
|                                                                                                                          | Basic earnings  as reported   |              | $   | 0.78 |      |   | $   | 0.63 | 
|                                                                                                                          | Basic earnings  pro forma     |              | $   | 0.78 |      |   | $   | 0.62 | 
|                                                                                                                          | Diluted earnings  as reported |              | $   | 0.77 |      |   | $   | 0.62 | 
|                                                                                                                          | Diluted earnings  pro forma   |              | $   | 0.77 |      |   | $   | 0.61 | 






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





| |             
| | ------------
| | SFAS No. 153



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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)




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





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



| |                                   
| | ----------------------------------
| | Proposed Merger with PSEG (Exelon)











| |                              
| | -----------------------------
| | 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   |    |  | Three Months      |  
|                   |  | Ended          |    |  | Ended             |  
|                   |  | March 31, 2005 |    |  | March 31, 2004(a) |  
|                   |  |                |    |  |                   |  
|Operating revenues |  | $              | 30 |  |                   | $ |   |  
|Operating income   |  |                | 5  |  |                   |   |   |  
|Net income (loss)  |  |                | 16 |  |                   |   | (2 | )






|    |                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Results during the three months ended March 31, 2004
    represent Generations equity-method losses from Sithe
    prior to its consolidation on March 31, 2004. These
    equity-method losses are presented within income from continuing
    operations on the Consolidated Statements of Income and
    Comprehensive Income of Exelon and Generation





| |                                                                                 
| | --------------------------------------------------------------------------------
| | Sale of Ownership Interest in Boston Generating, LLC
    (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          |    
|                   |  | March 31, 2004 |    
|                   |  |                |    
|Operating revenues |  | $              | 159 |  
|Operating loss     |  |                | (31 | )
|Net loss           |  |                | (18 | )



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



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

Through and Out Rates/ SECA.




Illinois Procurement Filing.


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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)




Merger-Related Filings.




|   |                                                 
|-- | ------------------------------------------------
|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 March 31, 2005(a)      |  | $ | 4,696 |  
|                                     |  |   |      






|    |                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Exelons goodwill balance at January 1 and March 31,
    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.

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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)




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



|                                             |                               |                |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |     | 
|-------------------------------------------- | ----------------------------- | -------------- | --- | ----------- | ----------------- | - | --- | --- | - | - | ----------- | --- |  | ------------ | --- | --- | --- | - | --- | --- | - | - | --- | --- | 
|                                             |                               | March 31, 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         |                   |   |     | (72 | ) |   |             | 192 |  |              |     | 264 |     |   |     | (56 | ) |   |     | 208 | 
|                                             |                               |                |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  
|Total Exelon amortized intangible assets     |                               |                | 264 |             |                   |   | (72 | )   |   |   | 192         |     |  |              | 727 |     |     |   | (94 | )   |   |   | 633 |    
|                                             |                               |                |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  
|Exelon other intangible assets:              |                               |                |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |    
|                                             | Intangible pension asset      |                |     | 171         |                   |   |     |    |   |   |             | 171 |  |              |     | 171 |     |   |     |    |   |   |     | 171 | 
|                                             |                               |                |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  
|Total Exelon intangible assets               |                               | $              | 435 |             |                   | $ | (72 | )   |   | $ | 363         |     |  | $            | 898 |     |     | $ | (94 | )   |   | $ | 804 |    
|                                             |                               |                |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | See Note 3 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 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 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.



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)




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



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



|                 |  |                |     |  |                   |   |     | 
|---------------- |  | -------------- | --- |  | ----------------- | - | --- | 
|Borrower         |  | March 31, 2005 |     |  | December 31, 2004 |  
|                 |  |                |     |  |                   |  
|Exelon Corporate |  | $              | 290 |  |                   | $ | 490 | 
|ComEd            |  |                |    |  |                   |   |    | 
|PECO             |  |                | 36  |  |                   |   |    | 
|Generation       |  |                |    |  |                   |   |    | 



| |                            
| | ---------------------------
| | Issuance of Short-Term Debt







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



|        |  |      |                                 |          |      |  |          |          |  |  |               |  |  |   |    | 
|------- |  | ---- | ------------------------------- | -------- | ---- |  | -------- | -------- |  |  | ------------- |  |  | - | -- | 
|        |  |      |                                 | Interest |      |  |          |          | 
|Company |  | Type |                                 |          | Rate |  |          | Maturity |  |  | Amount        | 
|        |  |      |                                 |          |      |  |          |          |  |  |               | 
|ComEd   |  |      | Pollution Control Revenue Bonds |          |      |  | Variable |          |  |  | March 1, 2017 |  |  | $ | 91 | 

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)




| |                                 
| | --------------------------------
| | Debt Retirements and Redemptions



|                  |  |                                                                         |  |               |              |   |          |  |               |        |  |   |     | 
|----------------- |  | ----------------------------------------------------------------------- |  | ------------- | ------------ | - | -------- |  | ------------- | ------ |  | - | --- | 
|Company           |  | Type                                                                    |  | Interest Rate |              |   | Maturity |  |               | Amount | 
|                  |  |                                                                         |  |               |              |   |          |  |               |        | 
|ComEd             |  | Pollution Control Revenue Bonds                                         |  |               | 6.75         | % |          |  | March 1, 2015 |        |  | $ | 91  | 
|Exelon            |  | Notes payable for investment in synthetic fuel-producing
    facilities |  |               | 6.00 to 8.00 | % |          |  | January 2008  |        |  |   | 15  | 
|Other             |  |                                                                         |  |               |              |   |          |  |               |        |  |   | 5   | 
|                  |  |                                                                         |  |               |              |   |          |  |               |        | 
|Total retirements |  |                                                                         |  |               |              |   |          |  |               |        |  | $ | 111 | 
|                  |  |                                                                         |  |               |              |   |          |  |               |        | 









| |                    
| | -------------------
| | Interest-Rate Swaps



|                   |  |          |       |  |              |  |                    |                   |                |  |               |                   |  |            |    |   |  |   |    | 
|------------------ |  | -------- | ----- |  | ------------ |  | ------------------ | ----------------- | -------------- |  | ------------- | ----------------- |  | ---------- | -- | - |  | - | -- | 
|                   |  | Notional |       |  |              |  |                    |                   | March 31, 2005 |  |               | December 31, 2004 | 
|Company            |  | Amount   |       |  | Company Pays |  |                    | Counterparty Pays |                |  | Fair Value    |                   |  | Fair Value |   
|                   |  |          |       |  |              |  |                    |                   |                |  |               |                   |  |            |   
|Fair-Value Hedges  |  |          |       |  |              |  |                    |                   |                |  |               |                   |  |            |    |   |  |   |    | 
|ComEd              |  | $        | 240   |  |              |  | 3 Month LIBOR      |                   |                |  |               |                   |  |            |    |   |  |   |    | 
|                   |  |          |       |  |              |  | plus 1.12%  1.60% |                   |                |  | 6.15%         |                   |  | $          |   |   |  | $ | 9  | 
|Cash-Flow Hedges   |  |          |       |  |              |  |                    |                   |                |  |               |                   |  |            |    |   |  |   |    | 
|Exelon             |  |          | 1,200 |  |              |  | 4.51%  5.1%       |                   |                |  | 3 Month LIBOR |                   |  |            | 42 |   |  |   | 2  | 
|ComEd              |  |          | 280   |  |              |  | 5.35%  5.43%      |                   |                |  | 3 Month LIBOR |                   |  |            | (3 | ) |  |   |   | 
|                   |  |          |       |  |              |  |                    |                   |                |  |               |                   |  |            |   
|Net deferred gains |  |          |       |  |              |  |                    |                   |                |  |               |                   |  | $          | 39 |   |  | $ | 11 | 
|                   |  |          |       |  |              |  |                    |                   |                |  |               |                   |  |            |   



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



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     | 
|                                                                                                   |  | ComEd |     |   | PECO |  |    | Generation |  |  | Consolidated |  
|                                                                                                   |  |       |     |   |      |  |    |            |  |  |              |  
|Net change in positions expected to be eliminated during the
    three months ended March 31, 2005 |  |       | (15 | ) |      |  | 8  |            |  |  | (17          | ) |  |  | (17 | )
|Net change in positions expected to be eliminated during the
    three months ended March 31, 2004 |  |       | 9   |   |      |  | 32 |            |  |  | 63           |   |  |  | 46  |  
|Positions identified for elimination not eliminated as of
    March 31, 2005                       |  |       | 199 |   |      |  | 17 |            |  |  | 61           |   |  |  | 331 |  





|                                                                    |  |       |    |   |      |        |   |          |  |   |            |  |        |       |    |   |              |   |    |   |  |   |    |  
|------------------------------------------------------------------- |  | ----- | -- | - | ---- | ------ | - | -------- |  | - | ---------- |  | ------ | ----- | -- | - | ------------ | - | -- | - |  | - | -- | -
|                                                                    |  |       |    |   |      | Energy |   |          |  |   |            |  | Exelon |      
|Salary Continuance Severance                                        |  | ComEd |    |   | PECO |        |   | Delivery |  |   | Generation |  |        | Other |    |   | Consolidated |  
|                                                                    |  |       |    |   |      |        |   |          |  |   |            |  |        |       |    |   |              |  
|Expense (income) recorded for three months ended March 31,
    2005 |  | $     | (1 | ) |      | $      | 1 |          |  | $ |           |  |        | $     | (1 | ) |              | $ | (1 | ) |  | $ | (2 | )
|Expense (income) recorded for three months ended March 31,
    2004 |  |       |   |   |      |        | 5 |          |  |   | 5          |  |        |       | (6 | ) |              |   | 2  |   |  |   | 1  |  



|                                      |  |       |    |   |      |   |    |            |  |   |              |   |  |   |     |  
|------------------------------------- |  | ----- | -- | - | ---- | - | -- | ---------- |  | - | ------------ | - |  | - | --- | -
|                                      |  |       |    |   |      |   |    | Exelon     | 
|Salary Continuance Obligations        |  | ComEd |    |   | PECO |   |    | Generation |  |   | Consolidated |  
|                                      |  |       |    |   |      |   |    |            |  |   |              |  
|Balance at January 1, 2005            |  | $     | 28 |   |      | $ | 7  |            |  | $ | 16           |   |  | $ | 69  |  
|Severance (benefits) charges recorded |  |       | (1 | ) |      |   | 1  |            |  |   | (1           | ) |  |   | (2  | )
|Cash payments                         |  |       | (4 | ) |      |   | (3 | )          |  |   | (2           | ) |  |   | (13 | )
|                                      |  |       |    |   |      |   |    |            |  |   |              |  
|Balance at March 31, 2005             |  | $     | 23 |   |      | $ | 5  |            |  | $ | 13           |   |  | $ | 54  |  
|                                      |  |       |    |   |      |   |    |            |  |   |              |  



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



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)








|                          |                               |                    |      |                |                |       |      |      |   |   |         |     |   |   |     |     |  
|------------------------- | ----------------------------- | ------------------ | ---- | -------------- | -------------- | ----- | ---- | ---- | - | - | ------- | --- | - | - | --- | --- | -
|                          |                               |                    |      |                |                | Other |     
|                          |                               |                    |      | Postretirement |               
|                          |                               | Pension Benefits   |      |                | Benefits Three |      
|                          |                               | Three Months Ended |      |                | Months Ended   |      
|                          |                               | March 31,          |      |                | March 31,      |      
|                          |                               |                    |      |                |                |      
|                          |                               | 2005               |      |                | 2004           |       |      | 2005 |   |   | 2004(a) |    
|                          |                               |                    |      |                |                |       |      |      |   |   |         |    
|Service cost              |                               | $                  | 38   |                |                | $     | 33   |      |   | $ | 23      |     |   | $ | 20  |    
|Interest cost             |                               |                    | 139  |                |                |       | 134  |      |   |   | 43      |     |   |   | 45  |    
|Expected return on assets |                               |                    | (192 | )(b)           |                |       | (154 | )    |   |   | (24     | )   |   |   | (23 | )  
|Amortization of:          |                               |                    |      |                |                |       |      |      |   |   |         |     |   |   |     |    
|                          | Transition obligation (asset) |                    |      | (1             | )              |       |      | (1   | ) |   |         | 2   |   |   |     | 2   |  
|                          | Prior service cost (benefit)  |                    |      | 4              |                |       |      | 4    |   |   |         | (22 | ) |   |     | (19 | )
|                          | Actuarial loss                |                    |      | 30             |                |       |      | 15   |   |   |         | 17  |   |   |     | 15  |  
|                          |                               |                    |      |                |                |       |      |      |   |   |         |    
|Net periodic benefit cost |                               | $                  | 18   |                |                | $     | 31   |      |   | $ | 39      |     |   | $ | 40  |    
|                          |                               |                    |      |                |                |       |      |      |   |   |         |    






|    |                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Amounts have been restated to account for the reduction in net
    periodic postretirement benefit cost resulting from the adoption
    of FSP FAS 106-2. See Note 1  Basis of
    Presentation for further information regarding the adoption of
    FSP FAS 106-2.



|    |  |                                                                                                                                                                                                                                            
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Increase in expected return on pension assets for the three
    months ended March 31, 2005 compared to 2004 was primarily
    attributable to discretionary pension contributions of
    $2 billion made during the first quarter of 2005.

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)




|                                            |  |              |    |  |         |   |    | 
|------------------------------------------- |  | ------------ | -- |  | ------- | - | -- | 
|                                            |  | Three Months |   
|                                            |  | Ended        |   
|                                            |  | March 31,    |   
|                                            |  |              |   
|Pension and Postretirement Benefit Costs(a) |  | 2005         |    |  | 2004(b) |  
|                                            |  |              |    |  |         |  
|ComEd                                       |  | $            | 19 |  |         | $ | 24 | 
|PECO                                        |  |              | 6  |  |         |   | 8  | 
|Generation                                  |  |              | 24 |  |         |   | 31 | 






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



|    |  |                                                                                                                                                                                                                                                                      
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Amounts have been restated to account for the reduction in net
    periodic postretirement benefit cost resulting from the adoption
    of FSP FAS 106-2. See Note 1  Basis of
    Presentation for further information regarding the adoption of
    FSP FAS 106-2.



|                                    |  |              |    |  |      |   |    | 
|----------------------------------- |  | ------------ | -- |  | ---- | - | -- | 
|                                    |  | Three Months |   
|                                    |  | Ended        |   
|                                    |  | March 31,    |   
|                                    |  |              |   
|Savings Plan Matching Contributions |  | 2005         |    |  | 2004 |  
|                                    |  |              |    |  |      |  
|Exelon                              |  | $            | 14 |  |      | $ | 14 | 
|ComEd                               |  |              | 4  |  |      |   | 4  | 
|PECO                                |  |              | 2  |  |      |   | 2  | 
|Generation                          |  |              | 7  |  |      |   | 7  | 

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)




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



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



|                            |                                                       |              |      |      |      |  |      |      |     
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---- |  | ---- | ---- | ----
|                            |                                                       | Three Months |     
|                            |                                                       | Ended        |     
|                            |                                                       | March 31,    |     
|                            |                                                       |              |     
|                            |                                                       | 2005         |      |      | 2004 | 
|                            |                                                       |              |      |      |      | 
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |      |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |      |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 3.9  |      |  |      | 2.7  |     
|                            | Synthetic fuel-producing facilities credit(a)         |              |      | (7.4 | )    |  |      | (7.8 | )   
|                            | Low-income housing credit                             |              |      |     |      |  |      | (0.6 | )   
|                            | Amortization of investment tax credit                 |              |      | (0.4 | )    |  |      | (0.5 | )   
|                            | Tax-exempt income                                     |              |      | (0.4 | )    |  |      | (0.5 | )   
|                            | Qualified nuclear decommissioning trust fund income   |              |      | 0.4  |      |  |      | 0.8  |     
|                            | Nontaxable employee benefits                          |              |      | (0.4 | )    |  |      | (0.4 | )(b)
|                            | Other                                                 |              |      | 0.2  |      |  |      | (0.2 | )   
|                            |                                                       |              |      |      |      | 
|Effective income tax rate   |                                                       |              | 30.9 | %    |      |  | 28.5 | %   
|                            |                                                       |              |      |      |      | 






|    |                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | See Note 2 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Form 10-K for further
    information regarding investments in synthetic fuel-producing
    facilities.



|    |  |                                                                                                                                                                                                                                                                      
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Amounts have been restated to account for the reduction in net
    periodic postretirement benefit cost resulting from the adoption
    of FSP FAS 106-2. See Note 1  Basis of
    Presentation for further information regarding the adoption of
    FSP FAS 106-2.



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



|                            |                                                       |              |      |      |      |  |      |      |     
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---- |  | ---- | ---- | ----
|                            |                                                       | Three Months |     
|                            |                                                       | Ended        |     
|                            |                                                       | March 31,    |     
|                            |                                                       |              |     
|                            |                                                       | 2005         |      |      | 2004 | 
|                            |                                                       |              |      |      |      | 
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |      |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |      |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 4.8  |      |  |      | 4.8  |     
|                            | Amortization of regulatory asset                      |              |      | 0.7  |      |  |      | 0.5  |     
|                            | Amortization of investment tax credit                 |              |      | (0.7 | )    |  |      | (0.2 | )   
|                            | Nontaxable employee benefits                          |              |      | (0.6 | )    |  |      | (0.1 | )(a)
|                            | Other                                                 |              |      | 0.5  |      |  |      | 0.1  |     
|                            |                                                       |              |      |      |      | 
|Effective income tax rate   |                                                       |              | 39.7 | %    |      |  | 40.1 | %   
|                            |                                                       |              |      |      |      | 






|    |                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Amounts have been restated to account for the reduction in net
    periodic postretirement benefit cost resulting from the adoption
    of FSP FAS 106-2. See Note 1  Basis of
    Presentation for further information regarding the adoption of
    FSP FAS 106-2.

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)




| |     
| | ----
| | PECO



|                            |                                                       |              |      |      |      |  |      |      |     
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---- |  | ---- | ---- | ----
|                            |                                                       | Three Months |     
|                            |                                                       | Ended        |     
|                            |                                                       | March 31,    |     
|                            |                                                       |              |     
|                            |                                                       | 2005         |      |      | 2004 | 
|                            |                                                       |              |      |      |      | 
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |      |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |      |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 0.8  |      |  |      | 0.7  |     
|                            | Plant basis differences                               |              |      | 0.3  |      |  |      | (1.0 | )   
|                            | Amortization of investment tax credit                 |              |      | (0.3 | )    |  |      | (0.3 | )   
|                            | Nontaxable employee benefits                          |              |      | (0.2 | )    |  |      | (0.2 | )(a)
|                            | Other                                                 |              |      | (0.2 | )    |  |      | (2.3 | )   
|                            |                                                       |              |      |      |      | 
|Effective income tax rate   |                                                       |              | 35.4 | %    |      |  | 31.9 | %   
|                            |                                                       |              |      |      |      | 






|    |                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Amounts have been restated to account for the reduction in net
    periodic postretirement benefit cost resulting from the adoption
    of FSP FAS 106-2. See Note 1  Basis of
    Presentation for further information regarding the adoption of
    FSP FAS 106-2.



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



|                            |                                                       |              |      |      |      |  |      |      |     
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---- |  | ---- | ---- | ----
|                            |                                                       | Three Months |     
|                            |                                                       | Ended        |     
|                            |                                                       | March 31,    |     
|                            |                                                       |              |     
|                            |                                                       | 2005         |      |      | 2004 | 
|                            |                                                       |              |      |      |      | 
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |      |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |      |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 4.9  |      |  |      | 4.5  |     
|                            | Tax-exempt income                                     |              |      | (0.5 | )    |  |      | (2.1 | )   
|                            | Qualified nuclear decommissioning trust income        |              |      | 0.5  |      |  |      | 3.4  |     
|                            | Amortization of investment tax credit                 |              |      | (0.3 | )    |  |      | (1.0 | )   
|                            | Nontaxable employee benefits                          |              |      | (0.2 | )    |  |      | (0.9 | )(a)
|                            | Other                                                 |              |      | (0.8 | )    |  |      | (0.2 | )   
|                            |                                                       |              |      |      |      | 
|Effective income tax rate   |                                                       |              | 38.6 | %    |      |  | 38.7 | %   
|                            |                                                       |              |      |      |      | 






|    |                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Amounts have been restated to account for the reduction in net
    periodic postretirement benefit cost resulting from the adoption
    of FSP FAS 106-2. See Note 1  Basis of
    Presentation for further information regarding the adoption of
    FSP FAS 106-2.

Investments in Synthetic Fuel-Producing Facilities.


41



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




1999 Sale of Fossil Generating Assets.




42



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



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





|                                               |  |            |       |   |        |   |       |  
|---------------------------------------------- |  | ---------- | ----- | - | ------ | - | ----- | -
|                                               |  | Generation |       |   | Exelon |  
|                                               |  |            |       |   |        |  
|Asset retirement obligation at January 1, 2005 |  | $          | 3,980 |   |        | $ | 3,981 |  
|Liabilities disposed(a)                        |  |            | (3    | ) |        |   | (3    | )
|Accretion expense                              |  |            | 64    |   |        |   | 64    |  
|Payments to decommission retired plants        |  |            | (3    | ) |        |   | (3    | )
|                                               |  |            |       |   |        |  
|Asset retirement obligation at March 31, 2005  |  | $          | 4,038 |   |        | $ | 4,039 |  
|                                               |  |            |       |   |        |  






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



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







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



| |            
| | -----------
| | Stock Split



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)




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





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



|                                                                        |                                                                         |              |     |      |      |   |     |       |  
|----------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------------ | --- | ---- | ---- | - | --- | ----- | -
|                                                                        |                                                                         | Three Months |    
|                                                                        |                                                                         | Ended        |    
|                                                                        |                                                                         | March 31,    |    
|                                                                        |                                                                         |              |    
|                                                                        |                                                                         | 2005         |     |      | 2004 |  
|                                                                        |                                                                         |              |     |      |      |  
|Income from continuing operations                                       |                                                                         | $            | 507 |      |      |   | 397 |      
|Discontinued operations                                                 |                                                                         |              | 14  |      |      |   | (17 | )    
|                                                                        |                                                                         |              |     |      |      |  
|Income before cumulative effect of a change in accounting
    principle |                                                                         |              | 521 |      |      |   | 380 |      
|Cumulative effect of a change in accounting principle                   |                                                                         |              |    |      |      |   | 32  |      
|                                                                        |                                                                         |              |     |      |      |  
|Net income                                                              |                                                                         | $            | 521 |      |      | $ | 412 |      
|                                                                        |                                                                         |              |     |      |      |  
|Average common shares outstanding  basic                               |                                                                         |              | 666 |      |      |   | 659 |      
|Assumed exercise of stock options                                       |                                                                         |              | 9   |      |      |   | 6   |      
|                                                                        |                                                                         |              |     |      |      |  
|Average common shares outstanding  diluted                             |                                                                         |              | 675 |      |      |   | 665 |      
|                                                                        |                                                                         |              |     |      |      |  
|Earnings per average common share  Basic:                              |                                                                         |              |     |      |      |   |     |      
|                                                                        | Income from continuing operations                                       |              | $   | 0.76 |      |   | $   | 0.60  |  
|                                                                        | Discontinued operations                                                 |              |     | 0.02 |      |   |     | (0.02 | )
|                                                                        |                                                                         |              |     |      |      |  
|                                                                        | Income before cumulative effect of a change in accounting
    principle |              | $   | 0.78 |      |   | $   | 0.58  |  
|                                                                        | Cumulative effect of a change in accounting principle                   |              |     |     |      |   |     | 0.05  |  
|                                                                        |                                                                         |              |     |      |      |  
|                                                                        | Net income                                                              |              | $   | 0.78 |      |   | $   | 0.63  |  
|                                                                        |                                                                         |              |     |      |      |  
|Earnings per average common share  Diluted:                            |                                                                         |              |     |      |      |   |     |      
|                                                                        | Income from continuing operations                                       |              | $   | 0.75 |      |   | $   | 0.59  |  
|                                                                        | Discontinued operations                                                 |              |     | 0.02 |      |   |     | (0.02 | )
|                                                                        |                                                                         |              |     |      |      |  
|                                                                        | Income before cumulative effect of a change in accounting
    principle |              | $   | 0.77 |      |   | $   | 0.57  |  
|                                                                        | Cumulative effect of a change in accounting principle                   |              |     |     |      |   |     | 0.05  |  
|                                                                        |                                                                         |              |     |      |      |  
|                                                                        | Net income                                                              |              | $   | 0.77 |      |   | $   | 0.62  |  
|                                                                        |                                                                         |              |     |      |      |  



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)




|    |                                                                       
|--- | ----------------------------------------------------------------------
|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.



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





| |   |                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Letters of credit decreased $86 million, primarily as a
    result of the sale of Sithe. See
    Note 4  Acquisitions and Dispositions for
    further discussion. Guarantees decreased $66 million,
    primarily as a result of the wind-down of Enterprises
    operations.



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



|               |  |                   |     |  |                          |   |    | 
|-------------- |  | ----------------- | --- |  | ------------------------ | - | -- | 
|               |  | Total             |     |  |                         
|               |  | Environmental     |     |  |                         
|               |  | Investigation and |     |  | Portion of Total Related |  
|               |  | Remediation       |     |  | to MGP Investigation     |  
|March 31, 2005 |  | Reserve           |     |  | and Remediation(a)       |  
|               |  |                   |     |  |                          |  
|Exelon         |  | $                 | 123 |  |                          | $ | 95 | 
|ComEd          |  |                   | 60  |  |                          |   | 54 | 
|PECO           |  |                   | 47  |  |                          |   | 41 | 
|Generation     |  |                   | 16  |  |                          |   |   | 






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

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)


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






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



Section 316(b) of the Clean Water Act.


Cotter Corporation.




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



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

PJM Billing Dispute.








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

Retail Rate Law.


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)






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

Real Estate Tax Appeals.






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





| |                         
| | ------------------------
| | Income Tax Refund Claims



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)










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



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)




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



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



|                                                             |                                                                              |              |    |     |      |   |    |     |  
|------------------------------------------------------------ | ---------------------------------------------------------------------------- | ------------ | -- | --- | ---- | - | -- | --- | -
|                                                             |                                                                              | Three Months |   
|                                                             |                                                                              | Ended        |   
|                                                             |                                                                              | March 31,    |   
|                                                             |                                                                              |              |   
|Exelon                                                       |                                                                              | 2005         |    |     | 2004 |  
|                                                             |                                                                              |              |    |     |      |  
|Investment income                                            |                                                                              | $            | 3  |     |      | $ | 2  |    
|Gain on disposition of assets and investments, net(a)        |                                                                              |              | 2  |     |      |   | 2  |    
|Decommissioning-related activities:                          |                                                                              |              |    |     |      |   |    |    
|                                                             | Decommissioning trust fund income(b)                                         |              |    | 28  |      |   |    | 30  |  
|                                                             | Decommissioning trust fund income  AmerGen(b)                               |              |    | 13  |      |   |    | 11  |  
|                                                             | Other-than-temporary impairment of decommissioning trust funds(c)            |              |    | (7  | )    |   |    |    |  
|                                                             | Other-than-temporary impairment of decommissioning trust
    funds  AmerGen |              |    | (1  | )    |   |    |    |  
|                                                             | Regulatory offset to non-operating decommissioning-related
    activities(d) |              |    | (21 | )    |   |    | (30 | )
|Net direct financing lease income                            |                                                                              |              | 5  |     |      |   | 5  |    
|Allowance for funds used during construction (AFUDC), equity |                                                                              |              | 1  |     |      |   |   |    
|Other                                                        |                                                                              |              | 7  |     |      |   | 12 |    
|                                                             |                                                                              |              |    |     |      |  
|Other, net                                                   |                                                                              | $            | 30 |     |      | $ | 32 |    
|                                                             |                                                                              |              |    |     |      |  






|    |                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | See Note 4  Acquisitions and Dispositions for
    further discussion. Excludes gains (losses) related to Sithe and
    certain components of Enterprises as they are classified as
    discontinued operations.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Includes investment income and realized gains and losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(c) |  | 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 plants had no impact on
    Exelons or Generations results of operations or
    financial position.                                                                                                                                                             
|   
|(d) |  | 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 2004 Form 10-K for more information
    regarding the regulatory accounting applied for certain nuclear
    units.

|                                                   |  |              |    |   |      |   |   | 
|-------------------------------------------------- |  | ------------ | -- | - | ---- | - | - | 
|                                                   |  | Three Months |   
|                                                   |  | Ended        |   
|                                                   |  | March 31,    |   
|                                                   |  |              |   
|ComEd                                              |  | 2005         |    |   | 2004 |  
|                                                   |  |              |    |   |      |  
|Investment income                                  |  | $            | 1  |   |      | $ | 1 | 
|Gain on disposition of assets and investments, net |  |              | 3  |   |      |   | 2 | 
|AFUDC, equity                                      |  |              | 1  |   |      |   |  | 
|Other                                              |  |              | (1 | ) |      |   |  | 
|                                                   |  |              |    |   |      |  
|Other, net                                         |  | $            | 4  |   |      | $ | 3 | 
|                                                   |  |              |    |   |      |  

49



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                  |  |              |    |   |      |   |   | 
|----------------- |  | ------------ | -- | - | ---- | - | - | 
|                  |  | Three Months |   
|                  |  | Ended        |   
|                  |  | March 31,    |   
|                  |  |              |   
|PECO              |  | 2005         |    |   | 2004 |  
|                  |  |              |    |   |      |  
|Investment income |  | $            | 2  |   |      | $ | 1 | 
|Other             |  |              | (1 | ) |      |   | 1 | 
|                  |  |              |    |   |      |  
|Other, net        |  | $            | 1  |   |      | $ | 2 | 
|                  |  |              |    |   |      |  

|                                    |                                                                              |              |    |     |      |   |    |     |  
|----------------------------------- | ---------------------------------------------------------------------------- | ------------ | -- | --- | ---- | - | -- | --- | -
|                                    |                                                                              | Three Months |   
|                                    |                                                                              | Ended        |   
|                                    |                                                                              | March 31,    |   
|                                    |                                                                              |              |   
|Generation                          |                                                                              | 2005         |    |     | 2004 |  
|                                    |                                                                              |              |    |     |      |  
|Decommissioning-related activities: |                                                                              |              |    |     |      |   |    |    
|                                    | Decommissioning trust fund income(a)                                         |              | $  | 28  |      |   | $  | 30  |  
|                                    | Decommissioning trust fund income  AmerGen(a)                               |              |    | 13  |      |   |    | 11  |  
|                                    | Other-than-temporary impairment of decommissioning trust funds(b)            |              |    | (7  | )    |   |    |    |  
|                                    | Other-than-temporary impairment of decommissioning trust
    funds  AmerGen |              |    | (1  | )    |   |    |    |  
|                                    | Regulatory offset to non-operating decommissioning-related
    activities(c) |              |    | (21 | )    |   |    | (30 | )
|Other                               |                                                                              |              | 6  |     |      |   | 8  |    
|                                    |                                                                              |              |    |     |      |  
|Other, net                          |                                                                              | $            | 18 |     |      | $ | 19 |    
|                                    |                                                                              |              |    |     |      |  






|    |                                                          
|--- | ---------------------------------------------------------
|(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 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 contractual obligation accounting, including the
    elimination of decommissioning trust fund income including
    realized and unrealized gains and losses and
    other-than-temporary impairments for certain nuclear units. See
    Notes 13 and 15 of Generations Notes to Consolidated
    Financial Statements within Generations 2004
    Form 10-K for more information regarding the contractual
    accounting applied for certain nuclear units.

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)




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



|                                                         |  |           |        |   |              |   |        |  
|-------------------------------------------------------- |  | --------- | ------ | - | ------------ | - | ------ | -
|                                                         |  | March 31, |        |   | December 31, |  
|ComEd                                                    |  | 2005      |        |   | 2004         |  
|                                                         |  |           |        |   |              |  
|Regulatory assets (liabilities)                          |  |           |        |   |              |   |        |  
|Nuclear decommissioning                                  |  | $         | (1,382 | ) |              | $ | (1,433 | )
|Removal costs                                            |  |           | (1,022 | ) |              |   | (1,011 | )
|Reacquired debt costs and interest-rate swap settlements |  |           | 119    |   |              |   | 118    |  
|Recoverable transition costs                             |  |           | 81     |   |              |   | 87     |  
|Deferred income taxes                                    |  |           | 6      |   |              |   | 4      |  
|Other                                                    |  |           | 31     |   |              |   | 31     |  
|                                                         |  |           |        |   |              |  
|Total                                                    |  | $         | (2,167 | ) |              | $ | (2,204 | )
|                                                         |  |           |        |   |              |  

|                                                   |  |           |       |   |              |   |       |  
|-------------------------------------------------- |  | --------- | ----- | - | ------------ | - | ----- | -
|                                                   |  | March 31, |       |   | December 31, |  
|PECO                                               |  | 2005      |       |   | 2004         |  
|                                                   |  |           |       |   |              |  
|Regulatory assets (liabilities)                    |  |           |       |   |              |   |       |  
|Competitive transition charge                      |  | $         | 3,840 |   |              | $ | 3,936 |  
|Deferred income taxes                              |  |           | 746   |   |              |   | 747   |  
|Non-pension postretirement benefits                |  |           | 50    |   |              |   | 52    |  
|Reacquired debt costs                              |  |           | 40    |   |              |   | 42    |  
|MGP regulatory asset(a)                            |  |           | 29    |   |              |   | 32    |  
|U.S. Department of Energy facility decommissioning |  |           | 18    |   |              |   | 19    |  
|Nuclear decommissioning                            |  |           | (35   | ) |              |   | (46   | )
|Other                                              |  |           | 14    |   |              |   | 8     |  
|                                                   |  |           |       |   |              |  
|Long-term regulatory assets                        |  |           | 4,702 |   |              |   | 4,790 |  
|Deferred energy costs (current asset)              |  |           | 36    |   |              |   | 71    |  
|                                                   |  |           |       |   |              |  
|Total                                              |  | $         | 4,738 |   |              | $ | 4,861 |  
|                                                   |  |           |       |   |              |  






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



|                               |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |       | 
|------------------------------ | ------------------------------------ | ------ | - | ----- | ----- |  | - | ----- |  |  | ---------- | ----- |  |  | - | ----- | 
|March 31, 2005                 |                                      | Exelon |   |       | ComEd |  |   | PECO  |  |  | Generation |      
|                               |                                      |        |   |       |       |  |   |       |  |  |            |      
|Property, plant and equipment: |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Accumulated depreciation             |        | $ | 7,424 |       |  | $ | 1,046 |  |  | $          | 2,148 |  |  | $ | 4,123 | 
|Accounts receivable:           |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Allowance for uncollectible accounts |        |   | 83    |       |  |   | 16    |  |  |            | 45    |  |  |   | 17    | 

51



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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)


|                               |                                      |                          |  |    |       |  |  |      |       |  |            |    |       |  |  |    |       | 
|------------------------------ | ------------------------------------ | ------------------------ |  | -- | ----- |  |  | ---- | ----- |  | ---------- | -- | ----- |  |  | -- | ----- | 
|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 |      



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







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)




| |                                           
| | ------------------------------------------
| | Three Months Ended March 31, 2005 and 2004



|                                                                                 |  |          |        |  |            |   |        |          |              |   |              |   |  |              |         |   |  |   |        |  
|-------------------------------------------------------------------------------- |  | -------- | ------ |  | ---------- | - | ------ | -------- | ------------ | - | ------------ | - |  | ------------ | ------- | - |  | - | ------ | -
|                                                                                 |  | Energy   |        |  |            |   |        |          | Intersegment |   |              |  
|                                                                                 |  | Delivery |        |  | Generation |   |        | Other(a) |              |   | Eliminations |   |  | Consolidated |        
|                                                                                 |  |          |        |  |            |   |        |          |              |   |              |   |  |              |        
|Total revenues:(b)                                                               |  |          |        |  |            |   |        |          |              |   |              |   |  |              |         |   |  |   |        |  
|2005                                                                             |  | $        | 2,681  |  |            | $ | 2,020  |          |              | $ | 168          |   |  | $            | (1,308  | ) |  | $ | 3,561  |  
|2004                                                                             |  |          | 2,575  |  |            |   | 1,946  |          |              |   | 161          |   |  |              | (1,047  | ) |  |   | 3,635  |  
|Intersegment revenues:                                                          
|2005                                                                             |  | $        | 4      |  |            | $ | 1,135  |          |              | $ | 169          |   |  | $            | (1,308  | ) |  | $ |       |  
|2004                                                                             |  |          | 13     |  |            |   | 879    |          |              |   | 155          |   |  |              | (1,047  | ) |  |   |       |  
|Income from continuing operations before income taxes and
    minority interest:
|2005                                                                             |  | $        | 315    |  |            | $ | 495    |          |              | $ | (76          | ) |  | $            |        |   |  | $ | 734    |  
|2004                                                                             |  |          | 500    |  |            |   | 119    |          |              |   | (62          | ) |  |              |        |   |  |   | 557    |  
|Income taxes:                                                                   
|2005                                                                             |  | $        | 117    |  |            | $ | 191    |          |              | $ | (81          | ) |  | $            |        |   |  | $ | 227    |  
|2004                                                                             |  |          | 185    |  |            |   | 46     |          |              |   | (72          | ) |  |              |        |   |  |   | 159    |  
|Income from continuing operations:                                              
|2005                                                                             |  | $        | 198    |  |            | $ | 304    |          |              | $ | 5            |   |  | $            |        |   |  | $ | 507    |  
|2004                                                                             |  |          | 315    |  |            |   | 71     |          |              |   | 11           |   |  |              |        |   |  |   | 397    |  
|Discontinued operations:                                                        
|2005                                                                             |  | $        |       |  |            | $ | 16     |          |              | $ | (2           | ) |  | $            |        |   |  | $ | 14     |  
|2004                                                                             |  |          |       |  |            |   | (1     | )        |              |   | (16          | ) |  |              |        |   |  |   | (17    | )
|Cumulative effect of a change in accounting principle:                          
|2005                                                                             |  | $        |       |  |            | $ |       |          |              | $ |             |   |  | $            |        |   |  | $ |       |  
|2004                                                                             |  |          |       |  |            |   | 32     |          |              |   |             |   |  |              |        |   |  |   | 32     |  
|Net income (loss):                                                              
|2005                                                                             |  | $        | 198    |  |            | $ | 320    |          |              | $ | 3            |   |  | $            |        |   |  | $ | 521    |  
|2004                                                                             |  |          | 315    |  |            |   | 102    |          |              |   | (5           | ) |  |              |        |   |  |   | 412    |  
|Total Assets:                                                                   
|March 31, 2005                                                                   |  | $        | 28,394 |  |            | $ | 16,519 |          |              | $ | 13,893       |   |  | $            | (16,398 | ) |  | $ | 42,408 |  
|December 31, 2004                                                                |  |          | 27,574 |  |            |   | 16,438 |          |              |   | 13,268       |   |  |              | (14,510 | ) |  |   | 42,770 |  






|    |                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Other consists of corporate operations, including Exelon
    Business Services Company (BSC), Enterprises and investments in
    synthetic fuel-producing facilities.



|    |  |                                                                                                                                                                                                                                                                                                                                                          
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | $63 million and $62 million in utility taxes are
    included in the revenues and expenses for the three months ended
    March 31, 2005 and 2004, respectively for ComEd.
    $52 million and $50 million in utility taxes are
    included in the revenues and expenses for the three months ended
    March 31, 2005 and 2004, respectively, for PECO.

53



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



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



|                                                         |                                  |                    |   |    |      |   |   |    |  
|-------------------------------------------------------- | -------------------------------- | ------------------ | - | -- | ---- | - | - | -- | -
|                                                         |                                  | Three Months Ended |  
|                                                         |                                  | March 31,          |  
|                                                         |                                  |                    |  
|                                                         |                                  | 2005               |   |    | 2004 |  
|                                                         |                                  |                    |   |    |      |  
|Operating revenues from ComEd Transitional Funding Trust |                                  | $                  | 1 |    |      | $ |  |   
|Interest expense to financing affiliates                 |                                  |                    |   |    |      |   |   |   
|                                                         | ComEd Transitional Funding Trust |                    |   | 19 |      |   |   | 24 |  
|                                                         | ComEd Financing II               |                    |   | 3  |      |   |   | 3  |  
|                                                         | ComEd Financing III              |                    |   | 3  |      |   |   | 3  |  
|Equity in losses from unconsolidated affiliates          |                                  |                    |   |    |      |   |   |   
|                                                         | ComEd Funding LLC                |                    |   | (4 | )    |   |   | (3 | )

|                                                                       |                                  |           |   |       |              |  |   |       | 
|---------------------------------------------------------------------- | -------------------------------- | --------- | - | ----- | ------------ |  | - | ----- | 
|                                                                       |                                  | March 31, |   |       | December 31, | 
|                                                                       |                                  | 2005      |   |       | 2004         | 
|                                                                       |                                  |           |   |       |              | 
|Receivables from affiliates (current)                                  |                                  |           |   |       |              |  |   |      
|                                                                       | ComEd Transitional Funding Trust |           | $ | 11    |              |  | $ | 9     | 
|Investment in affiliates                                               |                                  |           |   |       |              |  |   |      
|                                                                       | ComEd Funding LLC                |           |   | 32    |              |  |   | 36    | 
|                                                                       | ComEd Financing II               |           |   | 10    |              |  |   | 10    | 
|                                                                       | ComEd Financing III              |           |   | 6     |              |  |   | 6     | 
|Receivable from affiliates (noncurrent)                                |                                  |           |   |       |              |  |   |      
|                                                                       | ComEd Transitional Funding Trust |           |   | 11    |              |  |   | 10    | 
|Payables to affiliates (current)                                       |                                  |           |   |       |              |  |   |      
|                                                                       | ComEd Financing II               |           |   | 3     |              |  |   | 6     | 
|                                                                       | ComEd Financing III              |           |   |      |              |  |   | 4     | 
|Long-term debt to financing trusts (including due within one
    year) |                                  |           |   |       |              |  |   |      
|                                                                       | ComEd Transitional Funding Trust |           |   | 1,244 |              |  |   | 1,341 | 
|                                                                       | ComEd Financing II               |           |   | 155   |              |  |   | 155   | 
|                                                                       | ComEd Financing III              |           |   | 206   |              |  |   | 206   | 

54



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                         |                                   |                    |     |     |      |  |     |     | 
|---------------------------------------- | --------------------------------- | ------------------ | --- | --- | ---- |  | --- | --- | 
|                                         |                                   | Three Months Ended |    
|                                         |                                   | March 31,          |    
|                                         |                                   |                    |    
|                                         |                                   | 2005               |     |     | 2004 | 
|                                         |                                   |                    |     |     |      | 
|Operating revenues from affiliates       |                                   |                    |     |     |      |  |     |    
|                                         | Generation(a)                     |                    | $   | 2   |      |  | $   | 10  | 
|                                         | Enterprises(a)                    |                    |     |    |      |  |     | 1   | 
|Purchased power from affiliate           |                                   |                    |     |     |      |  |     |    
|                                         | PPA with Generation(b)            |                    |     | 753 |      |  |     | 530 | 
|Operations & maintenance from affiliates |                                   |                    |     |     |      |  |     |    
|                                         | BSC(c)                            |                    |     | 44  |      |  |     | 41  | 
|                                         | Enterprises(d)                    |                    |     |    |      |  |     | 4   | 
|Interest income from affiliates          |                                   |                    |     |     |      |  |     |    
|                                         | UII(e)                            |                    |     |    |      |  |     | 4   | 
|                                         | Exelon intercompany money pool(f) |                    |     | 2   |      |  |     | 1   | 
|                                         | Other                             |                    |     |    |      |  |     | 1   | 
|Capitalized costs                        |                                   |                    |     |     |      |  |     |    
|                                         | BSC(c)                            |                    |     | 14  |      |  |     | 13  | 
|Cash dividends paid to parent            |                                   |                    | 138 |     |      |  | 103 |    

|                                                 |                                   |           |   |       |              |  |     |       | 
|------------------------------------------------ | --------------------------------- | --------- | - | ----- | ------------ |  | --- | ----- | 
|                                                 |                                   | March 31, |   |       | December 31, | 
|                                                 |                                   | 2005      |   |       | 2004         | 
|                                                 |                                   |           |   |       |              | 
|Receivables from affiliates (current)            |                                   |           |   |       |              |  |     |      
|                                                 | Exelon intercompany money pool(f) |           | $ | 101   |              |  | $   | 308   | 
|                                                 | Other                             |           |   | 1     |              |  |     | 1     | 
|Receivables from affiliates (noncurrent)         |                                   |           |   |       |              |  |     |      
|                                                 | Generation(g)                     |           |   | 1,382 |              |  |     | 1,433 | 
|Payables to affiliates (current)                 |                                   |           |   |       |              |  |     |      
|                                                 | Generation decommissioning(h)     |           |   | 11    |              |  |     | 11    | 
|                                                 | Generation (a, b)                 |           |   | 244   |              |  |     | 189   | 
|                                                 | BSC(c)                            |           |   | 17    |              |  |     | 17    | 
|Payables to affiliates (noncurrent)              |                                   |           |   |       |              |  |     |      
|                                                 | Generation decommissioning(h)     |           |   | 11    |              |  |     | 11    | 
|                                                 | Other                             |           |   | 8     |              |  |     | 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.

55



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 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 contracted with a subsidiary of Exelon Services (an
    Enterprises company) to provide energy conservation services to
    ComEd customers. The subsidiary was sold by Exelon in 2004.                                                                                                                                                                                                                                                                                                 
|   
|(e) |  | 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.                                                                                                                                                                                                           
|   
|(f) |  | 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.                                                                                                                                                                                                                                                                             
|   
|(g) |  | 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 Form 10-K.                  
|   
|(h) |  | ComEd had 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 Ended |  
|                                                |                | March 31,          |  
|                                                |                |                    |  
|                                                |                | 2005               |   |    | 2004 | 
|                                                |                |                    |   |    |      | 
|Operating revenues from affiliate               |                |                    |   |    |      |  |   |   
|                                                | PETT(a)        |                    | $ | 2  |      |  | $ | 2  | 
|Interest expense to financing affiliates        |                |                    |   |    |      |  |   |   
|                                                | PETT           |                    |   | 56 |      |  |   | 60 | 
|                                                | PECO Trust III |                    |   | 2  |      |  |   | 2  | 
|                                                | PECO Trust IV  |                    |   | 1  |      |  |   | 1  | 
|Equity in losses from unconsolidated affiliates |                |                    |   |    |      |  |   |   
|                                                | PETT           |                    |   | 4  |      |  |   | 7  | 

56



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                                       |                          |           |   |       |              |  |   |       | 
|---------------------------------------------------------------------- | ------------------------ | --------- | - | ----- | ------------ |  | - | ----- | 
|                                                                       |                          | March 31, |   |       | December 31, | 
|                                                                       |                          | 2005      |   |       | 2004         | 
|                                                                       |                          |           |   |       |              | 
|Investment in affiliates                                               |                          |           |   |       |              |  |   |      
|                                                                       | PETT                     |           | $ | 74    |              |  | $ | 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 financing trusts (including due within one
    year) |                          |           |   |       |              |  |   |      
|                                                                       | PETT                     |           |   | 3,348 |              |  |   | 3,456 | 
|                                                                       | PECO Trust III           |           |   | 81    |              |  |   | 81    | 
|                                                                       | PECO Trust IV            |           |   | 103   |              |  |   | 103   | 






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



|                                          |               |                    |     |     |      |  |    |     | 
|----------------------------------------- | ------------- | ------------------ | --- | --- | ---- |  | -- | --- | 
|                                          |               | Three Months Ended |    
|                                          |               | March 31,          |    
|                                          |               |                    |    
|                                          |               | 2005               |     |     | 2004 | 
|                                          |               |                    |     |     |      | 
|Operating revenues from affiliate         |               |                    |     |     |      |  |    |    
|                                          | Generation(a) |                    | $   | 2   |      |  | $  | 2   | 
|Purchased power from affiliate            |               |                    |     |     |      |  |    |    
|                                          | Generation(b) |                    |     | 381 |      |  |    | 349 | 
|Fuel from affiliate                       |               |                    |     |     |      |  |    |    
|                                          | Generation(c) |                    |     | 1   |      |  |    |    | 
|Operating and maintenance from affiliates |               |                    |     |     |      |  |    |    
|                                          | BSC(d)        |                    |     | 25  |      |  |    | 23  | 
|Interest income from affiliates           |               |                    |     |     |      |  |    |    
|                                          | Other         |                    |     | 1   |      |  |    |    | 
|Capitalized costs                         |               |                    |     |     |      |  |    |    
|                                          | BSC(d)        |                    |     | 6   |      |  |    | 4   | 
|Cash dividends paid to parent             |               |                    | 115 |     |      |  | 90 |    

57



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                 |                                   |           |       |     |              |  |       |     | 
|------------------------------------------------ | --------------------------------- | --------- | ----- | --- | ------------ |  | ----- | --- | 
|                                                 |                                   | March 31, |       |     | December 31, | 
|                                                 |                                   | 2005      |       |     | 2004         | 
|                                                 |                                   |           |       |     |              | 
|Receivable from affiliate (current)              |                                   |           |       |     |              |  |       |    
|                                                 | Exelon intercompany money pool(e) |           | $     |    |              |  | $     | 34  | 
|Receivable from affiliate (noncurrent)           |                                   |           |       |     |              |  |       |    
|                                                 | Generation decommissioning(f)     |           |       | 35  |              |  |       | 46  | 
|Payables to affiliates (current)                 |                                   |           |       |     |              |  |       |    
|                                                 | Generation(b, c)                  |           |       | 130 |              |  |       | 125 | 
|                                                 | BSC(d)                            |           |       | 21  |              |  |       | 20  | 
|                                                 | Other                             |           |       | 1   |              |  |       |    | 
|Shareholders equity  receivable from parent(g) |                                   |           | 1,338 |     |              |  | 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 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.                                                                                                                                                                                                                                                                                                                                          
|   
|(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 Exelons 2004 Form 10-K.                                                
|   
|(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.                                                                                                                                                                                                                                                                                                           

58



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|                                          |                                   |                    |     |     |      |  |    |     | 
|----------------------------------------- | --------------------------------- | ------------------ | --- | --- | ---- |  | -- | --- | 
|                                          |                                   | Three Months Ended |    
|                                          |                                   | March 31,          |    
|                                          |                                   |                    |    
|                                          |                                   | 2005               |     |     | 2004 | 
|                                          |                                   |                    |     |     |      | 
|Operating revenues from affiliates        |                                   |                    |     |     |      |  |    |    
|                                          | ComEd(a)                          |                    | $   | 753 |      |  | $  | 530 | 
|                                          | PECO(a)                           |                    |     | 382 |      |  |    | 349 | 
|Purchased power from affiliates           |                                   |                    |     |     |      |  |    |    
|                                          | ComEd(a)                          |                    |     |    |      |  |    | 8   | 
|Operating and maintenance from affiliates |                                   |                    |     |     |      |  |    |    
|                                          | ComEd(a)                          |                    |     | 2   |      |  |    | 2   | 
|                                          | PECO(a)                           |                    |     | 2   |      |  |    | 2   | 
|                                          | BSC(b)                            |                    |     | 64  |      |  |    | 61  | 
|Interest expense to affiliates            |                                   |                    |     |     |      |  |    |    
|                                          | Exelon intercompany money pool(c) |                    |     | 2   |      |  |    | 1   | 
|Cash distribution paid to member          |                                   |                    | 239 |     |      |  | 54 |    
|Cash contribution received from member    |                                   |                    | 843 |     |      |  |   |    

|                                            |                                   |           |   |       |              |  |   |       | 
|------------------------------------------- | --------------------------------- | --------- | - | ----- | ------------ |  | - | ----- | 
|                                            |                                   | March 31, |   |       | December 31, | 
|                                            |                                   | 2005      |   |       | 2004         | 
|                                            |                                   |           |   |       |              | 
|Receivables from affiliates (current)       |                                   |           |   |       |              |  |   |      
|                                            | ComEd(a)                          |           | $ | 244   |              |  | $ | 189   | 
|                                            | ComEd decommissioning(d)          |           |   | 11    |              |  |   | 11    | 
|                                            | PECO(a)                           |           |   | 130   |              |  |   | 125   | 
|                                            | BSC(b)                            |           |   | 1     |              |  |   | 7     | 
|Note receivable from affiliate (noncurrent) |                                   |           |   |       |              |  |   |      
|                                            | ComEd decommissioning(d)          |           |   | 11    |              |  |   | 11    | 
|Payables to affiliates (current)            |                                   |           |   |       |              |  |   |      
|                                            | Exelon(c)                         |           |   | 38    |              |  |   | 42    | 
|Notes payable to affiliates (current)       |                                   |           |   |       |              |  |   |      
|                                            | Exelon intercompany money pool(c) |           |   | 37    |              |  |   | 283   | 
|Payables to affiliates (noncurrent)         |                                   |           |   |       |              |  |   |      
|                                            | ComEd decommissioning(e)          |           |   | 1,382 |              |  |   | 1,433 | 
|                                            | PECO decommissioning(e)           |           |   | 35    |              |  |   | 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. Generation purchases
    electric and ancillary services from ComEd and buys energy from
    PECO for Generations own use. In order to facilitate
    payment processing, ComEd processes certain invoice payments on
    behalf of Generation.

59



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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)




| |                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Prior to joining PJM on May 1,
    2004, ComEd also provided transmission services to Generation.
    Amounts charged by PECO and ComEd to Generation for transmission
    have been recorded as intercompany purchased power by Generation.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | 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.
|   
|(c) |  | Represents the outstanding balance of amounts invested in or
    borrowed under the intercompany money pool and other short-term
    obligations payable to Exelon. In order to facilitate payment
    processing, Exelon processes certain invoice payments on behalf
    of Generation.                                                                                           
|   
|(d) |  | 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.                                                                                                        
|   
|(e) |  | 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.                              



|    |                                              
|--- | ---------------------------------------------
|17. | Derivative Financial Instruments (Generation)

Energy-Related
Derivatives






60



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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)




|                                                              |  |           |      |   |             |   |      |             |  |   |       |   |  |   |        |  
|------------------------------------------------------------- |  | --------- | ---- | - | ----------- | - | ---- | ----------- |  | - | ----- | - |  | - | ------ | -
|                                                              |  | Cash-Flow |      |   | Other       |   |      | Proprietary |  |   |      
|                                                              |  | Hedges    |      |   | Derivatives |   |      | Trading     |  |   | Total |  
|                                                              |  |           |      |   |             |   |      |             |  |   |       |  
|Current assets                                                |  | $         | 372  |   |             | $ | 193  |             |  | $ | 14    |   |  | $ | 579    |  
|Noncurrent assets                                             |  |           | 140  |   |             |   | 35   |             |  |   | 141   |   |  |   | 316    |  
|                                                              |  |           |      |   |             |   |      |             |  |   |       |  
|Total mark-to-market energy contract assets                   |  | $         | 512  |   |             | $ | 228  |             |  | $ | 155   |   |  | $ | 895    |  
|                                                              |  |           |      |   |             |   |      |             |  |   |       |  
|Current liabilities                                           |  | $         | (700 | ) |             | $ | (151 | )           |  | $ | (14   | ) |  | $ | (865   | )
|Noncurrent liabilities                                        |  |           | (240 | ) |             |   | (30  | )           |  |   | (137  | ) |  |   | (407   | )
|                                                              |  |           |      |   |             |   |      |             |  |   |       |  
|Total mark-to-market energy contract liabilities              |  | $         | (940 | ) |             | $ | (181 | )           |  | $ | (151  | ) |  | $ | (1,272 | )
|                                                              |  |           |      |   |             |   |      |             |  |   |       |  
|Total mark-to-market energy contract net assets (liabilities) |  | $         | (428 | ) |             | $ | 47   |             |  | $ | 4     |   |  | $ | (377   | )
|                                                              |  |           |      |   |             |   |      |             |  |   |       |  

Normal Operations and Hedging Activities.




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



|                                                   |  |                     |      |  
|-------------------------------------------------- |  | ------------------- | ---- | -
|                                                   |  | Total Cash-Flow     |     
|                                                   |  | Hedge OCI Activity, |     
|                                                   |  | Net of Income Tax   |     
|                                                   |  |                     |     
|Accumulated OCI derivative loss at January 1, 2005 |  | $                   | (137 | )
|Changes in fair value                              |  |                     | (176 | )
|Reclassifications from OCI to net income           |  |                     | 54   |  
|                                                   |  |                     |     
|Accumulated OCI derivative loss at March 31, 2005  |  | $                   | (259 | )
|                                                   |  |                     |     

61



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                   |  |                     |      |  
|-------------------------------------------------- |  | ------------------- | ---- | -
|                                                   |  | Total Cash-Flow     |     
|                                                   |  | Hedge OCI Activity, |     
|                                                   |  | Net of Income Tax   |     
|                                                   |  |                     |     
|Accumulated OCI derivative loss at January 1, 2004 |  | $                   | (133 | )
|Changes in fair value                              |  |                     | (266 | )
|Reclassifications from OCI to net income           |  |                     | 75   |  
|Exelon Energy opening balance                      |  |                     | 2    |  
|                                                   |  |                     |     
|Accumulated OCI derivative loss at March 31, 2004  |  | $                   | (322 | )
|                                                   |  |                     |     







| |                                 
| | --------------------------------
| | Other Derivatives Mark-to-Market





Proprietary Trading Activities.




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)






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



63



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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|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, 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




New Accounting Pronouncements







EXELON CORPORATION


Executive Overview


Financial Results.


64



---



##### Table of Contents







Investment Strategy.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Proposed Merger with PSEG  On December 20, 2004,
    Exelon entered into an Agreement and Plan of Merger (Merger
    Agreement) with Public Service Enterprise Group Incorporated
    (PSEG), a holding company engaged through its subsidiaries in
    electric and gas utility businesses primarily located and
    serving customers in New Jersey, whereby PSEG will be merged
    with and into Exelon (Merger). See Note 2 of Exelons
    Notes to Consolidated Financial Statements within Exelons
    2004 Form 10-K for further information.









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Sale of 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 has recorded $53 million of
    liabilities related to certain indemnifications provided to
    Dynegy and other liabilities directly resulting from the
    transaction. These liabilities were taken into account in the
    final determination of the net gain on sale of $21 million
    (before income taxes). See Note 4 of the Combined Notes to
    Consolidated Financial Statements for further information
    regarding the sale of Generations investment in Sithe.

65



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##### Table of Contents



Financing Activities.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On March 7, 2005, Exelon entered into a $2 billion
    term loan agreement to fund pension contributions in the first
    quarter of 2005. Exelon expects to repay the amount outstanding
    primarily with the proceeds from long-term debt financing that
    Exelon expects will be issued later this year. See liquidity and
    capital resources section below for additional discussion
    related to the $2 billion term loan.





| |   |                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On March 17, 2005, ComEd issued $91 million of
    tax-exempt long-term debt that was used to retire an equivalent
    amount of higher coupon tax-exempt debt.

Regulatory Developments  Through and Out Rates/
SECA.




Illinois Procurement Filing.




66



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Outlook for the Remainder of 2005 and Beyond.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelons interests in synthetic fuel-producing facilities
    increased Exelons net income by $16 million and
    $14 million in the first quarters of 2005 and 2004,
    respectively. Tax credits generated by the production of
    synthetic fuel are subject to a phase-out provision that
    gradually reduces tax credits as the annual average wellhead
    price per barrel of domestic crude oil increases into an
    inflation-adjusted phase-out range. For 2004, the tax credit
    would have begun to phase-out when the annual average wellhead
    price per barrel of domestic crude oil exceeded $51.35 per
    barrel and would have been completely phased out when the annual
    average wellhead price per barrel of domestic crude oil reached
    $64.47 per barrel. The 2005 phase-out range will be
    calculated using inflation rates published in 2006 by the
    Internal Revenue Service. If domestic crude oil prices remain
    high in 2005, the tax credits and net income generated by the
    investments may be reduced substantially and could result in an
    estimated after-tax non-operating loss of $70 million in
    the event the tax credits are completely phased out. In the
    first quarter of 2005, Generation entered into certain
    derivatives to hedge a portion of this commodity exposure in the
    normal course of its trading operations. In addition, Exelon has
    recorded an intangible asset related to its investments in these
    facilities with a net carrying value of $192 million at
    March 31, 2005 that could become impaired if domestic crude
    oil prices continue to increase in the future. The subsidiaries
    of Exelon that hold interests in the synthetic fuel-producing
    facilities are subject to debt obligations related to the
    purchase of the facilities that have a principal balance of
    $205 million as of March 31, 2005. The performance of
    those subsidiaries with respect to these debt obligations is not
    guaranteed by Exelon.

Results of Operations  Exelon Corporation




| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Three Months Ended March 31, 2005 Compared To Three
    Months Ended March 31, 2004

|                                                                                |  |              |       |   |               |   |       |          |  |   |      |  
|------------------------------------------------------------------------------- |  | ------------ | ----- | - | ------------- | - | ----- | -------- |  | - | ---- | -
|                                                                                |  | Three Months |       |   |              
|                                                                                |  | Ended        |       |   |              
|                                                                                |  | March 31,    |       |   | Favorable     |  
|                                                                                |  |              |       |   | (Unfavorable) |  
|                                                                                |  | 2005         |       |   | 2004          |   |       | Variance | 
|                                                                                |  |              |       |   |               |   |       |          | 
|Operating revenues                                                              |  | $            | 3,561 |   |               | $ | 3,635 |          |  | $ | (74  | )
|Purchased power and fuel expense                                                |  |              | 1,190 |   |               |   | 1,395 |          |  |   | 205  |  
|Operating and maintenance expense(a)                                            |  |              | 949   |   |               |   | 979   |          |  |   | 30   |  
|Depreciation and amortization                                                   |  |              | 319   |   |               |   | 301   |          |  |   | (18  | )
|Operating income                                                                |  |              | 931   |   |               |   | 771   |          |  |   | 160  |  
|Other income and deductions                                                     |  |              | (197  | ) |               |   | (214  | )        |  |   | 17   |  
|Income from continuing operations before income taxes and
    minority interest |  |              | 734   |   |               |   | 557   |          |  |   | 177  |  
|Income from continuing operations                                               |  |              | 507   |   |               |   | 397   |          |  |   | 110  |  
|Income (loss) from discontinued operations                                      |  |              | 14    |   |               |   | (17   | )        |  |   | 31   |  
|Income before cumulative effect of a change in accounting
    principle         |  |              | 521   |   |               |   | 380   |          |  |   | 141  |  
|Net income                                                                      |  |              | 521   |   |               |   | 412   |          |  |   | 109  |  
|Diluted earnings per share                                                      |  |              | 0.77  |   |               |   | 0.62  |          |  |   | 0.15 |  






|    |                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Operating and maintenance expense for the three months ended
    March 31, 2004 has been adjusted to reflect a reduction in
    net periodic postretirement benefit cost of $6 million due
    to the adoption of FSP FAS 106-2. See Note 1 of the
    Combined Notes to Consolidated Financial Statements for
    additional information.

Operating Revenues.


67



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Purchased Power and Fuel Expense.


Operating and Maintenance Expense.


Depreciation and Amortization Expense.


Operating Income.


Other Income and Deductions.


Effective Income Tax Rate.


Discontinued Operations.




68



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##### Table of Contents





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







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

|                |  |              |     |  |               |   |     |          |  |   |      |  
|--------------- |  | ------------ | --- |  | ------------- | - | --- | -------- |  | - | ---- | -
|                |  | Three Months |     |  |              
|                |  | Ended        |     |  |              
|                |  | March 31,    |     |  | Favorable     |  
|                |  |              |     |  | (Unfavorable) |  
|                |  | 2005         |     |  | 2004          |   |     | Variance | 
|                |  |              |     |  |               |   |     |          | 
|Energy Delivery |  | $            | 198 |  |               | $ | 315 |          |  | $ | (117 | )
|Generation      |  |              | 304 |  |               |   | 71  |          |  |   | 233  |  
|Other(a)        |  |              | 5   |  |               |   | 11  |          |  |   | (6   | )
|                |  |              |     |  |               |   |     |          | 
|Total           |  | $            | 507 |  |               | $ | 397 |          |  | $ | 110  |  
|                |  |              |     |  |               |   |     |          | 






|    |                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Other consists of corporate operations, including BSC,
    Enterprises, investments in synthetic fuel-producing facilities
    and intersegment eliminations.



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

|                |  |              |     |  |               |   |     |          |  |   |      |  
|--------------- |  | ------------ | --- |  | ------------- | - | --- | -------- |  | - | ---- | -
|                |  | Three Months |     |  |              
|                |  | Ended        |     |  |              
|                |  | March 31,    |     |  | Favorable     |  
|                |  |              |     |  | (Unfavorable) |  
|                |  | 2005         |     |  | 2004          |   |     | Variance | 
|                |  |              |     |  |               |   |     |          | 
|Energy Delivery |  | $            | 198 |  |               | $ | 315 |          |  | $ | (117 | )
|Generation      |  |              | 320 |  |               |   | 102 |          |  |   | 218  |  
|Other(a)        |  |              | 3   |  |               |   | (5  | )        |  |   | 8    |  
|                |  |              |     |  |               |   |     |          | 
|Total           |  | $            | 521 |  |               | $ | 412 |          |  | $ | 109  |  
|                |  |              |     |  |               |   |     |          | 






|    |                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Other consists of corporate operations, including BSC,
    Enterprises, investments in synthetic fuel-producing facilities
    and intersegment eliminations.

69



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

|                            |                                                       |                                   |       |       |               |   |       |          |       |   |      |      |      |  
|--------------------------- | ----------------------------------------------------- | --------------------------------- | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | ---- | ---- | ---- | -
|                            |                                                       | Three Months                      |       |       |              
|                            |                                                       | Ended                             |       |       |              
|                            |                                                       | March 31,                         |       |       | Favorable     |  
|                            |                                                       |                                   |       |       | (Unfavorable) |  
|                            |                                                       | 2005                              |       |       | 2004          |   |       | Variance |      
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating revenues          |                                                       | $                                 | 2,681 |       |               | $ | 2,575 |          |       | $ | 106  |     
|Operating expenses          |                                                       |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Purchased power and fuel expense                      |                                   |       | 1,517 |               |   |       | 1,179    |       |   |      | (338 | )   
|                            | Operating and maintenance(a)                          |                                   |       | 337   |               |   |       | 349      |       |   |      | 12   |     
|                            | Depreciation and amortization                         |                                   |       | 233   |               |   |       | 227      |       |   |      | (6   | )   
|                            | Taxes other than income                               |                                   |       | 132   |               |   |       | 137      |       |   |      | 5    |     
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total operating expense           |       |       | 2,219         |   |       |          | 1,892 |   |      |      | (327 | )
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating income            |                                                       |                                   | 462   |       |               |   | 683   |          |       |   | (221 | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Other income and deductions |                                                       |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Interest expense                                      |                                   |       | (146  | )             |   |       | (183     | )     |   |      | 37   |     
|                            | Distributions on preferred securities of subsidiaries |                                   |       | (1    | )             |   |       | (1       | )     |   |      |     |     
|                            | Equity in losses of unconsolidated affiliates         |                                   |       | (8    | )             |   |       | (10      | )     |   |      | 2    |     
|                            | Other, net                                            |                                   |       | 8     |               |   |       | 11       |       |   |      | (3   | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total other income and deductions |       |       | (147          | ) |       |          | (183  | ) |      |      | 36   |  
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Income before income taxes  |                                                       |                                   | 315   |       |               |   | 500   |          |       |   | (185 | )   
|Income taxes                |                                                       |                                   | 117   |       |               |   | 185   |          |       |   | 68   |     
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Net income                  |                                                       | $                                 | 198   |       |               | $ | 315   |          |       | $ | (117 | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      






|    |                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Operating and maintenance expense for the three months ended
    March 31, 2004 has been adjusted to reflect a reduction in
    net periodic postretirement benefit cost of $3 million due
    to the adoption of FSP FAS 106-2. See Note 1 of the
    Combined Notes to Consolidated Financial Statements for
    additional information.

Net Income.


Operating Revenues.


|                                     |                |          |     |    |          |   |    |          |  |       |      |    |  |            |    |    |  |   |     |    | 
|------------------------------------ | -------------- | -------- | --- | -- | -------- | - | -- | -------- |  | ----- | ---- | -- |  | ---------- | -- | -- |  | - | --- | -- | 
|                                     |                |          |     |    |          |   |    |          |  | Total |     
|                                     |                | ComEd    |     |    | PECO     |   |    | Total    |  |       | PECO |    |  | Increase   |   
|                                     |                | Electric |     |    | Electric |   |    | Electric |  |       | Gas  |    |  | (Decrease) |   
|                                     |                |          |     |    |          |   |    |          |  |       |      |    |  |            |   
|Customer choice                      |                | $        | 14  |    |          | $ | 21 |          |  | $     | 35   |    |  | $          |   |    |  | $ | 35  |   
|Volume                               |                |          | 6   |    |          |   | 13 |          |  |       | 19   |    |  |            | 5  |    |  |   | 24  |   
|Rate changes and mix                 |                |          | (5  | )  |          |   | 11 |          |  |       | 6    |    |  |            | 18 |    |  |   | 24  |   
|Weather                              |                |          | (4  | )  |          |   | (8 | )        |  |       | (12  | )  |  |            | (1 | )  |  |   | (13 | ) 
|Other                                |                |          | 1   |    |          |   |   |          |  |       | 1    |    |  |            |   |    |  |   | 1   |   
|                                     |                |          |     |    |          |   |    |          |  |       |      |    |  |            |   
|                                     | Retail revenue |          |     | 12 |          |   |    | 37       |  |       |      | 49 |  |            |    | 22 |  |   |     | 71 | 
|                                     |                |          |     |    |          |   |    |          |  |       |      |    |  |            |   
|PJM transmission                     |                |          | 53  |    |          |   | (2 | )        |  |       | 51   |    |  |            |   |    |  |   | 51  |   
|T&O/ SECA rates                      |                |          | (16 | )  |          |   | 1  |          |  |       | (15  | )  |  |            |   |    |  |   | (15 | ) 
|Other                                |                |          | 1   |    |          |   | 4  |          |  |       | 5    |    |  |            | (6 | )  |  |   | (1  | ) 
|                                     |                |          |     |    |          |   |    |          |  |       |      |    |  |            |   
|Wholesale and miscellaneous revenues |                |          | 38  |    |          |   | 3  |          |  |       | 41   |    |  |            | (6 | )  |  |   | 35  |   
|                                     |                |          |     |    |          |   |    |          |  |       |      |    |  |            |   
|Increase in operating revenues       |                | $        | 50  |    |          | $ | 40 |          |  | $     | 90   |    |  | $          | 16 |    |  | $ | 106 |   
|                                     |                |          |     |    |          |   |    |          |  |       |      |    |  |            |   

70



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Customer Choice.




|                                                                                               |                                       |              |  |        |              |  |  |        |   |  |      |        |   |  |  |         |  
|---------------------------------------------------------------------------------------------- | ------------------------------------- | ------------ |  | ------ | ------------ |  |  | ------ | - |  | ---- | ------ | - |  |  | ------- | -
|                                                                                               |                                       | ComEd        |  |        | PECO         | 
|                                                                                               |                                       | Three Months |  |        | Three Months | 
|                                                                                               |                                       | Ended        |  |        | Ended        | 
|                                                                                               |                                       | March 31,    |  |        | March 31,    | 
|                                                                                               |                                       |              |  |        |              | 
|                                                                                               |                                       | 2005         |  |        | 2004         |  |  | 2005   |   |  | 2004 |       
|                                                                                               |                                       |              |  |        |              |  |  |        |   |  |      |       
|Retail customers purchasing energy from an alternative electric
    supplier:                  |                                       |              |  |        |              |  |  |        |   |  |      |        |   |  |  |        
|                                                                                               | Volume (GWhs)                         |              |  | 4,826  |              |  |  | 5,200  |   |  |      | 687    |   |  |  | 1,156   |  
|                                                                                               | Percentage of total retail deliveries |              |  | 22     | %            |  |  | 24     | % |  |      | 7      | % |  |  | 12      | %
|Retail customers purchasing energy from an alternative electric
    supplier or the ComEd PPO: |                                       |              |  |        |              |  |  |        |   |  |      |        |   |  |  |        
|                                                                                               | Number of customers                   |              |  | 21,300 |              |  |  | 20,200 |   |  |      | 77,800 |   |  |  | 302,000 |  
|                                                                                               | Percentage of total retail customers  |              |  | (a     | )            |  |  | (a     | ) |  |      | 5      | % |  |  | 20      | %
|                                                                                               | Volume (GWhs)                         |              |  | 7,336  |              |  |  | 7,112  |   |  |      | 687    |   |  |  | 1,156   |  
|                                                                                               | Percentage of total retail deliveries |              |  | 34     | %            |  |  | 33     | % |  |      | 7      | % |  |  | 12      | %






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



Volume.


Rate Changes and Mix.






71



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##### Table of Contents





Weather.


PJM Transmission.


T&O/ SECA Rates.


Purchased Power and Fuel Expense.


|                                             |  |          |     |   |          |   |    |          |  |       |      |   |  |            |    |   |  |   |     |  
|-------------------------------------------- |  | -------- | --- | - | -------- | - | -- | -------- |  | ----- | ---- | - |  | ---------- | -- | - |  | - | --- | -
|                                             |  |          |     |   |          |   |    |          |  | Total |     
|                                             |  | ComEd    |     |   | PECO     |   |    | Total    |  |       | PECO |   |  | Increase   |   
|                                             |  | Electric |     |   | Electric |   |    | Electric |  |       | Gas  |   |  | (Decrease) |   
|                                             |  |          |     |   |          |   |    |          |  |       |      |   |  |            |   
|Prices                                       |  | $        | 231 |   |          | $ | 11 |          |  | $     | 242  |   |  | $          | 18 |   |  | $ | 260 |  
|PJM transmission                             |  |          | 53  |   |          |   | 2  |          |  |       | 55   |   |  |            |   |   |  |   | 55  |  
|Customer choice                              |  |          | 9   |   |          |   | 21 |          |  |       | 30   |   |  |            |   |   |  |   | 30  |  
|Volume                                       |  |          | 7   |   |          |   | 3  |          |  |       | 10   |   |  |            | 4  |   |  |   | 14  |  
|PJM administrative fees                      |  |          | 5   |   |          |   |   |          |  |       | 5    |   |  |            |   |   |  |   | 5   |  
|T&O/ SECA rates                              |  |          | (13 | ) |          |   | 3  |          |  |       | (10  | ) |  |            |   |   |  |   | (10 | )
|Weather                                      |  |          | (2  | ) |          |   | (4 | )        |  |       | (6   | ) |  |            | (1 | ) |  |   | (7  | )
|Other                                        |  |          | (3  | ) |          |   |   |          |  |       | (3   | ) |  |            | (6 | ) |  |   | (9  | )
|                                             |  |          |     |   |          |   |    |          |  |       |      |   |  |            |   
|Increase in purchased power and fuel expense |  | $        | 287 |   |          | $ | 36 |          |  | $     | 323  |   |  | $          | 15 |   |  | $ | 338 |  
|                                             |  |          |     |   |          |   |    |          |  |       |      |   |  |            |   

Prices.


PJM Transmission.


Customer Choice.


72



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##### Table of Contents



Volume.


PJM Administrative Fees.


T&O/ SECA Rates.




Weather.


Operating and Maintenance Expense.


|                                                        |  |       |     |   |      |          |    |            |  |   |     |  
|------------------------------------------------------- |  | ----- | --- | - | ---- | -------- | -- | ---------- |  | - | --- | -
|                                                        |  |       |     |   |      | Total    |   
|                                                        |  |       |     |   |      | Increase |   
|                                                        |  | ComEd |     |   | PECO |          |    | (Decrease) | 
|                                                        |  |       |     |   |      |          |    |            | 
|Employee fringe benefits(a)                             |  | $     | (11 | ) |      | $        | (1 | )          |  | $ | (12 | )
|Allowance for uncollectible accounts                    |  |       | (4  | ) |      |          | (4 | )          |  |   | (8  | )
|Severance-related expenses                              |  |       | (2  | ) |      |          | (4 | )          |  |   | (6  | )
|Pension expense(b)                                      |  |       | (2  | ) |      |          | (2 | )          |  |   | (4  | )
|Contractors                                             |  |       | 7   |   |      |          | 3  |            |  |   | 10  |  
|Professional fees related to income tax refund claim(c) |  |       | 2   |   |      |          | 9  |            |  |   | 11  |  
|Other                                                   |  |       | (2  | ) |      |          | (1 | )          |  |   | (3  | )
|                                                        |  |       |     |   |      |          |    |            | 
|Decrease in operating and maintenance expense           |  | $     | (12 | ) |      | $        |   |            |  | $ | (12 | )
|                                                        |  |       |     |   |      |          |    |            | 






|    |                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Excludes severance-related expenses and pension expense.
    Reflects fewer employees compared to prior year and an
    adjustment in 2005 related to medical plan fees.



|    |  |                                                                                                                                                                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Pension expense in 2005 is expected to be 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.
|   
|(c) |  | See Note 13 of the Combined Notes to Consolidated Financial
    Statements for additional information.                                                                                                                                                                   

73



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Depreciation and Amortization Expense.


|                                                             |  |       |    |   |      |          |    |            |  |   |    |  
|------------------------------------------------------------ |  | ----- | -- | - | ---- | -------- | -- | ---------- |  | - | -- | -
|                                                             |  |       |    |   |      | Total    |   
|                                                             |  |       |    |   |      | Increase |   
|                                                             |  | ComEd |    |   | PECO |          |    | (Decrease) | 
|                                                             |  |       |    |   |      |          |    |            | 
|Depreciation expense                                         |  | $     | 4  |   |      | $        | 1  |            |  | $ | 5  |  
|Recoverable transition costs/ CTC amortization               |  |       | (5 | ) |      |          | 9  |            |  |   | 4  |  
|Accelerated amortization on PECO billing system              |  |       |   |   |      |          | 3  |            |  |   | 3  |  
|Other amortization expense                                   |  |       | (4 | ) |      |          | (2 | )          |  |   | (6 | )
|                                                             |  |       |    |   |      |          |    |            | 
|Increase (decrease) in depreciation and amortization expense |  | $     | (5 | ) |      | $        | 11 |            |  | $ | 6  |  
|                                                             |  |       |    |   |      |          |    |            | 











Taxes Other Than Income.


|                                                |  |       |    |   |      |          |    |            |  |   |    |  
|----------------------------------------------- |  | ----- | -- | - | ---- | -------- | -- | ---------- |  | - | -- | -
|                                                |  |       |    |   |      | Total    |   
|                                                |  |       |    |   |      | Increase |   
|                                                |  | ComEd |    |   | PECO |          |    | (Decrease) | 
|                                                |  |       |    |   |      |          |    |            | 
|Reduction in real estate tax accrual in 2005(a) |  | $     |   |   |      | $        | (6 | )          |  | $ | (6 | )
|Other                                           |  |       | (1 | ) |      |          | 2  |            |  |   | 1  |  
|                                                |  |       |    |   |      |          |    |            | 
|Decrease in taxes other than income             |  | $     | (1 | ) |      | $        | (4 | )          |  | $ | (5 | )
|                                                |  |       |    |   |      |          |    |            | 






|    |                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Represents a $6 million reduction of a real estate tax
    accrual in March 2005 following the approval of a settlement
    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.


74



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Other, Net.


|                                                         |  |       |    |   |      |          |            |  |  |   |    |  
|-------------------------------------------------------- |  | ----- | -- | - | ---- | -------- | ---------- |  |  | - | -- | -
|                                                         |  |       |    |   |      | Total    |           
|                                                         |  |       |    |   |      | Increase |           
|                                                         |  | ComEd |    |   | PECO |          | (Decrease) | 
|                                                         |  |       |    |   |      |          |            | 
|Interest income on long-term receivable from UII, LLC(a) |  | $     | (4 | ) |      | $        |           |  |  | $ | (4 | )
|Other                                                    |  |       | 1  |   |      |          |           |  |  |   | 1  |  
|                                                         |  |       |    |   |      |          |            |  | 
|Decrease in other, net                                   |  | $     | (3 | ) |      | $        |           |  |  | $ | (3 | )
|                                                         |  |       |    |   |      |          |            |  | 






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

Income Taxes.






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



|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      |   |  |       |      |   
|------------------------------------------------ | --------------------------- | ------------ | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ---- | - |  | ----- | ---- | --
|                                                 |                             | Three Months |        |        |      |  |       
|                                                 |                             | Ended        |        |        |      |  |       
|                                                 |                             | March 31,    |        |        |      |  |       
|                                                 |                             |              |        |        |      |  |       
|Retail Deliveries  (in gigawatthours (GWhs))(a) |                             | 2005         |        |        | 2004 |  |        | Variance |  |  | % Change |     
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |     
|Full service(b)                                  |                             |              |        |        |      |  |        |          |  |  |          |      |   |  |       |     
|Residential                                      |                             |              | 10,379 |        |      |  | 9,757  |          |  |  | 622      |      |   |  | 6.4   | %   
|Small commercial & industrial                    |                             |              | 6,840  |        |      |  | 7,375  |          |  |  | (535     | )    |   |  | (7.3  | )%  
|Large commercial & industrial                    |                             |              | 5,290  |        |      |  | 5,088  |          |  |  | 202      |      |   |  | 4.0   | %   
|Public authorities & electric railroads          |                             |              | 757    |        |      |  | 785    |          |  |  | (28      | )    |   |  | (3.6  | )%  
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |     
|                                                 | Total full service          |              |        | 23,266 |      |  |        | 23,005   |  |  |          | 261  |   |  |       | 1.1  | % 
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |     
|PPO (ComEd only)                                 |                             |              |        |        |      |  |        |          |  |  |          |      |   |  |       |     
|Small commercial & industrial                    |                             |              | 1,025  |        |      |  | 769    |          |  |  | 256      |      |   |  | 33.3  | %   
|Large commercial & industrial                    |                             |              | 1,485  |        |      |  | 1,143  |          |  |  | 342      |      |   |  | 29.9  | %   
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |     
|                                                 |                             |              | 2,510  |        |      |  | 1,912  |          |  |  | 598      |      |   |  | 31.3  | %   
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |     
|Delivery only(c)                                 |                             |              |        |        |      |  |        |          |  |  |          |      |   |  |       |     
|Residential                                      |                             |              | 104    |        |      |  | 582    |          |  |  | (478     | )    |   |  | (82.1 | )%  
|Small commercial & industrial                    |                             |              | 2,065  |        |      |  | 1,952  |          |  |  | 113      |      |   |  | 5.8   | %   
|Large commercial & industrial                    |                             |              | 3,344  |        |      |  | 3,822  |          |  |  | (478     | )    |   |  | (12.5 | )%  
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |     
|                                                 |                             |              | 5,513  |        |      |  | 6,356  |          |  |  | (843     | )    |   |  | (13.3 | )%  
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |     
|                                                 | Total PPO and delivery only |              |        | 8,023  |      |  |        | 8,268    |  |  |          | (245 | ) |  |       | (3.0 | )%
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |     
|Total retail deliveries                          |                             |              | 31,289 |        |      |  | 31,273 |          |  |  | 16       |      |   |  | 0.1   | %   
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |     






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

75



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|                                        |                                        |              |       |       |      |   |       |          |  |   |          |     |   |  |       |      |   
|--------------------------------------- | -------------------------------------- | ------------ | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | --- | - |  | ----- | ---- | --
|                                        |                                        | Three Months |       |       |      |   |      
|                                        |                                        | Ended        |       |       |      |   |      
|                                        |                                        | March 31,    |       |       |      |   |      
|                                        |                                        |              |       |       |      |   |      
|Electric Revenue                        |                                        | 2005         |       |       | 2004 |   |       | Variance |  |   | % Change |    
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                                        |              |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        | $            | 951   |       |      | $ | 874   |          |  | $ | 77       |     |   |  | 8.8   | %   
|Small commercial & industrial           |                                        |              | 555   |       |      |   | 564   |          |  |   | (9       | )   |   |  | (1.6  | )%  
|Large commercial & industrial           |                                        |              | 351   |       |      |   | 353   |          |  |   | (2       | )   |   |  | (0.6  | )%  
|Public authorities & electric railroads |                                        |              | 53    |       |      |   | 55    |          |  |   | (2       | )   |   |  | (3.6  | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service                     |              |       | 1,910 |      |   |       | 1,846    |  |   |          | 64  |   |  |       | 3.5  | % 
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|PPO (ComEd only)(b)                     |                                        |              |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Small commercial & industrial           |                                        |              | 65    |       |      |   | 51    |          |  |   | 14       |     |   |  | 27.5  | %   
|Large commercial & industrial           |                                        |              | 79    |       |      |   | 61    |          |  |   | 18       |     |   |  | 29.5  | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |              | 144   |       |      |   | 112   |          |  |   | 32       |     |   |  | 28.6  | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|Delivery only(c)                        |                                        |              |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        |              | 7     |       |      |   | 42    |          |  |   | (35      | )   |   |  | (83.3 | )%  
|Small commercial & industrial           |                                        |              | 50    |       |      |   | 54    |          |  |   | (4       | )   |   |  | (7.4  | )%  
|Large commercial & industrial           |                                        |              | 43    |       |      |   | 51    |          |  |   | (8       | )   |   |  | (15.7 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |              | 100   |       |      |   | 147   |          |  |   | (47      | )   |   |  | (32.0 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        | Total PPO and delivery only            |              |       | 244   |      |   |       | 259      |  |   |          | (15 | ) |  |       | (5.8 | )%
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                                        |              | 2,154 |       |      |   | 2,105 |          |  |   | 49       |     |   |  | 2.3   | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        | Wholesale and miscellaneous revenue(d) |              |       | 167   |      |   |       | 126      |  |   |          | 41  |   |  |       | 32.5 | % 
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|Total electric and other revenue        |                                        | $            | 2,321 |       |      | $ | 2,231 |          |  | $ | 90       |     |   |  | 4.0   | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    






|    |                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Full service revenue reflects deliveries to customers taking
    electric service under tariffed rates, which include the cost of
    energy and the delivery 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
    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. 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.                                                                                                                                                                                                                                                               

76



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



|                                        |                             |              |        |        |      |  |        |          |  |  |          |      |   |  |       |      |   
|--------------------------------------- | --------------------------- | ------------ | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ---- | - |  | ----- | ---- | --
|                                        |                             | Three Months |        |        |      |  |       
|                                        |                             | Ended        |        |        |      |  |       
|                                        |                             | March 31,    |        |        |      |  |       
|                                        |                             |              |        |        |      |  |       
|Retail Deliveries  (in GWhs)(a)        |                             | 2005         |        |        | 2004 |  |        | Variance |  |  | % Change |     
|                                        |                             |              |        |        |      |  |        |          |  |  |          |     
|Full service(b)                         |                             |              |        |        |      |  |        |          |  |  |          |      |   |  |       |     
|Residential                             |                             |              | 7,111  |        |      |  | 7,013  |          |  |  | 98       |      |   |  | 1.4   | %   
|Small commercial & industrial           |                             |              | 5,108  |        |      |  | 5,691  |          |  |  | (583     | )    |   |  | (10.2 | )%  
|Large commercial & industrial           |                             |              | 1,780  |        |      |  | 1,471  |          |  |  | 309      |      |   |  | 21.0  | %   
|Public authorities & electric railroads |                             |              | 530    |        |      |  | 556    |          |  |  | (26      | )    |   |  | (4.7  | )%  
|                                        |                             |              |        |        |      |  |        |          |  |  |          |     
|                                        | Total full service          |              |        | 14,529 |      |  |        | 14,731   |  |  |          | (202 | ) |  |       | (1.4 | )%
|                                        |                             |              |        |        |      |  |        |          |  |  |          |     
|Delivery only(c)                        |                             |              |        |        |      |  |        |          |  |  |          |      |   |  |       |     
|Small commercial & industrial           |                             |              | 1,668  |        |      |  | 1,528  |          |  |  | 140      |      |   |  | 9.2   | %   
|Large commercial & industrial           |                             |              | 3,158  |        |      |  | 3,672  |          |  |  | (514     | )    |   |  | (14.0 | )%  
|                                        |                             |              |        |        |      |  |        |          |  |  |          |     
|                                        |                             |              | 4,826  |        |      |  | 5,200  |          |  |  | (374     | )    |   |  | (7.2  | )%  
|                                        |                             |              |        |        |      |  |        |          |  |  |          |     
|PPO                                     |                             |              |        |        |      |  |        |          |  |  |          |      |   |  |       |     
|Small commercial & industrial           |                             |              | 1,025  |        |      |  | 769    |          |  |  | 256      |      |   |  | 33.3  | %   
|Large commercial & industrial           |                             |              | 1,485  |        |      |  | 1,143  |          |  |  | 342      |      |   |  | 29.9  | %   
|                                        |                             |              |        |        |      |  |        |          |  |  |          |     
|                                        |                             |              | 2,510  |        |      |  | 1,912  |          |  |  | 598      |      |   |  | 31.3  | %   
|                                        |                             |              |        |        |      |  |        |          |  |  |          |     
|                                        | Total delivery only and PPO |              |        | 7,336  |      |  |        | 7,112    |  |  |          | 224  |   |  |       | 3.1  | % 
|                                        |                             |              |        |        |      |  |        |          |  |  |          |     
|Total retail deliveries                 |                             |              | 21,865 |        |      |  | 21,843 |          |  |  | 22       |      |   |  | 0.1   | %   
|                                        |                             |              |        |        |      |  |        |          |  |  |          |     






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



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

77



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|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    |   |  |       |      |   
|--------------------------------------- | -------------------------------------- | ------------ | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | -- | - |  | ----- | ---- | --
|                                        |                                        | Three Months |       |       |      |   |      
|                                        |                                        | Ended        |       |       |      |   |      
|                                        |                                        | March 31,    |       |       |      |   |      
|                                        |                                        |              |       |       |      |   |      
|Electric Revenue                        |                                        | 2005         |       |       | 2004 |   |       | Variance |  |   | % Change |   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|Full service(a)                         |                                        |              |       |       |      |   |       |          |  |   |          |    |   |  |       |     
|Residential                             |                                        | $            | 565   |       |      | $ | 560   |          |  | $ | 5        |    |   |  | 0.9   | %   
|Small commercial & industrial           |                                        |              | 371   |       |      |   | 388   |          |  |   | (17      | )  |   |  | (4.4  | )%  
|Large commercial & industrial           |                                        |              | 88    |       |      |   | 83    |          |  |   | 5        |    |   |  | 6.0   | %   
|Public authorities & electric railroads |                                        |              | 33    |       |      |   | 35    |          |  |   | (2       | )  |   |  | (5.7  | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|                                        | Total full service                     |              |       | 1,057 |      |   |       | 1,066    |  |   |          | (9 | ) |  |       | (0.8 | )%
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|Delivery only(b)                        |                                        |              |       |       |      |   |       |          |  |   |          |    |   |  |       |     
|Small commercial & industrial           |                                        |              | 32    |       |      |   | 34    |          |  |   | (2       | )  |   |  | (5.9  | )%  
|Large commercial & industrial           |                                        |              | 38    |       |      |   | 47    |          |  |   | (9       | )  |   |  | (19.1 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|                                        |                                        |              | 70    |       |      |   | 81    |          |  |   | (11      | )  |   |  | (13.6 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|PPO(c)                                  |                                        |              |       |       |      |   |       |          |  |   |          |    |   |  |       |     
|Small commercial & industrial           |                                        |              | 65    |       |      |   | 51    |          |  |   | 14       |    |   |  | 27.5  | %   
|Large commercial & industrial           |                                        |              | 79    |       |      |   | 61    |          |  |   | 18       |    |   |  | 29.5  | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|                                        |                                        |              | 144   |       |      |   | 112   |          |  |   | 32       |    |   |  | 28.6  | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|                                        | Total delivery only and PPO            |              |       | 214   |      |   |       | 193      |  |   |          | 21 |   |  |       | 10.9 | % 
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|Total electric retail revenues          |                                        |              | 1,271 |       |      |   | 1,259 |          |  |   | 12       |    |   |  | 1.0   | %   
|                                        | Wholesale and miscellaneous revenue(d) |              |       | 115   |      |   |       | 77       |  |   |          | 38 |   |  |       | 49.4 | % 
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|Total operating revenues                |                                        | $            | 1,386 |       |      | $ | 1,336 |          |  | $ | 50       |    |   |  | 3.7   | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   






|    |                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Full service revenue reflects deliveries to customers taking
    electric service under tariffed rates, which include the cost of
    energy and the delivery cost of the transmission and the
    distribution of the energy.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Delivery only revenues reflect revenue under tariff rates from
    customers electing to receive generation service from an
    alternative electric supplier, which includes a distribution
    charge and a CTC. 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.
|   
|(c) |  | Revenues from customers choosing the PPO include an energy
    charge at market rates, transmission and distribution charges,
    and a CTC.                                                                                                                                                                                                                                                                             
|   
|(d) |  | Wholesale and miscellaneous revenues include transmission
    revenue (including revenue from PJM), sales to municipalities
    and other wholesale energy sales.                                                                                                                                                                                                                                                        

78



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



|                                        |                     |              |       |       |      |  |       |          |  |  |          |      |   |  |       |       |   
|--------------------------------------- | ------------------- | ------------ | ----- | ----- | ---- |  | ----- | -------- |  |  | -------- | ---- | - |  | ----- | ----- | --
|                                        |                     | Three Months |       |       |      |  |      
|                                        |                     | Ended        |       |       |      |  |      
|                                        |                     | March 31,    |       |       |      |  |      
|                                        |                     |              |       |       |      |  |      
|Retail Deliveries  (in GWhs)           |                     | 2005         |       |       | 2004 |  |       | Variance |  |  | % Change |     
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|Full service(a)                         |                     |              |       |       |      |  |       |          |  |  |          |      |   |  |       |      
|Residential                             |                     |              | 3,268 |       |      |  | 2,744 |          |  |  | 524      |      |   |  | 19.1  | %    
|Small commercial & industrial           |                     |              | 1,732 |       |      |  | 1,684 |          |  |  | 48       |      |   |  | 2.9   | %    
|Large commercial & industrial           |                     |              | 3,510 |       |      |  | 3,617 |          |  |  | (107     | )    |   |  | (3.0  | )%   
|Public authorities & electric railroads |                     |              | 227   |       |      |  | 229   |          |  |  | (2       | )    |   |  | (0.9  | )%   
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|                                        | Total full service  |              |       | 8,737 |      |  |       | 8,274    |  |  |          | 463  |   |  |       | 5.6   | % 
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|Delivery only(b)                        |                     |              |       |       |      |  |       |          |  |  |          |      |   |  |       |      
|Residential                             |                     |              | 104   |       |      |  | 582   |          |  |  | (478     | )    |   |  | (82.1 | )%   
|Small commercial & industrial           |                     |              | 397   |       |      |  | 424   |          |  |  | (27      | )    |   |  | (6.4  | )%   
|Large commercial & industrial           |                     |              | 186   |       |      |  | 150   |          |  |  | 36       |      |   |  | 24.0  | %    
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|                                        | Total delivery only |              |       | 687   |      |  |       | 1,156    |  |  |          | (469 | ) |  |       | (40.6 | )%
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|Total retail deliveries                 |                     |              | 9,424 |       |      |  | 9,430 |          |  |  | (6       | )    |   |  | (0.1  | )%   
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     






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

|                                        |                     |              |     |     |      |   |     |          |  |   |          |     |   |  |       |       |   
|--------------------------------------- | ------------------- | ------------ | --- | --- | ---- | - | --- | -------- |  | - | -------- | --- | - |  | ----- | ----- | --
|                                        |                     | Three Months |     |     |      |   |    
|                                        |                     | Ended        |     |     |      |   |    
|                                        |                     | March 31,    |     |     |      |   |    
|                                        |                     |              |     |     |      |   |    
|Electric Revenue                        |                     | 2005         |     |     | 2004 |   |     | Variance |  |   | % Change |    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Full service(a)                         |                     |              |     |     |      |   |     |          |  |   |          |     |   |  |       |      
|Residential                             |                     | $            | 386 |     |      | $ | 314 |          |  | $ | 72       |     |   |  | 22.9  | %    
|Small commercial & industrial           |                     |              | 184 |     |      |   | 176 |          |  |   | 8        |     |   |  | 4.5   | %    
|Large commercial & industrial           |                     |              | 263 |     |      |   | 270 |          |  |   | (7       | )   |   |  | (2.6  | )%   
|Public authorities & electric railroads |                     |              | 20  |     |      |   | 20  |          |  |   |         |     |   |  |      |      
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|                                        | Total full service  |              |     | 853 |      |   |     | 780      |  |   |          | 73  |   |  |       | 9.4   | % 
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Delivery only(b)                        |                     |              |     |     |      |   |     |          |  |   |          |     |   |  |       |      
|Residential                             |                     |              | 7   |     |      |   | 42  |          |  |   | (35      | )   |   |  | (83.3 | )%   
|Small commercial & industrial           |                     |              | 18  |     |      |   | 20  |          |  |   | (2       | )   |   |  | (10.0 | )%   
|Large commercial & industrial           |                     |              | 5   |     |      |   | 4   |          |  |   | 1        |     |   |  | 25.0  | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|                                        | Total delivery only |              |     | 30  |      |   |     | 66       |  |   |          | (36 | ) |  |       | (54.5 | )%
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Total electric retail revenues          |                     |              | 883 |     |      |   | 846 |          |  |   | 37       |     |   |  | 4.4   | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Wholesale and miscellaneous revenue(c)  |                     |              | 52  |     |      |   | 49  |          |  |   | 3        |     |   |  | 6.1   | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Total electric and other revenue        |                     | $            | 935 |     |      | $ | 895 |          |  | $ | 40       |     |   |  | 4.5   | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    






|    |                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Full service revenue reflects revenue from customers taking
    electric service under tariffed rates, which includes the cost
    of energy, the delivery 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.                                                                 

79



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



|                                                       |  |              |        |  |      |  |        |          |  |  |          |  |  |  |     |  
|------------------------------------------------------ |  | ------------ | ------ |  | ---- |  | ------ | -------- |  |  | -------- |  |  |  | --- | -
|                                                       |  | Three Months |        |  |      |  |       
|                                                       |  | Ended        |        |  |      |  |       
|                                                       |  | March 31,    |        |  |      |  |       
|                                                       |  |              |        |  |      |  |       
|Deliveries to customers (in million cubic feet (mmcf)) |  | 2005         |        |  | 2004 |  |        | Variance |  |  | % Change | 
|                                                       |  |              |        |  |      |  |        |          |  |  |          | 
|Retail sales                                           |  |              | 30,134 |  |      |  | 29,803 |          |  |  | 331      |  |  |  | 1.1 | %
|Transportation                                         |  |              | 7,545  |  |      |  | 7,132  |          |  |  | 413      |  |  |  | 5.8 | %
|                                                       |  |              |        |  |      |  |        |          |  |  |          | 
|Total                                                  |  |              | 37,679 |  |      |  | 36,935 |          |  |  | 744      |  |  |  | 2.0 | %
|                                                       |  |              |        |  |      |  |        |          |  |  |          | 

|                  |  |              |     |  |      |   |     |          |  |   |          |   |  |  |       |   
|----------------- |  | ------------ | --- |  | ---- | - | --- | -------- |  | - | -------- | - |  |  | ----- | --
|                  |  | Three Months |     |  |      |   |    
|                  |  | Ended        |     |  |      |   |    
|                  |  | March 31,    |     |  |      |   |    
|                  |  |              |     |  |      |   |    
|Revenue           |  | 2005         |     |  | 2004 |   |     | Variance |  |   | % Change |  
|                  |  |              |     |  |      |   |     |          |  |   |          |  
|Retail sales      |  | $            | 350 |  |      | $ | 328 |          |  | $ | 22       |   |  |  | 6.7   | % 
|Transportation    |  |              | 5   |  |      |   | 5   |          |  |   |         |   |  |  |      |   
|Resales and other |  |              | 5   |  |      |   | 11  |          |  |   | (6       | ) |  |  | (54.5 | )%
|                  |  |              |     |  |      |   |     |          |  |   |          |  
|Total gas revenue |  | $            | 360 |  |      | $ | 344 |          |  | $ | 16       |   |  |  | 4.7   | % 
|                  |  |              |     |  |      |   |     |          |  |   |          |  

80



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Results of
Operations  Generation


|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |       |   |      |     |     |  
|-------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------- | ---------------------------------------- | ----- | --- | --------- | - | ----- | ------------- | ----- | - | ---- | --- | --- | -
|                                                                                                                                             |                                               | Three Months                             |       |     |          
|                                                                                                                                             |                                               | Ended                                    |       |     |          
|                                                                                                                                             |                                               | March 31,                                |       |     |          
|                                                                                                                                             |                                               |                                          |       |     | Favorable |  
|                                                                                                                                             |                                               | 2005                                     |       |     | 2004      |   |       | (Unfavorable) |      
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|Operating revenues                                                                                                                           |                                               | $                                        | 2,020 |     |           | $ | 1,946 |               |       | $ | 74   |    
|Operating expenses                                                                                                                           |                                               |                                          |       |     |           |   |       |               |       |   |      |    
|                                                                                                                                             | Purchased power                               |                                          |       | 450 |           |   |       | 530           |       |   |      | 80  |    
|                                                                                                                                             | Fuel                                          |                                          |       | 358 |           |   |       | 568           |       |   |      | 210 |    
|                                                                                                                                             | Operating and maintenance(a)                  |                                          |       | 609 |           |   |       | 618           |       |   |      | 9   |    
|                                                                                                                                             | Depreciation and amortization                 |                                          |       | 62  |           |   |       | 55            |       |   |      | (7  | )  
|                                                                                                                                             | Taxes other than income                       |                                          |       | 35  |           |   |       | 47            |       |   |      | 12  |    
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|                                                                                                                                             |                                               | Total operating expenses                 |       |     | 1,514     |   |       |               | 1,818 |   |      |     | 304 |  
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|Operating income                                                                                                                             |                                               |                                          | 506   |     |           |   | 128   |               |       |   | 378  |    
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|Other income and deductions                                                                                                                  |                                               |                                          |       |     |           |   |       |               |       |   |      |    
|                                                                                                                                             | Interest expense                              |                                          |       | (29 | )         |   |       | (26           | )     |   |      | (3  | )  
|                                                                                                                                             | Equity in losses of unconsolidated affiliates |                                          |       |    |           |   |       | (2            | )     |   |      | 2   |    
|                                                                                                                                             | Other, net                                    |                                          |       | 18  |           |   |       | 19            |       |   |      | (1  | )  
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|                                                                                                                                             |                                               | Total other income and deductions        |       |     | (11       | ) |       |               | (9    | ) |      |     | (2  | )
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|Income from continuing operations before income taxes and
    minority interest                                                              |                                               |                                          | 495   |     |           |   | 119   |               |       |   | 376  |    
|Income taxes                                                                                                                                 |                                               |                                          | 191   |     |           |   | 46    |               |       |   | (145 | )  
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|Income from continuing operations before minority interest                                                                                   |                                               |                                          | 304   |     |           |   | 73    |               |       |   | 231  |    
|Minority interest                                                                                                                            |                                               |                                          |      |     |           |   | (2    | )             |       |   | 2    |    
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|Income from continuing operations                                                                                                            |                                               |                                          | 304   |     |           |   | 71    |               |       |   | 233  |    
|Discontinued operations                                                                                                                      |                                               |                                          |       |     |           |   |       |               |       |   |      |    
|                                                                                                                                             | Loss from discontinued operations             |                                          |       | (1  | )         |   |       | (1            | )     |   |      |    |    
|                                                                                                                                             | Gain on disposal of discontinued operations   |                                          |       | 21  |           |   |       |              |       |   |      | 21  |    
|                                                                                                                                             | Income taxes                                  |                                          |       | 4   |           |   |       |              |       |   |      | (4  | )  
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|                                                                                                                                             |                                               | Income (loss) on discontinued operations |       |     | 16        |   |       |               | (1    | ) |      |     | 17  |  
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|Income before cumulative effect of a change in accounting
    principle                                                                      |                                               |                                          | 320   |     |           |   | 70    |               |       |   | 250  |    
|Cumulative effect of a change in accounting principle (net of
    income taxes of $22 million for the three months ended
    March 31, 2004) |                                               |                                          |      |     |           |   | 32    |               |       |   | (32  | )  
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      
|Net income                                                                                                                                   |                                               | $                                        | 320   |     |           | $ | 102   |               |       | $ | 218  |    
|                                                                                                                                             |                                               |                                          |       |     |           |   |       |               |      






|    |                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Operating and maintenance expense for the three months ended
    March 31, 2004 has been adjusted to reflect a reduction in
    net periodic postretirement benefit cost of $3 million due
    to the adoption of FSP FAS 106-2. See Note 1 of the
    Combined Notes to Consolidated Financial Statements for
    additional information.

81



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Operating Revenues.


|                                    |  |              |       |  |      |   |       |          |  |   |          |   |  |  |       |   
|----------------------------------- |  | ------------ | ----- |  | ---- | - | ----- | -------- |  | - | -------- | - |  |  | ----- | --
|                                    |  | Three Months |       |  |      |   |      
|                                    |  | Ended        |       |  |      |   |      
|                                    |  | March 31,    |       |  |      |   |      
|                                    |  |              |       |  |      |   |      
|Revenue                             |  | 2005         |       |  | 2004 |   |       | Variance |  |   | % Change |  
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Electric sales to affiliates        |  | $            | 1,118 |  |      | $ | 860   |          |  | $ | 258      |   |  |  | 30.0  | % 
|Wholesale and retail electric sales |  |              | 660   |  |      |   | 884   |          |  |   | (224     | ) |  |  | (25.3 | )%
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Total energy sales revenue          |  |              | 1,778 |  |      |   | 1,744 |          |  |   | 34       |   |  |  | 1.9   | % 
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Retail gas sales                    |  |              | 189   |  |      |   | 169   |          |  |   | 20       |   |  |  | 11.8  | % 
|Trading portfolio                   |  |              | 6     |  |      |   |      |          |  |   | 6        |   |  |  | n.m.  |   
|Other revenue(a)                    |  |              | 47    |  |      |   | 33    |          |  |   | 14       |   |  |  | 42.4  | % 
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Total revenue                       |  | $            | 2,020 |  |      | $ | 1,946 |          |  | $ | 74       |   |  |  | 3.8   | % 
|                                    |  |              |       |  |      |   |       |          |  |   |          |  






|    |                                                                        
|--- | -----------------------------------------------------------------------
|(a) | Includes sales related to tolling agreements and fossil fuel
    sales.

|                                    |  |              |        |  |      |  |        |          |  |  |          |   |  |  |       |   
|----------------------------------- |  | ------------ | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ----- | --
|                                    |  | Three Months |        |  |      |  |       
|                                    |  | Ended        |        |  |      |  |       
|                                    |  | March 31,    |        |  |      |  |       
|                                    |  |              |        |  |      |  |       
|Sales (in GWhs)                     |  | 2005         |        |  | 2004 |  |        | Variance |  |  | % Change |  
|                                    |  |              |        |  |      |  |        |          |  |  |          |  
|Electric sales to affiliates        |  |              | 28,453 |  |      |  | 27,464 |          |  |  | 989      |   |  |  | 3.6   | % 
|Wholesale and retail electric sales |  |              | 17,010 |  |      |  | 23,983 |          |  |  | (6,973   | ) |  |  | (29.1 | )%
|                                    |  |              |        |  |      |  |        |          |  |  |          |  
|Total sales                         |  |              | 45,463 |  |      |  | 51,447 |          |  |  | (5,984   | ) |  |  | (11.6 | )%
|                                    |  |              |        |  |      |  |        |          |  |  |          |  



Electric Sales to Affiliates.


Wholesale and Retail Electric Sales.


|                                                |  |            |      |  
|----------------------------------------------- |  | ---------- | ---- | -
|                                                |  | Increase   |     
|                                                |  | (Decrease) |     
|                                                |  |            |     
|Sale of Boston Generating(a)                    |  | $          | (152 | )
|Volume                                          |  |            | (130 | )
|Price                                           |  |            | 58   |  
|                                                |  |            |     
|Decrease in wholesale and retail electric sales |  | $          | (224 | )
|                                                |  |            |     






|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(a) | Sales of Boston Generating of $7 million were included in
    other revenues for 2004.



Retail Gas Sales.


82



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##### Table of Contents



Other Revenues.


Purchased Power and Fuel Expense.


|                                       |  |              |        |  |      |  |        |          |  |  |          |   |  |  |       |   
|-------------------------------------- |  | ------------ | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ----- | --
|                                       |  | Three Months |        |  |      |  |       
|                                       |  | Ended        |        |  |      |  |       
|                                       |  | March 31,    |        |  |      |  |       
|                                       |  |              |        |  |      |  |       
|Supply Source (in GWhs)                |  | 2005         |        |  | 2004 |  |        | Variance |  |  | % Change |  
|                                       |  |              |        |  |      |  |        |          |  |  |          |  
|Nuclear generation                     |  |              | 32,780 |  |      |  | 33,411 |          |  |  | (631     | ) |  |  | (1.9  | )%
|Purchases  non-trading portfolio      |  |              | 9,546  |  |      |  | 11,691 |          |  |  | (2,145   | ) |  |  | (18.3 | )%
|Fossil and hydroelectric generation(a) |  |              | 3,137  |  |      |  | 6,345  |          |  |  | (3,208   | ) |  |  | (50.6 | )%
|                                       |  |              |        |  |      |  |        |          |  |  |          |  
|Total supply                           |  |              | 45,463 |  |      |  | 51,447 |          |  |  | (5,984   | ) |  |  | (11.6 | )%
|                                       |  |              |        |  |      |  |        |          |  |  |          |  






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



|                                              |  |            |      |  
|--------------------------------------------- |  | ---------- | ---- | -
|                                              |  | Increase   |     
|                                              |  | (Decrease) |     
|                                              |  |            |     
|Boston Generating                             |  | $          | (150 | )
|Mark-to-market adjustments on economic hedges |  |            | (102 | )
|Volume                                        |  |            | (75  | )
|Price                                         |  |            | 56   |  
|Other                                         |  |            | (19  | )
|                                              |  |            |     
|Decrease in purchased power and fuel expense  |  | $          | (290 | )
|                                              |  |            |     

Boston Generating.


Economic Hedges.


Volume.


Price.


Other.


83



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|                                                                      |                                         |              |       |       |      |   |       |          |  |  |       |      |  
|--------------------------------------------------------------------- | --------------------------------------- | ------------ | ----- | ----- | ---- | - | ----- | -------- |  |  | ----- | ---- | -
|                                                                      |                                         | Three Months |       |       |     
|                                                                      |                                         | Ended        |       |       |     
|                                                                      |                                         | March 31,    |       |       |     
|                                                                      |                                         |              |       |       |     
|($/MWh)                                                               |                                         | 2005         |       |       | 2004 |   |       | % Change | 
|                                                                      |                                         |              |       |       |      |   |       |          | 
|Average electric revenue                                              |                                         |              |       |       |      |   |       |          |  |  |       |     
|                                                                      | Electric sales to affiliates            |              | $     | 39.29 |      |   | $     | 31.31    |  |  |       | 25.5 | %
|                                                                      | Wholesale and retail electric sales     |              |       | 38.80 |      |   |       | 36.86    |  |  |       | 5.3  | %
|                                                                      | Total  excluding the trading portfolio |              |       | 39.11 |      |   |       | 33.90    |  |  |       | 15.4 | %
|Average electric supply cost(a)  excluding the
    trading portfolio |                                         | $            | 13.84 |       |      | $ | 18.17 |          |  |  | (23.8 | )%  
|Average margin  excluding the trading portfolio                      |                                         | $            | 25.27 |       |      | $ | 15.73 |          |  |  | 60.6  | %   






|    |                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | 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                             |  | $          | (28 | )
|Addition of Tamuin International              |  |            | 15  |  
|Other                                         |  |            | 4   |  
|                                              |  |            |    
|Decrease in operating and maintenance expense |  | $          | (9  | )
|                                              |  |            |    





|                                                              |  |              |       |   |      |   |       |  
|------------------------------------------------------------- |  | ------------ | ----- | - | ---- | - | ----- | -
|                                                              |  | Three Months |      
|                                                              |  | Ended        |      
|                                                              |  | March 31,    |      
|                                                              |  |              |      
|                                                              |  | 2005         |       |   | 2004 |  
|                                                              |  |              |       |   |      |  
|Nuclear fleet capacity factor(a)                              |  |              | 89.9  | % |      |   | 90.5  | %
|Nuclear fleet production cost per MWh(a)                      |  | $            | 14.64 |   |      | $ | 14.29 |  
|Average purchased power cost for wholesale operations per MWh |  | $            | 47.14 |   |      | $ | 45.33 |  






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





84



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Depreciation and Amortization.


Taxes Other Than Income.


Effective Income Tax Rate.


Discontinued Operations.


Liquidity and Capital Resources




Cash Flows from Operating
Activities




85



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|                                                                              |  |              |        |   |      |   |      |          |  |   |        |  
|----------------------------------------------------------------------------- |  | ------------ | ------ | - | ---- | - | ---- | -------- |  | - | ------ | -
|                                                                              |  | Three Months |        |   |     
|                                                                              |  | Ended        |        |   |     
|                                                                              |  | March 31,    |        |   |     
|                                                                              |  |              |        |   |     
|                                                                              |  | 2005         |        |   | 2004 |   |      | Variance | 
|                                                                              |  |              |        |   |      |   |      |          | 
|Net income                                                                    |  | $            | 521    |   |      | $ | 412  |          |  | $ | 109    |  
|Non-cash operating activities(a)                                              |  |              | 1,125  |   |      |   | 506  |          |  |   | 619    |  
|Income taxes                                                                  |  |              | (344   | ) |      |   | 180  |          |  |   | (524   | )
|Changes in working capital and other noncurrent assets and
    liabilities(b) |  |              | (349   | ) |      |   | (156 | )        |  |   | (193   | )
|Pension and postretirement healthcare benefit payments                        |  |              | (1,962 | ) |      |   | (93  | )        |  |   | (1,869 | )
|                                                                              |  |              |        |   |      |   |      |          | 
|Net cash flows (used in) provided by operations                               |  | $            | (1,009 | ) |      | $ | 849  |          |  | $ | (1,858 | )
|                                                                              |  |              |        |   |      |   |      |          | 






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



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|                                                             |  |              |        |   |      |   |     | 
|------------------------------------------------------------ |  | ------------ | ------ | - | ---- | - | --- | 
|                                                             |  | Three Months |       
|                                                             |  | Ended        |       
|                                                             |  | March 31,    |       
|                                                             |  |              |       
|                                                             |  | 2005         |        |   | 2004 |  
|                                                             |  |              |        |   |      |  
|ComEd                                                        |  | $            | (543   | ) |      | $ | 298 | 
|PECO                                                         |  |              | 72     |   |      |   | 217 | 
|Generation                                                   |  |              | (238   | ) |      |   | 202 | 
|Other and eliminations                                       |  |              | (300   | ) |      |   | 132 | 
|                                                             |  |              |        |   |      |  
|Exelon cash flows (used in) provided by operating activities |  | $            | (1,009 | ) |      | $ | 849 | 
|                                                             |  |              |        |   |      |  







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



| |   |                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------
| |  | There were no significant non-recurring operating cash flows
    during the periods ended March 31, 2005 and 2004.

Cash Flows from Investing
Activities




|                                               |  |              |      |   |      |   |      |  
|---------------------------------------------- |  | ------------ | ---- | - | ---- | - | ---- | -
|                                               |  | Three Months |     
|                                               |  | Ended        |     
|                                               |  | March 31,    |     
|                                               |  |              |     
|                                               |  | 2005         |      |   | 2004 |  
|                                               |  |              |      |   |      |  
|ComEd                                          |  | $            | 21   |   |      | $ | 25   |  
|PECO                                           |  |              | (23  | ) |      |   | (48  | )
|Generation                                     |  |              | (298 | ) |      |   | (152 | )
|Other and eliminations                         |  |              | (266 | ) |      |   | (196 | )
|                                               |  |              |      |   |      |  
|Exelon cash flows used in investing activities |  | $            | (566 | ) |      | $ | (371 | )
|                                               |  |              |      |   |      |  

87



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|                                  |  |              |     |  |           |   |     |      |  |   |       | 
|--------------------------------- |  | ------------ | --- |  | --------- | - | --- | ---- |  | - | ----- | 
|                                  |  | Three Months |     |  |          
|                                  |  | Ended        |     |  |          
|                                  |  | March 31,    |     |  | Projected |  
|                                  |  |              |     |  |           |  
|                                  |  | 2005         |     |  | 2004      |   |     | 2005 | 
|                                  |  |              |     |  |           |   |     |      | 
|ComEd                             |  | $            | 184 |  |           | $ | 177 |      |  | $ | 742   | 
|PECO                              |  |              | 56  |  |           |   | 47  |      |  |   | 281   | 
|                                  |  |              |     |  |           |   |     |      | 
|Energy Delivery                   |  |              | 240 |  |           |   | 224 |      |  |   | 1,023 | 
|                                  |  |              |     |  |           |   |     |      | 
|Generation                        |  |              | 247 |  |           |   | 213 |      |  |   | 1,073 | 
|Other(a)                          |  |              | 2   |  |           |   |    |      |  |   | 56    | 
|                                  |  |              |     |  |           |   |     |      | 
|Total Exelon capital expenditures |  | $            | 489 |  |           | $ | 437 |      |  | $ | 2,152 | 
|                                  |  |              |     |  |           |   |     |      | 






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



ComEd and PECO.


Generation.






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



| |   |                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelon contributed $28 million and $8 million to its
    investments in synthetic fuel-producing facilities during the
    three months ended March 31, 2005 and 2004, respectively.



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



| |   |                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As a result of its prior contributions to the Exelon
    intercompany money pool, $207 million and $179 million
    were returned to ComEd during the three months ended
    March 31, 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 three months ended March 31, 2005.



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



| |   |                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On January 31, 2005, subsidiaries of Generation completed a
    series of transactions that resulted in Generations sale
    of its investment in Sithe. Specifically, subsidiaries of
    Generation closed on the acquisition of Reservoir Capital
    Groups 50% interest in Sithe for cash proceeds of
    $97 million and the

88



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| |   |                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | 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 three months ended March 31, 2004, Generation
    used $53 million of restricted cash to support the
    operations of Boston Generating.                                                                                                                                                                                              

Cash Flows from Financing
Activities




|                                                             |  |              |       |   |      |   |      |  
|------------------------------------------------------------ |  | ------------ | ----- | - | ---- | - | ---- | -
|                                                             |  | Three Months |      
|                                                             |  | Ended        |      
|                                                             |  | March 31,    |      
|                                                             |  |              |      
|                                                             |  | 2005         |       |   | 2004 |  
|                                                             |  |              |       |   |      |  
|ComEd                                                        |  | $            | 597   |   |      | $ | (341 | )
|PECO                                                         |  |              | (48   | ) |      |   | (107 | )
|Generation                                                   |  |              | 357   |   |      |   | (108 | )
|Other and eliminations                                       |  |              | 530   |   |      |   | 84   |  
|                                                             |  |              |       |   |      |  
|Exelon cash flows provided by (used in) financing activities |  | $            | 1,436 |   |      | $ | (472 | )
|                                                             |  |              |       |   |      |  







|           |  |              |     |  |      |   |     | 
|---------- |  | ------------ | --- |  | ---- | - | --- | 
|           |  | Three Months |    
|           |  | Ended        |    
|           |  | March 31,    |    
|           |  |              |    
|           |  | 2005         |     |  | 2004 |  
|           |  |              |     |  |      |  
|Exelon     |  | $            | 267 |  |      | $ | 181 | 
|ComEd      |  |              | 138 |  |      |   | 103 | 
|PECO       |  |              | 116 |  |      |   | 91  | 
|Generation |  |              | 239 |  |      |   | 54  | 

89



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Intercompany Money Pool (Generation).




Credit Matters


Exelon Credit Facility.




|                 |  |             |     |  |             |             |     |            |  |   |     | 
|---------------- |  | ----------- | --- |  | ----------- | ----------- | --- | ---------- |  | - | --- | 
|                 |  |             |     |  |             | Outstanding |    
|                 |  | Bank        |     |  | Available   |             |     | Commercial | 
|Borrower         |  | Sublimit(a) |     |  | Capacity(b) |             |     | Paper      | 
|                 |  |             |     |  |             |             |     |            | 
|Exelon Corporate |  | $           | 700 |  |             | $           | 700 |            |  | $ | 290 | 
|ComEd            |  |             | 50  |  |             |             | 24  |            |  |   |    | 
|PECO             |  |             | 300 |  |             |             | 300 |            |  |   | 36  | 
|Generation       |  |             | 450 |  |             |             | 354 |            |  |   |    | 






|    |                                                                                                  
|--- | -------------------------------------------------------------------------------------------------
|(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 | 



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Capital Structure.


|                                |  |              |    |   |       |  |    |         |  |  |            |   |  |  |    |  
|------------------------------- |  | ------------ | -- | - | ----- |  | -- | ------- |  |  | ---------- | - |  |  | -- | -
|                                |  | Exelon       |    |   |       |  |    |         | 
|                                |  | Consolidated |    |   | ComEd |  |    | PECO(a) |  |  | Generation |  
|                                |  |              |    |   |       |  |    |         |  |  |            |  
|Long-term debt                  |  |              | 29 | % |       |  | 26 | %       |  |  | 19         | % |  |  | 32 | %
|Long-term debt to affiliates(b) |  |              | 21 |   |       |  | 13 |         |  |  | 56         |   |  |  |   |  
|Common equity                   |  |              | 40 |   |       |  | 61 |         |  |  | 23         |   |  |  |   |  
|Members equity                 |  |              |   |   |       |  |   |         |  |  |           |   |  |  | 67 |  
|Preferred securities            |  |              |   |   |       |  |   |         |  |  | 1          |   |  |  |   |  
|Notes payable(c)                |  |              | 10 |   |       |  |   |         |  |  | 1          |   |  |  | 1  |  
|Minority interest               |  |              |   |   |       |  |   |         |  |  |           |   |  |  |   |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | As of March 31, 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
    37% common equity, 1% preferred securities and 62% long-term
    debt, including long-term debt to unconsolidated affiliates.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Includes $5 billion, $2 billion and $4 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
    the Exelons Notes to Consolidated Financial Statements
    within Exelons 2004 Form 10-K for further information
    regarding FIN 46-R.
|   
|(c) |  | Does not include $2 billion of Exelons short-term
    debt that will be refinanced primarily with long-term debt by
    the end of 2005. See Note 7 of the Combined Notes to
    Consolidated Financial Statements for additional information
    regarding the $2 billion term loan agreement.                                                                                                                                                                                                                                                                                             

Intercompany Money Pool.


|           |  |          |     |  |          |           |     |             |  |   |     |  
|---------- |  | -------- | --- |  | -------- | --------- | --- | ----------- |  | - | --- | -
|           |  |          |     |  |          | March 31, |    
|           |  |          |     |  |          | 2005      |    
|           |  | Maximum  |     |  | Maximum  |           |     | Contributed | 
|           |  | Invested |     |  | Borrowed |           |     | (Borrowed)  | 
|           |  |          |     |  |          |           |     |             | 
|ComEd      |  | $        | 517 |  |          | $         |    |             |  | $ | 101 |  
|PECO       |  |          | 210 |  |          |           |    |             |  |   |    |  
|Generation |  |          |    |  |          |           | 540 |             |  |   | (37 | )
|BSC        |  |          |    |  |          |           | 156 |             |  |   | (64 | )
|UII, LLC   |  |          | 2   |  |          |           |    |             |  |   |    |  

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|           |  |                |   |  |          |   |   | 
|---------- |  | -------------- | - |  | -------- | - | - | 
|           |  | For the        |  
|           |  | Three Months   |  
|           |  | Ended          |  
|           |  | March 31, 2005 |  
|           |  |                |  
|           |  | Interest       |   |  | Interest |  
|           |  | Received       |   |  | Paid     |  
|           |  |                |   |  |          |  
|ComEd      |  | $              | 2 |  |          | $ |  | 
|PECO       |  |                | 1 |  |          |   |  | 
|Generation |  |                |  |  |          |   | 2 | 
|BSC        |  |                |  |  |          |   | 1 | 
|UII, LLC   |  |                |  |  |          |   |  | 

Sithe Long-Term Debt.


Security Ratings.


Shelf Registration.


Fund Transfer Restrictions.






92



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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 $86 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 $66 million, primarily as
    a result of the wind-down of Enterprises operations.                                                                                           



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



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | IRS Refund Claims. ComEd and PECO had entered into
    several agreements with a tax consultant related to the filing
    of 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 investment tax credit refund and
    associated interest have been recorded in the financial
    statements. Approximately $14 million of tax and interest
    benefit is 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, in 2005 ComEd recorded
    an additional consulting expense of $2 million (pre-tax).
    This amount along with the $5 million (pre-tax) expense
    recorded in 2004 resulted in a decrease to the prepayment from
    $11 million to $4 million. The charges represent an
    estimate of the fee to the tax consultant which may be adjusted
    upward or downward depending on the IRS final calculation
    of the interest benefit.
|
| | Based on recent negotiations with the IRS, PECO believes it will
    receive a refund related to one of its claims. As of
    March 31, 2005, PECO had not reflected the tax benefit
    associated with the refund claim pending final approval of the
    IRS. During the first quarter of 2005, PECO eliminated its
    prepaid tax consultant fee and recorded an additional accrual of
    $4 million resulting in a total pre-tax charge of
    $9 million. The charge represents an estimate of the fee to
    the tax consultant which may be adjusted upward or downward
    depending on the final resolution of the matter with the IRS.                                                                                                                                                                                                                                                                                                                                                                                        

93



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| |           
| | ----------
| | 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 $87 million, primarily as a
    result of the sale of Sithe. Guarantees decreased
    $18 million, primarily as a result of the sale of Sithe.
    See Note 4 of the Combined Notes to Consolidated Financial
    Statements for further discussion.                                                                                                                  

94



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##### Table of Contents






COMMONWEALTH EDISON COMPANY




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





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





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



| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Three Months Ended March 31, 2005 Compared to Three
    Months Ended March 31, 2004

|                            |                                               |                                   |       |     |               |   |       |          |      |   |      |      |      |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | --- | ------------- | - | ----- | -------- | ---- | - | ---- | ---- | ---- | -
|                            |                                               | Three Months                      |       |     |              
|                            |                                               | Ended                             |       |     |              
|                            |                                               | March 31,                         |       |     | Favorable     |  
|                            |                                               |                                   |       |     | (Unfavorable) |  
|                            |                                               | 2005                              |       |     | 2004          |   |       | Variance |     
|                            |                                               |                                   |       |     |               |   |       |          |     
|Operating revenues          |                                               | $                                 | 1,386 |     |               | $ | 1,336 |          |      | $ | 50   |     
|Operating expenses          |                                               |                                   |       |     |               |   |       |          |      |   |      |     
|                            | Purchased power                               |                                   |       | 820 |               |   |       | 533      |      |   |      | (287 | )   
|                            | Operating and maintenance(a)                  |                                   |       | 203 |               |   |       | 215      |      |   |      | 12   |     
|                            | Depreciation and amortization                 |                                   |       | 97  |               |   |       | 102      |      |   |      | 5    |     
|                            | Taxes other than income                       |                                   |       | 78  |               |   |       | 79       |      |   |      | 1    |     
|                            |                                               |                                   |       |     |               |   |       |          |     
|                            |                                               | Total operating expense           |       |     | 1,198         |   |       |          | 929  |   |      |      | (269 | )
|                            |                                               |                                   |       |     |               |   |       |          |     
|Operating income            |                                               |                                   | 188   |     |               |   | 407   |          |      |   | (219 | )   
|                            |                                               |                                   |       |     |               |   |       |          |     
|Other income and deductions |                                               |                                   |       |     |               |   |       |          |      |   |      |     
|                            | Interest expense                              |                                   |       | (74 | )             |   |       | (106     | )    |   |      | 32   |     
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (4  | )             |   |       | (3       | )    |   |      | (1   | )   
|                            | Other, net                                    |                                   |       | 6   |               |   |       | 9        |      |   |      | (3   | )   
|                            |                                               |                                   |       |     |               |   |       |          |     
|                            |                                               | Total other income and deductions |       |     | (72           | ) |       |          | (100 | ) |      |      | 28   |  
|                            |                                               |                                   |       |     |               |   |       |          |     
|Income before income taxes  |                                               |                                   | 116   |     |               |   | 307   |          |      |   | (191 | )   
|Income taxes                |                                               |                                   | 46    |     |               |   | 123   |          |      |   | 77   |     
|                            |                                               |                                   |       |     |               |   |       |          |     
|Net income                  |                                               | $                                 | 70    |     |               | $ | 184   |          |      | $ | (114 | )   
|                            |                                               |                                   |       |     |               |   |       |          |     






|    |                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Operating and maintenance expense for the three months ended
    March 31, 2004 has been adjusted to reflect a reduction in
    net periodic postretirement benefit cost of $2 million due
    to the adoption of FSP FAS 106-2. See Note 1 of the
    Combined Notes to Consolidated Financial Statements for
    additional information.



| |           
| | ----------
| | Net Income





95



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Liquidity and Capital Resources








| |                                     
| | ------------------------------------
| | 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



96



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PECO ENERGY COMPANY




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





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





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



| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Three Months Ended March 31, 2005 Compared to Three
    Months Ended March 31, 2004

|                            |                                               |                                   |       |     |               |   |       |          |     |   |    |     |     |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | --- | ------------- | - | ----- | -------- | --- | - | -- | --- | --- | -
|                            |                                               | Three Months                      |       |     |              
|                            |                                               | Ended                             |       |     |              
|                            |                                               | March 31,                         |       |     | Favorable     |  
|                            |                                               |                                   |       |     | (Unfavorable) |  
|                            |                                               | 2005                              |       |     | 2004          |   |       | Variance |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|Operating revenues          |                                               | $                                 | 1,295 |     |               | $ | 1,239 |          |     | $ | 56 |    
|Operating expenses          |                                               |                                   |       |     |               |   |       |          |     |   |    |    
|                            | Purchased power                               |                                   |       | 432 |               |   |       | 396      |     |   |    | (36 | )  
|                            | Fuel                                          |                                   |       | 265 |               |   |       | 250      |     |   |    | (15 | )  
|                            | Operating and maintenance(a)                  |                                   |       | 134 |               |   |       | 134      |     |   |    |    |    
|                            | Depreciation and amortization                 |                                   |       | 136 |               |   |       | 125      |     |   |    | (11 | )  
|                            | Taxes other than income                       |                                   |       | 54  |               |   |       | 58       |     |   |    | 4   |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|                            |                                               | Total operating expenses          |       |     | 1,021         |   |       |          | 963 |   |    |     | (58 | )
|                            |                                               |                                   |       |     |               |   |       |          |    
|Operating income            |                                               |                                   | 274   |     |               |   | 276   |          |     |   | (2 | )  
|                            |                                               |                                   |       |     |               |   |       |          |    
|Other income and deductions |                                               |                                   |       |     |               |   |       |          |     |   |    |    
|                            | Interest expense                              |                                   |       | (72 | )             |   |       | (77      | )   |   |    | 5   |    
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (4  | )             |   |       | (7       | )   |   |    | 3   |    
|                            | Other, net                                    |                                   |       | 2   |               |   |       | 2        |     |   |    |    |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|                            |                                               | Total other income and deductions |       |     | (74           | ) |       |          | (82 | ) |    |     | 8   |  
|                            |                                               |                                   |       |     |               |   |       |          |    
|Income before income taxes  |                                               |                                   | 200   |     |               |   | 194   |          |     |   | 6  |    
|Income taxes                |                                               |                                   | 71    |     |               |   | 62    |          |     |   | (9 | )  
|                            |                                               |                                   |       |     |               |   |       |          |    
|Net income                  |                                               |                                   | 129   |     |               |   | 132   |          |     |   | (3 | )  
|Preferred stock dividends   |                                               |                                   | 1     |     |               |   | 1     |          |     |   |   |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|Net income on common stock  |                                               | $                                 | 128   |     |               | $ | 131   |          |     | $ | (3 | )  
|                            |                                               |                                   |       |     |               |   |       |          |    






|    |                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Operating and maintenance expense for the three months ended
    March 31, 2004 has been adjusted to reflect a reduction in
    net periodic postretirement benefit cost of $1 million due
    to the adoption of FSP FAS 106-2. See Note 1 of the
    Combined Notes to Consolidated Financial Statements for
    additional information.



| |           
| | ----------
| | Net Income





97



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Liquidity and Capital Resources








| |                                     
| | ------------------------------------
| | 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



98



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EXELON GENERATION COMPANY, LLC




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





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





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



| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Three Months Ended March 31, 2005 Compared to Three
    Months Ended March 31, 2004



Liquidity and Capital Resources








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





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





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



99



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





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



100



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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



101



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| |                               
| | ------------------------------
| | Proprietary Trading Activities









|                                                                                         |  |       |      |  
|---------------------------------------------------------------------------------------- |  | ----- | ---- | -
|                                                                                         |  | 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             |  |       | 58   |  
|Reclassification to realized at settlement of contracts recorded
    in earnings         |  |       | 10   |  
|Reclassification to realized at settlement from OCI                                      |  |       | 87   |  
|Effective portion of changes in fair value  recorded
    in OCI                         |  |       | (291 | )
|Purchase/sale/disposal of existing contracts or portfolios
    subject to mark-to-market |  |       | (96  | )
|                                                                                         |  |       |     
|Total mark-to-market energy contract net liabilities at
    March 31, 2005               |  | $     | (377 | )
|                                                                                         |  |       |     

102



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|                                                     |  |           |        |   |              |   |      |  
|---------------------------------------------------- |  | --------- | ------ | - | ------------ | - | ---- | -
|                                                     |  | March 31, |        |   | December 31, |  
|                                                     |  | 2005      |        |   | 2004         |  
|                                                     |  |           |        |   |              |  
|Current assets                                       |  | $         | 579    |   |              | $ | 403  |  
|Noncurrent assets                                    |  |           | 316    |   |              |   | 373  |  
|                                                     |  |           |        |   |              |  
|Total mark-to-market energy contract assets          |  |           | 895    |   |              |   | 776  |  
|                                                     |  |           |        |   |              |  
|Current liabilities                                  |  |           | (865   | ) |              |   | (598 | )
|Noncurrent liabilities                               |  |           | (407   | ) |              |   | (323 | )
|                                                     |  |           |        |   |              |  
|Total mark-to-market energy contract liabilities     |  |           | (1,272 | ) |              |   | (921 | )
|                                                     |  |           |        |   |              |  
|Total mark-to-market energy contract net liabilities |  | $         | (377   | ) |              | $ | (145 | )
|                                                     |  |           |        |   |              |  





|                                                                |                                           |                   |   |          |      |            |    |      |   |  |      |     |      |  |        |   |       |  |   |   |  |  |   |   |  |  |    |      |  
|--------------------------------------------------------------- | ----------------------------------------- | ----------------- | - | -------- | ---- | ---------- | -- | ---- | - |  | ---- | --- | ---- |  | ------ | - | ----- |  | - | - |  |  | - | - |  |  | -- | ---- | -
|                                                                |                                           | 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        |      |            | $  |     |   |  | $    |    |      |  | $      |  |       |  | $ |  |  |  | $ |  |  |  | $  | 3    |  
|                                                                | Prices provided by other external sources |                   |   | (283     | )    |            |    | (122 | ) |  |      | (26 | )    |  |        |  |       |  |   |  |  |  |   |  |  |  |    | (431 | )
|                                                                |                                           |                   |   |          |      |            |    |      |   |  |      |     |      |  |        |   |       |  |   |   | 
|                                                                | Total                                     |                   | $ | (280     | )    |            | $  | (122 | ) |  | $    | (26 | )    |  | $      |  |       |  | $ |  |  |  | $ |  |  |  | $  | (428 | )
|                                                                |                                           |                   |   |          |      |            |    |      |   |  |      |     |      |  |        |   |       |  |   |   | 
|Normal Operations, other derivative contracts(b):               |                                           |                   |   |          |      |            |    |      |   |  |      |     |      |  |        |   |       |  |   |   |  |  |   |   |  |  |    |     
|                                                                | Actively quoted prices                    |                   | $ | 66       |      |            | $  | 17   |   |  | $    | (1  | )    |  | $      |  |       |  | $ |  |  |  | $ |  |  |  | $  | 82   |  
|                                                                | Prices provided by other external sources |                   |   | (31      | )    |            |    | 1    |   |  |      | 3   |      |  |        |  |       |  |   |  |  |  |   |  |  |  |    | (27  | )
|Prices based on model or other valuation methods                |                                           |                   | 6 |          |      |            | (7 | )    |   |  | (3   | )   |      |  |       |   |       |  |  |   |  |  |  |   |  |  | (4 | )   
|                                                                |                                           |                   |   |          |      |            |    |      |   |  |      |     |      |  |        |   |       |  |   |   | 
|                                                                | Total                                     |                   | $ | 41       |      |            | $  | 11   |   |  | $    | (1  | )    |  | $      |  |       |  | $ |  |  |  | $ |  |  |  | $  | 51   |  
|                                                                |                                           |                   |   |          |      |            |    |      |   |  |      |     |      |  |        |   |       |  |   |   | 






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

103



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|                                                   |  |                                     |      |   |               |   |     |           |  |   |      |  
|-------------------------------------------------- |  | ----------------------------------- | ---- | - | ------------- | - | --- | --------- |  | - | ---- | -
|                                                   |  | 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                              |  |                                     | (176 | ) |               |   | (2  | )         |  |   | (178 | )
|Reclassifications from OCI to net income           |  |                                     | 54   |   |               |   |    |           |  |   | 54   |  
|                                                   |  |                                     |      |   |               |   |     |           | 
|Accumulated OCI derivative loss at March 31, 2005  |  | $                                   | (259 | ) |               | $ | (11 | )         |  | $ | (270 | )
|                                                   |  |                                     |      |   |               |   |     |           | 

Credit Risk (Exelon and Generation)




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



104



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|                                                        |                                          |               |     |   |            |   |    |          |                |   |                  |                 |  |                  |   |   |  |   |    |   | 
|------------------------------------------------------- | ---------------------------------------- | ------------- | --- | - | ---------- | - | -- | -------- | -------------- | - | ---------------- | --------------- |  | ---------------- | - | - |  | - | -- | - | 
|                                                        |                                          | Total         |     |   |            |   |    |          | Number Of      |   |                  | Net Exposure Of | 
|                                                        |                                          | Exposure      |     |   |            |   |    |          | Counterparties |   |                  | Counterparties  | 
|                                                        |                                          | Before Credit |     |   | Credit     |   |    | Net      |                |   | Greater than 10% |                 |  | Greater than 10% |  
|Rating as of March 31, 2005(a)                          |                                          | Collateral    |     |   | Collateral |   |    | Exposure |                |   | of Net Exposure  |                 |  | of Net Exposure  |  
|                                                        |                                          |               |     |   |            |   |    |          |                |   |                  |                 |  |                  |  
|Investment grade                                        |                                          | $             | 210 |   |            | $ | 32 |          |                | $ | 178              |                 |  |                  | 3 |   |  | $ | 78 |  
|Non-investment grade                                    |                                          |               | 31  |   |            |   | 15 |          |                |   | 16               |                 |  |                  |  |   |  |   |   |  
|No external ratings Internally rated  investment grade |                                          |               | 14  |   |            |   | 3  |          |                |   | 11               |                 |  |                  |  |   |  |   |   |  
|                                                        | Internally rated  non- investment grade |               |     | 3 |            |   |    |         |                |   |                  | 3               |  |                  |   |  |  |   |    |  | 
|                                                        |                                          |               |     |   |            |   |    |          |                |   |                  |                 |  |                  |  
|Total                                                   |                                          | $             | 258 |   |            | $ | 50 |          |                | $ | 208              |                 |  |                  | 3 |   |  | $ | 78 |  
|                                                        |                                          |               |     |   |            |   |    |          |                |   |                  |                 |  |                  |  






|    |                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------
|(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 March 31, 2005(a) |                                         | 2 Years                          |     |          | 2-5 Years |                |              | 5 Years |               | Collateral |  
|                               |                                         |                                  |     |          |           |                |              |         |               |            |  
|Investment grade               |                                         | $                                | 208 |          |           | $              | 2            |         |               | $          |  |   |  | $ | 210 |   
|Non-investment grade           |                                         |                                  | 27  |          |           |                | 4            |         |               |            |  |   |  |   | 31  |   
|No external ratings            |                                         |                                  |     |          |           |                |              |         |               |            |   |   |  |   |     |   
|                               | Internally rated  investment grade     |                                  |     | 14       |           |                |              |        |               |            |   |  |  |   |     | 14 | 
|                               | Internally rated  non-investment grade |                                  |     | 3        |           |                |              |        |               |            |   |  |  |   |     | 3  | 
|                               |                                         |                                  |     |          |           |                |              |         |               |            |   |  
|Total                          |                                         | $                                | 252 |          |           | $              | 6            |         |               | $          |  |   |  | $ | 258 |   
|                               |                                         |                                  |     |          |           |                |              |         |               |            |   |  






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

Collateral.


ISOs.


105



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



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




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





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



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









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



106



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





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



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









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



Equity Price Risk (Exelon and Generation)




107



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








PART II  OTHER INFORMATION







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



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





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





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





| |                                       
| | --------------------------------------
| | Cromby Generating Station (Generation)



108



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



| |           
| | ----------
| | (c) Exelon



|                               |  |              |         |  |                |                  |                     |                 |                  |                  |                 |  |  |  |    |  
|------------------------------ |  | ------------ | ------- |  | -------------- | ---------------- | ------------------- | --------------- | ---------------- | ---------------- | --------------- |  |  |  | -- | -
|                               |  |              |         |  |                |                  |                     | Maximum Number  |                 
|                               |  |              |         |  |                |                  |                     | (or Approximate |                 
|                               |  |              |         |  |                | Total Number of  |                     |                 | Dollar Value) of |                 
|                               |  |              |         |  |                | Shares Purchased |                     |                 | Shares that May  |                 
|                               |  | Total Number |         |  |                |                  | As Part of Publicly |                 |                  | Yet Be Purchased |                
|                               |  | of Shares    |         |  | Average Price  |                  |                     | Announced Plans |                  |                  | Under the Plans | 
|Period                         |  | Purchased(a) |         |  | Paid per Share |                  |                     | or Programs(b)  |                  |                  | or Programs     | 
|                               |  |              |         |  |                |                  |                     |                 |                  |                  |                 | 
|January 1  January 31, 2005   |  |              | 6,423   |  |                |                  | 43.49               |                 |                  |                  |                |  |  |  | (b | )
|February 1  February 28, 2005 |  |              | 196,062 |  |                |                  | 44.26               |                 |                  |                  |                |  |  |  | (b | )
|March 1  March 31, 2005       |  |              | 1,706   |  |                |                  | 44.13               |                 |                  |                  |                |  |  |  | (b | )
|                               |  |              |         |  |                |                  |                     |                 |                  |                  |                 | 
|Total                          |  |              | 204,191 |  |                |                  | 44.24               |                 |                  |                  |                 |  |  |  | (b | )
|                               |  |              |         |  |                |                  |                     |                 |                  |                  |                 | 






|    |                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Shares other than those purchased as a part of a publicly
    announced plan primarily represent restricted shares surrendered
    by employees to satisfy tax obligations arising upon the vesting
    of restricted shares and shares repurchased from a retired
    executive.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 5. | Other Information



| |                                
| | -------------------------------
| | (a)Exelon, ComEd and Generation



| |                                 
| | --------------------------------
| | Regulatory Issues (Exelon ComEd)





| |                                       
| | --------------------------------------
| | Clean Air Interstate Rule (Generation)





109



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110



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|        |         
|------- | --------
|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).                                                                                                                                                                                                                                                                                                  
|     
|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 | 
|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 | 

111



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|                   |  |                |                                         |  |             |  |         | 
|------------------ |  | -------------- | --------------------------------------- |  | ----------- |  | ------- | 
|Dated as of        |  | File Reference |                                         |  | Exhibit No. | 
|                   |  |                |                                         |  |             | 
|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  | 
|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 | 

112



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##### Table of Contents



|                  |  |                |                                                    |  |             |  |       | 
|----------------- |  | -------------- | -------------------------------------------------- |  | ----------- |  | ----- | 
|Dated as of       |  | File Reference |                                                    |  | Exhibit No. | 
|                  |  |                |                                                    |  |             | 
|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 |  |                |                                                    |  |             |  | 4-3-1 | 

|      |  |   |  |                                                                                                                                                                                                                                                                                 
|----- |  | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4-3-2 |  |  |  | Instrument of Resignation, Appointment and Acceptance dated as
    of February 20, 2002, under the provisions of the Mortgage
    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 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).                                                                                                                                                                      
|    
|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).
|    
|10-1 |  |  |  | $2 billion term loan agreement dated March 7, 2005
    among Exelon Corporation, lenders named within the agreement and
    Citicorp North America as Administrative Agent (File
    No. 1-16169, Exelon Corporation Form 8-K dated
    March 7, 2005, Exhibit 99).                                                                                                                                                                                     

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|     |  |   |  |                                                              
|---- |  | - |  | -------------------------------------------------------------
|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



|     |  |   |  |                                                              
|---- |  | - |  | -------------------------------------------------------------
|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

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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. Young----------------------------------
    John 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 Mitchell----------------------------------
    J. Barry Mitchell
    Senior Vice President, Treasurer and
    Chief Financial Officer
    (Principal Financial Officer)








COMMONWEALTH EDISON COMPANY


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



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PECO ENERGY COMPANY


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








EXELON GENERATION COMPANY, LLC


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



116