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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 June 30, 2005                                                
| 
|  |  | or                                                                                          
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

|            |  |                                                                                                                                                                             |  |               
|----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------
|            |  | Name of Registrant; State of Incorporation;                                                                                                                                 |  | IRS Employer  
|Commission  |  | Address of Principal Executive Offices; and                                                                                                                                 |  | Identification
|File Number |  | Telephone Number                                                                                                                                                            |  | Number        
|            |  |                                                                                                                                                                             |  |               
|1-16169     |  | EXELON CORPORATION
    (a Pennsylvania corporation)
    10 South Dearborn Street  37th Floor
    P.O. Box 805379
    Chicago, Illinois 60680-5379
    (312) 394-7398       |  | 23-2990190    
|1-1839      |  | COMMONWEALTH EDISON COMPANY
    (an Illinois corporation)
    10 South Dearborn Street  37th Floor
    P.O. Box 805379
    Chicago, Illinois 60680-5379
    (312) 394-4321 |  | 36-0938600    
|1-1401      |  | PECO ENERGY COMPANY
    (a Pennsylvania corporation)
    P.O. Box 8699
    2301 Market Street
    Philadelphia, Pennsylvania 19101-8699
    (215) 841-4000                  |  | 23-0970240    
|333-85496   |  | EXELON GENERATION COMPANY, LLC
    (a Pennsylvania limited liability company)
    300 Exelon Way
    Kennett Square, Pennsylvania 19348
    (610) 765-6900                  |  | 23-3064219    

þ o




|                                                           |  |               
|---------------------------------------------------------- |  | --------------
|Exelon Corporation Common Stock, without par value         |  | 670,557,506   
|Commonwealth Edison Company Common Stock, $12.50 par value |  | 127,016,519   
|PECO Energy Company Common Stock, without par value        |  | 170,478,507   
|Exelon Generation Company, LLC                             |  | not applicable

þ o o þ










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TABLE OF CONTENTS


|                               |  |                                                                                          |   |                                                                |     |  |     | 
|------------------------------ |  | ---------------------------------------------------------------------------------------- | - | -------------------------------------------------------------- | --- |  | --- | 
|                               |  |                                                                                          |   | Page No.                                                       |    
|                               |  |                                                                                          |   |                                                                |    
|FILING FORMAT                  |  |                                                                                          | 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 |   |                                                                | 70  | 
|                               |  |                                                                                          |   | Exelon Corporation                                             |     |  | 71  | 
|                               |  |                                                                                          |   | Commonwealth Edison Company                                    |     |  | 122 | 
|                               |  |                                                                                          |   | PECO Energy Company                                            |     |  | 125 | 
|                               |  |                                                                                          |   | Exelon Generation Company, LLC                                 |     |  | 128 | 
|Item 3.                        |  | Quantitative and Qualitative Disclosures
    About Market Risk                           |   |                                                                | 130 | 
|Item 4.                        |  | Controls and Procedures                                                                  |   |                                                                | 137 | 
|                              
|PART II.                       |  | OTHER INFORMATION                                                                        |   |                                                                | 137 | 
|Item 1.                        |  | Legal Proceedings                                                                        |   |                                                                | 137 | 
|                               |  |                                                                                          |   | Exelon Corporation                                             |     |  | 137 | 
|                               |  |                                                                                          |   | Commonwealth Edison Company                                    |     |  | 137 | 
|                               |  |                                                                                          |   | PECO Energy Company                                            |     |  | 137 | 
|                               |  |                                                                                          |   | Exelon Generation Company, LLC                                 |     |  | 137 | 

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|                                                                 |  |                                                                 |     |                                |     |  |     | 
|---------------------------------------------------------------- |  | --------------------------------------------------------------- | --- | ------------------------------ | --- |  | --- | 
|                                                                 |  |                                                                 |     | Page No.                       |    
|                                                                 |  |                                                                 |     |                                |    
|Item 2.                                                          |  | Unregistered Sales of Equity Securities
    and Use of Proceeds |     |                                | 138 | 
|                                                                 |  |                                                                 |     | Exelon Corporation             |     |  | 138 | 
|Item 5.                                                          |  | Other Information                                               |     |                                | 138 | 
|                                                                 |  |                                                                 |     | Exelon Corporation             |     |  | 138 | 
|Item 6.                                                          |  | Exhibits                                                        |     |                                | 140 | 
|SIGNATURES                                                       |  |                                                                 | 144 |                               
|                                                                 |  |                                                                 |     | Exelon Corporation             |     |  | 144 | 
|                                                                 |  |                                                                 |     | Commonwealth Edison Company    |     |  | 144 | 
|                                                                 |  |                                                                 |     | PECO Energy Company            |     |  | 145 | 
|                                                                 |  |                                                                 |     | Exelon Generation Company, LLC |     |  | 145 | 
|Indenture                                                       
|Amended and Restated Employment Agreement for John W. Rowe      
|Certification - John W. Rowe Exelon Corporation                 
|Certification - John F. Young Exelon Corporation                
|Certification - J. Barry Mitchell Exelon Corporation            
|Certification - John L. Skolds Commonwealth Edison Company      
|Certification - J. Barry Mitchell Commonwealth Edison Company   
|Certification -  John L. Skolds PECO Energy Company             
|Certification - J. Barry Mitchell PECO Energy Company           
|Certification - John L. Skolds Exelon Generation Company, LLC   
|Certification - J. Barry Mitchell Exelon Generation Company, LLC
|Certification - John W. Rowe Exelon Corporation                 
|Certification - John F. Young Exelon Corporation                
|Certification - J. Barry Mitchell Exelon Corporation            
|Certification - John L. Skolds Commonwealth Edison Company      
|Certification -  J. Barry Mitchell Commonwealth Edison Company  
|Certification - John L. Skolds PECO Energy Company              
|Certification - J. Barry Mitchell PECO Energy Company           
|Certification -  John L. Skolds Exelon Generation Company, LLC  
|Certification - J. Barry Mitchell Exelon Generation Company, LLC



2



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FILING FORMAT







FORWARD-LOOKING STATEMENTS







WHERE TO FIND MORE INFORMATION


www.sec.gov www.exeloncorp.com


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PART I. FINANCIAL INFORMATION





Item 1.     Financial
Statements


5



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EXELON CORPORATION


EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |       |       |   |       |       |       |  
|-------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ----- | ---- | ---------- | - | ----- | ---- | ----- | - | ----- | ----- | ----- | - | ----- | ----- | ----- | -
|                                                                                       |                                                                                                                                                                                  | Three Months                               |       |      | Six Months |  
|                                                                                       |                                                                                                                                                                                  | Ended                                      |       |      | Ended      |  
|                                                                                       |                                                                                                                                                                                  | June 30,                                   |       |      | June 30,   |  
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |  
|                                                                                       |                                                                                                                                                                                  | 2005                                       |       |      | 2004       |   |       | 2005 |       |   | 2004  |      
|(In millions, except per share data)                                                   |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Operating revenues                                                                     |                                                                                                                                                                                  | $                                          | 3,484 |      |            | $ | 3,438 |      |       | $ | 7,045 |       |       | $ | 7,073 |      
|Operating expenses                                                                     |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |       |       |   |       |      
|                                                                                       | Purchased power                                                                                                                                                                  |                                            |       | 663  |            |   |       | 686  |       |   |       | 1,232 |       |   |       | 1,259 |      
|                                                                                       | Fuel                                                                                                                                                                             |                                            |       | 477  |            |   |       | 467  |       |   |       | 1,099 |       |   |       | 1,289 |      
|                                                                                       | Operating and maintenance                                                                                                                                                        |                                            |       | 945  |            |   |       | 939  |       |   |       | 1,893 |       |   |       | 1,918 |      
|                                                                                       | Depreciation and amortization                                                                                                                                                    |                                            |       | 325  |            |   |       | 311  |       |   |       | 644   |       |   |       | 612   |      
|                                                                                       | Taxes other than income                                                                                                                                                          |                                            |       | 177  |            |   |       | 182  |       |   |       | 349   |       |   |       | 371   |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|                                                                                       |                                                                                                                                                                                  | Total operating expenses                   |       |      | 2,587      |   |       |      | 2,585 |   |       |       | 5,217 |   |       |       | 5,449 |  
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Operating income                                                                       |                                                                                                                                                                                  |                                            | 897   |      |            |   | 853   |      |       |   | 1,828 |       |       |   | 1,624 |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Other income and deductions                                                            |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |       |       |   |       |      
|                                                                                       | Interest expense                                                                                                                                                                 |                                            |       | (129 | )          |   |       | (122 | )     |   |       | (235  | )     |   |       | (250  | )    
|                                                                                       | Interest expense to affiliates                                                                                                                                                   |                                            |       | (81  | )          |   |       | (90  | )     |   |       | (164  | )     |   |       | (183  | )    
|                                                                                       | Distributions on preferred securities of subsidiaries                                                                                                                            |                                            |       | (1   | )          |   |       | (1   | )     |   |       | (2    | )     |   |       | (2    | )    
|                                                                                       | Equity in losses of unconsolidated affiliates                                                                                                                                    |                                            |       | (32  | )          |   |       | (31  | )     |   |       | (68   | )     |   |       | (55   | )    
|                                                                                       | Other, net                                                                                                                                                                       |                                            |       | 69   |            |   |       | 116  |       |   |       | 99    |       |   |       | 148   |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|                                                                                       |                                                                                                                                                                                  | Total other income and deductions          |       |      | (174       | ) |       |      | (128  | ) |       |       | (370  | ) |       |       | (342  | )
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Income from continuing operations before income taxes and
    minority interest        |                                                                                                                                                                                  |                                            | 723   |      |            |   | 725   |      |       |   | 1,458 |       |       |   | 1,282 |      
|Income taxes                                                                           |                                                                                                                                                                                  |                                            | 207   |      |            |   | 223   |      |       |   | 435   |       |       |   | 382   |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Income from continuing operations before minority interest                             |                                                                                                                                                                                  |                                            | 516   |      |            |   | 502   |      |       |   | 1,023 |       |       |   | 900   |      
|Minority interest                                                                      |                                                                                                                                                                                  |                                            |      |      |            |   | 1     |      |       |   |      |       |       |   |      |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Income from continuing operations                                                      |                                                                                                                                                                                  |                                            | 516   |      |            |   | 503   |      |       |   | 1,023 |       |       |   | 900   |      
|Discontinued operations                                                                |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |       |       |   |       |      
|                                                                                       | Loss from discontinued operations (net of income taxes of $0,
    $(18), $(3) and $(25) for the three and six months ended
    June 30, 2005 and 2004, respectively)             |                                            |       | (1   | )          |   |       | (17  | )     |   |       | (3    | )     |   |       | (31   | )    
|                                                                                       | Gain (loss) on disposal of discontinued operations (net of
    income taxes of $(1) $21, $4 and $19 for the three and six
    months ended June 30, 2005 and 2004, respectively) |                                            |       | (1   | )          |   |       | 35   |       |   |       | 15    |       |   |       | 32    |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|                                                                                       |                                                                                                                                                                                  | Income (loss) from discontinued operations |       |      | (2         | ) |       |      | 18    |   |       |       | 12    |   |       |       | 1     |  
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Income before cumulative effect of a change in accounting
    principle                |                                                                                                                                                                                  |                                            | 514   |      |            |   | 521   |      |       |   | 1,035 |       |       |   | 901   |      
|Cumulative effect of a change in accounting principle (net of
    income taxes of $22) |                                                                                                                                                                                  |                                            |      |      |            |   |      |      |       |   |      |       |       |   | 32    |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Net income                                                                             |                                                                                                                                                                                  |                                            | 514   |      |            |   | 521   |      |       |   | 1,035 |       |       |   | 933   |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Other comprehensive income (loss), net of income taxes                                 |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |       |       |   |       |      
|                                                                                       | Minimum pension liability                                                                                                                                                        |                                            |       |     |            |   |       |     |       |   |       | 2     |       |   |       |      |      
|                                                                                       | Change in net unrealized gain (loss) on cash-flow hedges                                                                                                                         |                                            |       | (31  | )          |   |       | 50   |       |   |       | (133  | )     |   |       | (143  | )    
|                                                                                       | Foreign currency translation adjustment                                                                                                                                          |                                            |       |     |            |   |       | (4   | )     |   |       |      |       |   |       | (2    | )    
|                                                                                       | Unrealized gain (loss) on marketable securities                                                                                                                                  |                                            |       | (9   | )          |   |       | (31  | )     |   |       | (24   | )     |   |       | 9     |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|                                                                                       |                                                                                                                                                                                  | Total other comprehensive income (loss)    |       |      | (40        | ) |       |      | 15    |   |       |       | (155  | ) |       |       | (136  | )
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Total comprehensive income                                                             |                                                                                                                                                                                  | $                                          | 474   |      |            | $ | 536   |      |       | $ | 880   |       |       | $ | 797   |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Average shares of common stock outstanding 
    Basic                                 |                                                                                                                                                                                  |                                            | 670   |      |            |   | 661   |      |       |   | 669   |       |       |   | 660   |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Average shares of common stock outstanding 
    Diluted                               |                                                                                                                                                                                  |                                            | 677   |      |            |   | 667   |      |       |   | 676   |       |       |   | 666   |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Earnings per average common share  Basic:                                             |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |       |       |   |       |      
|                                                                                       | Income from continuing operations                                                                                                                                                |                                            | $     | 0.77 |            |   | $     | 0.76 |       |   | $     | 1.53  |       |   | $     | 1.36  |      
|                                                                                       | Income from discontinued operations                                                                                                                                              |                                            |       |     |            |   |       | 0.03 |       |   |       | 0.02  |       |   |       |      |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|                                                                                       | Income before cumulative effect of a change in accounting
    principle                                                                                                          |                                            | $     | 0.77 |            |   | $     | 0.79 |       |   | $     | 1.55  |       |   | $     | 1.36  |      
|                                                                                       | Cumulative effect of a change in accounting principle                                                                                                                            |                                            |       |     |            |   |       |     |       |   |       |      |       |   |       | 0.05  |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|                                                                                       | Net income                                                                                                                                                                       |                                            | $     | 0.77 |            |   | $     | 0.79 |       |   | $     | 1.55  |       |   | $     | 1.41  |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Earnings per average common share  Diluted:                                           |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |       |       |   |       |      
|                                                                                       | Income from continuing operations                                                                                                                                                |                                            | $     | 0.76 |            |   | $     | 0.75 |       |   | $     | 1.51  |       |   | $     | 1.35  |      
|                                                                                       | Income from discontinued operations                                                                                                                                              |                                            |       |     |            |   |       | 0.03 |       |   |       | 0.02  |       |   |       |      |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|                                                                                       | Income before cumulative effect of a change in accounting
    principle                                                                                                          |                                            | $     | 0.76 |            |   | $     | 0.78 |       |   | $     | 1.53  |       |   | $     | 1.35  |      
|                                                                                       | Cumulative effect of a change in accounting principle                                                                                                                            |                                            |       |     |            |   |       |     |       |   |       |      |       |   |       | 0.05  |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|                                                                                       | Net income                                                                                                                                                                       |                                            | $     | 0.76 |            |   | $     | 0.78 |       |   | $     | 1.53  |       |   | $     | 1.40  |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      
|Dividends per common share                                                             |                                                                                                                                                                                  | $                                          | 0.400 |      |            | $ | 0.275 |      |       | $ | 0.800 |       |       | $ | 0.550 |      
|                                                                                       |                                                                                                                                                                                  |                                            |       |      |            |   |       |      |       |   |       |      



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EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                                                     |                                                                                                                                             |                                                                                 |                                                                         |        |      |        |       |        |      |      |  
|------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------ | ---- | ------ | ----- | ------ | ---- | ---- | -
|                                                                                     |                                                                                                                                             | Six Months                                                                      |                                                                        
|                                                                                     |                                                                                                                                             | Ended                                                                           |                                                                        
|                                                                                     |                                                                                                                                             | June 30,                                                                        |                                                                        
|                                                                                     |                                                                                                                                             |                                                                                 |                                                                        
|                                                                                     |                                                                                                                                             | 2005                                                                            |                                                                         |        | 2004 |       
|(In millions)                                                                        |                                                                                                                                             |                                                                                 |                                                                         |        |      |       
|Cash flows from operating activities                                                 |                                                                                                                                             |                                                                                 |                                                                         |        |      |        |       |       
|                                                                                     | Net income                                                                                                                                  |                                                                                 | $                                                                       | 1,035  |      |        | $     | 933    |     
|                                                                                     | Adjustments to reconcile net income to net cash flows provided
    by operating activities:                                                 |                                                                                 |                                                                         |        |      |        |       |        |     
|                                                                                     |                                                                                                                                             | Depreciation, amortization and accretion, including nuclear fuel                |                                                                         |        | 961  |        |       |        | 923  |     
|                                                                                     |                                                                                                                                             | Other decommissioning-related activities                                        |                                                                         |        | 13   |        |       |        | 25   |     
|                                                                                     |                                                                                                                                             | Cumulative effect of a change in accounting principle (net of
    income taxes) |                                                                         |        |     |        |       |        | (32  | )   
|                                                                                     |                                                                                                                                             | Deferred income taxes and amortization of investment tax credits                |                                                                         |        | 528  |        |       |        | 154  |     
|                                                                                     |                                                                                                                                             | Provision for uncollectible accounts                                            |                                                                         |        | 22   |        |       |        | 39   |     
|                                                                                     |                                                                                                                                             | Equity in losses of unconsolidated affiliates                                   |                                                                         |        | 68   |        |       |        | 55   |     
|                                                                                     |                                                                                                                                             | Gain on sales of investments and wholly owned subsidiaries                      |                                                                         |        | (17  | )      |       |        | (155 | )   
|                                                                                     |                                                                                                                                             | Net realized (gains) losses on nuclear decommissioning
    trust funds          |                                                                         |        | (55  | )      |       |        | 1    |     
|                                                                                     |                                                                                                                                             | Other non-cash operating activities                                             |                                                                         |        | 27   |        |       |        | (30  | )   
|                                                                                     |                                                                                                                                             | Changes in assets and liabilities:                                              |                                                                         |        |      |        |       |        |      |     
|                                                                                     |                                                                                                                                             |                                                                                 | Accounts receivable                                                     |        |      | 53     |       |        |      | 25   |  
|                                                                                     |                                                                                                                                             |                                                                                 | Inventories                                                             |        |      | 26     |       |        |      | 14   |  
|                                                                                     |                                                                                                                                             |                                                                                 | Other current assets                                                    |        |      | (125   | )     |        |      | (55  | )
|                                                                                     |                                                                                                                                             |                                                                                 | Accounts payable, accrued expenses and other current liabilities        |        |      | (235   | )     |        |      | (58  | )
|                                                                                     |                                                                                                                                             |                                                                                 | Income taxes                                                            |        |      | 24     |       |        |      | 168  |  
|                                                                                     |                                                                                                                                             |                                                                                 | Net realized and unrealized mark-to-market and hedging
    transactions |        |      | (74    | )     |        |      | 54   |  
|                                                                                     |                                                                                                                                             |                                                                                 | Pension and non-pension postretirement benefits obligations             |        |      | (1,927 | )     |        |      | (175 | )
|                                                                                     |                                                                                                                                             |                                                                                 | Other noncurrent assets and liabilities                                 |        |      | (38    | )     |        |      | 21   |  
|                                                                                     |                                                                                                                                             |                                                                                 |                                                                         |        |      |       
|Net cash flows provided by operating activities                                      |                                                                                                                                             |                                                                                 | 286                                                                     |        |      |        | 1,907 |       
|                                                                                     |                                                                                                                                             |                                                                                 |                                                                         |        |      |       
|Cash flows from investing activities                                                 |                                                                                                                                             |                                                                                 |                                                                         |        |      |        |       |       
|                                                                                     | Capital expenditures                                                                                                                        |                                                                                 |                                                                         | (1,007 | )    |        |       | (844   | )   
|                                                                                     | Proceeds from sale of nuclear decommissioning trust fund assets                                                                             |                                                                                 |                                                                         | 2,149  |      |        |       | 1,042  |     
|                                                                                     | Investment in nuclear decommissioning trust funds                                                                                           |                                                                                 |                                                                         | (2,256 | )    |        |       | (1,178 | )   
|                                                                                     | Proceeds from sales of investments and wholly owned
    subsidiaries, net of $32 of cash sold during the six months
    ended June 30, 2005 |                                                                                 |                                                                         | 103    |      |        |       | 227    |     
|                                                                                     | Proceeds from sales of long-lived assets                                                                                                    |                                                                                 |                                                                         | 2      |      |        |       | 49     |     
|                                                                                     | Acquisition of businesses                                                                                                                   |                                                                                 |                                                                         | (97    | )    |        |       |       |     
|                                                                                     | Investment in synthetic fuel-producing facilities                                                                                           |                                                                                 |                                                                         | (56    | )    |        |       | (16    | )   
|                                                                                     | Change in restricted cash                                                                                                                   |                                                                                 |                                                                         | 23     |      |        |       | (30    | )   
|                                                                                     | Net cash increase from consolidation of Sithe Energies,
    Inc.                                                                            |                                                                                 |                                                                         |       |      |        |       | 19     |     
|                                                                                     | Other investing activities                                                                                                                  |                                                                                 |                                                                         | (4     | )    |        |       | 34     |     
|                                                                                     |                                                                                                                                             |                                                                                 |                                                                         |        |      |       
|Net cash flows used in investing activities                                          |                                                                                                                                             |                                                                                 | (1,143                                                                  | )      |      |        | (697  | )     
|                                                                                     |                                                                                                                                             |                                                                                 |                                                                         |        |      |       
|Cash flows from financing activities                                                 |                                                                                                                                             |                                                                                 |                                                                         |        |      |        |       |       
|                                                                                     | Issuance of long-term debt                                                                                                                  |                                                                                 |                                                                         | 1,788  |      |        |       | 75     |     
|                                                                                     | Retirement of long-term debt                                                                                                                |                                                                                 |                                                                         | (185   | )    |        |       | (312   | )   
|                                                                                     | Retirement of long-term debt to financing affiliates                                                                                        |                                                                                 |                                                                         | (397   | )    |        |       | (345   | )   
|                                                                                     | Issuance of short-term debt                                                                                                                 |                                                                                 |                                                                         | 2,500  |      |        |       |       |     
|                                                                                     | Retirement of short-term debt                                                                                                               |                                                                                 |                                                                         | (2,200 | )    |        |       |       |     
|                                                                                     | Change in short-term debt                                                                                                                   |                                                                                 |                                                                         | (161   | )    |        |       | (65    | )   
|                                                                                     | Payment on acquisition note payable to Sithe Energies, Inc.                                                                                 |                                                                                 |                                                                         |       |      |        |       | (27    | )   
|                                                                                     | Dividends paid on common stock                                                                                                              |                                                                                 |                                                                         | (535   | )    |        |       | (364   | )   
|                                                                                     | Proceeds from employee stock plans                                                                                                          |                                                                                 |                                                                         | 156    |      |        |       | 140    |     
|                                                                                     | Purchase of treasury stock                                                                                                                  |                                                                                 |                                                                         | (8     | )    |        |       | (75    | )   
|                                                                                     | Other financing activities                                                                                                                  |                                                                                 |                                                                         | (55    | )    |        |       | 36     |     
|                                                                                     |                                                                                                                                             |                                                                                 |                                                                         |        |      |       
|Net cash flows provided by (used in) financing activities                            |                                                                                                                                             |                                                                                 | 903                                                                     |        |      |        | (937  | )     
|                                                                                     |                                                                                                                                             |                                                                                 |                                                                         |        |      |       
|Increase in cash and cash equivalents                                                |                                                                                                                                             |                                                                                 | 46                                                                      |        |      |        | 273   |       
|Cash and cash equivalents at beginning of period                                     |                                                                                                                                             |                                                                                 | 499                                                                     |        |      |        | 493   |       
|                                                                                     |                                                                                                                                             |                                                                                 |                                                                         |        |      |       
|Cash and cash equivalents at end of period                                           |                                                                                                                                             | $                                                                               | 545                                                                     |        |      | $      | 766   |       
|                                                                                     |                                                                                                                                             |                                                                                 |                                                                         |        |      |       
|Supplemental cash flow information  Noncash investing
    and financing activities: |                                                                                                                                             |                                                                                 |                                                                         |        |      |        |       |       
|                                                                                     | Consolidation of Sithe Energies, Inc. pursuant to FASB
    Interpretation No. 46-R, Consolidation of Variable
    Interest Entities       |                                                                                 | $                                                                       |       |      |        | $     | 85     |     
|                                                                                     | Disposition of Boston Generating, LLC                                                                                                       |                                                                                 |                                                                         |       |      |        |       | 102    |     



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EXELON CORPORATION AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                     |                                        |        |       |              |   |        |       |        | 
|---------------------------------- | ----------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                   |                                     | June 30,                               |        |       | December 31, |  
|                                   |                                     | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                     |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                     |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents           |                                        | $      | 545   |              |   | $      | 499   |       
|                                   | Restricted cash and investments     |                                        |        | 47    |              |   |        | 60    |       
|                                   | Accounts receivable, net            |                                        |        |       |              |   |        |       |       
|                                   |                                     | Customer                               |        |       | 1,613        |   |        |       | 1,649  | 
|                                   |                                     | Other                                  |        |       | 308          |   |        |       | 409    | 
|                                   | Mark-to-market derivative assets    |                                        |        | 508   |              |   |        | 403   |       
|                                   | Inventories, at average cost        |                                        |        |       |              |   |        |       |       
|                                   |                                     | Fossil fuel                            |        |       | 192          |   |        |       | 230    | 
|                                   |                                     | Materials and supplies                 |        |       | 324          |   |        |       | 312    | 
|                                   | Deferred income taxes               |                                        |        | 108   |              |   |        | 68    |       
|                                   | Other                               |                                        |        | 393   |              |   |        | 296   |       
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total current assets                   |        |       | 4,038        |   |        |       | 3,926  | 
|                                   |                                     |                                        |        |       |              |  
|Property, plant and equipment, net |                                     |                                        | 21,390 |       |              |   | 21,482 |      
|Deferred debits and other assets   |                                     |                                        |        |       |              |   |        |      
|                                   | Regulatory assets                   |                                        |        | 4,587 |              |   |        | 4,790 |       
|                                   | Nuclear decommissioning trust funds |                                        |        | 5,306 |              |   |        | 5,262 |       
|                                   | Investments                         |                                        |        | 813   |              |   |        | 804   |       
|                                   | Goodwill                            |                                        |        | 4,696 |              |   |        | 4,705 |       
|                                   | Mark-to-market derivative assets    |                                        |        | 356   |              |   |        | 383   |       
|                                   | Other                               |                                        |        | 896   |              |   |        | 1,418 |       
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total deferred debits and other assets |        |       | 16,654       |   |        |       | 17,362 | 
|                                   |                                     |                                        |        |       |              |  
|Total assets                       |                                     | $                                      | 42,082 |       |              | $ | 42,770 |      
|                                   |                                     |                                        |        |       |              |  



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                                                        |                                                                                                                                                       |                                              |        |        |              |   |        |        |        | 
|--------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | ------ | ------ | ------------ | - | ------ | ------ | ------ | 
|                                                                                        |                                                                                                                                                       | June 30,                                     |        |        | December 31, |  
|                                                                                        |                                                                                                                                                       | 2005                                         |        |        | 2004         |  
|(In millions)                                                                           |                                                                                                                                                       |                                              |        |        |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY                                                   
|Current liabilities                                                                     |                                                                                                                                                       |                                              |        |        |              |   |        |       
|                                                                                        | Notes payable                                                                                                                                         |                                              | $      | 629    |              |   | $      | 490    |       
|                                                                                        | Long-term debt due within one year                                                                                                                    |                                              |        | 386    |              |   |        | 427    |       
|                                                                                        | Long-term debt to ComEd Transitional Funding Trust and PECO
    Energy Transition Trust due within one year                                           |                                              |        | 511    |              |   |        | 486    |       
|                                                                                        | Accounts payable                                                                                                                                      |                                              |        | 1,237  |              |   |        | 1,255  |       
|                                                                                        | Mark-to-market derivative liabilities                                                                                                                 |                                              |        | 756    |              |   |        | 598    |       
|                                                                                        | Accrued expenses                                                                                                                                      |                                              |        | 809    |              |   |        | 1,143  |       
|                                                                                        | Other                                                                                                                                                 |                                              |        | 534    |              |   |        | 483    |       
|                                                                                        |                                                                                                                                                       |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                       | Total current liabilities                    |        |        | 4,862        |   |        |        | 4,882  | 
|                                                                                        |                                                                                                                                                       |                                              |        |        |              |  
|Long-term debt                                                                          |                                                                                                                                                       |                                              | 8,113  |        |              |   | 7,292  |       
|Long-term debt to ComEd Transitional Funding Trust and PECO
    Energy Transition Trust |                                                                                                                                                       |                                              | 3,888  |        |              |   | 4,311  |       
|Long-term debt to other financing trusts                                                |                                                                                                                                                       |                                              | 545    |        |              |   | 545    |       
|Deferred credits and other liabilities                                                  |                                                                                                                                                       |                                              |        |        |              |   |        |       
|                                                                                        | Deferred income taxes                                                                                                                                 |                                              |        | 4,859  |              |   |        | 4,488  |       
|                                                                                        | Unamortized investment tax credits                                                                                                                    |                                              |        | 268    |              |   |        | 275    |       
|                                                                                        | Asset retirement obligation                                                                                                                           |                                              |        | 3,817  |              |   |        | 3,981  |       
|                                                                                        | Pension obligations                                                                                                                                   |                                              |        | 23     |              |   |        | 1,993  |       
|                                                                                        | Non-pension postretirement benefits obligations                                                                                                       |                                              |        | 1,108  |              |   |        | 1,065  |       
|                                                                                        | Spent nuclear fuel obligation                                                                                                                         |                                              |        | 890    |              |   |        | 878    |       
|                                                                                        | Regulatory liabilities                                                                                                                                |                                              |        | 2,240  |              |   |        | 2,204  |       
|                                                                                        | Mark-to-market derivative liabilities                                                                                                                 |                                              |        | 456    |              |   |        | 323    |       
|                                                                                        | Other                                                                                                                                                 |                                              |        | 886    |              |   |        | 915    |       
|                                                                                        |                                                                                                                                                       |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                       | Total deferred credits and other liabilities |        |        | 14,547       |   |        |        | 16,122 | 
|                                                                                        |                                                                                                                                                       |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                       | Total liabilities                            |        |        | 31,955       |   |        |        | 33,152 | 
|                                                                                        |                                                                                                                                                       |                                              |        |        |              |  
|Commitments and contingencies                                                           |                                                                                                                                                       |                                              |        |        |              |   |        |       
|Minority interest of consolidated subsidiaries                                          |                                                                                                                                                       |                                              | 1      |        |              |   | 42     |       
|Preferred securities of subsidiaries                                                    |                                                                                                                                                       |                                              | 87     |        |              |   | 87     |       
|Shareholders equity                                                                    |                                                                                                                                                       |                                              |        |        |              |   |        |       
|                                                                                        | Common stock (No par value, 1,200 shares authorized, 670.6
    and 664.2 shares outstanding at June 30, 2005 and
    December 31, 2004, respectively) |                                              |        | 7,877  |              |   |        | 7,664  |       
|                                                                                        | Treasury stock, at cost (2.6 and 2.5 shares held at
    June 30, 2005 and December 31, 2004, respectively)                                            |                                              |        | (90    | )            |   |        | (82    | )     
|                                                                                        | Retained earnings                                                                                                                                     |                                              |        | 3,853  |              |   |        | 3,353  |       
|                                                                                        | Accumulated other comprehensive loss                                                                                                                  |                                              |        | (1,601 | )            |   |        | (1,446 | )     
|                                                                                        |                                                                                                                                                       |                                              |        |        |              |  
|                                                                                        |                                                                                                                                                       | Total shareholders equity                   |        |        | 10,039       |   |        |        | 9,489  | 
|                                                                                        |                                                                                                                                                       |                                              |        |        |              |  
|Total liabilities and shareholders equity                                              |                                                                                                                                                       | $                                            | 42,082 |        |              | $ | 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 |  
|                                              |  | Shares |         |  | Stock  |   |       | Stock    |  |             | Earnings |   |       | Loss          |       |   | Equity        |  
|(Dollars in millions, shares in thousands)    |  |        |         |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  
|Balance, December 31, 2004                    |  |        | 666,688 |  |        | $ | 7,664 |          |  | $           | (82      | ) |       | $             | 3,353 |   |               | $ | (1,446 | ) |  | $ | 9,489  |  
|Net income                                    |  |        |        |  |        |   |      |          |  |             |         |   |       |               | 1,035 |   |               |   |       |   |  |   | 1,035  |  
|Long-term incentive plan activity             |  |        | 6,557   |  |        |   | 213   |          |  |             |         |   |       |               |      |   |               |   |       |   |  |   | 213    |  
|Common stock purchases                        |  |        |        |  |        |   |      |          |  |             | (8       | ) |       |               |      |   |               |   |       |   |  |   | (8     | )
|Common stock dividends declared               |  |        |        |  |        |   |      |          |  |             |         |   |       |               | (535  | ) |               |   |       |   |  |   | (535   | )
|Other comprehensive loss, net of income taxes |  |        |        |  |        |   |      |          |  |             |         |   |       |               |      |   |               |   | (155   | ) |  |   | (155   | )
|                                              |  |        |         |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  
|Balance, June 30, 2005                        |  |        | 673,245 |  |        | $ | 7,877 |          |  | $           | (90      | ) |       | $             | 3,853 |   |               | $ | (1,601 | ) |  | $ | 10,039 |  
|                                              |  |        |         |  |        |   |       |          |  |             |          |   |       |               |       |   |               |  



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COMMONWEALTH EDISON COMPANY


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |       |       |   |     |       |       |  
|--------------------------------------------- | ------------------------------------------------- | --------------------------------- | --- | ----- | ---------- | - | --- | ----- | ----- | - | ---- | ----- | ----- | - | --- | ----- | ----- | -
|                                              |                                                   | Three Months                      |     |       | Six Months |  
|                                              |                                                   | Ended                             |     |       | Ended      |  
|                                              |                                                   | June 30,                          |     |       | June 30,   |  
|                                              |                                                   |                                   |     |       |            |  
|                                              |                                                   | 2005                              |     |       | 2004       |   |     | 2005  |       |   | 2004 |      
|(In millions)                                 |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|Operating revenues                            |                                                   |                                   |     |       |            |   |     |       |       |   |      |       |       |   |     |      
|                                              | Operating revenues                                |                                   | $   | 1,485 |            |   | $   | 1,397 |       |   | $    | 2,869 |       |   | $   | 2,722 |      
|                                              | Operating revenues from affiliates                |                                   |     | 3     |            |   |     | 6     |       |   |      | 6     |       |   |     | 17    |      
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|                                              |                                                   | Total operating revenues          |     |       | 1,488      |   |     |       | 1,403 |   |      |       | 2,875 |   |     |       | 2,739 |  
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|Operating expenses                            |                                                   |                                   |     |       |            |   |     |       |       |   |      |       |       |   |     |      
|                                              | Purchased power                                   |                                   |     | 88    |            |   |     | 60    |       |   |      | 156   |       |   |     | 65    |      
|                                              | Purchased power from affiliate                    |                                   |     | 770   |            |   |     | 514   |       |   |      | 1,523 |       |   |     | 1,043 |      
|                                              | Operating and maintenance                         |                                   |     | 158   |            |   |     | 182   |       |   |      | 316   |       |   |     | 355   |      
|                                              | Operating and maintenance from affiliates         |                                   |     | 44    |            |   |     | 41    |       |   |      | 88    |       |   |     | 83    |      
|                                              | Depreciation and amortization                     |                                   |     | 101   |            |   |     | 103   |       |   |      | 198   |       |   |     | 205   |      
|                                              | Taxes other than income                           |                                   |     | 73    |            |   |     | 72    |       |   |      | 151   |       |   |     | 151   |      
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|                                              |                                                   | Total operating expenses          |     |       | 1,234      |   |     |       | 972   |   |      |       | 2,432 |   |     |       | 1,902 |  
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|Operating income                              |                                                   |                                   | 254 |       |            |   | 431 |       |       |   | 443  |       |       |   | 837 |      
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|Other income and deductions                   |                                                   |                                   |     |       |            |   |     |       |       |   |      |       |       |   |     |      
|                                              | Interest expense                                  |                                   |     | (53   | )          |   |     | (68   | )     |   |      | (102  | )     |   |     | (144  | )    
|                                              | Interest expense to affiliates                    |                                   |     | (24   | )          |   |     | (28   | )     |   |      | (49   | )     |   |     | (58   | )    
|                                              | Equity in losses of unconsolidated affiliates     |                                   |     | (4    | )          |   |     | (6    | )     |   |      | (8    | )     |   |     | (9    | )    
|                                              | Interest income from affiliates                   |                                   |     | 1     |            |   |     | 5     |       |   |      | 3     |       |   |     | 11    |      
|                                              | Other, net                                        |                                   |     | 6     |            |   |     | 2     |       |   |      | 10    |       |   |     | 6     |      
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|                                              |                                                   | Total other income and deductions |     |       | (74        | ) |     |       | (95   | ) |      |       | (146  | ) |     |       | (194  | )
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|Income before income taxes                    |                                                   |                                   | 180 |       |            |   | 336 |       |       |   | 297  |       |       |   | 643 |      
|Income taxes                                  |                                                   |                                   | 71  |       |            |   | 132 |       |       |   | 118  |       |       |   | 255 |      
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|Net income                                    |                                                   |                                   | 109 |       |            |   | 204 |       |       |   | 179  |       |       |   | 388 |      
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|Other comprehensive loss, net of income taxes |                                                   |                                   |     |       |            |   |     |       |       |   |      |       |       |   |     |      
|                                              | Change in net unrealized loss on cash-flow hedges |                                   |     | (19   | )          |   |     |      |       |   |      | (21   | )     |   |     |      |      
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|                                              |                                                   | Total other comprehensive loss    |     |       | (19        | ) |     |       |      |   |      |       | (21   | ) |     |       |      |  
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      
|Total comprehensive income                    |                                                   | $                                 | 90  |       |            | $ | 204 |       |       | $ | 158  |       |       | $ | 388 |      
|                                              |                                                   |                                   |     |       |            |   |     |       |       |   |      |      



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |      |      |      |     |     |  
|--------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------------------------------------------- | ---- | ---- | ---- | ---- | ---- | --- | --- | -
|                                                          |                                                                                                       | Six Months                                                       |                                                                 
|                                                          |                                                                                                       | Ended                                                            |                                                                 
|                                                          |                                                                                                       | June 30,                                                         |                                                                 
|                                                          |                                                                                                       |                                                                  |                                                                 
|                                                          |                                                                                                       | 2005                                                             |                                                                  |      | 2004 |     
|(In millions)                                             |                                                                                                       |                                                                  |                                                                  |      |      |     
|Cash flows from operating activities                      |                                                                                                       |                                                                  |                                                                  |      |      |      |      |     
|                                                          | Net income                                                                                            |                                                                  | $                                                                | 179  |      |      | $    | 388  |    
|                                                          | Adjustments to reconcile net income to net cash flows (used in)
    provided by operating activities: |                                                                  |                                                                  |      |      |      |      |      |    
|                                                          |                                                                                                       | Depreciation and amortization                                    |                                                                  |      | 198  |      |      |      | 205 |    
|                                                          |                                                                                                       | Deferred income taxes and amortization of investment tax credits |                                                                  |      | 230  |      |      |      | 86  |    
|                                                          |                                                                                                       | Provision for uncollectible accounts                             |                                                                  |      | 12   |      |      |      | 16  |    
|                                                          |                                                                                                       | Equity in losses of unconsolidated affiliates                    |                                                                  |      | 8    |      |      |      | 9   |    
|                                                          |                                                                                                       | Other non-cash operating activities                              |                                                                  |      | 23   |      |      |      | 24  |    
|                                                          |                                                                                                       | Changes in assets and liabilities:                               |                                                                  |      |      |      |      |      |     |    
|                                                          |                                                                                                       |                                                                  | Accounts receivable                                              |      |      | (100 | )    |      |     | (44 | )
|                                                          |                                                                                                       |                                                                  | Inventories                                                      |      |      | 1    |      |      |     | (1  | )
|                                                          |                                                                                                       |                                                                  | Other current assets                                             |      |      | (14  | )    |      |     | 5   |  
|                                                          |                                                                                                       |                                                                  | Accounts payable, accrued expenses and other current liabilities |      |      | (27  | )    |      |     | (7  | )
|                                                          |                                                                                                       |                                                                  | Changes in receivables and payables to affiliates                |      |      | 137  |      |      |     | 15  |  
|                                                          |                                                                                                       |                                                                  | Income taxes                                                     |      |      | 3    |      |      |     | 25  |  
|                                                          |                                                                                                       |                                                                  | Pension asset and non-pension postretirement benefits obligation |      |      | (767 | )    |      |     | (93 | )
|                                                          |                                                                                                       |                                                                  | Other noncurrent assets and liabilities                          |      |      | (11  | )    |      |     | (26 | )
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Net cash flows (used in) provided by operating activities |                                                                                                       |                                                                  | (128                                                             | )    |      |      | 602  |     
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Cash flows from investing activities                      |                                                                                                       |                                                                  |                                                                  |      |      |      |      |     
|                                                          | Capital expenditures                                                                                  |                                                                  |                                                                  | (391 | )    |      |      | (369 | )  
|                                                          | Changes in Exelon intercompany money pool contributions                                               |                                                                  |                                                                  | 287  |      |      |      | 207  |    
|                                                          | Change in restricted cash                                                                             |                                                                  |                                                                  | (1   | )    |      |      | 18   |    
|                                                          | Other investing activities                                                                            |                                                                  |                                                                  | 1    |      |      |      | 11   |    
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Net cash flows used in investing activities               |                                                                                                       |                                                                  | (104                                                             | )    |      |      | (133 | )   
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Cash flows from financing activities                      |                                                                                                       |                                                                  |                                                                  |      |      |      |      |     
|                                                          | Issuance of long-term debt                                                                            |                                                                  |                                                                  | 91   |      |      |      |     |    
|                                                          | Retirement of long-term debt                                                                          |                                                                  |                                                                  | (146 | )    |      |      | (178 | )  
|                                                          | Retirement of long-term debt to ComEd Transitional Funding Trust                                      |                                                                  |                                                                  | (190 | )    |      |      | (179 | )  
|                                                          | Dividends paid on common stock                                                                        |                                                                  |                                                                  | (245 | )    |      |      | (207 | )  
|                                                          | Contributions from parent                                                                             |                                                                  |                                                                  | 834  |      |      |      | 62   |    
|                                                          | Settlement of cash-flow and fair-value hedges                                                         |                                                                  |                                                                  |     |      |      |      | 26   |    
|                                                          | Other financing activities                                                                            |                                                                  |                                                                  | (5   | )    |      |      |     |    
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Net cash flows provided by (used in) financing activities |                                                                                                       |                                                                  | 339                                                              |      |      |      | (476 | )   
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Increase (decrease) in cash and cash equivalents          |                                                                                                       |                                                                  | 107                                                              |      |      |      | (7   | )   
|Cash and cash equivalents at beginning of period          |                                                                                                       |                                                                  | 30                                                               |      |      |      | 34   |     
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     
|Cash and cash equivalents at end of period                |                                                                                                       | $                                                                | 137                                                              |      |      | $    | 27   |     
|                                                          |                                                                                                       |                                                                  |                                                                  |      |      |     



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                                 |                                        |        |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                                 | June 30,                               |        |       | December 31, |  
|                                   |                                                 | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                                 |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                                 |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents                       |                                        | $      | 137   |              |   | $      | 30    |      
|                                   | Restricted cash                                 |                                        |        | 1     |              |   |        |      |      
|                                   | Accounts receivable, net                        |                                        |        |       |              |   |        |       |      
|                                   |                                                 | Customer                               |        |       | 818          |   |        |       | 726   | 
|                                   |                                                 | Other                                  |        |       | 46           |   |        |       | 50    | 
|                                   | Inventories, at average cost                    |                                        |        | 47    |              |   |        | 48    |      
|                                   | Deferred income taxes                           |                                        |        | 17    |              |   |        |      |      
|                                   | Receivables from affiliates                     |                                        |        | 14    |              |   |        | 10    |      
|                                   | Contributions to Exelon intercompany money pool |                                        |        | 21    |              |   |        | 308   |      
|                                   | Other                                           |                                        |        | 37    |              |   |        | 24    |      
|                                   |                                                 |                                        |        |       |              |  
|                                   |                                                 | Total current assets                   |        |       | 1,138        |   |        |       | 1,196 | 
|                                   |                                                 |                                        |        |       |              |  
|Property, plant and equipment, net |                                                 |                                        | 9,684  |       |              |   | 9,463  |      
|Deferred debits and other assets   |                                                 |                                        |        |       |              |   |        |      
|                                   | Investments                                     |                                        |        | 39    |              |   |        | 39    |      
|                                   | Investment in affiliates                        |                                        |        | 44    |              |   |        | 52    |      
|                                   | Goodwill                                        |                                        |        | 4,696 |              |   |        | 4,705 |      
|                                   | Receivables from affiliates                     |                                        |        | 1,443 |              |   |        | 1,443 |      
|                                   | Pension asset                                   |                                        |        | 939   |              |   |        | 156   |      
|                                   | Other                                           |                                        |        | 380   |              |   |        | 387   |      
|                                   |                                                 |                                        |        |       |              |  
|                                   |                                                 | Total deferred debits and other assets |        |       | 7,541        |   |        |       | 6,782 | 
|                                   |                                                 |                                        |        |       |              |  
|Total assets                       |                                                 | $                                      | 18,363 |       |              | $ | 17,441 |      
|                                   |                                                 |                                        |        |       |              |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                                   |                                                                            |                                              |        |       |              |   |        |       |        | 
|-------------------------------------------------- | -------------------------------------------------------------------------- | -------------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                                   |                                                                            | June 30,                                     |        |       | 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 |                                              |        | 300   |              |   |        | 321   |       
|                                                   | Accounts payable                                                           |                                              |        | 211   |              |   |        | 196   |       
|                                                   | Accrued expenses                                                           |                                              |        | 556   |              |   |        | 589   |       
|                                                   | Payable to affiliates                                                      |                                              |        | 367   |              |   |        | 227   |       
|                                                   | Customer deposits                                                          |                                              |        | 103   |              |   |        | 93    |       
|                                                   | Deferred income taxes                                                      |                                              |        |      |              |   |        | 17    |       
|                                                   | Other                                                                      |                                              |        | 29    |              |   |        | 49    |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total current liabilities                    |        |       | 1,838        |   |        |       | 1,764  | 
|                                                   |                                                                            |                                              |        |       |              |  
|Long-term debt                                     |                                                                            |                                              | 2,839  |       |              |   | 2,901  |      
|Long-term debt to ComEd Transitional Funding Trust |                                                                            |                                              | 851    |       |              |   | 1,020  |      
|Long-term debt to other financing trusts           |                                                                            |                                              | 361    |       |              |   | 361    |      
|Deferred credits and other liabilities             |                                                                            |                                              |        |       |              |   |        |      
|                                                   | Deferred income taxes                                                      |                                              |        | 2,145 |              |   |        | 1,890 |       
|                                                   | Unamortized investment tax credits                                         |                                              |        | 45    |              |   |        | 45    |       
|                                                   | Non-pension postretirement benefits obligation                             |                                              |        | 211   |              |   |        | 195   |       
|                                                   | Payables to affiliates                                                     |                                              |        | 19    |              |   |        | 17    |       
|                                                   | Regulatory liabilities                                                     |                                              |        | 2,240 |              |   |        | 2,204 |       
|                                                   | Other                                                                      |                                              |        | 327   |              |   |        | 304   |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total deferred credits and other liabilities |        |       | 4,987        |   |        |       | 4,655  | 
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total liabilities                            |        |       | 10,876       |   |        |       | 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                                                          |                                              |        | 1,036 |              |   |        | 1,102 |       
|                                                   | Accumulated other comprehensive loss                                       |                                              |        | (21   | )            |   |        |      |       
|                                                   |                                                                            |                                              |        |       |              |  
|                                                   |                                                                            | Total shareholders equity                   |        |       | 7,487        |   |        |       | 6,740  | 
|                                                   |                                                                            |                                              |        |       |              |  
|Total liabilities and shareholders equity         |                                                                            | $                                            | 18,363 |       |              | $ | 17,441 |      
|                                                   |                                                                            |                                              |        |       |              |  



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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS
EQUITY


(Unaudited)


|                                                        |  |        |       |  |           |       |   |         |            |   |        |          |  |                |          |   |              |       |      |               |       |   |               |   |  |   |     |   |  |   |       |  
|------------------------------------------------------- |  | ------ | ----- |  | --------- | ----- | - | ------- | ---------- | - | ------ | -------- |  | -------------- | -------- | - | ------------ | ----- | ---- | ------------- | ----- | - | ------------- | - |  | - | --- | - |  | - | ----- | -
|                                                        |  |        |       |  |           |       |   |         |            |   |        |          |  | Accumulated    |          |   |             
|                                                        |  |        |       |  |           | Other |   |         | Receivable |   |        | Retained |  |                | Retained |   |              | Other |      |               | Total |  
|                                                        |  | Common |       |  | Preferred |       |   | 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                                              |  |        |      |  |           |       |  |         |            |   |       |          |  |                |         |   |              |       | 179  |               |       |   |              |   |  |   |    |   |  |   | 179   |  
|Repayment of receivable from parent                     |  |        |      |  |           |       |  |         |            |   |       |          |  |                | 125      |   |              |       |     |               |       |   |              |   |  |   |    |   |  |   | 125   |  
|Capital contribution from parent                        |  |        |      |  |           |       |  |         |            |   | 709    |          |  |                |         |   |              |       |     |               |       |   |              |   |  |   |    |   |  |   | 709   |  
|Appropriation of Retained Earnings for future dividends |  |        |      |  |           |       |  |         |            |   |       |          |  |                |         |   |              |       | (179 | )             |       |   | 179           |   |  |   |    |   |  |   |      |  
|Common stock dividends                                  |  |        |      |  |           |       |  |         |            |   |       |          |  |                |         |   |              |       |     |               |       |   | (245          | ) |  |   |    |   |  |   | (245  | )
|Other comprehensive loss, net of income taxes           |  |        |      |  |           |       |  |         |            |   |       |          |  |                |         |   |              |       |     |               |       |   |              |   |  |   | (21 | ) |  |   | (21   | )
|                                                        |  |        |       |  |           |       |   |         |            |   |        |          |  |                |          |   |              |       |      |               |       |   |               |  
|Balance, June 30, 2005                                  |  | $      | 1,588 |  |           | $     | 7 |         |            | $ | 4,877  |          |  | $              |         |   |              | $     |     |               |       | $ | 1,036         |   |  | $ | (21 | ) |  | $ | 7,487 |  
|                                                        |  |        |       |  |           |       |   |         |            |   |        |          |  |                |          |   |              |       |      |               |       |   |               |  



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PECO ENERGY COMPANY


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(Unaudited)


|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |       |    |       |     |       |   |       |  
|----------------------------------------------- | ------------------------------------------------- | -------------------------------------------------------- | --------------------------------- | ----- | ---------- | ----- | --- | ----- | - | ----- | ---- | ----- | -- | ----- | --- | ----- | - | ----- | -
|                                                |                                                   | Three Months                                             |                                   |       | Six Months |      
|                                                |                                                   | Ended                                                    |                                   |       | Ended      |      
|                                                |                                                   | June 30,                                                 |                                   |       | June 30,   |      
|                                                |                                                   |                                                          |                                   |       |            |      
|                                                |                                                   | 2005                                                     |                                   |       | 2004       |       |     | 2005  |   |       | 2004 |      
|(In millions)                                   |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|Operating revenues                              |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |       |    |       |     |      
|                                                | Operating revenues                                |                                                          | $                                 | 1,040 |            |       | $   | 1,027 |   |       | $    | 2,331 |    |       | $   | 2,262 |  
|                                                | Operating revenues from affiliates                |                                                          |                                   | 4     |            |       |     | 5     |   |       |      | 8     |    |       |     | 9     |  
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|                                                |                                                   |                                                          | Total operating revenues          |       |            | 1,044 |     |       |   | 1,032 |      |       |    | 2,339 |     |       |   | 2,271 |  
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|Operating expenses                              |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |       |    |       |     |      
|                                                | Purchased power                                   |                                                          |                                   | 58    |            |       |     | 53    |   |       |      | 109   |    |       |     | 100   |  
|                                                | Purchased power from affiliate                    |                                                          |                                   | 379   |            |       |     | 349   |   |       |      | 760   |    |       |     | 699   |  
|                                                | Fuel                                              |                                                          |                                   | 66    |            |       |     | 76    |   |       |      | 330   |    |       |     | 325   |  
|                                                | Fuel from affiliate                               |                                                          |                                   |      |            |       |     | 7     |   |       |      | 1     |    |       |     | 7     |  
|                                                | Operating and maintenance                         |                                                          |                                   | 91    |            |       |     | 104   |   |       |      | 200   |    |       |     | 215   |  
|                                                | Operating and maintenance from affiliates         |                                                          |                                   | 28    |            |       |     | 28    |   |       |      | 53    |    |       |     | 51    |  
|                                                | Depreciation and amortization                     |                                                          |                                   | 137   |            |       |     | 125   |   |       |      | 273   |    |       |     | 250   |  
|                                                | Taxes other than income                           |                                                          |                                   | 60    |            |       |     | 60    |   |       |      | 115   |    |       |     | 118   |  
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|                                                |                                                   |                                                          | Total operating expenses          |       |            | 819   |     |       |   | 802   |      |       |    | 1,841 |     |       |   | 1,765 |  
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|Operating income                                |                                                   |                                                          | 225                               |       |            |       | 230 |       |   |       | 498  |       |    |       | 506 |      
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|Other income and deductions                     |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |       |    |       |     |      
|                                                | Interest expense                                  |                                                          |                                   | (13   | )          |       |     | (14   | ) |       |      | (26   | )  |       |     | (28   | )
|                                                | Interest expense to affiliates                    |                                                          |                                   | (57   | )          |       |     | (62   | ) |       |      | (116  | )  |       |     | (125  | )
|                                                | Equity in losses of unconsolidated affiliates     |                                                          |                                   | (4    | )          |       |     | (7    | ) |       |      | (8    | )  |       |     | (13   | )
|                                                | Interest income from affiliates                   |                                                          |                                   |      |            |       |     |      |   |       |      | 1     |    |       |     |      |  
|                                                | Other, net                                        |                                                          |                                   | 6     |            |       |     | 3     |   |       |      | 8     |    |       |     | 5     |  
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|                                                |                                                   |                                                          | Total other income and deductions |       |            | (68   | )   |       |   | (80   | )    |       |    | (141  | )   |       |   | (161  | )
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|Income before income taxes                      |                                                   |                                                          | 157                               |       |            |       | 150 |       |   |       | 357  |       |    |       | 345 |      
|Income taxes                                    |                                                   |                                                          | 47                                |       |            |       | 50  |       |   |       | 118  |       |    |       | 112 |      
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|Net income                                      |                                                   |                                                          | 110                               |       |            |       | 100 |       |   |       | 239  |       |    |       | 233 |      
|Preferred stock dividends                       |                                                   |                                                          | 1                                 |       |            |       | 1   |       |   |       | 2    |       |    |       | 2   |      
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|Net income on common stock                      |                                                   | $                                                        | 109                               |       |            | $     | 99  |       |   | $     | 237  |       |    | $     | 231 |      
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|Other comprehensive income, net of income taxes |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |       |    |       |     |      
|                                                | Net income                                        |                                                          | $                                 | 110   |            |       | $   | 100   |   |       | $    | 239   |    |       | $   | 233   |  
|                                                | Other comprehensive income (net of income taxes): |                                                          |                                   |       |            |       |     |       |   |       |      |       |    |       |     |       |  
|                                                |                                                   | Change in net unrealized gain (loss) on cash-flow hedges |                                   |       | (2         | )     |     |       | 2 |       |      |       | (2 | )     |     |       | 3 |      
|                                                |                                                   | Unrealized gain on marketable securities                 |                                   |       |           |       |     |       |  |       |      |       |   |       |     |       | 1 |      
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|                                                |                                                   |                                                          | Total other comprehensive income  |       |            | (2    | )   |       |   | 2     |      |       |    | (2    | )   |       |   | 4     |  
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      
|Total comprehensive income                      |                                                   | $                                                        | 108                               |       |            | $     | 102 |       |   | $     | 237  |       |    | $     | 237 |      
|                                                |                                                   |                                                          |                                   |       |            |       |     |       |   |       |      |      



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                 |                                                                                             |                                                                  |                                                                  |      |      |      |      |      |     |     |  
|------------------------------------------------ | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ---------------------------------------------------------------- | ---- | ---- | ---- | ---- | ---- | --- | --- | -
|                                                 |                                                                                             | Six Months                                                       |                                                                 
|                                                 |                                                                                             | Ended                                                            |                                                                 
|                                                 |                                                                                             | June 30,                                                         |                                                                 
|                                                 |                                                                                             |                                                                  |                                                                 
|                                                 |                                                                                             | 2005                                                             |                                                                  |      | 2004 |     
|(In millions)                                    |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from operating activities             |                                                                                             |                                                                  |                                                                  |      |      |      |      |     
|                                                 | Net income                                                                                  |                                                                  | $                                                                | 239  |      |      | $    | 233  |    
|                                                 | Adjustments to reconcile net income to net cash flows provided
    by operating activities: |                                                                  |                                                                  |      |      |      |      |      |    
|                                                 |                                                                                             | Depreciation and amortization                                    |                                                                  |      | 273  |      |      |      | 250 |    
|                                                 |                                                                                             | Deferred income taxes and amortization of investment tax credits |                                                                  |      | (60  | )    |      |      | (95 | )  
|                                                 |                                                                                             | Provision for uncollectible accounts                             |                                                                  |      | 11   |      |      |      | 19  |    
|                                                 |                                                                                             | Equity in losses of unconsolidated affiliates                    |                                                                  |      | 8    |      |      |      | 13  |    
|                                                 |                                                                                             | Other non-cash operating activities                              |                                                                  |      | (4   | )    |      |      | (4  | )  
|                                                 |                                                                                             | Changes in assets and liabilities:                               |                                                                  |      |      |      |      |      |     |    
|                                                 |                                                                                             |                                                                  | Accounts receivable                                              |      |      | 43   |      |      |     | 21  |  
|                                                 |                                                                                             |                                                                  | Inventories                                                      |      |      | 23   |      |      |     | 24  |  
|                                                 |                                                                                             |                                                                  | Deferred energy costs                                            |      |      | 58   |      |      |     | 56  |  
|                                                 |                                                                                             |                                                                  | Prepaid utility taxes                                            |      |      | (108 | )    |      |     | (96 | )
|                                                 |                                                                                             |                                                                  | Other current assets                                             |      |      |     |      |      |     | (2  | )
|                                                 |                                                                                             |                                                                  | Accounts payable, accrued expenses and other current liabilities |      |      | (110 | )    |      |     | (70 | )
|                                                 |                                                                                             |                                                                  | Change in receivables and payables to affiliates, net            |      |      | 36   |      |      |     | 21  |  
|                                                 |                                                                                             |                                                                  | Income taxes                                                     |      |      | 27   |      |      |     | 126 |  
|                                                 |                                                                                             |                                                                  | Pension asset and non-pension postretirement benefits obligation |      |      | (144 | )    |      |     | 15  |  
|                                                 |                                                                                             |                                                                  | Other noncurrent assets and liabilities                          |      |      | 9    |      |      |     | (2  | )
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows provided by operating activities  |                                                                                             |                                                                  | 301                                                              |      |      |      | 509  |     
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from investing activities             |                                                                                             |                                                                  |                                                                  |      |      |      |      |     
|                                                 | Capital expenditures                                                                        |                                                                  |                                                                  | (126 | )    |      |      | (105 | )  
|                                                 | Changes in Exelon intercompany money pool contributions                                     |                                                                  |                                                                  | 34   |      |      |      | (35  | )  
|                                                 | Change in restricted cash                                                                   |                                                                  |                                                                  | 28   |      |      |      | (2   | )  
|                                                 | Other investing activities                                                                  |                                                                  |                                                                  | 6    |      |      |      | 3    |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows used in investing activities      |                                                                                             |                                                                  | (58                                                              | )    |      |      | (139 | )   
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash flows from financing activities             |                                                                                             |                                                                  |                                                                  |      |      |      |      |     
|                                                 | Issuance of long-term debt                                                                  |                                                                  |                                                                  |     |      |      |      | 75   |    
|                                                 | Retirement of long-term debt                                                                |                                                                  |                                                                  | (8   | )    |      |      | (75  | )  
|                                                 | Retirement of long-term debt to PECO Energy Transition Trust                                |                                                                  |                                                                  | (207 | )    |      |      | (166 | )  
|                                                 | Change in short-term debt                                                                   |                                                                  |                                                                  |     |      |      |      | (46  | )  
|                                                 | Dividends paid on common and preferred stock                                                |                                                                  |                                                                  | (233 | )    |      |      | (182 | )  
|                                                 | Contribution from parent                                                                    |                                                                  |                                                                  | 180  |      |      |      | 71   |    
|                                                 | Other financing activities                                                                  |                                                                  |                                                                  |     |      |      |      | 6    |    
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Net cash flows used in financing activities      |                                                                                             |                                                                  | (268                                                             | )    |      |      | (317 | )   
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Increase (decrease) in cash and cash equivalents |                                                                                             |                                                                  | (25                                                              | )    |      |      | 53   |     
|Cash and cash equivalents at beginning of period |                                                                                             |                                                                  | 74                                                               |      |      |      | 18   |     
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     
|Cash and cash equivalents at end of period       |                                                                                             | $                                                                | 49                                                               |      |      | $    | 71   |     
|                                                 |                                                                                             |                                                                  |                                                                  |      |      |     



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES





CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                                 |                                        |       |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------------------- | -------------------------------------- | ----- | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                                 | June 30,                               |       |       | December 31, |  
|                                   |                                                 | 2005                                   |       |       | 2004         |  
|(In millions)                      |                                                 |                                        |       |       |              |  
|ASSETS                            
|Current assets                     |                                                 |                                        |       |       |              |   |        |      
|                                   | Cash and cash equivalents                       |                                        | $     | 49    |              |   | $      | 74    |      
|                                   | Restricted cash                                 |                                        |       | 1     |              |   |        | 29    |      
|                                   | Accounts receivable, net                        |                                        |       |       |              |   |        |       |      
|                                   |                                                 | Customer                               |       |       | 327          |   |        |       | 368   | 
|                                   |                                                 | Other                                  |       |       | 21           |   |        |       | 34    | 
|                                   | Inventories, at average cost                    |                                        |       |       |              |   |        |       |      
|                                   |                                                 | Gas                                    |       |       | 93           |   |        |       | 117   | 
|                                   |                                                 | Materials and supplies                 |       |       | 11           |   |        |       | 10    | 
|                                   | Contributions to Exelon intercompany money pool |                                        |       |      |              |   |        | 34    |      
|                                   | Deferred income taxes                           |                                        |       | 29    |              |   |        | 24    |      
|                                   | Deferred energy costs                           |                                        |       | 13    |              |   |        | 71    |      
|                                   | Prepaid utility taxes                           |                                        |       | 109   |              |   |        | 1     |      
|                                   | Other                                           |                                        |       | 11    |              |   |        | 11    |      
|                                   |                                                 |                                        |       |       |              |  
|                                   |                                                 | Total current assets                   |       |       | 664          |   |        |       | 773   | 
|                                   |                                                 |                                        |       |       |              |  
|Property, plant and equipment, net |                                                 |                                        | 4,378 |       |              |   | 4,329  |      
|Deferred debits and other assets   |                                                 |                                        |       |       |              |   |        |      
|                                   | Regulatory assets                               |                                        |       | 4,587 |              |   |        | 4,790 |      
|                                   | Investments                                     |                                        |       | 22    |              |   |        | 22    |      
|                                   | Investment in affiliates                        |                                        |       | 80    |              |   |        | 87    |      
|                                   | Receivables from affiliates                     |                                        |       | 45    |              |   |        | 46    |      
|                                   | Pension asset                                   |                                        |       | 194   |              |   |        | 77    |      
|                                   | Other                                           |                                        |       | 9     |              |   |        | 9     |      
|                                   |                                                 |                                        |       |       |              |  
|                                   |                                                 | Total deferred debits and other assets |       |       | 4,937        |   |        |       | 5,031 | 
|                                   |                                                 |                                        |       |       |              |  
|Total assets                       |                                                 | $                                      | 9,979 |       |              | $ | 10,133 |      
|                                   |                                                 |                                        |       |       |              |  



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PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                               |                                                                        |                                              |       |        |              |   |        |        |       | 
|---------------------------------------------- | ---------------------------------------------------------------------- | -------------------------------------------- | ----- | ------ | ------------ | - | ------ | ------ | ----- | 
|                                               |                                                                        | June 30,                                     |       |        | December 31, |  
|                                               |                                                                        | 2005                                         |       |        | 2004         |  
|(In millions)                                  |                                                                        |                                              |       |        |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY          
|Current liabilities                            |                                                                        |                                              |       |        |              |   |        |       
|                                               | Long-term debt due within one year                                     |                                              | $     | 38     |              |   | $      | 46     |      
|                                               | Long-term debt to PECO Energy Transition Trust due within one
    year |                                              |       | 211    |              |   |        | 165    |      
|                                               | Accounts payable                                                       |                                              |       | 105    |              |   |        | 121    |      
|                                               | Accrued expenses                                                       |                                              |       | 206    |              |   |        | 263    |      
|                                               | Payables to affiliates                                                 |                                              |       | 167    |              |   |        | 146    |      
|                                               | Customer deposits                                                      |                                              |       | 48     |              |   |        | 42     |      
|                                               | Other                                                                  |                                              |       | 3      |              |   |        | 11     |      
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total current liabilities                    |       |        | 778          |   |        |        | 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                                                  |                                              |       | 2,797  |              |   |        | 2,834  |      
|                                               | Unamortized investment tax credits                                     |                                              |       | 18     |              |   |        | 19     |      
|                                               | Non-pension postretirement benefits obligation                         |                                              |       | 292    |              |   |        | 319    |      
|                                               | Other                                                                  |                                              |       | 137    |              |   |        | 141    |      
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total deferred credits and other liabilities |       |        | 3,244        |   |        |        | 3,313 | 
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total liabilities                            |       |        | 8,397        |   |        |        | 8,735 | 
|                                               |                                                                        |                                              |       |        |              |  
|Commitments and contingencies                  |                                                                        |                                              |       |        |              |   |        |       
|Shareholders equity                           |                                                                        |                                              |       |        |              |   |        |       
|                                               | Common stock                                                           |                                              |       | 2,176  |              |   |        | 2,176  |      
|                                               | Preferred stock                                                        |                                              |       | 87     |              |   |        | 87     |      
|                                               | Receivable from parent                                                 |                                              |       | (1,302 | )            |   |        | (1,482 | )    
|                                               | Retained earnings                                                      |                                              |       | 613    |              |   |        | 607    |      
|                                               | Accumulated other comprehensive income                                 |                                              |       | 8      |              |   |        | 10     |      
|                                               |                                                                        |                                              |       |        |              |  
|                                               |                                                                        | Total shareholders equity                   |       |        | 1,582        |   |        |        | 1,398 | 
|                                               |                                                                        |                                              |       |        |              |  
|Total liabilities and shareholders equity     |                                                                        | $                                            | 9,979 |        |              | $ | 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                                      |  |        |      |  |           |            |   |        |  |             |         |   |  |               | 239  |   |               |   |    |   |  |   | 239   |  
|Common stock dividends                          |  |        |      |  |           |            |   |        |  |             |         |   |  |               | (231 | ) |               |   |    |   |  |   | (231  | )
|Preferred stock dividends                       |  |        |      |  |           |            |   |        |  |             |         |   |  |               | (2   | ) |               |   |   |   |  |   | (2    | )
|Repayment of receivable from parent             |  |        |      |  |           |            |   |        |  |             | 180      |   |  |               |     |   |               |   |   |   |  |   | 180   |  
|Other comprehensive income, net of income taxes |  |        |      |  |           |            |   |        |  |             |         |   |  |               |     |   |               |   | (2 | ) |  |   | (2    | )
|                                                |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |  
|Balance, June 30, 2005                          |  | $      | 2,176 |  |           | $          | 87 |        |  | $           | (1,302   | ) |  | $             | 613  |   |               | $ | 8  |   |  | $ | 1,582 |  
|                                                |  |        |       |  |           |            |    |        |  |             |          |   |  |               |      |   |               |  



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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                                             |                                            |       | Six Months |      
|                                                                                       |                                                                                                                                                                                 | Ended                                                    |                                            |       | Ended      |      
|                                                                                       |                                                                                                                                                                                 | June 30,                                                 |                                            |       | June 30,   |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |      
|                                                                                       |                                                                                                                                                                                 | 2005                                                     |                                            |       | 2004       |       |     | 2005  |     |       | 2004 |      
|(In millions)                                                                          |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Operating revenues                                                                     |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |       |     |       |     |      
|                                                                                       | Operating revenues                                                                                                                                                              |                                                          | $                                          | 955   |            |       | $   | 1,010 |     |       | $    | 1,840 |     |       | $   | 2,076 |     
|                                                                                       | Operating revenues from affiliates                                                                                                                                              |                                                          |                                            | 1,150 |            |       |     | 871   |     |       |      | 2,285 |     |       |     | 1,750 |     
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Total operating revenues                   |       |            | 2,105 |     |       |     | 1,881 |      |       |     | 4,125 |     |       |      | 3,826 |  
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Operating expenses                                                                     |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |       |     |       |     |      
|                                                                                       | Purchased power                                                                                                                                                                 |                                                          |                                            | 517   |            |       |     | 573   |     |       |      | 967   |     |       |     | 1,093 |     
|                                                                                       | Purchased power from affiliates                                                                                                                                                 |                                                          |                                            |      |            |       |     | 3     |     |       |      |      |     |       |     | 12    |     
|                                                                                       | Fuel                                                                                                                                                                            |                                                          |                                            | 427   |            |       |     | 390   |     |       |      | 785   |     |       |     | 958   |     
|                                                                                       | Fuel from affiliates                                                                                                                                                            |                                                          |                                            | 1     |            |       |     |      |     |       |      | 1     |     |       |     |      |     
|                                                                                       | Operating and maintenance                                                                                                                                                       |                                                          |                                            | 536   |            |       |     | 504   |     |       |      | 1,077 |     |       |     | 1,058 |     
|                                                                                       | Operating and maintenance from affiliates                                                                                                                                       |                                                          |                                            | 66    |            |       |     | 69    |     |       |      | 134   |     |       |     | 134   |     
|                                                                                       | Depreciation and amortization                                                                                                                                                   |                                                          |                                            | 63    |            |       |     | 65    |     |       |      | 125   |     |       |     | 120   |     
|                                                                                       | Taxes other than income                                                                                                                                                         |                                                          |                                            | 39    |            |       |     | 46    |     |       |      | 74    |     |       |     | 93    |     
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Total operating expenses                   |       |            | 1,649 |     |       |     | 1,650 |      |       |     | 3,163 |     |       |      | 3,468 |  
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Operating income                                                                       |                                                                                                                                                                                 |                                                          | 456                                        |       |            |       | 231 |       |     |       | 962  |       |     |       | 358 |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Other income and deductions                                                            |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |       |     |       |     |      
|                                                                                       | Interest expense                                                                                                                                                                |                                                          |                                            | (29   | )          |       |     | (26   | )   |       |      | (56   | )   |       |     | (51   | )   
|                                                                                       | Interest expense to affiliates                                                                                                                                                  |                                                          |                                            |      |            |       |     | (1    | )   |       |      | (2    | )   |       |     | (2    | )   
|                                                                                       | Equity in earnings (losses) of unconsolidated affiliates                                                                                                                        |                                                          |                                            | 4     |            |       |     |      |     |       |      | 4     |     |       |     | (2    | )   
|                                                                                       | Other, net                                                                                                                                                                      |                                                          |                                            | 51    |            |       |     | 96    |     |       |      | 69    |     |       |     | 115   |     
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Total other income and deductions          |       |            | 26    |     |       |     | 69    |      |       |     | 15    |     |       |      | 60    |  
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Income from continuing operations before income taxes and
    minority interest        |                                                                                                                                                                                 |                                                          | 482                                        |       |            |       | 300 |       |     |       | 977  |       |     |       | 418 |      
|Income taxes                                                                           |                                                                                                                                                                                 |                                                          | 185                                        |       |            |       | 114 |       |     |       | 376  |       |     |       | 160 |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Income from continuing operations before minority interest                             |                                                                                                                                                                                 |                                                          | 297                                        |       |            |       | 186 |       |     |       | 601  |       |     |       | 258 |      
|Minority interest                                                                      |                                                                                                                                                                                 |                                                          |                                           |       |            |       | 1   |       |     |       |     |       |     |       |    |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Income from continuing operations                                                      |                                                                                                                                                                                 |                                                          | 297                                        |       |            |       | 187 |       |     |       | 601  |       |     |       | 258 |      
|Discontinued operations                                                                |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |       |     |       |     |      
|                                                                                       | Loss from discontinued operations (net of income taxes of $0,
    $(14), $(1) and $(14) for the three and six months ended
    June 30, 2005 and 2004, respectively)            |                                                          |                                            |      |            |       |     | (9    | )   |       |      |      |     |       |     | (10   | )   
|                                                                                       | Gain (loss) on disposal of discontinued operations (net of
    income taxes of $(1), $0, $4 and $0 for the three and six months
    ended June 30, 2005 and 2004, respectively) |                                                          |                                            | (1    | )          |       |     |      |     |       |      | 15    |     |       |     |      |     
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Income (loss) from discontinued operations |       |            | (1    | )   |       |     | (9    | )    |       |     | 15    |     |       |      | (10   | )
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Income before cumulative effect of a change in accounting
    principle                |                                                                                                                                                                                 |                                                          | 296                                        |       |            |       | 178 |       |     |       | 616  |       |     |       | 248 |      
|Cumulative effect of a change in accounting principle (net of
    income taxes of $22) |                                                                                                                                                                                 |                                                          |                                           |       |            |       |    |       |     |       |     |       |     |       | 32  |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Net income                                                                             |                                                                                                                                                                                 |                                                          | 296                                        |       |            |       | 178 |       |     |       | 616  |       |     |       | 280 |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Other comprehensive income (loss), net of income taxes                                 |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |       |     |       |     |      
|                                                                                       |                                                                                                                                                                                 | Change in net unrealized gain (loss) on cash-flow hedges |                                            |       | 39         |       |     |       | 48  |       |      |       | (85 | )     |     |       | (147 | )    
|                                                                                       |                                                                                                                                                                                 | Unrealized gain (loss) on marketable securities          |                                            |       | (9         | )     |     |       | (31 | )     |      |       | (24 | )     |     |       | 8    |      
|                                                                                       |                                                                                                                                                                                 | Foreign currency translation adjustment                  |                                            |       | (1         | )     |     |       | (4  | )     |      |       | (1  | )     |     |       | (2   | )    
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|                                                                                       |                                                                                                                                                                                 |                                                          | Total other comprehensive income (loss)    |       |            | 29    |     |       |     | 13    |      |       |     | (110  | )   |       |      | (141  | )
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      
|Total comprehensive income                                                             |                                                                                                                                                                                 | $                                                        | 325                                        |       |            | $     | 191 |       |     | $     | 506  |       |     | $     | 139 |      
|                                                                                       |                                                                                                                                                                                 |                                                          |                                            |       |            |       |     |       |     |       |      |      



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |     |      |     |        |     |     |  
|------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------ | --- | ---- | --- | ------ | --- | --- | -
|                                                                                     |                                                                                                                                       | Six Months                                                                                  |                                                                                
|                                                                                     |                                                                                                                                       | Ended                                                                                       |                                                                                
|                                                                                     |                                                                                                                                       | June 30,                                                                                    |                                                                                
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                
|                                                                                     |                                                                                                                                       | 2005                                                                                        |                                                                                 |                                                                         | 2004   |    
|(In millions)                                                                        |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |    
|Cash flows from operating activities                                                 |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |     |      |    
|                                                                                     |                                                                                                                                       | Net income                                                                                  |                                                                                 | $                                                                       | 616    |     |      | $   | 280    |    
|                                                                                     |                                                                                                                                       | Adjustments to reconcile net income to net cash flows provided
    by operating activities: |                                                                                 |                                                                         |        |     |      |     |        |    
|                                                                                     |                                                                                                                                       |                                                                                             | Depreciation, amortization and accretion, including nuclear fuel                |                                                                         |        | 440 |      |     |        | 431 |    
|                                                                                     |                                                                                                                                       |                                                                                             | Cumulative effect of a change in accounting principle (net of
    income taxes) |                                                                         |        |    |      |     |        | (32 | )  
|                                                                                     |                                                                                                                                       |                                                                                             | Other decommissioning-related activities                                        |                                                                         |        | 13  |      |     |        | 25  |    
|                                                                                     |                                                                                                                                       |                                                                                             | Gain on sale of investments                                                     |                                                                         |        | (19 | )    |     |        | (90 | )  
|                                                                                     |                                                                                                                                       |                                                                                             | Deferred income taxes and amortization of investment tax credits                |                                                                         |        | 337 |      |     |        | 148 |    
|                                                                                     |                                                                                                                                       |                                                                                             | Provision for uncollectible accounts                                            |                                                                         |        |    |      |     |        | 2   |    
|                                                                                     |                                                                                                                                       |                                                                                             | Equity in (earnings) losses of unconsolidated affiliates                        |                                                                         |        | (4  | )    |     |        | 2   |    
|                                                                                     |                                                                                                                                       |                                                                                             | Net realized (gains) losses on nuclear decommissioning
    trust funds          |                                                                         |        | (55 | )    |     |        | 1   |    
|                                                                                     |                                                                                                                                       |                                                                                             | Other non-cash operating activities                                             |                                                                         |        | 17  |      |     |        |    |    
|                                                                                     |                                                                                                                                       |                                                                                             | Changes in assets and liabilities:                                              |                                                                         |        |     |      |     |        |     |    
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 | Accounts receivable                                                     |        |     | 61   |     |        |     | (56 | )
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 | Receivables and payables to affiliates, net                             |        |     | (181 | )   |        |     | (35 | )
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 | Inventories                                                             |        |     | 3    |     |        |     | (10 | )
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 | Other current assets                                                    |        |     | (45  | )   |        |     | (15 | )
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 | Accounts payable, accrued expenses and other current liabilities        |        |     | (45  | )   |        |     | 24  |  
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 | Income taxes                                                            |        |     | 174  |     |        |     | (52 | )
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 | Net realized and unrealized mark-to-market and hedging
    transactions |        |     | (57  | )   |        |     | 39  |  
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 | Pension asset and non-pension postretirement benefits obligation        |        |     | (839 | )   |        |     | (59 | )
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 | Other noncurrent assets and liabilities                                 |        |     | (36  | )   |        |     | 13  |  
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |    
|Net cash flows provided by operating activities                                      |                                                                                                                                       |                                                                                             | 380                                                                             |                                                                         |        |     | 616  |    
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |    
|Cash flows from investing activities                                                 |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |     |      |    
|                                                                                     |                                                                                                                                       | Capital expenditures                                                                        |                                                                                 |                                                                         | (484   | )   |      |     | (366   | )  
|                                                                                     |                                                                                                                                       | Proceeds from sale of nuclear decommissioning trust fund assets                             |                                                                                 |                                                                         | 2,149  |     |      |     | 1,042  |    
|                                                                                     |                                                                                                                                       | Investment in nuclear decommissioning trust funds                                           |                                                                                 |                                                                         | (2,256 | )   |      |     | (1,178 | )  
|                                                                                     |                                                                                                                                       | 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     | )   |      |     | (18    | )  
|                                                                                     |                                                                                                                                       | Other investing activities                                                                  |                                                                                 |                                                                         | (5     | )   |      |     | 58     |    
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |    
|Net cash flows used in investing activities                                          |                                                                                                                                       |                                                                                             | (592                                                                            | )                                                                       |        |     | (438 | )  
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |    
|Cash flows from financing activities                                                 |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |     |      |    
|                                                                                     |                                                                                                                                       | Retirement of long-term debt                                                                |                                                                                 |                                                                         | (1     | )   |      |     | (4     | )  
|                                                                                     |                                                                                                                                       | Change in short-term debt                                                                   |                                                                                 |                                                                         |       |     |      |     | 211    |    
|                                                                                     |                                                                                                                                       | Payment on acquisition note payable to Sithe Energies, Inc.                                 |                                                                                 |                                                                         |       |     |      |     | (27    | )  
|                                                                                     |                                                                                                                                       | Changes in Exelon intercompany money pool borrowings                                        |                                                                                 |                                                                         | (283   | )   |      |     | (218   | )  
|                                                                                     |                                                                                                                                       | Distribution to member                                                                      |                                                                                 |                                                                         | (319   | )   |      |     | (109   | )  
|                                                                                     |                                                                                                                                       | Contribution from member                                                                    |                                                                                 |                                                                         | 843    |     |      |     |       |    
|                                                                                     |                                                                                                                                       | Other financing activities                                                                  |                                                                                 |                                                                         | 1      |     |      |     | 6      |    
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |    
|Net cash flows provided by (used in) financing activities                            |                                                                                                                                       |                                                                                             | 241                                                                             |                                                                         |        |     | (141 | )  
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |    
|Increase in cash and cash equivalents                                                |                                                                                                                                       |                                                                                             | 29                                                                              |                                                                         |        |     | 37   |    
|Cash and cash equivalents at beginning of period                                     |                                                                                                                                       |                                                                                             | 263                                                                             |                                                                         |        |     | 158  |    
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |    
|Cash and cash equivalents at end of period                                           |                                                                                                                                       | $                                                                                           | 292                                                                             |                                                                         |        | $   | 195  |    
|                                                                                     |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |    
|Supplemental cash flow information  Noncash
    investing and financing activities: |                                                                                                                                       |                                                                                             |                                                                                 |                                                                         |        |     |      |    
|                                                                                     | Consolidation of Sithe Energies, Inc. pursuant to FASB
    Interpretation No. 46-R, Consolidation of Variable
    Interest Entities |                                                                                             | $                                                                               |                                                                        |        |     | $    | 85  |       
|                                                                                     | Contribution of Exelon Energy Company from Exelon Corporation                                                                         |                                                                                             |                                                                                 |                                                                        |        |     |      | (9  | )     
|                                                                                     | Disposition of Boston Generating, LLC                                                                                                 |                                                                                             |                                                                                 |                                                                        |        |     |      | 102 |       



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                   |                                     |                                        |        |       |              |   |        |       |       | 
|---------------------------------- | ----------------------------------- | -------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ----- | 
|                                   |                                     | June 30,                               |        |       | December 31, |  
|                                   |                                     | 2005                                   |        |       | 2004         |  
|(In millions)                      |                                     |                                        |        |       |              |  
|ASSETS                            
|Current assets                     |                                     |                                        |        |       |              |   |        |      
|                                   | Cash and cash equivalents           |                                        | $      | 292   |              |   | $      | 263   |      
|                                   | Restricted cash and investments     |                                        |        | 4     |              |   |        | 26    |      
|                                   | Accounts receivable, net            |                                        |        |       |              |   |        |       |      
|                                   |                                     | Customer                               |        |       | 449          |   |        |       | 525   | 
|                                   |                                     | Other                                  |        |       | 107          |   |        |       | 209   | 
|                                   | Mark-to-market derivative assets    |                                        |        | 508   |              |   |        | 403   |      
|                                   | Receivables from affiliates         |                                        |        | 494   |              |   |        | 332   |      
|                                   | Inventories, at average cost        |                                        |        |       |              |   |        |       |      
|                                   |                                     | Fossil fuel                            |        |       | 98           |   |        |       | 112   | 
|                                   |                                     | Materials and supplies                 |        |       | 267          |   |        |       | 255   | 
|                                   | Deferred income taxes               |                                        |        | 46    |              |   |        | 48    |      
|                                   | Other                               |                                        |        | 190   |              |   |        | 148   |      
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total current assets                   |        |       | 2,455        |   |        |       | 2,321 | 
|                                   |                                     |                                        |        |       |              |  
|Property, plant and equipment, net |                                     |                                        | 7,185  |       |              |   | 7,536  |      
|Deferred debits and other assets   |                                     |                                        |        |       |              |   |        |      
|                                   | Nuclear decommissioning trust funds |                                        |        | 5,306 |              |   |        | 5,262 |      
|                                   | Investments                         |                                        |        | 119   |              |   |        | 103   |      
|                                   | Receivable from affiliate           |                                        |        | 11    |              |   |        | 11    |      
|                                   | Pension asset                       |                                        |        | 1,018 |              |   |        | 199   |      
|                                   | Mark-to-market derivative assets    |                                        |        | 330   |              |   |        | 373   |      
|                                   | Other                               |                                        |        | 126   |              |   |        | 633   |      
|                                   |                                     |                                        |        |       |              |  
|                                   |                                     | Total deferred debits and other assets |        |       | 6,910        |   |        |       | 6,581 | 
|                                   |                                     |                                        |        |       |              |  
|Total assets                       |                                     | $                                      | 16,550 |       |              | $ | 16,438 |      
|                                   |                                     |                                        |        |       |              |  



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EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


CONSOLIDATED BALANCE SHEETS


(Unaudited)


|                                             |                                                |                                              |        |       |              |   |        |       |        | 
|-------------------------------------------- | ---------------------------------------------- | -------------------------------------------- | ------ | ----- | ------------ | - | ------ | ----- | ------ | 
|                                             |                                                | June 30,                                     |        |       | December 31, |  
|                                             |                                                | 2005                                         |        |       | 2004         |  
|(In millions)                                |                                                |                                              |        |       |              |  
|LIABILITIES AND MEMBERS EQUITY             
|Current liabilities                          |                                                |                                              |        |       |              |   |        |      
|                                             | Long-term debt due within one year             |                                              | $      | 12    |              |   | $      | 47    |       
|                                             | Accounts payable                               |                                              |        | 845   |              |   |        | 856   |       
|                                             | Mark-to-market derivative liabilities          |                                              |        | 756   |              |   |        | 598   |       
|                                             | Payables to affiliates                         |                                              |        | 30    |              |   |        | 42    |       
|                                             | Notes payable to affiliates                    |                                              |        |      |              |   |        | 283   |       
|                                             | Accrued expenses                               |                                              |        | 339   |              |   |        | 367   |       
|                                             | Other                                          |                                              |        | 284   |              |   |        | 223   |       
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total current liabilities                    |        |       | 2,266        |   |        |       | 2,416  | 
|                                             |                                                |                                              |        |       |              |  
|Long-term debt                               |                                                |                                              | 1,798  |       |              |   | 2,583  |      
|Deferred credits and other liabilities       |                                                |                                              |        |       |              |   |        |      
|                                             | Asset retirement obligation                    |                                              |        | 3,816 |              |   |        | 3,980 |       
|                                             | Pension obligation                             |                                              |        | 10    |              |   |        | 21    |       
|                                             | Non-pension postretirement benefits obligation |                                              |        | 575   |              |   |        | 584   |       
|                                             | Spent nuclear fuel obligation                  |                                              |        | 890   |              |   |        | 878   |       
|                                             | Deferred income taxes                          |                                              |        | 659   |              |   |        | 506   |       
|                                             | Unamortized investment tax credits             |                                              |        | 205   |              |   |        | 210   |       
|                                             | Payable to affiliates                          |                                              |        | 1,477 |              |   |        | 1,479 |       
|                                             | Mark-to-market derivative liabilities          |                                              |        | 421   |              |   |        | 323   |       
|                                             | Other                                          |                                              |        | 362   |              |   |        | 375   |       
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total deferred credits and other liabilities |        |       | 8,415        |   |        |       | 8,356  | 
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total liabilities                            |        |       | 12,479       |   |        |       | 13,355 | 
|                                             |                                                |                                              |        |       |              |  
|Commitments and contingencies                |                                                |                                              |        |       |              |   |        |      
|Minority interest of consolidated subsidiary |                                                |                                              | 2      |       |              |   | 44     |      
|Members equity                              |                                                |                                              |        |       |              |   |        |      
|                                             | Membership interest                            |                                              |        | 3,204 |              |   |        | 2,361 |       
|                                             | Undistributed earnings                         |                                              |        | 1,058 |              |   |        | 761   |       
|                                             | Accumulated other comprehensive loss           |                                              |        | (193  | )            |   |        | (83   | )     
|                                             |                                                |                                              |        |       |              |  
|                                             |                                                | Total members equity                        |        |       | 4,069        |   |        |       | 3,039  | 
|                                             |                                                |                                              |        |       |              |  
|Total liabilities and members equity        |                                                | $                                            | 16,550 |       |              | $ | 16,438 |      
|                                             |                                                |                                              |        |       |              |  



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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                                    |  |            |      |  |               |             | 616   |               |       |   |         |   |  |   | 616   |  
|Distribution to member                        |  |            |      |  |               |             | (319  | )             |       |   |         |   |  |   | (319  | )
|Contribution from member                      |  |            | 843   |  |               |             |      |               |       |   |         |   |  |   | 843   |  
|Other comprehensive loss, net of income taxes |  |            |      |  |               |             |      |               |       |   | (110     | ) |  |   | (110  | )
|                                              |  |            |       |  |               |             |       |               |       |   |          |  
|Balance, June 30, 2005                        |  | $          | 3,204 |  |               | $           | 1,058 |               |       | $ | (193     | ) |  | $ | 4,069 |  
|                                              |  |            |       |  |               |             |       |               |       |   |          |  



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EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES





COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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




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









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EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|                                               |  |          |    |   |                |   |    |       |  |   |    |  
|---------------------------------------------- |  | -------- | -- | - | -------------- | - | -- | ----- |  | - | -- | -
|Three Months Ended June 30, 2005(a)            |  | Sithe(b) |    |   | Enterprises(c) |   |    | Total | 
|                                               |  |          |    |   |                |   |    |       | 
|Total operating revenues                       |  | $        |   |   |                | $ | 4  |       |  | $ | 4  |  
|Operating loss                                 |  |          |   |   |                |   | (2 | )     |  |   | (2 | )
|Loss before income taxes and minority interest |  |          | (2 | ) |                |   | (1 | )     |  |   | (3 | )






|    |  |                                                                                                                                                                                                            
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Results of AllEnergy were immaterial for the three months ended
    June 30, 2005.                                                                                                                         
|   
|(b) |  | Sithe was sold on January 31, 2005. As such, results only
    include only one month of operations. See
    Note 4  Acquisitions and Dispositions for
    further information regarding the sale of Sithe.
|   
|(c) |  | Excludes certain investments.                                                                                                                                                                              

|                                                           |  |          |    |  |                |   |    |       |  |   |    | 
|---------------------------------------------------------- |  | -------- | -- |  | -------------- | - | -- | ----- |  | - | -- | 
|Six Months Ended June 30, 2005(a)                          |  | Sithe(b) |    |  | Enterprises(c) |   |    | Total | 
|                                                           |  |          |    |  |                |   |    |       | 
|Total operating revenues                                   |  | $        | 30 |  |                | $ | 8  |       |  | $ | 38 | 
|Operating income (loss)                                    |  |          | 5  |  |                |   | (4 | )     |  |   | 1  | 
|Income (loss) before income taxes and minority interest(d) |  |          | 18 |  |                |   | (5 | )     |  |   | 13 | 






|    |  |                                                                                                                                                                                                            
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Results of AllEnergy were immaterial for the six months ended
    June 30, 2005.                                                                                                                           
|   
|(b) |  | Sithe was sold on January 31, 2005. As such, results only
    include only one month of operations. See
    Note 4  Acquisitions and Dispositions for
    further information regarding the sale of Sithe.
|   
|(c) |  | Excludes certain investments.                                                                                                                                                                              
|   
|(d) |  | Sithe includes a pre-tax gain on sale of $19 million.                                                                                                                                                      

|                                                        |  |       |     |   |                |   |     |           |  |   |       |   |  |   |     |  
|------------------------------------------------------- |  | ----- | --- | - | -------------- | - | --- | --------- |  | - | ----- | - |  | - | --- | -
|Three Months Ended June 30, 2004                        |  | Sithe |     |   | Enterprises(a) |   |     | AllEnergy |  |   | Total |  
|                                                        |  |       |     |   |                |   |     |           |  |   |       |  
|Total operating revenues                                |  | $     | 66  |   |                | $ | 43  |           |  | $ | 1     |   |  | $ | 110 |  
|Operating loss                                          |  |       | (18 | ) |                |   | (22 | )         |  |   | (2    | ) |  |   | (42 | )
|Income (loss) before income taxes and minority interest |  |       | (32 | ) |                |   | 44  |           |  |   | (2    | ) |  |   | 10  |  






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

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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)


|                                                        |  |          |     |   |                |   |     |           |  |   |       |   |  |   |     |  
|------------------------------------------------------- |  | -------- | --- | - | -------------- | - | --- | --------- |  | - | ----- | - |  | - | --- | -
|Six Months Ended June 30, 2004                          |  | Sithe(a) |     |   | Enterprises(b) |   |     | AllEnergy |  |   | Total |  
|                                                        |  |          |     |   |                |   |     |           |  |   |       |  
|Total operating revenues                                |  | $        | 66  |   |                | $ | 132 |           |  | $ | 8     |   |  | $ | 206 |  
|Operating loss                                          |  |          | (18 | ) |                |   | (40 | )         |  |   | (3    | ) |  |   | (61 | )
|Income (loss) before income taxes and minority interest |  |          | (32 | ) |                |   | 19  |           |  |   | (3    | ) |  |   | (16 | )






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



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



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





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





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



28



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                                                                                                             |                                |              |     |      |            |   |     |      |  |   |       |      |  |   |     |      | 
|---------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | ------------ | --- | ---- | ---------- | - | --- | ---- |  | - | ----- | ---- |  | - | --- | ---- | 
|                                                                                                                             |                                | Three Months |     |      | Six Months |  
|                                                                                                                             |                                | Ended        |     |      | Ended      |  
|                                                                                                                             |                                | June 30,     |     |      | June 30,   |  
|                                                                                                                             |                                |              |     |      |            |  
|                                                                                                                             |                                | 2005         |     |      | 2004       |   |     | 2005 |  |   | 2004  |     
|                                                                                                                             |                                |              |     |      |            |   |     |      |  |   |       |     
|Net income  as reported                                                                                                     |                                | $            | 514 |      |            | $ | 521 |      |  | $ | 1,035 |      |  | $ | 933 |     
|Add: Stock-based compensation expense included in reported net
    income, net of income taxes                               |                                |              | 9   |      |            |   | 7   |      |  |   | 17    |      |  |   | 16  |     
|Deduct: Total stock-based compensation expense determined under
    fair-value method for all awards, net of income taxes(a) |                                |              | (12 | )    |            |   | (12 | )    |  |   | (24   | )    |  |   | (26 | )   
|                                                                                                                             |                                |              |     |      |            |   |     |      |  |   |       |     
|Pro forma net income                                                                                                         |                                | $            | 511 |      |            | $ | 516 |      |  | $ | 1,028 |      |  | $ | 923 |     
|                                                                                                                             |                                |              |     |      |            |   |     |      |  |   |       |     
|Earnings per share:                                                                                                          |                                |              |     |      |            |   |     |      |  |   |       |      |  |   |     |     
|                                                                                                                             | Basic earnings  as reported   |              | $   | 0.77 |            |   | $   | 0.79 |  |   | $     | 1.55 |  |   | $   | 1.41 | 
|                                                                                                                             | Basic earnings  pro forma     |              | $   | 0.76 |            |   | $   | 0.78 |  |   | $     | 1.54 |  |   | $   | 1.40 | 
|                                                                                                                             | Diluted earnings  as reported |              | $   | 0.76 |            |   | $   | 0.78 |  |   | $     | 1.53 |  |   | $   | 1.40 | 
|                                                                                                                             | Diluted earnings  pro forma   |              | $   | 0.75 |            |   | $   | 0.77 |  |   | $     | 1.52 |  |   | $   | 1.38 | 






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

29



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








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





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





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



30



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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



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









31



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










| |                              
| | -----------------------------
| | Sithe (Exelon and Generation)







|                   |  |                  |    |   |               |   |     |  
|------------------ |  | ---------------- | -- | - | ------------- | - | --- | -
|                   |  | Three Months     |    |   | Three Months  |  
|                   |  | Ended            |    |   | Ended         |  
|                   |  | June 30, 2005(a) |    |   | June 30, 2004 |  
|                   |  |                  |    |   |               |  
|Operating revenues |  | $                |   |   |               | $ | 70  |  
|Operating loss     |  |                  |   |   |               |   | (19 | )
|Net loss           |  |                  | (1 | ) |               |   | (10 | )






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

32



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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)


|                        |  |                  |    |  |                  |   |     |  
|----------------------- |  | ---------------- | -- |  | ---------------- | - | --- | -
|                        |  | Six Months       |    |  | Six Months       |  
|                        |  | Ended            |    |  | Ended            |  
|                        |  | June 30, 2005(a) |    |  | June 30, 2004(b) |  
|                        |  |                  |    |  |                  |  
|Operating revenues      |  | $                | 30 |  |                  | $ | 70  |  
|Operating income (loss) |  |                  | 5  |  |                  |   | (19 | )
|Net income (loss)       |  |                  | 15 |  |                  |   | (12 | )






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





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





|                   |  |               |     |   |               |   |     |  
|------------------ |  | ------------- | --- | - | ------------- | - | --- | -
|                   |  | Three Months  |     |   | Six Months    |  
|                   |  | Ended         |     |   | Ended         |  
|                   |  | June 30, 2004 |     |   | June 30, 2004 |  
|                   |  |               |     |   |               |  
|Operating revenues |  | $             | 89  |   |               | $ | 248 |  
|Operating loss     |  |               | (15 | ) |               |   | (47 | )
|Net income(a)      |  |               | 42  |   |               |   | 24  |  






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



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



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

Through and Out Rates/ SECA.


33



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Illinois Regulatory Filing.




34



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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 June 30, 2005(a)       |  | $ | 4,696 |  
|                                     |  |   |      






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

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)




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



|                                             |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |     | 
|-------------------------------------------- | ----------------------------- | ------------- | --- | ----------- | ----------------- | - | --- | --- | - | - | ----------- | --- |  | ------------ | --- | --- | --- | - | --- | --- | - | - | --- | --- | 
|                                             |                               | June 30, 2005 |     |             | December 31, 2004 |  
|                                             |                               |               |     |             |                   |  
|                                             |                               |               |     | Accumulated |                   |   |     |     |   |   | Accumulated |     |  |             
|                                             |                               | Gross         |     |             | Amortization      |   |     | Net |   |   | Gross       |     |  | Amortization |     |     | Net |  
|                                             |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  
|Generation amortized intangible assets:      |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |    
|                                             | Energy purchase agreement(a)  |               | $   |            |                   |   | $   |    |   |   | $           |    |  |              | $   | 384 |     |   | $   | (27 | ) |   | $   | 357 | 
|                                             | Tolling agreement(a)          |               |     |            |                   |   |     |    |   |   |             |    |  |              |     | 73  |     |   |     | (5  | ) |   |     | 68  | 
|                                             | Other                         |               |     |            |                   |   |     |    |   |   |             |    |  |              |     | 6   |     |   |     | (6  | ) |   |     |    | 
|                                             |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  
|Total Generation amortized intangible assets |                               |               |    |             |                   |   |    |     |   |   |            |     |  |              | 463 |     |     |   | (38 | )   |   |   | 425 |    
|                                             |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  
|Exelon amortized intangible assets:          |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |    
|                                             | Synthetic fuel investments(b) |               |     | 264         |                   |   |     | (87 | ) |   |             | 177 |  |              |     | 264 |     |   |     | (56 | ) |   |     | 208 | 
|                                             |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  
|Total Exelon amortized intangible assets     |                               | $             | 264 |             |                   | $ | (87 | )   |   | $ | 177         |     |  | $            | 727 |     |     | $ | (94 | )   |   | $ | 633 |    
|                                             |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  
|Exelon other intangible assets:              |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |   |     |     |   |   |     |    
|                                             | Intangible pension asset      |               |     | 171         |                   |   |     |    |   |   |             | 171 |  |              |     | 171 |     |   |     |    |   |   |     | 171 | 
|                                             |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  
|Total Exelon intangible assets               |                               | $             | 435 |             |                   | $ | (87 | )   |   | $ | 348         |     |  | $            | 898 |     |     | $ | (94 | )   |   | $ | 804 |    
|                                             |                               |               |     |             |                   |   |     |     |   |   |             |     |  |              |     |     |     |  






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





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)






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



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



|           |  |               |     |  |                   |   |     | 
|---------- |  | ------------- | --- |  | ----------------- | - | --- | 
|Borrower   |  | June 30, 2005 |     |  | December 31, 2004 |  
|           |  |               |     |  |                   |  
|Exelon     |  | $             | 329 |  |                   | $ | 490 | 
|ComEd      |  |               |    |  |                   |   |    | 
|PECO       |  |               |    |  |                   |   |    | 
|Generation |  |               |    |  |                   |   |    | 



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





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



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






|    |  |                                                     
|--- |  | ----------------------------------------------------
|(a) |  | Total issuances excludes unamortized bond discounts.

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)




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



|                  |  |                                                                         |  |               |              |   |          |  |               |        |  |   |     | 
|----------------- |  | ----------------------------------------------------------------------- |  | ------------- | ------------ | - | -------- |  | ------------- | ------ |  | - | --- | 
|Company           |  | Type                                                                    |  | Interest Rate |              |   | Maturity |  |               | Amount | 
|                  |  |                                                                         |  |               |              |   |          |  |               |        | 
|Exelon            |  | Notes payable for investment in synthetic fuel-producing
    facilities |  |               | 6.00 to 8.00 | % |          |  | January 2008  |        |  | $ | 30  | 
|ComEd             |  | Pollution Control Revenue Bonds                                         |  |               | 6.75         | % |          |  | March 1, 2015 |        |  |   | 91  | 
|ComEd             |  | First Mortgage Bonds                                                    |  |               | 9.875        | % |          |  | June 15, 2020 |        |  |   | 54  | 
|Other             |  |                                                                         |  |               |              |   |          |  |               |        |  |   | 10  | 
|                  |  |                                                                         |  |               |              |   |          |  |               |        | 
|Total retirements |  |                                                                         |  |               |              |   |          |  |               |        |  | $ | 185 | 
|                  |  |                                                                         |  |               |              |   |          |  |               |        | 









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





|                                                                                                  |  |       |     |   |      |  |    |            |  |  |        |   |  |  |     |  
|------------------------------------------------------------------------------------------------- |  | ----- | --- | - | ---- |  | -- | ---------- |  |  | ------ | - |  |  | --- | -
|                                                                                                  |  | ComEd |     |   | PECO |  |    | Generation |  |  | Exelon |  
|                                                                                                  |  |       |     |   |      |  |    |            |  |  |        |  
|Net change in positions expected to be eliminated during the
    three months ended June 30, 2005 |  |       | (26 | ) |      |  | 2  |            |  |  | (3     | ) |  |  | (42 | )
|Net change in positions expected to be eliminated during the six
    months ended June 30, 2005   |  |       | (41 | ) |      |  | 10 |            |  |  | (20    | ) |  |  | (59 | )
|Positions identified for elimination not eliminated as of
    June 30, 2005                       |  |       | 140 |   |      |  | 12 |            |  |  | 52     |   |  |  | 233 |  

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)


|                                                                                                  |  |       |    |   |      |  |    |            |  |  |        |  |  |  |    | 
|------------------------------------------------------------------------------------------------- |  | ----- | -- | - | ---- |  | -- | ---------- |  |  | ------ |  |  |  | -- | 
|                                                                                                  |  | ComEd |    |   | PECO |  |    | Generation |  |  | Exelon | 
|                                                                                                  |  |       |    |   |      |  |    |            |  |  |        | 
|Net change in positions expected to be eliminated during the
    three months ended June 30, 2004 |  |       | (2 | ) |      |  | 16 |            |  |  | 12     |  |  |  | 51 | 
|Net change in positions expected to be eliminated during the six
    months ended June 30, 2004   |  |       | 7  |   |      |  | 48 |            |  |  | 75     |  |  |  | 97 | 





|                                                                   |  |       |    |   |      |        |   |          |  |   |            |   |  |       |    |   |        |   |   |  |  |   |    |  
|------------------------------------------------------------------ |  | ----- | -- | - | ---- | ------ | - | -------- |  | - | ---------- | - |  | ----- | -- | - | ------ | - | - |  |  | - | -- | -
|                                                                   |  |       |    |   |      | Energy |   |          |  |   |            |   | 
|Salary Continuance Severance                                       |  | ComEd |    |   | PECO |        |   | Delivery |  |   | Generation |   |  | Other |    |   | Exelon |  
|                                                                   |  |       |    |   |      |        |   |          |  |   |            |   |  |       |    |   |        |  
|Expense (income) recorded for three months ended June 30,
    2005 |  | $     | (3 | ) |      | $      |  |          |  | $ | (3         | ) |  | $     | (1 | ) |        | $ | 1 |  |  | $ | (2 | )
|Expense (income) recorded for six months ended June 30, 2005       |  |       | (4 | ) |      |        | 1 |          |  |   | (3         | ) |  |       | (2 | ) |        |   | 1 |  |  |   | (4 | )

|                                                                   |  |       |   |      |  |        |          |   |  |            |    |   |       |   |    |        |  |   |   |  |  |   |   | 
|------------------------------------------------------------------ |  | ----- | - | ---- |  | ------ | -------- | - |  | ---------- | -- | - | ----- | - | -- | ------ |  | - | - |  |  | - | - | 
|                                                                   |  |       |   |      |  | Energy |          |   |  |            |    |   |      
|Salary Continuance Severance                                       |  | ComEd |   | PECO |  |        | Delivery |   |  | Generation |    |   | Other |   |    | Exelon | 
|                                                                   |  |       |   |      |  |        |          |   |  |            |    |   |       |   |    |        | 
|Expense (income) recorded for three months ended June 30,
    2004 |  | $     |  |      |  | $      | (1       | ) |  | $          | (1 | ) |       | $ | 1  |        |  | $ | 3 |  |  | $ | 3 | 
|Expense (income) recorded for six months ended June 30, 2004       |  |       |  |      |  |        | 4        |   |  |            | 4  |   |       |   | (5 | )      |  |   | 5 |  |  |   | 4 | 



|                                      |  |       |    |   |      |   |    |            |  |   |        |      |  |   |     |     
|------------------------------------- |  | ----- | -- | - | ---- | - | -- | ---------- |  | - | ------ | ---- |  | - | --- | ----
|Salary Continuance Obligations        |  | ComEd |    |   | PECO |   |    | Generation |  |   | Exelon |     
|                                      |  |       |    |   |      |   |    |            |  |   |        |     
|Balance at January 1, 2005            |  | $     | 28 |   |      | $ | 7  |            |  | $ | 16     |      |  | $ | 69  |     
|Severance (benefits) charges recorded |  |       | (4 | ) |      |   | 1  |            |  |   | (2     | )(a) |  |   | (4  | )(a)
|Cash payments                         |  |       | (7 | ) |      |   | (4 | )          |  |   | (3     | )    |  |   | (20 | )   
|                                      |  |       |    |   |      |   |    |            |  |   |        |     
|Balance at June 30, 2005              |  | $     | 17 |   |      | $ | 4  |            |  | $ | 11     |      |  | $ | 45  |     
|                                      |  |       |    |   |      |   |    |            |  |   |        |     






|    |                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------
|(a) | Excludes severance charges of $4 million related to Salem,
    of which Generation owns 42.59% and which is operated by PSEG.



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



39



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                       |                               |                    |      |                |                |       |      |      |   |   |      |     |   |   |     |     |  
|-------------------------------------- | ----------------------------- | ------------------ | ---- | -------------- | -------------- | ----- | ---- | ---- | - | - | ---- | --- | - | - | --- | --- | -
|                                       |                               |                    |      |                |                | Other |     
|                                       |                               |                    |      | Postretirement |               
|                                       |                               | Pension Benefits   |      |                | Benefits Three |      
|                                       |                               | Three Months Ended |      |                | Months Ended   |      
|                                       |                               | June 30,           |      |                | June 30,       |      
|                                       |                               |                    |      |                |                |      
|                                       |                               | 2005               |      |                | 2004           |       |      | 2005 |   |   | 2004 |    
|                                       |                               |                    |      |                |                |       |      |      |   |   |      |    
|Service cost                           |                               | $                  | 38   |                |                | $     | 33   |      |   | $ | 23   |     |   | $ | 20  |    
|Interest cost                          |                               |                    | 139  |                |                |       | 134  |      |   |   | 43   |     |   |   | 44  |    
|Expected return on assets              |                               |                    | (192 | )(a)           |                |       | (153 | )    |   |   | (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  |  
|Curtailment charge(b)                  |                               |                    |     |                |                |       | 5    |      |   |   |     |     |   |   | 3   |    
|Special termination benefits charge(c) |                               |                    |     |                |                |       |     |      |   |   |     |     |   |   | 8   |    
|                                       |                               |                    |      |                |                |       |      |      |   |   |      |    
|Net periodic benefit cost              |                               | $                  | 18   |                |                | $     | 37   |      |   | $ | 39   |     |   | $ | 50  |    
|                                       |                               |                    |      |                |                |       |      |      |   |   |      |    






|    |  |                                                                                                                                                                                                                                           
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Increase in expected return on pension assets for the three
    months ended June 30, 2005 compared to 2004 was primarily
    attributable to discretionary pension contributions of
    $2 billion made during the first quarter of 2005.
|   
|(b) |  | ComEd, PECO and Generation were allocated curtailment charges
    for pension and other postretirement benefits of
    $3 million, $2 million and $3 million,
    respectively.                                                           
|   
|(c) |  | ComEd, PECO and Generation were allocated special termination
    benefit charges related to other postretirement benefits of
    $3 million, $2 million and $2 million,
    respectively.                                                

40



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                       |                               |                  |      |                |              |       |      |      |   |   |      |     |   |   |     |     |  
|-------------------------------------- | ----------------------------- | ---------------- | ---- | -------------- | ------------ | ----- | ---- | ---- | - | - | ---- | --- | - | - | --- | --- | -
|                                       |                               |                  |      |                |              | Other |     
|                                       |                               |                  |      | Postretirement |             
|                                       |                               | Pension Benefits |      |                | Benefits Six |      
|                                       |                               | Six Months Ended |      |                | Months Ended |      
|                                       |                               | June 30,         |      |                | June 30,     |      
|                                       |                               |                  |      |                |              |      
|                                       |                               | 2005             |      |                | 2004         |       |      | 2005 |   |   | 2004 |    
|                                       |                               |                  |      |                |              |       |      |      |   |   |      |    
|Service cost                           |                               | $                | 76   |                |              | $     | 66   |      |   | $ | 47   |     |   | $ | 40  |    
|Interest cost                          |                               |                  | 278  |                |              |       | 268  |      |   |   | 86   |     |   |   | 89  |    
|Expected return on assets              |                               |                  | (385 | )(a)           |              |       | (307 | )    |   |   | (49  | )   |   |   | (46 | )  
|Amortization of:                       |                               |                  |      |                |              |       |      |      |   |   |      |     |   |   |     |    
|                                       | Transition obligation (asset) |                  |      | (2             | )            |       |      | (2   | ) |   |      | 5   |   |   |     | 4   |  
|                                       | Prior service cost (benefit)  |                  |      | 8              |              |       |      | 8    |   |   |      | (45 | ) |   |     | (38 | )
|                                       | Actuarial loss                |                  |      | 60             |              |       |      | 30   |   |   |      | 33  |   |   |     | 30  |  
|Curtailment charge(b)                  |                               |                  |     |                |              |       | 5    |      |   |   |     |     |   |   | 3   |    
|Special termination benefits charge(c) |                               |                  |     |                |              |       |     |      |   |   |     |     |   |   | 8   |    
|                                       |                               |                  |      |                |              |       |      |      |   |   |      |    
|Net periodic benefit cost              |                               | $                | 35   |                |              | $     | 68   |      |   | $ | 77   |     |   | $ | 90  |    
|                                       |                               |                  |      |                |              |       |      |      |   |   |      |    






|    |  |                                                                                                                                                                                                                                         
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Increase in expected return on pension assets for the six months
    ended June 30, 2005 compared to 2004 was primarily
    attributable to discretionary pension contributions of
    $2 billion made during the first quarter of 2005.
|   
|(b) |  | ComEd, PECO and Generation were allocated curtailment charges
    for pension and other postretirement benefits of
    $3 million, $2 million and $3 million,
    respectively.                                                         
|   
|(c) |  | ComEd, PECO and Generation were allocated special termination
    benefit charges related to other postretirement benefits of
    $3 million, $2 million and $2 million,
    respectively.                                              



|                                            |  |              |    |  |            |   |    |      |  |   |      |  |  |   |    | 
|------------------------------------------- |  | ------------ | -- |  | ---------- | - | -- | ---- |  | - | ---- |  |  | - | -- | 
|                                            |  | Three Months |    |  | Six Months |  
|                                            |  | Ended        |    |  | Ended      |  
|                                            |  | June 30,     |    |  | June 30,   |  
|                                            |  |              |    |  |            |  
|Pension and Postretirement Benefit Costs(a) |  | 2005         |    |  | 2004       |   |    | 2005 |  |   | 2004 | 
|                                            |  |              |    |  |            |   |    |      |  |   |      | 
|ComEd                                       |  | $            | 19 |  |            | $ | 23 |      |  | $ | 38   |  |  | $ | 47 | 
|PECO                                        |  |              | 5  |  |            |   | 8  |      |  |   | 11   |  |  |   | 16 | 
|Generation                                  |  |              | 25 |  |            |   | 31 |      |  |   | 49   |  |  |   | 62 | 






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



|                                    |  |              |    |  |            |   |    |      |  |   |      |  |  |   |    | 
|----------------------------------- |  | ------------ | -- |  | ---------- | - | -- | ---- |  | - | ---- |  |  | - | -- | 
|                                    |  | Three Months |    |  | Six Months |  
|                                    |  | Ended        |    |  | Ended      |  
|                                    |  | June 30,     |    |  | June 30,   |  
|                                    |  |              |    |  |            |  
|Savings Plan Matching Contributions |  | 2005         |    |  | 2004       |   |    | 2005 |  |   | 2004 | 
|                                    |  |              |    |  |            |   |    |      |  |   |      | 
|Exelon                              |  | $            | 15 |  |            | $ | 14 |      |  | $ | 29   |  |  | $ | 28 | 
|ComEd                               |  |              | 4  |  |            |   | 4  |      |  |   | 8    |  |  |   | 8  | 
|PECO                                |  |              | 1  |  |            |   | 1  |      |  |   | 3    |  |  |   | 3  | 
|Generation                          |  |              | 7  |  |            |   | 6  |      |  |   | 14   |  |  |   | 13 | 

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)




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



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



|                            |                                                       |              |      |      |            |  |      |      |   |  |      |      |   |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---------- |  | ---- | ---- | - |  | ---- | ---- | - |  | ---- | ---- | -
|                            |                                                       | Three Months |      |      | Six Months | 
|                            |                                                       | Ended        |      |      | Ended      | 
|                            |                                                       | June 30,     |      |      | June 30,   | 
|                            |                                                       |              |      |      |            | 
|                            |                                                       | 2005         |      |      | 2004       |  |      | 2005 |   |  | 2004 |     
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |            |  | 35.0 | %    |   |  | 35.0 | %    |   |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |            |  |      |      |   |  |      |      |   |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 3.4  |            |  |      | 2.8  |   |  |      | 3.7  |   |  |      | 2.7  |  
|                            | Synthetic fuel-producing facilities credit(a)         |              |      | (8.8 | )          |  |      | (6.6 | ) |  |      | (8.1 | ) |  |      | (7.1 | )
|                            | Qualified nuclear decommissioning trust fund income   |              |      | 1.0  |            |  |      | 0.5  |   |  |      | 0.7  |   |  |      | 0.6  |  
|                            | Tax-exempt income                                     |              |      | (0.4 | )          |  |      | (0.3 | ) |  |      | (0.4 | ) |  |      | (0.4 | )
|                            | Amortization of investment tax credit                 |              |      | (0.3 | )          |  |      | (0.3 | ) |  |      | (0.3 | ) |  |      | (0.4 | )
|                            | Nontaxable employee benefits                          |              |      | (0.2 | )          |  |      | (0.2 | ) |  |      | (0.3 | ) |  |      | (0.3 | )
|                            | Low-income housing credit                             |              |      |     |            |  |      | (0.5 | ) |  |      |     |   |  |      | (0.5 | )
|                            | Other                                                 |              |      | (1.1 | )          |  |      | 0.4  |   |  |      | (0.5 | ) |  |      | 0.2  |  
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     
|Effective income tax rate   |                                                       |              | 28.6 | %    |            |  | 30.8 | %    |   |  | 29.8 | %    |   |  | 29.8 | %   
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     






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



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



|                            |                                                       |              |      |      |            |  |      |      |   |  |      |      |   |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---------- |  | ---- | ---- | - |  | ---- | ---- | - |  | ---- | ---- | -
|                            |                                                       | Three Months |      |      | Six Months | 
|                            |                                                       | Ended        |      |      | Ended      | 
|                            |                                                       | June 30,     |      |      | June 30,   | 
|                            |                                                       |              |      |      |            | 
|                            |                                                       | 2005         |      |      | 2004       |  |      | 2005 |   |  | 2004 |     
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |            |  | 35.0 | %    |   |  | 35.0 | %    |   |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |            |  |      |      |   |  |      |      |   |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 4.8  |            |  |      | 4.7  |   |  |      | 4.8  |   |  |      | 4.8  |  
|                            | Amortization of regulatory asset                      |              |      | 0.8  |            |  |      | 0.5  |   |  |      | 0.8  |   |  |      | 0.5  |  
|                            | Amortization of investment tax credit                 |              |      | (0.4 | )          |  |      | (0.2 | ) |  |      | (0.5 | ) |  |      | (0.2 | )
|                            | Nontaxable employee benefits                          |              |      | (0.4 | )          |  |      | (0.3 | ) |  |      | (0.5 | ) |  |      | (0.2 | )
|                            | Other                                                 |              |      | (0.4 | )          |  |      | (0.4 | ) |  |      | 0.1  |   |  |      | (0.2 | )
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     
|Effective income tax rate   |                                                       |              | 39.4 | %    |            |  | 39.3 | %    |   |  | 39.7 | %    |   |  | 39.7 | %   
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     

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)




| |     
| | ----
| | PECO



|                            |                                                       |              |      |      |            |  |      |      |   |  |      |      |   |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---------- |  | ---- | ---- | - |  | ---- | ---- | - |  | ---- | ---- | -
|                            |                                                       | Three Months |      |      | Six Months | 
|                            |                                                       | Ended        |      |      | Ended      | 
|                            |                                                       | June 30,     |      |      | June 30,   | 
|                            |                                                       |              |      |      |            | 
|                            |                                                       | 2005         |      |      | 2004       |  |      | 2005 |   |  | 2004 |     
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |            |  | 35.0 | %    |   |  | 35.0 | %    |   |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |            |  |      |      |   |  |      |      |   |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | (4.4 | )          |  |      | (0.8 | ) |  |      | (1.5 | ) |  |      | 0.1  |  
|                            | Amortization of investment tax credit                 |              |      | (0.4 | )          |  |      | (0.4 | ) |  |      | (0.3 | ) |  |      | (0.4 | )
|                            | Nontaxable employee benefits                          |              |      | (0.3 | )          |  |      | (0.2 | ) |  |      | (0.2 | ) |  |      | (0.2 | )
|                            | Plant basis differences                               |              |      | (0.7 | )          |  |      | (1.3 | ) |  |      | (0.2 | ) |  |      | (1.2 | )
|                            | Other                                                 |              |      | 0.7  |            |  |      | 1.0  |   |  |      | 0.3  |   |  |      | (0.8 | )
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     
|Effective income tax rate   |                                                       |              | 29.9 | %    |            |  | 33.3 | %    |   |  | 33.1 | %    |   |  | 32.5 | %   
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     



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



|                            |                                                       |              |      |      |            |  |      |      |   |  |      |      |   |  |      |      |  
|--------------------------- | ----------------------------------------------------- | ------------ | ---- | ---- | ---------- |  | ---- | ---- | - |  | ---- | ---- | - |  | ---- | ---- | -
|                            |                                                       | Three Months |      |      | Six Months | 
|                            |                                                       | Ended        |      |      | Ended      | 
|                            |                                                       | June 30,     |      |      | June 30,   | 
|                            |                                                       |              |      |      |            | 
|                            |                                                       | 2005         |      |      | 2004       |  |      | 2005 |   |  | 2004 |     
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     
|U.S. Federal statutory rate |                                                       |              | 35.0 | %    |            |  | 35.0 | %    |   |  | 35.0 | %    |   |  | 35.0 | %   
|Increase (decrease) due to: |                                                       |              |      |      |            |  |      |      |   |  |      |      |   |  |      |     
|                            | State income taxes, net of Federal income tax benefit |              |      | 4.3  |            |  |      | 3.1  |   |  |      | 4.6  |   |  |      | 3.5  |  
|                            | Nuclear decommissioning trust income                  |              |      | 1.5  |            |  |      | 1.2  |   |  |      | 1.0  |   |  |      | 1.8  |  
|                            | Tax exempt income                                     |              |      | (0.6 | )          |  |      | (0.8 | ) |  |      | (0.5 | ) |  |      | (1.2 | )
|                            | Amortization of investment tax credit                 |              |      | (0.2 | )          |  |      | (0.4 | ) |  |      | (0.2 | ) |  |      | (0.6 | )
|                            | Nontaxable employee benefits                          |              |      | (0.2 | )          |  |      | (0.2 | ) |  |      | (0.2 | ) |  |      | (0.4 | )
|                            | Other                                                 |              |      | (1.4 | )          |  |      | 0.1  |   |  |      | (1.2 | ) |  |      | 0.2  |  
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     
|Effective income tax rate   |                                                       |              | 38.4 | %    |            |  | 38.0 | %    |   |  | 38.5 | %    |   |  | 38.3 | %   
|                            |                                                       |              |      |      |            |  |      |      |   |  |      |     

Investments in Synthetic Fuel-Producing Facilities.


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)








1999 Sale of Fossil Generating Assets.




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



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



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)










|                                                                       |  |            |       |   |        |   |       |  
|---------------------------------------------------------------------- |  | ---------- | ----- | - | ------ | - | ----- | -
|                                                                       |  | Generation |       |   | Exelon |  
|                                                                       |  |            |       |   |        |  
|Asset retirement obligation at January 1, 2005                         |  | $          | 3,980 |   |        | $ | 3,981 |  
|Net decrease resulting from updates to estimated future cash
    flows |  |            | (281  | ) |        |   | (281  | )
|Liabilities disposed(a)                                                |  |            | (3    | ) |        |   | (3    | )
|Accretion expense                                                      |  |            | 126   |   |        |   | 126   |  
|Payments to decommission retired plants                                |  |            | (6    | ) |        |   | (6    | )
|                                                                       |  |            |       |   |        |  
|Asset retirement obligation at June 30, 2005                           |  | $          | 3,816 |   |        | $ | 3,817 |  
|                                                                       |  |            |       |   |        |  






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

45



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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











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



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



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)




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



|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |      |  |   |     |      | 
|----------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------------ | --- | ---- | ---------- | - | --- | ---- |  | - | ----- | ---- |  | - | --- | ---- | 
|                                                                        |                                                                         | Three Months |     |      | Six Months |  
|                                                                        |                                                                         | Ended        |     |      | Ended      |  
|                                                                        |                                                                         | June 30,     |     |      | June 30,   |  
|                                                                        |                                                                         |              |     |      |            |  
|                                                                        |                                                                         | 2005         |     |      | 2004       |   |     | 2005 |  |   | 2004  |     
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|Income from continuing operations                                       |                                                                         | $            | 516 |      |            | $ | 503 |      |  | $ | 1,023 |      |  | $ | 900 |     
|Income (loss) from discontinued operations                              |                                                                         |              | (2  | )    |            |   | 18  |      |  |   | 12    |      |  |   | 1   |     
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|Income before cumulative effect of a change in accounting
    principle |                                                                         | $            | 514 |      |            | $ | 521 |      |  | $ | 1,035 |      |  | $ | 901 |     
|Cumulative effect of a change in accounting principle                   |                                                                         |              |    |      |            |   |    |      |  |   |      |      |  |   | 32  |     
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|Net income                                                              |                                                                         | $            | 514 |      |            | $ | 521 |      |  | $ | 1,035 |      |  | $ | 933 |     
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|Average common shares outstanding  basic                               |                                                                         |              | 670 |      |            |   | 661 |      |  |   | 669   |      |  |   | 660 |     
|Assumed exercise of stock options                                       |                                                                         |              | 7   |      |            |   | 6   |      |  |   | 7     |      |  |   | 6   |     
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|Average common shares outstanding  diluted                             |                                                                         |              | 677 |      |            |   | 667 |      |  |   | 676   |      |  |   | 666 |     
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|Earnings per average common share  Basic:                              |                                                                         |              |     |      |            |   |     |      |  |   |       |      |  |   |     |     
|                                                                        | Income from continuing operations                                       |              | $   | 0.77 |            |   | $   | 0.76 |  |   | $     | 1.53 |  |   | $   | 1.36 | 
|                                                                        | Income from discontinued operations                                     |              |     |     |            |   |     | 0.03 |  |   |       | 0.02 |  |   |     |     | 
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|                                                                        | Income before cumulative effect of a change in accounting
    principle |              | $   | 0.77 |            |   | $   | 0.79 |  |   | $     | 1.55 |  |   | $   | 1.36 | 
|                                                                        | Cumulative effect of a change in accounting principle                   |              |     |     |            |   |     |     |  |   |       |     |  |   |     | 0.05 | 
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|                                                                        | Net income                                                              |              | $   | 0.77 |            |   | $   | 0.79 |  |   | $     | 1.55 |  |   | $   | 1.41 | 
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|Earnings per average common share  Diluted:                            |                                                                         |              |     |      |            |   |     |      |  |   |       |      |  |   |     |     
|                                                                        | Income from continuing operations                                       |              | $   | 0.76 |            |   | $   | 0.75 |  |   | $     | 1.51 |  |   | $   | 1.35 | 
|                                                                        | Income from discontinued operations                                     |              |     |     |            |   |     | 0.03 |  |   |       | 0.02 |  |   |     |     | 
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|                                                                        | Income before cumulative effect of a change in accounting
    principle |              | $   | 0.76 |            |   | $   | 0.78 |  |   | $     | 1.53 |  |   | $   | 1.35 | 
|                                                                        | Cumulative effect of a change in accounting principle                   |              |     |     |            |   |     |     |  |   |       |     |  |   |     | 0.05 | 
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     
|                                                                        | Net income                                                              |              | $   | 0.76 |            |   | $   | 0.78 |  |   | $     | 1.53 |  |   | $   | 1.40 | 
|                                                                        |                                                                         |              |     |      |            |   |     |      |  |   |       |     





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



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)






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





| |   |                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Power-only sales commitments of $395 million and minimum
    fuel purchase commitments of $217 million were eliminated
    after the sale of Sithe on January 31, 2005.                                                                 
|
| |  | During the second quarter of 2005, in the normal course of
    business, Generation entered into long-term contracts for
    uranium enrichment services, increasing commitments in years
    beyond 2009 by approximately $400 million.



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





| |   |                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Letters of credit decreased $108 million, primarily as a
    result of the sale of Sithe. See Note 4 
    Acquisitions and Dispositions for further discussion. Guarantees
    decreased $174 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     |  
|June 30, 2005 |  | Reserve           |     |  | and Remediation(a)       |  
|              |  |                   |     |  |                          |  
|ComEd         |  | $                 | 59  |  |                          | $ | 54 | 
|PECO          |  |                   | 46  |  |                          |   | 40 | 
|Generation    |  |                   | 15  |  |                          |   |   | 
|              |  |                   |     |  |                          |  
|Exelon        |  | $                 | 120 |  |                          | $ | 94 | 
|              |  |                   |     |  |                          |  






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

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)


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






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



Section 316(b) of the Clean Water Act.


Cotter Corporation.


Voluntary Greenhouse Gas Emissions Reductions.


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)




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



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

PJM Billing Dispute.








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

Asbestos Claims.




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)










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

Real Estate Tax Appeals.


51



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








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





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









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)




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





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



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



|                                                             |                                                                              |              |    |     |            |   |     |      |   |   |      |     |   |   |     |     |  
|------------------------------------------------------------ | ---------------------------------------------------------------------------- | ------------ | -- | --- | ---------- | - | --- | ---- | - | - | ---- | --- | - | - | --- | --- | -
|                                                             |                                                                              | Three Months |    |     | Six Months |  
|                                                             |                                                                              | Ended        |    |     | Ended      |  
|                                                             |                                                                              | June 30,     |    |     | June 30,   |  
|                                                             |                                                                              |              |    |     |            |  
|Exelon                                                       |                                                                              | 2005         |    |     | 2004       |   |     | 2005 |   |   | 2004 |    
|                                                             |                                                                              |              |    |     |            |   |     |      |   |   |      |    
|Investment income                                            |                                                                              | $            | 3  |     |            | $ | 2   |      |   | $ | 6    |     |   | $ | 5   |    
|Gain on disposition of assets and investments, net(a)        |                                                                              |              | 6  |     |            |   | 9   |      |   |   | 7    |     |   |   | 13  |    
|Gain on sale of Boston Generating                            |                                                                              |              |   |     |            |   | 85  |      |   |   |     |     |   |   | 85  |    
|Decommissioning-related activities:                          |                                                                              |              |    |     |            |   |     |      |   |   |      |     |   |   |     |    
|                                                             | Decommissioning trust fund income(b)                                         |              |    | 50  |            |   |     | 28   |   |   |      | 79  |   |   |     | 58  |  
|                                                             | Decommissioning trust fund income  AmerGen(b)                               |              |    | 47  |            |   |     | 8    |   |   |      | 59  |   |   |     | 19  |  
|                                                             | Other-than-temporary impairment of decommissioning trust funds(c)            |              |    | (5  | )          |   |     |     |   |   |      | (12 | ) |   |     |    |  
|                                                             | Other-than-temporary impairment of decommissioning trust
    funds  AmerGen |              |    | (1  | )          |   |     |     |   |   |      | (2  | ) |   |     |    |  
|                                                             | Regulatory offset to non-operating decommissioning-related
    activities(d) |              |    | (46 | )          |   |     | (28  | ) |   |      | (67 | ) |   |     | (58 | )
|Net direct financing lease income                            |                                                                              |              | 6  |     |            |   | 6   |      |   |   | 11   |     |   |   | 11  |    
|Allowance for funds used during construction (AFUDC), equity |                                                                              |              | 2  |     |            |   | 2   |      |   |   | 3    |     |   |   | 2   |    
|Other                                                        |                                                                              |              | 7  |     |            |   | 4   |      |   |   | 15   |     |   |   | 13  |    
|                                                             |                                                                              |              |    |     |            |   |     |      |   |   |      |    
|Other, net                                                   |                                                                              | $            | 69 |     |            | $ | 116 |      |   | $ | 99   |     |   | $ | 148 |    
|                                                             |                                                                              |              |    |     |            |   |     |      |   |   |      |    






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

53



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                   |  |              |   |  |            |   |   |      |  |   |      |  |  |   |   | 
|-------------------------------------------------- |  | ------------ | - |  | ---------- | - | - | ---- |  | - | ---- |  |  | - | - | 
|                                                   |  | Three Months |   |  | Six Months |  
|                                                   |  | Ended        |   |  | Ended      |  
|                                                   |  | June 30,     |   |  | June 30,   |  
|                                                   |  |              |   |  |            |  
|ComEd                                              |  | 2005         |   |  | 2004       |   |   | 2005 |  |   | 2004 | 
|                                                   |  |              |   |  |            |   |   |      |  |   |      | 
|Investment income                                  |  | $            | 1 |  |            | $ | 1 |      |  | $ | 2    |  |  | $ | 2 | 
|Gain on disposition of assets and investments, net |  |              | 2 |  |            |   |  |      |  |   | 4    |  |  |   | 2 | 
|AFUDC, equity                                      |  |              | 1 |  |            |   | 1 |      |  |   | 2    |  |  |   | 2 | 
|Other                                              |  |              | 2 |  |            |   |  |      |  |   | 2    |  |  |   |  | 
|                                                   |  |              |   |  |            |   |   |      |  |   |      | 
|Other, net                                         |  | $            | 6 |  |            | $ | 2 |      |  | $ | 10   |  |  | $ | 6 | 
|                                                   |  |              |   |  |            |   |   |      |  |   |      | 

|                                                   |  |              |   |  |            |   |   |      |  |   |      |  |  |   |   | 
|-------------------------------------------------- |  | ------------ | - |  | ---------- | - | - | ---- |  | - | ---- |  |  | - | - | 
|                                                   |  | Three Months |   |  | Six Months |  
|                                                   |  | Ended        |   |  | Ended      |  
|                                                   |  | June 30,     |   |  | June 30,   |  
|                                                   |  |              |   |  |            |  
|PECO                                               |  | 2005         |   |  | 2004       |   |   | 2005 |  |   | 2004 | 
|                                                   |  |              |   |  |            |   |   |      |  |   |      | 
|Investment income                                  |  | $            | 2 |  |            | $ | 1 |      |  | $ | 4    |  |  | $ | 3 | 
|Gain on disposition of assets and investments, net |  |              | 4 |  |            |   | 2 |      |  |   | 3    |  |  |   | 2 | 
|Other                                              |  |              |  |  |            |   |  |      |  |   | 1    |  |  |   |  | 
|                                                   |  |              |   |  |            |   |   |      |  |   |      | 
|Other, net                                         |  | $            | 6 |  |            | $ | 3 |      |  | $ | 8    |  |  | $ | 5 | 
|                                                   |  |              |   |  |            |   |   |      |  |   |      | 

|                                    |                                                                              |                |    |     |                |   |    |      |   |   |      |     |   |   |     |     |  
|----------------------------------- | ---------------------------------------------------------------------------- | -------------- | -- | --- | -------------- | - | -- | ---- | - | - | ---- | --- | - | - | --- | --- | -
|                                    |                                                                              | Three Months   |    |     | Six Months     |  
|                                    |                                                                              | Ended June 30, |    |     | Ended June 30, |  
|                                    |                                                                              |                |    |     |                |  
|Generation                          |                                                                              | 2005           |    |     | 2004           |   |    | 2005 |   |   | 2004 |    
|                                    |                                                                              |                |    |     |                |   |    |      |   |   |      |    
|Decommissioning-related activities: |                                                                              |                |    |     |                |   |    |      |   |   |      |     |   |   |     |    
|                                    | Decommissioning trust fund income(a)                                         |                | $  | 50  |                |   | $  | 28   |   |   | $    | 79  |   |   | $   | 58  |  
|                                    | Decommissioning trust fund income  AmerGen(a)                               |                |    | 47  |                |   |    | 8    |   |   |      | 59  |   |   |     | 19  |  
|                                    | Other-than-temporary impairment of decommissioning trust funds(b)            |                |    | (5  | )              |   |    |     |   |   |      | (12 | ) |   |     |    |  
|                                    | Other-than-temporary impairment of decommissioning trust
    funds  AmerGen |                |    | (1  | )              |   |    |     |   |   |      | (2  | ) |   |     |    |  
|                                    | Regulatory offset to non-operating decommissioning-related
    activities(c) |                |    | (46 | )              |   |    | (28  | ) |   |      | (67 | ) |   |     | (58 | )
|Gain on sale of Boston Generating   |                                                                              |                |   |     |                |   | 85 |      |   |   |     |     |   |   | 85  |    
|Other                               |                                                                              |                | 6  |     |                |   | 3  |      |   |   | 12   |     |   |   | 11  |    
|                                    |                                                                              |                |    |     |                |   |    |      |   |   |      |    
|Other, net                          |                                                                              | $              | 51 |     |                | $ | 96 |      |   | $ | 69   |     |   | $ | 115 |    
|                                    |                                                                              |                |    |     |                |   |    |      |   |   |      |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 regulatory accounting, including the elimination of
    decommissioning trust fund income and other-than-temporary
    impairments for certain nuclear units. See Notes 14 and 16
    of Exelons Notes to Consolidated Financial Statements
    within Exelons Annual Report on 2004 Form 10-K and
    Form 8-K filed on May 13, 2005 to recast information
    contained in Exelons and Generations 2004 Annual
    Report on Form 10-K for more information regarding the
    regulatory accounting applied for certain nuclear units.

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)




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



|                                                         |  |          |        |   |              |   |        |  
|-------------------------------------------------------- |  | -------- | ------ | - | ------------ | - | ------ | -
|                                                         |  | June 30, |        |   | December 31, |  
|Exelon and ComEd                                         |  | 2005     |        |   | 2004         |  
|                                                         |  |          |        |   |              |  
|Regulatory assets (liabilities)                          |  |          |        |   |              |   |        |  
|Nuclear decommissioning                                  |  | $        | (1,432 | ) |              | $ | (1,433 | )
|Removal costs                                            |  |          | (1,030 | ) |              |   | (1,011 | )
|Reacquired debt costs and interest-rate swap settlements |  |          | 113    |   |              |   | 118    |  
|Recoverable transition costs                             |  |          | 72     |   |              |   | 87     |  
|Deferred income taxes                                    |  |          | 6      |   |              |   | 4      |  
|Other                                                    |  |          | 31     |   |              |   | 31     |  
|                                                         |  |          |        |   |              |  
|Total                                                    |  | $        | (2,240 | ) |              | $ | (2,204 | )
|                                                         |  |          |        |   |              |  

|                                                   |  |          |       |   |              |   |       |  
|-------------------------------------------------- |  | -------- | ----- | - | ------------ | - | ----- | -
|                                                   |  | June 30, |       |   | December 31, |  
|Exelon and PECO                                    |  | 2005     |       |   | 2004         |  
|                                                   |  |          |       |   |              |  
|Regulatory assets (liabilities)                    |  |          |       |   |              |   |       |  
|Competitive transition charge                      |  | $        | 3,743 |   |              | $ | 3,936 |  
|Deferred income taxes                              |  |          | 751   |   |              |   | 747   |  
|Non-pension postretirement benefits                |  |          | 49    |   |              |   | 52    |  
|Reacquired debt costs                              |  |          | 39    |   |              |   | 42    |  
|MGP regulatory asset(a)                            |  |          | 19    |   |              |   | 32    |  
|U.S. Department of Energy facility decommissioning |  |          | 16    |   |              |   | 19    |  
|Nuclear decommissioning                            |  |          | (45   | ) |              |   | (46   | )
|Other                                              |  |          | 15    |   |              |   | 8     |  
|                                                   |  |          |       |   |              |  
|Long-term regulatory assets                        |  |          | 4,587 |   |              |   | 4,790 |  
|Deferred energy costs (current asset)              |  |          | 13    |   |              |   | 71    |  
|                                                   |  |          |       |   |              |  
|Total                                              |  | $        | 4,600 |   |              | $ | 4,861 |  
|                                                   |  |          |       |   |              |  






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



|                               |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |       | 
|------------------------------ | ------------------------------------ | ------ | - | ----- | ----- |  | - | ----- |  |  | ---------- | ----- |  |  | - | ----- | 
|June 30, 2005                  |                                      | Exelon |   |       | ComEd |  |   | PECO  |  |  | Generation |      
|                               |                                      |        |   |       |       |  |   |       |  |  |            |      
|Property, plant and equipment: |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Accumulated depreciation             |        | $ | 7,469 |       |  | $ | 1,103 |  |  | $          | 2,172 |  |  | $ | 4,082 | 
|Accounts receivable:           |                                      |        |   |       |       |  |   |       |  |  |            |       |  |  |   |      
|                               | Allowance for uncollectible accounts |        |   | 76    |       |  |   | 17    |  |  |            | 40    |  |  |   | 16    | 

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

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)




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









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



|                                                                                        |  |          |       |  |            |   |       |          |              |   |              |   |  |        |        |   |  |   |       |  
|--------------------------------------------------------------------------------------- |  | -------- | ----- |  | ---------- | - | ----- | -------- | ------------ | - | ------------ | - |  | ------ | ------ | - |  | - | ----- | -
|                                                                                        |  | Energy   |       |  |            |   |       |          | Intersegment |   |              |  
|                                                                                        |  | Delivery |       |  | Generation |   |       | Other(a) |              |   | Eliminations |   |  | Exelon |       
|                                                                                        |  |          |       |  |            |   |       |          |              |   |              |   |  |        |       
|Total revenues:(b)                                                                     
|2005                                                                                    |  | $        | 2,532 |  |            | $ | 2,105 |          |              | $ | 174          |   |  | $      | (1,327 | ) |  | $ | 3,484 |  
|2004                                                                                    |  |          | 2,435 |  |            |   | 1,881 |          |              |   | 173          |   |  |        | (1,051 | ) |  |   | 3,438 |  
|Intersegment revenues:                                                                 
|2005                                                                                    |  | $        | 4     |  |            | $ | 1,150 |          |              | $ | 173          |   |  | $      | (1,327 | ) |  | $ |      |  
|2004                                                                                    |  |          | 8     |  |            |   | 871   |          |              |   | 172          |   |  |        | (1,051 | ) |  |   |      |  
|Income (loss) from continuing operations before income taxes
    and minority interest:
|2005                                                                                    |  | $        | 336   |  |            | $ | 482   |          |              | $ | (95          | ) |  | $      |       |   |  | $ | 723   |  
|2004                                                                                    |  |          | 485   |  |            |   | 300   |          |              |   | (60          | ) |  |        |       |   |  |   | 725   |  
|Income taxes:                                                                          
|2005                                                                                    |  | $        | 118   |  |            | $ | 185   |          |              | $ | (96          | ) |  | $      |       |   |  | $ | 207   |  
|2004                                                                                    |  |          | 182   |  |            |   | 114   |          |              |   | (73          | ) |  |        |       |   |  |   | 223   |  
|Income from continuing operations:                                                     
|2005                                                                                    |  | $        | 218   |  |            | $ | 297   |          |              | $ | 1            |   |  | $      |       |   |  | $ | 516   |  
|2004                                                                                    |  |          | 303   |  |            |   | 187   |          |              |   | 13           |   |  |        |       |   |  |   | 503   |  
|Income (loss) from discontinued operations:                                            
|2005                                                                                    |  | $        |      |  |            | $ | (1    | )        |              | $ | (1           | ) |  | $      |       |   |  | $ | (2    | )
|2004                                                                                    |  |          |      |  |            |   | (9    | )        |              |   | 27           |   |  |        |       |   |  |   | 18    |  
|Net income:                                                                            
|2005                                                                                    |  | $        | 218   |  |            | $ | 296   |          |              | $ |             |   |  | $      |       |   |  | $ | 514   |  
|2004                                                                                    |  |          | 303   |  |            |   | 178   |          |              |   | 40           |   |  |        |       |   |  |   | 521   |  






|    |  |                                                                                                                                                                                                                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including Exelon Business Services Company (BSC), Enterprises
    and investments in synthetic fuel-producing facilities.                                                                                                                              
|   
|(b) |  | $57 million in utility taxes are included in revenues and
    expenses for each of the three months ended June 30, 2005
    and 2004 for ComEd. $53 million and $50 million in
    utility taxes are included in revenues and expenses for the
    three months ended June 30, 2005 and 2004, respectively,
    for PECO.

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)




| |                                        
| | ---------------------------------------
| | Six Months Ended June 30, 2005 and 2004



|                                                                                        |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|--------------------------------------------------------------------------------------- |  | -------- | ------ |  | ---------- | - | ------ | -------- | ------------ | - | ------------ | - |  | ------ | ------- | - |  | - | ------ | 
|                                                                                        |  | Energy   |        |  |            |   |        |          | Intersegment |   |              |  
|                                                                                        |  | Delivery |        |  | Generation |   |        | Other(a) |              |   | Eliminations |   |  | Exelon |        
|                                                                                        |  |          |        |  |            |   |        |          |              |   |              |   |  |        |        
|Total revenues:(b)                                                                      |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|2005                                                                                    |  | $        | 5,214  |  |            | $ | 4,125  |          |              | $ | 341          |   |  | $      | (2,635  | ) |  | $ | 7,045  | 
|2004                                                                                    |  |          | 5,010  |  |            |   | 3,826  |          |              |   | 335          |   |  |        | (2,098  | ) |  |   | 7,073  | 
|Intersegment revenues:                                                                  |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|2005                                                                                    |  | $        | 8      |  |            | $ | 2,285  |          |              | $ | 342          |   |  | $      | (2,635  | ) |  | $ |       | 
|2004                                                                                    |  |          | 21     |  |            |   | 1,750  |          |              |   | 327          |   |  |        | (2,098  | ) |  |   |       | 
|Income (loss) from continuing operations before income taxes
    and minority interest: |  |          |        | 
|2005                                                                                    |  | $        | 652    |  |            | $ | 977    |          |              | $ | (171         | ) |  | $      |        |   |  | $ | 1,458  | 
|2004                                                                                    |  |          | 986    |  |            |   | 418    |          |              |   | (122         | ) |  |        |        |   |  |   | 1,282  | 
|Income taxes:                                                                           |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|2005                                                                                    |  | $        | 236    |  |            | $ | 376    |          |              | $ | (177         | ) |  | $      |        |   |  | $ | 435    | 
|2004                                                                                    |  |          | 367    |  |            |   | 160    |          |              |   | (145         | ) |  |        |        |   |  |   | 382    | 
|Income from continuing operations:                                                      |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|2005                                                                                    |  | $        | 416    |  |            | $ | 601    |          |              | $ | 6            |   |  | $      |        |   |  | $ | 1,023  | 
|2004                                                                                    |  |          | 619    |  |            |   | 258    |          |              |   | 23           |   |  |        |        |   |  |   | 900    | 
|Income (loss) from discontinued operations:                                             |  |          |        |  |            |   |        |          |              |   |              |  
|2005                                                                                    |  | $        |       |  |            | $ | 15     |          |              | $ | (3           | ) |  | $      |        |   |  | $ | 12     | 
|2004                                                                                    |  |          |       |  |            |   | (10    | )        |              |   | 11           |   |  |        |        |   |  |   | 1      | 
|Cumulative effect of a change in accounting principle:                                  |  |          |        |  |            |   |        |         
|2005                                                                                    |  | $        |       |  |            | $ |       |          |              | $ |             |   |  | $      |        |   |  | $ |       | 
|2004                                                                                    |  |          |       |  |            |   | 32     |          |              |   |             |   |  |        |        |   |  |   | 32     | 
|Net income:                                                                             |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|2005                                                                                    |  | $        | 416    |  |            | $ | 616    |          |              | $ | 3            |   |  | $      |        |   |  | $ | 1,035  | 
|2004                                                                                    |  |          | 619    |  |            |   | 280    |          |              |   | 34           |   |  |        |        |   |  |   | 933    | 
|Total Assets:                                                                           |  |          |        |  |            |   |        |          |              |   |              |   |  |        |         |   |  |   |        | 
|June 30, 2005                                                                           |  | $        | 28,342 |  |            | $ | 16,550 |          |              | $ | 13,897       |   |  | $      | (16,707 | ) |  | $ | 42,082 | 
|December 31, 2004                                                                       |  |          | 27,574 |  |            |   | 16,438 |          |              |   | 13,268       |   |  |        | (14,510 | ) |  |   | 42,770 | 








|    |  |                                                                                                                                                                                                                                                                                                                                                 
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes corporate operations, shared service entities,
    including Exelon Business Services Company (BSC), Enterprises
    and investments in synthetic fuel-producing facilities.                                                                                                                                                     
|   
|(b) |  | $120 million and $119 million in utility taxes are
    included in revenues and expenses for the six months ended
    June 30, 2005 and 2004, respectively, for ComEd.
    $105 million and $100 million in utility taxes are
    included in revenues and expenses for the six months ended
    June 30, 2005 and 2004, respectively, for PECO.

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)




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



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



|                                                |                                  |              |   |    |            |  |   |      |  |  |      |    |  |  |   |    | 
|----------------------------------------------- | -------------------------------- | ------------ | - | -- | ---------- |  | - | ---- |  |  | ---- | -- |  |  | - | -- | 
|                                                |                                  | Three Months |   |    | Six Months | 
|                                                |                                  | Ended        |   |    | Ended      | 
|                                                |                                  | June 30,     |   |    | June 30,   | 
|                                                |                                  |              |   |    |            | 
|                                                |                                  | 2005         |   |    | 2004       |  |   | 2005 |  |  | 2004 |   
|                                                |                                  |              |   |    |            |  |   |      |  |  |      |   
|Operating revenues from ComEd                   |                                  |              |   |    |            |  |   |      |  |  |      |    |  |  |   |   
|                                                | Transitional Funding Trust       |              | $ | 1  |            |  | $ |     |  |  | $    | 2  |  |  | $ |   | 
|Interest expense to financing affiliates        |                                  |              |   |    |            |  |   |      |  |  |      |    |  |  |   |   
|                                                | ComEd Transitional Funding Trust |              |   | 17 |            |  |   | 21   |  |  |      | 36 |  |  |   | 45 | 
|                                                | ComEd Financing II               |              |   | 4  |            |  |   | 4    |  |  |      | 7  |  |  |   | 7  | 
|                                                | ComEd Financing III              |              |   | 3  |            |  |   | 3    |  |  |      | 6  |  |  |   | 6  | 
|Equity in losses from unconsolidated affiliates |                                  |              |   |    |            |  |   |      |  |  |      |    |  |  |   |   
|                                                | ComEd Funding LLC                |              |   | 4  |            |  |   | 6    |  |  |      | 8  |  |  |   | 9  | 

|                                                                       |                                  |          |   |       |              |  |   |       | 
|---------------------------------------------------------------------- | -------------------------------- | -------- | - | ----- | ------------ |  | - | ----- | 
|                                                                       |                                  | June 30, |   |       | December 31, | 
|                                                                       |                                  | 2005     |   |       | 2004         | 
|                                                                       |                                  |          |   |       |              | 
|Receivables from affiliates (current)                                  |                                  |          |   |       |              |  |   |      
|                                                                       | ComEd Transitional Funding Trust |          | $ | 14    |              |  | $ | 9     | 
|Investment in affiliates                                               |                                  |          |   |       |              |  |   |      
|                                                                       | ComEd Funding LLC                |          |   | 28    |              |  |   | 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               |          |   | 6     |              |  |   | 6     | 
|                                                                       | ComEd Financing III              |          |   | 4     |              |  |   | 4     | 
|Long-term debt to financing trusts (including due within one
    year) |                                  |          |   |       |              |  |   |      
|                                                                       | ComEd Transitional Funding Trust |          |   | 1,151 |              |  |   | 1,341 | 
|                                                                       | ComEd Financing II               |          |   | 155   |              |  |   | 155   | 
|                                                                       | ComEd Financing III              |          |   | 206   |              |  |   | 206   | 

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)




|                                         |                                   |              |     |     |            |  |     |      |   |  |      |       |  |  |     |       | 
|---------------------------------------- | --------------------------------- | ------------ | --- | --- | ---------- |  | --- | ---- | - |  | ---- | ----- |  |  | --- | ----- | 
|                                         |                                   | Three Months |     |     | Six Months | 
|                                         |                                   | Ended        |     |     | Ended      | 
|                                         |                                   | June 30,     |     |     | June 30,   | 
|                                         |                                   |              |     |     |            | 
|                                         |                                   | 2005         |     |     | 2004       |  |     | 2005 |   |  | 2004 |      
|                                         |                                   |              |     |     |            |  |     |      |   |  |      |      
|Operating revenues from affiliates       |                                   |              |     |     |            |  |     |      |   |  |      |       |  |  |     |      
|                                         | Generation(a)                     |              | $   | 2   |            |  | $   | 5    |   |  | $    | 4     |  |  | $   | 16    | 
|                                         | Enterprises(a)                    |              |     |    |            |  |     | 1    |   |  |      |      |  |  |     | 1     | 
|Purchased power from affiliate           |                                   |              |     |     |            |  |     |      |   |  |      |       |  |  |     |      
|                                         | PPA with Generation(b)            |              |     | 770 |            |  |     | 514  |   |  |      | 1,523 |  |  |     | 1,043 | 
|Operations & maintenance from affiliates |                                   |              |     |     |            |  |     |      |   |  |      |       |  |  |     |      
|                                         | BSC(c)                            |              |     | 44  |            |  |     | 45   |   |  |      | 88    |  |  |     | 82    | 
|                                         | Enterprises(d)                    |              |     |    |            |  |     | (4   | ) |  |      |      |  |  |     | 1     | 
|Interest income from affiliates          |                                   |              |     |     |            |  |     |      |   |  |      |       |  |  |     |      
|                                         | UII(e)                            |              |     |    |            |  |     | 4    |   |  |      |      |  |  |     | 9     | 
|                                         | Exelon intercompany money pool(f) |              |     | 1   |            |  |     | 1    |   |  |      | 3     |  |  |     | 2     | 
|Capitalized costs                        |                                   |              |     |     |            |  |     |      |   |  |      |       |  |  |     |      
|                                         | BSC(c)                            |              |     | 16  |            |  |     | 16   |   |  |      | 30    |  |  |     | 28    | 
|Cash dividends paid to parent            |                                   |              | 107 |     |            |  | 104 |      |   |  | 245  |       |  |  | 207 |      

|                                                 |                                   |          |   |       |              |  |     |       | 
|------------------------------------------------ | --------------------------------- | -------- | - | ----- | ------------ |  | --- | ----- | 
|                                                 |                                   | June 30, |   |       | December 31, | 
|                                                 |                                   | 2005     |   |       | 2004         | 
|                                                 |                                   |          |   |       |              | 
|Receivables from affiliates (current)            |                                   |          |   |       |              |  |     |      
|                                                 | Exelon intercompany money pool(f) |          | $ | 21    |              |  | $   | 308   | 
|                                                 | Other                             |          |   |      |              |  |     | 1     | 
|Receivables from affiliates (noncurrent)         |                                   |          |   |       |              |  |     |      
|                                                 | Generation(g)                     |          |   | 1,432 |              |  |     | 1,433 | 
|Payables to affiliates (current)                 |                                   |          |   |       |              |  |     |      
|                                                 | Generation decommissioning(h)     |          |   | 11    |              |  |     | 11    | 
|                                                 | Generation (a, b)                 |          |   | 331   |              |  |     | 189   | 
|                                                 | BSC(c)                            |          |   | 15    |              |  |     | 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.
|   
|(b) |  | ComEd has entered into a full-requirements purchase power
    agreement (PPA), as amended, with Generation. See Note 15
    of ComEds Notes to Consolidated Financial Statements
    within ComEds 2004 Annual Report on Form 10-K for
    more information regarding the PPA.                           

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)




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 Annual Report on Form 10-K information.
|   
|(h) |  | ComEd has a short-term and long-term payable to Generation,
    primarily representing ComEds legal requirements to remit
    collections of nuclear decommissioning costs from its customers
    to Generation.                                                                                                                                                                                                                                                                                            
|   
|(i) |  | ComEd had a non-interest bearing receivable from Exelon related
    to a corporate restructuring in 2001. The receivable was settled
    in 2005.                                                                                                                                                                                                                                                                                                                                                            



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



|                                                |                |              |   |    |            |  |   |      |  |  |      |     |  |  |   |     | 
|----------------------------------------------- | -------------- | ------------ | - | -- | ---------- |  | - | ---- |  |  | ---- | --- |  |  | - | --- | 
|                                                |                | Three Months |   |    | Six Months | 
|                                                |                | Ended        |   |    | Ended      | 
|                                                |                | June 30,     |   |    | June 30,   | 
|                                                |                |              |   |    |            | 
|                                                |                | 2005         |   |    | 2004       |  |   | 2005 |  |  | 2004 |    
|                                                |                |              |   |    |            |  |   |      |  |  |      |    
|Operating revenues from affiliate               |                |              |   |    |            |  |   |      |  |  |      |     |  |  |   |    
|                                                | PETT(a)        |              | $ | 2  |            |  | $ | 3    |  |  | $    | 4   |  |  | $ | 5   | 
|Interest expense to financing affiliates        |                |              |   |    |            |  |   |      |  |  |      |     |  |  |   |    
|                                                | PETT           |              |   | 54 |            |  |   | 59   |  |  |      | 110 |  |  |   | 119 | 
|                                                | PECO Trust III |              |   | 1  |            |  |   | 1    |  |  |      | 3   |  |  |   | 3   | 
|                                                | PECO Trust IV  |              |   | 2  |            |  |   | 2    |  |  |      | 3   |  |  |   | 3   | 
|Equity in losses from unconsolidated affiliates |                |              |   |    |            |  |   |      |  |  |      |     |  |  |   |    
|                                                | PETT           |              |   | 4  |            |  |   | 7    |  |  |      | 8   |  |  |   | 13  | 

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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)


|                                                                       |                          |          |   |       |              |  |   |       | 
|---------------------------------------------------------------------- | ------------------------ | -------- | - | ----- | ------------ |  | - | ----- | 
|                                                                       |                          | June 30, |   |       | December 31, | 
|                                                                       |                          | 2005     |   |       | 2004         | 
|                                                                       |                          |          |   |       |              | 
|Investment in affiliates                                               |                          |          |   |       |              |  |   |      
|                                                                       | PETT                     |          | $ | 70    |              |  | $ | 77    | 
|                                                                       | PECO Energy Capital Corp |          |   | 4     |              |  |   | 4     | 
|                                                                       | PECO Trust IV            |          |   | 6     |              |  |   | 6     | 
|Payables to affiliates (current)                                       |                          |          |   |       |              |  |   |      
|                                                                       | PECO Trust III           |          |   | 1     |              |  |   | 1     | 
|Long-term debt to financing trusts (including due within one
    year) |                          |          |   |       |              |  |   |      
|                                                                       | PETT                     |          |   | 3,249 |              |  |   | 3,456 | 
|                                                                       | PECO Trust III           |          |   | 81    |              |  |   | 81    | 
|                                                                       | PECO Trust IV            |          |   | 103   |              |  |   | 103   | 






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



|                                          |               |              |     |     |            |  |    |      |  |  |      |     |  |  |     |     | 
|----------------------------------------- | ------------- | ------------ | --- | --- | ---------- |  | -- | ---- |  |  | ---- | --- |  |  | --- | --- | 
|                                          |               | Three Months |     |     | Six Months | 
|                                          |               | Ended        |     |     | Ended      | 
|                                          |               | June 30,     |     |     | June 30,   | 
|                                          |               |              |     |     |            | 
|                                          |               | 2005         |     |     | 2004       |  |    | 2005 |  |  | 2004 |    
|                                          |               |              |     |     |            |  |    |      |  |  |      |    
|Operating revenues from affiliate         |               |              |     |     |            |  |    |      |  |  |      |     |  |  |     |    
|                                          | Generation(a) |              | $   | 2   |            |  | $  | 2    |  |  | $    | 4   |  |  | $   | 4   | 
|Purchased power from affiliate            |               |              |     |     |            |  |    |      |  |  |      |     |  |  |     |    
|                                          | Generation(b) |              |     | 379 |            |  |    | 349  |  |  |      | 760 |  |  |     | 699 | 
|Fuel from affiliate                       |               |              |     |     |            |  |    |      |  |  |      |     |  |  |     |    
|                                          | Generation(c) |              |     |    |            |  |    | 7    |  |  |      | 1   |  |  |     | 7   | 
|Operating and maintenance from affiliates |               |              |     |     |            |  |    |      |  |  |      |     |  |  |     |    
|                                          | BSC(d)        |              |     | 28  |            |  |    | 28   |  |  |      | 53  |  |  |     | 51  | 
|Interest income from affiliates           |               |              |     |     |            |  |    |      |  |  |      |     |  |  |     |    
|                                          | Other         |              |     |    |            |  |    |     |  |  |      | 1   |  |  |     |    | 
|Capitalized costs                         |               |              |     |     |            |  |    |      |  |  |      |     |  |  |     |    
|                                          | BSC(d)        |              |     | 6   |            |  |    | 5    |  |  |      | 12  |  |  |     | 9   | 
|Cash dividends paid to parent             |               |              | 116 |     |            |  | 90 |      |  |  | 231  |     |  |  | 180 |    

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)


|                                                 |                                   |          |       |     |              |  |       |     | 
|------------------------------------------------ | --------------------------------- | -------- | ----- | --- | ------------ |  | ----- | --- | 
|                                                 |                                   | June 30, |       |     | December 31, | 
|                                                 |                                   | 2005     |       |     | 2004         | 
|                                                 |                                   |          |       |     |              | 
|Receivable from affiliate (current)              |                                   |          |       |     |              |  |       |    
|                                                 | Exelon intercompany money pool(e) |          | $     |    |              |  | $     | 34  | 
|Receivable from affiliate (noncurrent)           |                                   |          |       |     |              |  |       |    
|                                                 | Generation decommissioning(f)     |          |       | 45  |              |  |       | 46  | 
|Payables to affiliates (current)                 |                                   |          |       |     |              |  |       |    
|                                                 | Generation (b, c)                 |          |       | 152 |              |  |       | 125 | 
|                                                 | BSC(d)                            |          |       | 14  |              |  |       | 20  | 
|Shareholders equity  receivable from parent(g) |                                   |          | 1,302 |     |              |  | 1,482 |    






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | PECO provides energy to Generation for Generations own use.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(b) |  | PECO has entered into a PPA with Generation. See Note 14 of
    PECOs Notes to Consolidated Financial Statements within
    PECOs 2004 Annual Report on Form 10-K for more
    information regarding the PPA.                                                                                                                                                                                                                                                                                  
|   
|(c) |  | Effective April 1, 2004, PECO entered into a one-year gas
    procurement agreement with Generation.                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(d) |  | PECO receives a variety of corporate support services from BSC,
    including legal, human resources, financial, information
    technology, supply management services, planning and engineering
    of delivery systems, management of construction, maintenance and
    operations of the transmission and delivery systems and
    management of other support services. All services are provided
    at cost, including applicable overhead. A portion of such
    services is capitalized.
|   
|(e) |  | PECO participates in Exelons intercompany money pool. PECO
    earns interest on its contributions to the money pool at a
    market rate of interest.                                                                                                                                                                                                                                                                                                                                          
|   
|(f) |  | PECO has a long-term receivable from Generation as a result of
    the nuclear decommissioning contractual construct, whereby, to
    the extent the assets associated with decommissioning are
    greater than the applicable ARO at the end of decommissioning,
    such amounts are due back to PECO for payment to PECOs
    customers. See Note 9 of PECOs Notes to Consolidated
    Financial Statements within PECOs 2004 Annual Report on
    Form 10-K for further information.     
|   
|(g) |  | PECO has a non-interest bearing receivable from Exelon related
    to the 2001 corporate restructuring. The receivable is expected
    to be settled over the years 2005 through 2010.                                                                                                                                                                                                                                                                                                           

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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 |    |     | Six Months | 
|                                          |                                   | Ended        |    |     | Ended      | 
|                                          |                                   | June 30,     |    |     | June 30,   | 
|                                          |                                   |              |    |     |            | 
|                                          |                                   | 2005         |    |     | 2004       |  |    | 2005 |  |  | 2004 |      
|                                          |                                   |              |    |     |            |  |    |      |  |  |      |      
|Operating revenues from affiliates        |                                   |              |    |     |            |  |    |      |  |  |      |       |  |  |     |      
|                                          | ComEd(a)                          |              | $  | 770 |            |  | $  | 514  |  |  | $    | 1,523 |  |  | $   | 1,043 | 
|                                          | PECO(a)                           |              |    | 379 |            |  |    | 356  |  |  |      | 761   |  |  |     | 706   | 
|                                          | BSC(c)                            |              |    | 1   |            |  |    | 1    |  |  |      | 1     |  |  |     | 1     | 
|Purchased power from affiliates           |                                   |              |    |     |            |  |    |      |  |  |      |       |  |  |     |      
|                                          | ComEd(b)                          |              |    |    |            |  |    | 3    |  |  |      |      |  |  |     | 12    | 
|Fuel from affiliates                      |                                   |              |    |     |            |  |    |      |  |  |      |       |  |  |     |      
|                                          | PECO(b)                           |              |    | 1   |            |  |    |     |  |  |      | 1     |  |  |     |      | 
|Operating and maintenance from affiliates |                                   |              |    |     |            |  |    |      |  |  |      |       |  |  |     |      
|                                          | ComEd(b)                          |              |    | 2   |            |  |    | 2    |  |  |      | 4     |  |  |     | 4     | 
|                                          | PECO(b)                           |              |    | 1   |            |  |    | 2    |  |  |      | 3     |  |  |     | 4     | 
|                                          | BSC(c)                            |              |    | 63  |            |  |    | 65   |  |  |      | 127   |  |  |     | 126   | 
|Interest expense to affiliates            |                                   |              |    |     |            |  |    |      |  |  |      |       |  |  |     |      
|                                          | Exelon intercompany money pool(d) |              |    |    |            |  |    | 1    |  |  |      | 2     |  |  |     | 2     | 
|Cash distribution paid to member          |                                   |              | 80 |     |            |  | 55 |      |  |  | 319  |       |  |  | 109 |      
|Cash contribution received from member    |                                   |              |   |     |            |  |   |      |  |  | 843  |       |  |  |    |      

|                                            |                                   |          |   |       |              |  |   |       | 
|------------------------------------------- | --------------------------------- | -------- | - | ----- | ------------ |  | - | ----- | 
|                                            |                                   | June 30, |   |       | December 31, | 
|                                            |                                   | 2005     |   |       | 2004         | 
|                                            |                                   |          |   |       |              | 
|Receivables from affiliates (current)       |                                   |          |   |       |              |  |   |      
|                                            | ComEd(a)                          |          | $ | 331   |              |  | $ | 189   | 
|                                            | ComEd decommissioning(f)          |          |   | 11    |              |  |   | 11    | 
|                                            | PECO(a)                           |          |   | 152   |              |  |   | 125   | 
|                                            | BSC(c)                            |          |   |      |              |  |   | 7     | 
|Note receivable from affiliate (noncurrent) |                                   |          |   |       |              |  |   |      
|                                            | ComEd decommissioning(f)          |          |   | 11    |              |  |   | 11    | 
|Payables to affiliates (current)            |                                   |          |   |       |              |  |   |      
|                                            | Exelon(e)                         |          |   | 4     |              |  |   | 42    | 
|                                            | BSC(c)                            |          |   | 26    |              |  |   |      | 
|Notes payable to affiliates (current)       |                                   |          |   |       |              |  |   |      
|                                            | Exelon intercompany money pool(d) |          |   |      |              |  |   | 283   | 
|Payables to affiliates (noncurrent)         |                                   |          |   |       |              |  |   |      
|                                            | ComEd decommissioning(g)          |          |   | 1,432 |              |  |   | 1,433 | 
|                                            | PECO decommissioning(g)           |          |   | 45    |              |  |   | 46    | 






|    |  |                                                                                                                                                                                                                                                                                                                                                           
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Generation has entered into PPAs with ComEd and PECO, as
    amended, to provide the full energy requirements of ComEd and
    PECO. Effective April 1, 2004, Generation entered into a
    one-year gas supply agreement with PECO. See Note 16 of
    Generations Notes to Consolidated Financial Statements
    within Generations 2004 Annual Report

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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)




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |  | on Form 10-K and Form 8-K filed on May 13, 2005
    to recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(b) |  | Generation purchases retail electric and ancillary services from
    ComEd and buys energy from PECO for Generations own use.
    In order to facilitate payment processing, ComEd processes
    certain invoice payments on behalf of Generation. Prior to
    joining PJM on May 1, 2004, ComEd also provided
    transmission services to Generation. Amounts charged by PECO and
    ComEd to Generation for transmission have been recorded as
    intercompany purchased power by Generation. See Note 16 of
    Generations Notes to Consolidated Financial Statements
    within Generations 2004 Annual Report on Form 10-K
    and Form 8-K filed on May 13, 2005 to recast
    information contained in Exelons and Generations
    2004 Annual Report on Form 10-K.
|   
|(c) |  | Generation receives a variety of corporate support services from
    BSC, including legal, human resources, financial, information
    technology and supply management services. All services are
    provided at cost, including applicable overhead. A portion of
    such services is capitalized. Some third-party reimbursements
    due Generation are recovered through BSC.                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(d) |  | Generation participates in Exelons intercompany money
    pool. Generation earns interest on its contributions to the
    money pool, and pays interest on its borrowings from the money
    pool at a market rate of interest.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(e) |  | In order to facilitate payment processing, Exelon processes
    certain invoice payments on behalf of Generation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|(f) |  | Generation has a short-term and a long-term receivable from
    ComEd, primarily representing ComEds legal requirements to
    remit collections of nuclear decommissioning costs from its
    customers to Generation resulting from the 2001 corporate
    restructuring. See Note 13 of Generations Notes to
    Consolidated Financial Statements within Generations 2004
    Annual Report on Form 10-K and Form 8-K filed on
    May 13, 2005 to recast information contained in
    Exelons and Generations 2004 Annual Report on
    Form 10-K.                                                                                                                                                                                                                        
|   
|(g) |  | Generation has long-term payables to ComEd and PECO as a result
    of the nuclear decommissioning contractual construct whereby, to
    the extent the assets associated with decommissioning are
    greater than the applicable ARO, such amounts are due back to
    ComEd and PECO, as applicable, for payment to their respective
    customers. See Note 13 of Generations Notes to
    Consolidated Financial Statements within Generations 2004
    Annual Report on Form 10-K and Form 8-K filed on
    May 13, 2005 to recast information contained in
    Exelons and Generations 2004 Annual Report on
    Form 10-K.                                                                                                                                              



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



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



|                            |  |          |     |  |              |                                  |                   |          |               |            |              |      |            |   |  |   |   | 
|--------------------------- |  | -------- | --- |  | ------------ | -------------------------------- | ----------------- | -------- | ------------- | ---------- | ------------ | ---- | ---------- | - |  | - | - | 
|                            |  |          |     |  |              |                                  |                   | June 30, |               |            | December 31, |     
|                            |  | Notional |     |  |              |                                  |                   |          | 2005          |            |              | 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          |   |  | $ | 9 | 
|Cash-Flow Hedges            |  |          |     |  |              |                                  |                   |          |               |            |              |      |            |   |  |   |   | 
|ComEd                       |  |          | 325 |  |              | 4.87%  5.43%                    |                   |          | 3 Month LIBOR |            |              |      | (35        | ) |  |   |  | 
|                            |  |          |     |  |              |                                  |                   |          |               |            |              |      |            |  
|Net deferred gains (losses) |  |          |     |  |              |                                  |                   |          |               |            |              | $    | (26        | ) |  | $ | 9 | 
|                            |  |          |     |  |              |                                  |                   |          |               |            |              |      |            |  

64



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##### Table of Contents



EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Fair-Value Hedges.


Cash Flow Hedges.




| |                                                   
| | --------------------------------------------------
| | Energy-Related Derivatives (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)






|                                                              |  |            |      |   |             |   |        |             |  |   |          |   |          |             |        |                |                |   |    |  |  |   |        |  
|------------------------------------------------------------- |  | ---------- | ---- | - | ----------- | - | ------ | ----------- |  | - | -------- | - | -------- | ----------- | ------ | -------------- | -------------- | - | -- |  |  | - | ------ | -
|                                                              |  | Generation |      |   |             |   |       
|                                                              |  |            |      |   |             |   | Exelon |            
|                                                              |  | Cash-Flow  |      |   | Other       |   |        | Proprietary |  |   |          |   | Other(a) |             |        | Energy-Related |               
|Derivatives                                                   |  | Hedges     |      |   | Derivatives |   |        | Trading     |  |   | SubTotal |   |          | Derivatives |        |                | Derivatives(b) |  
|                                                              |  |            |      |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Current assets                                                |  | $          | 335  |   |             | $ | 161    |             |  | $ | 12       |   |          | $           | 508    |                |                | $ |   |  |  | $ | 508    |  
|Noncurrent assets                                             |  |            | 158  |   |             |   | 32     |             |  |   | 140      |   |          |             | 330    |                |                |   | 17 |  |  |   | 347    |  
|                                                              |  |            |      |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Total mark-to-market energy contract assets                   |  | $          | 493  |   |             | $ | 193    |             |  | $ | 152      |   |          | $           | 838    |                |                | $ | 17 |  |  | $ | 855    |  
|                                                              |  |            |      |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Current liabilities                                           |  | $          | (607 | ) |             | $ | (140   | )           |  | $ | (9       | ) |          | $           | (756   | )              |                | $ |   |  |  | $ | (756   | )
|Noncurrent liabilities                                        |  |            | (254 | ) |             |   | (28    | )           |  |   | (139     | ) |          |             | (421   | )              |                |   |   |  |  |   | (421   | )
|                                                              |  |            |      |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Total mark-to-market energy contract liabilities              |  | $          | (861 | ) |             | $ | (168   | )           |  | $ | (148     | ) |          | $           | (1,177 | )              |                | $ |   |  |  | $ | (1,177 | )
|                                                              |  |            |      |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  
|Total mark-to-market energy contract net assets (liabilities) |  | $          | (368 | ) |             | $ | 25     |             |  | $ | 4        |   |          | $           | (339   | )              |                | $ | 17 |  |  | $ | (322   | )
|                                                              |  |            |      |   |             |   |        |             |  |   |          |   |          |             |        |                |                |  






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

Normal Operations and Hedging Activities.


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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 Hedges (Generation)



|                                                 |  |                     |      |  
|------------------------------------------------ |  | ------------------- | ---- | -
|                                                 |  | Total Cash-Flow     |     
|                                                 |  | Hedge OCI Activity, |     
|Three Months Ended June 30, 2005                 |  | Net of Income Tax   |     
|                                                 |  |                     |     
|Accumulated OCI derivative loss at April 1, 2005 |  | $                   | (259 | )
|Changes in fair value                            |  |                     | (28  | )
|Reclassifications from OCI to net income         |  |                     | 63   |  
|                                                 |  |                     |     
|Accumulated OCI derivative loss at June 30, 2005 |  | $                   | (224 | )
|                                                 |  |                     |     

|                                                   |  |                     |      |  
|-------------------------------------------------- |  | ------------------- | ---- | -
|                                                   |  | Total Cash-Flow     |     
|                                                   |  | Hedge OCI Activity, |     
|Six Months Ended June 30, 2005                     |  | Net of Income Tax   |     
|                                                   |  |                     |     
|Accumulated OCI derivative loss at January 1, 2005 |  | $                   | (137 | )
|Changes in fair value                              |  |                     | (204 | )
|Reclassifications from OCI to net income           |  |                     | 117  |  
|                                                   |  |                     |     
|Accumulated OCI derivative loss at June 30, 2005   |  | $                   | (224 | )
|                                                   |  |                     |     

|                                                 |  |                     |      |  
|------------------------------------------------ |  | ------------------- | ---- | -
|                                                 |  | Total Cash-Flow     |     
|                                                 |  | Hedge OCI Activity, |     
|Three Months Ended June 30, 2004                 |  | Net of Income Tax   |     
|                                                 |  |                     |     
|Accumulated OCI derivative loss at April 1, 2004 |  | $                   | (322 | )
|Changes in fair value                            |  |                     | (44  | )
|Reclassifications from OCI to net income         |  |                     | 76   |  
|                                                 |  |                     |     
|Accumulated OCI derivative loss at June 30, 2004 |  | $                   | (290 | )
|                                                 |  |                     |     

|                                                   |  |                     |      |  
|-------------------------------------------------- |  | ------------------- | ---- | -
|                                                   |  | Total Cash-Flow     |     
|                                                   |  | Hedge OCI Activity, |     
|Six Months Ended June 30, 2004                     |  | Net of Income Tax   |     
|                                                   |  |                     |     
|Accumulated OCI derivative loss at January 1, 2004 |  | $                   | (133 | )
|Changes in fair value                              |  |                     | (310 | )
|Reclassifications from OCI to net income           |  |                     | 151  |  
|Exelon Energy opening balance                      |  |                     | 2    |  
|                                                   |  |                     |     
|Accumulated OCI derivative loss at June 30, 2004   |  | $                   | (290 | )
|                                                   |  |                     |     

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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 Derivatives (Exelon and Generation)





Proprietary Trading Activities.




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EXELON CORPORATION AND SUBSIDIARY COMPANIES


COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES


PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES


EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES


COMBINED NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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





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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




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EXELON CORPORATION


Executive Overview


Financial Results.




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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |   | On June 30, 2005, the Federal Energy Regulatory Commission
    (FERC) approved the Merger without a hearing. Exelon and PSEG
    proposed in the FERC application, and FERC approved, a market
    concentration mitigation plan involving the divestiture of
    4,000 MW of coal, mid-merit (or intermediate) and peaking
    generation in the PJM region, the ongoing auction of
    2,600 MW of nuclear output and Exelons and
    PSEGs proposal to invest a total of $25 million in
    transmission improvements, which proposal was accepted by FERC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |   | PSEG shareholders approved the Merger on July 19, 2005.
    Exelon shareholders approved the issuance of Exelon shares
    pursuant to the Merger on July 22, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |   | See Note 4 of the Combined Notes to Consolidated Financial
    Statements for further information. Additionally, see
    Note 2 of Exelons Notes to Consolidated Financial
    Statements within Exelons 2004 Annual Report on
    Form 10-K and Form 8-K filed on May 13, 2005 to
    recast information contained in Exelons and
    Generations 2004 Annual Report on Form 10-K for
    further information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | 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 and Generation recorded $55 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
    determination of the net gain on sale of

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| |  |                                                                                                                                                                                                     
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | $19 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.

Financing Activities.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On June 15, 2005, ComEd paid $58 million from
    internally generated cash to redeem its outstanding 9.875% First
    Mortgage Bonds, comprised of principal of $54 million,
    interest of $3 million and premium of $1 million.                                                                                                                                                                                                                                                                                                       
|
| |  | During the three and six months ended June 30, 2005, Exelon
    settled interest-rate swaps designated as cash-flow hedges in
    aggregate notional amounts of $1.5 billion entered into in
    anticipation of the issuance of debt to finance contributions to
    its pension plans and recorded net pre-tax losses of
    $39 million, which are being recorded as additional
    interest expense over the life of the debt.                                                                                                        
|
| |  | On June 9, 2005, Exelon issued and sold $1.7 billion
    of senior debt securities pursuant to its senior debt indenture,
    dated as of May 1, 2001, consisting of $400 million of
    4.45% senior notes due 2010, $800 million of
    4.90% senior notes due 2015 and $500 million of
    5.625% senior notes due 2035. The net proceeds from the
    sale of the notes were used to repay $1.5 billion in
    remaining principal due on a $2 billion term loan agreement
    and $200 million of a $500 million term loan agreement.

Regulatory Developments  Through and Out Rates/
SECA.




Illinois Regulatory Filing.


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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 $29 million and
    $15 million during the three months ended June 30,
    2005 and 2004, respectively, and $45 million and
    $29 million during the six months ended June 30, 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 per
    barrel and would have been completely phased out when the annual
    average wellhead price per barrel of domestic crude oil reached
    $64 per barrel. The 2005 phase-out range will be calculated
    using inflation rates published in 2006 by the Internal Revenue
    Service. Exelon estimates that for 2005 the tax credits will
    begin to phase out if the annual average wellhead price per
    barrel of domestic crude oil exceeds $52 per barrel and
    will completely phase out if the annual average wellhead price
    per barrel of domestic crude oil reaches $66 per barrel. As
    of June 30, 2005, the average closing price of a barrel of
    domestic crude oil was approximately $46. Based on both the
    average closing price to date and current futures prices for the
    remaining months of 2005, Exelon estimates that there will not
    be a phase-out of tax credits in 2005.
|
| |   | Absent any efforts to mitigate market price exposure, if
    domestic crude oil prices increase further in 2005 and continue
    to stay at a high level in 2006 and 2007, 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 per year in the event the
    tax credits are completely phased out. In 2005, Exelon and
    Generation entered into certain derivatives to hedge a portion
    of this commodity exposure in the normal course of their trading
    operations. These derivatives could result in cash proceeds to
    Exelon of $23 million, $70 million and
    $70 million in 2005, 2006 and 2007, respectively, in the
    event the tax credits are completely phased-out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

73



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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelon has recorded an intangible asset related to its
    investments in these facilities with a net carrying value of
    $177 million at June 30, 2005 that could become
    impaired if domestic crude oil prices continue to increase in
    the future. However, 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 $189 million as of
    June 30, 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 June 30, 2005 Compared To Three
    Months Ended June 30, 2004

|                                                                                |  |              |       |   |               |   |       |          |  |   |       |  
|------------------------------------------------------------------------------- |  | ------------ | ----- | - | ------------- | - | ----- | -------- |  | - | ----- | -
|                                                                                |  | Three Months |       |   |              
|                                                                                |  | Ended        |       |   |              
|                                                                                |  | June 30,     |       |   | Favorable     |  
|                                                                                |  |              |       |   | (Unfavorable) |  
|                                                                                |  | 2005         |       |   | 2004          |   |       | Variance | 
|                                                                                |  |              |       |   |               |   |       |          | 
|Operating revenues                                                              |  | $            | 3,484 |   |               | $ | 3,438 |          |  | $ | 46    |  
|Purchased power and fuel expense                                                |  |              | 1,140 |   |               |   | 1,153 |          |  |   | 13    |  
|Operating and maintenance expense                                               |  |              | 945   |   |               |   | 939   |          |  |   | (6    | )
|Depreciation and amortization                                                   |  |              | 325   |   |               |   | 311   |          |  |   | (14   | )
|Operating income                                                                |  |              | 897   |   |               |   | 853   |          |  |   | 44    |  
|Other income and deductions                                                     |  |              | (174  | ) |               |   | (128  | )        |  |   | (46   | )
|Income from continuing operations before income taxes and
    minority interest |  |              | 723   |   |               |   | 725   |          |  |   | (2    | )
|Income from continuing operations                                               |  |              | 516   |   |               |   | 503   |          |  |   | 13    |  
|Income (loss) from discontinued operations                                      |  |              | (2    | ) |               |   | 18    |          |  |   | (20   | )
|Net income                                                                      |  |              | 514   |   |               |   | 521   |          |  |   | (7    | )
|Diluted earnings per share                                                      |  |              | 0.76  |   |               |   | 0.78  |          |  |   | (0.02 | )

Operating Revenues.


Purchased Power and Fuel Expense.


Operating and Maintenance Expense.


Depreciation and Amortization Expense.


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Operating Income.


Other Income and Deductions.


Effective Income Tax Rate.


Discontinued Operations.






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







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

|                |  |              |     |  |               |   |     |          |  |   |     |  
|--------------- |  | ------------ | --- |  | ------------- | - | --- | -------- |  | - | --- | -
|                |  | Three Months |     |  |              
|                |  | Ended        |     |  |              
|                |  | June 30,     |     |  | Favorable     |  
|                |  |              |     |  | (Unfavorable) |  
|                |  | 2005         |     |  | 2004          |   |     | Variance | 
|                |  |              |     |  |               |   |     |          | 
|Energy Delivery |  | $            | 218 |  |               | $ | 303 |          |  | $ | (85 | )
|Generation      |  |              | 297 |  |               |   | 187 |          |  |   | 110 |  
|Other(a)        |  |              | 1   |  |               |   | 13  |          |  |   | (12 | )
|                |  |              |     |  |               |   |     |          | 
|Total           |  | $            | 516 |  |               | $ | 503 |          |  | $ | 13  |  
|                |  |              |     |  |               |   |     |          | 






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

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

|                |  |              |     |  |               |   |     |          |  |   |     |  
|--------------- |  | ------------ | --- |  | ------------- | - | --- | -------- |  | - | --- | -
|                |  | Three Months |     |  |              
|                |  | Ended        |     |  |              
|                |  | June 30,     |     |  | Favorable     |  
|                |  |              |     |  | (Unfavorable) |  
|                |  | 2005         |     |  | 2004          |   |     | Variance | 
|                |  |              |     |  |               |   |     |          | 
|Energy Delivery |  | $            | 218 |  |               | $ | 303 |          |  | $ | (85 | )
|Generation      |  |              | 296 |  |               |   | 178 |          |  |   | 118 |  
|Other(a)        |  |              |    |  |               |   | 40  |          |  |   | (40 | )
|                |  |              |     |  |               |   |     |          | 
|Total           |  | $            | 514 |  |               | $ | 521 |          |  | $ | (7  | )
|                |  |              |     |  |               |   |     |          | 






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



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

|                            |                                                       |                                   |       |       |               |   |       |          |       |   |      |      |      |  
|--------------------------- | ----------------------------------------------------- | --------------------------------- | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | ---- | ---- | ---- | -
|                            |                                                       | Three Months                      |       |       |              
|                            |                                                       | Ended                             |       |       |              
|                            |                                                       | June 30,                          |       |       | Favorable     |  
|                            |                                                       |                                   |       |       | (Unfavorable) |  
|                            |                                                       | 2005                              |       |       | 2004          |   |       | Variance |      
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating revenues          |                                                       | $                                 | 2,532 |       |               | $ | 2,435 |          |       | $ | 97   |     
|Operating expenses          |                                                       |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Purchased power and fuel expense                      |                                   |       | 1,361 |               |   |       | 1,059    |       |   |      | (302 | )   
|                            | Operating and maintenance                             |                                   |       | 321   |               |   |       | 355      |       |   |      | 34   |     
|                            | Depreciation and amortization                         |                                   |       | 238   |               |   |       | 228      |       |   |      | (10  | )   
|                            | Taxes other than income                               |                                   |       | 133   |               |   |       | 132      |       |   |      | (1   | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total operating expense           |       |       | 2,053         |   |       |          | 1,774 |   |      |      | (279 | )
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating income            |                                                       |                                   | 479   |       |               |   | 661   |          |       |   | (182 | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Other income and deductions |                                                       |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Interest expense                                      |                                   |       | (147  | )             |   |       | (172     | )     |   |      | 25   |     
|                            | Distributions on preferred securities of subsidiaries |                                   |       | (1    | )             |   |       | (1       | )     |   |      |     |     
|                            | Equity in losses of unconsolidated affiliates         |                                   |       | (8    | )             |   |       | (13      | )     |   |      | 5    |     
|                            | Other, net                                            |                                   |       | 13    |               |   |       | 10       |       |   |      | 3    |     
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total other income and deductions |       |       | (143          | ) |       |          | (176  | ) |      |      | 33   |  
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Income before income taxes  |                                                       |                                   | 336   |       |               |   | 485   |          |       |   | (149 | )   
|Income taxes                |                                                       |                                   | 118   |       |               |   | 182   |          |       |   | 64   |     
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Net income                  |                                                       | $                                 | 218   |       |               | $ | 303   |          |       | $ | (85  | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      

Net Income.


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Operating Revenues.


|                                          |                |          |     |    |          |   |    |          |  |       |      |     |  |            |     |    |   |   |     |     | 
|----------------------------------------- | -------------- | -------- | --- | -- | -------- | - | -- | -------- |  | ----- | ---- | --- |  | ---------- | --- | -- | - | - | --- | --- | 
|                                          |                |          |     |    |          |   |    |          |  | Total |     
|                                          |                | ComEd    |     |    | PECO     |   |    | Total    |  |       | PECO |     |  | Increase   |    
|                                          |                | Electric |     |    | Electric |   |    | Electric |  |       | Gas  |     |  | (Decrease) |    
|                                          |                |          |     |    |          |   |    |          |  |       |      |     |  |            |    
|Weather                                   |                | $        | 87  |    |          | $ | (9 | )        |  | $     | 78   |     |  | $          | 7   |    |   | $ | 85  |    
|Customer choice                           |                |          | 26  |    |          |   | 27 |          |  |       | 53   |     |  |            |    |    |   |   | 53  |    
|Volume                                    |                |          | (15 | )  |          |   |   |          |  |       | (15  | )   |  |            | (19 | )  |   |   | (34 | )  
|Rate changes and mix                      |                |          | (21 | )  |          |   | 11 |          |  |       | (10  | )   |  |            | 5   |    |   |   | (5  | )  
|Other                                     |                |          | 1   |    |          |   |   |          |  |       | 1    |     |  |            |    |    |   |   | 1   |    
|                                          |                |          |     |    |          |   |    |          |  |       |      |     |  |            |    
|                                          | Retail revenue |          |     | 78 |          |   |    | 29       |  |       |      | 107 |  |            |     | (7 | ) |   |     | 100 | 
|                                          |                |          |     |    |          |   |    |          |  |       |      |     |  |            |    
|PJM transmission                          |                |          | 8   |    |          |   |   |          |  |       | 8    |     |  |            |    |    |   |   | 8   |    
|T&O/ SECA rates                           |                |          | (7  | )  |          |   |   |          |  |       | (7   | )   |  |            |    |    |   |   | (7  | )  
|Other                                     |                |          | 6   |    |          |   | 2  |          |  |       | 8    |     |  |            | (12 | )  |   |   | (4  | )  
|                                          |                |          |     |    |          |   |    |          |  |       |      |     |  |            |    
|Wholesale and miscellaneous revenues      |                |          | 7   |    |          |   | 2  |          |  |       | 9    |     |  |            | (12 | )  |   |   | (3  | )  
|                                          |                |          |     |    |          |   |    |          |  |       |      |     |  |            |    
|Increase (decrease) in operating revenues |                | $        | 85  |    |          | $ | 31 |          |  | $     | 116  |     |  | $          | (19 | )  |   | $ | 97  |    
|                                          |                |          |     |    |          |   |    |          |  |       |      |     |  |            |    

Weather.


Customer Choice.




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|                                                                                               |                                       |              |  |        |              |  |  |        |    |  |      |        |   |  |  |         |  
|---------------------------------------------------------------------------------------------- | ------------------------------------- | ------------ |  | ------ | ------------ |  |  | ------ | -- |  | ---- | ------ | - |  |  | ------- | -
|                                                                                               |                                       | ComEd        |  |        | PECO         | 
|                                                                                               |                                       | Three Months |  |        | Three Months | 
|                                                                                               |                                       | Ended        |  |        | Ended        | 
|                                                                                               |                                       | June 30,     |  |        | June 30,     | 
|                                                                                               |                                       |              |  |        |              | 
|                                                                                               |                                       | 2005         |  |        | 2004         |  |  | 2005   |    |  | 2004 |       
|                                                                                               |                                       |              |  |        |              |  |  |        |    |  |      |       
|Retail customers purchasing energy from an alternative electric
    supplier:                  |                                       |              |  |        |              |  |  |        |    |  |      |        |   |  |  |        
|                                                                                               | Volume (GWhs)                         |              |  | 4,825  |              |  |  | 5,257  |    |  |      | 535    |   |  |  | 1,111   |  
|                                                                                               | Percentage of total retail deliveries |              |  | 22     | %            |  |  | 25     | %  |  |      | 6      | % |  |  | 12      | %
|Retail customers purchasing energy from an alternative electric
    supplier or the ComEd PPO: |                                       |              |  |        |              |  |  |        |    |  |      |        |   |  |  |        
|                                                                                               | Number of customers                   |              |  | 22,300 |              |  |  | 21,400 |    |  |      | 71,200 |   |  |  | 292,100 |  
|                                                                                               | Percentage of total retail customers  |              |  | (a     | )%           |  |  | (a     | )% |  |      | 5      | % |  |  | 19      | %
|                                                                                               | Volume (GWhs)                         |              |  | 7,893  |              |  |  | 7,581  |    |  |      | 535    |   |  |  | 1,111   |  
|                                                                                               | Percentage of total retail deliveries |              |  | 36     | %            |  |  | 36     | %  |  |      | 6      | % |  |  | 12      | %






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



Volume.


Rate Changes and Mix.






PJM Transmission.


T&O/ SECA Rates.


78



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##### Table of Contents





Other Wholesale and Miscellaneous Revenues.


Purchased Power and Fuel Expense.


|                                                        |  |          |     |   |          |   |    |          |  |       |      |   |  |            |     |   |  |   |     |  
|------------------------------------------------------- |  | -------- | --- | - | -------- | - | -- | -------- |  | ----- | ---- | - |  | ---------- | --- | - |  | - | --- | -
|                                                        |  |          |     |   |          |   |    |          |  | Total |     
|                                                        |  | ComEd    |     |   | PECO     |   |    | Total    |  |       | PECO |   |  | Increase   |    
|                                                        |  | Electric |     |   | Electric |   |    | Electric |  |       | Gas  |   |  | (Decrease) |    
|                                                        |  |          |     |   |          |   |    |          |  |       |      |   |  |            |    
|Prices                                                  |  | $        | 215 |   |          | $ | 9  |          |  | $     | 224  |   |  | $          | 5   |   |  | $ | 229 |  
|Customer choice                                         |  |          | 20  |   |          |   | 27 |          |  |       | 47   |   |  |            |    |   |  |   | 47  |  
|Weather                                                 |  |          | 36  |   |          |   | (3 | )        |  |       | 33   |   |  |            | 5   |   |  |   | 38  |  
|PJM transmission                                        |  |          | 8   |   |          |   | 3  |          |  |       | 11   |   |  |            |    |   |  |   | 11  |  
|Volume                                                  |  |          | (1  | ) |          |   | (2 | )        |  |       | (3   | ) |  |            | (16 | ) |  |   | (19 | )
|T&O/ SECA rates                                         |  |          | (4  | ) |          |   | 1  |          |  |       | (3   | ) |  |            |    |   |  |   | (3  | )
|Other                                                   |  |          | 10  |   |          |   |   |          |  |       | 10   |   |  |            | (11 | ) |  |   | (1  | )
|                                                        |  |          |     |   |          |   |    |          |  |       |      |   |  |            |    
|Increase (decrease) in purchased power and fuel expense |  | $        | 284 |   |          | $ | 35 |          |  | $     | 319  |   |  | $          | (17 | ) |  | $ | 302 |  
|                                                        |  |          |     |   |          |   |    |          |  |       |      |   |  |            |    

Prices.


Customer Choice.


Weather.


PJM Transmission.


Volume.


T&O/ SECA Rates.


79



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##### Table of Contents





Operating and Maintenance Expense.


|                                                        |  |       |     |   |      |          |     |            |  |   |     |  
|------------------------------------------------------- |  | ----- | --- | - | ---- | -------- | --- | ---------- |  | - | --- | -
|                                                        |  |       |     |   |      | Total    |    
|                                                        |  |       |     |   |      | Increase |    
|                                                        |  | ComEd |     |   | PECO |          |     | (Decrease) | 
|                                                        |  |       |     |   |      |          |     |            | 
|Severance-related expenses                              |  | $     | (12 | ) |      | $        | (5  | )          |  | $ | (17 | )
|Pension expense(a)                                      |  |       | (6  | ) |      |          | (4  | )          |  |   | (10 | )
|Professional fees related to income tax refund claim(b) |  |       | (5  | ) |      |          | (3  | )          |  |   | (8  | )
|Allowance for uncollectible accounts(c)                 |  |       |    |   |      |          | (4  | )          |  |   | (4  | )
|Contractors(d)                                          |  |       | 7   |   |      |          | 2   |            |  |   | 9   |  
|Other                                                   |  |       | (5  | ) |      |          | 1   |            |  |   | (4  | )
|                                                        |  |       |     |   |      |          |     |            | 
|Decrease in operating and maintenance expense           |  | $     | (21 | ) |      | $        | (13 | )          |  | $ | (34 | )
|                                                        |  |       |     |   |      |          |     |            | 






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



|    |  |                                                                                                                                                                                                                                                                                                                                                               
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | See Note 13 of the Combined Notes to Consolidated Financial
    Statements for additional information.                                                                                                                                                                                                                                                        
|   
|(c) |  | The decrease at PECO is primarily due to the enforcement of
    stricter collection standards beginning in early 2005 as allowed
    by recent legislation in Pennsylvania.                                                                                                                                                                                   
|   
|(d) |  | Increase was primarily due to increases in vegetation management
    services compared to the prior year for ComEd and PECO and
    consulting services at ComEd related to various regulatory
    proceedings. See Note 5 of the Combined Notes to
    Consolidated Financial Statements for additional information
    regarding the regulatory proceedings.

Depreciation and Amortization Expense.


|                                                             |  |       |    |   |      |          |    |            |  |   |    |  
|------------------------------------------------------------ |  | ----- | -- | - | ---- | -------- | -- | ---------- |  | - | -- | -
|                                                             |  |       |    |   |      | Total    |   
|                                                             |  |       |    |   |      | Increase |   
|                                                             |  | ComEd |    |   | PECO |          |    | (Decrease) | 
|                                                             |  |       |    |   |      |          |    |            | 
|Recoverable transition costs/ CTC amortization               |  | $     | (2 | ) |      | $        | 10 |            |  | $ | 8  |  
|Depreciation expense                                         |  |       | 4  |   |      |          |   |            |  |   | 4  |  
|Accelerated amortization of PECO billing system              |  |       |   |   |      |          | 3  |            |  |   | 3  |  
|Other amortization expense                                   |  |       | (4 | ) |      |          | (1 | )          |  |   | (5 | )
|                                                             |  |       |    |   |      |          |    |            | 
|Increase (decrease) in depreciation and amortization expense |  | $     | (2 | ) |      | $        | 12 |            |  | $ | 10 |  
|                                                             |  |       |    |   |      |          |    |            | 







80



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##### Table of Contents







Taxes Other Than Income.


|                                    |  |       |   |  |      |          |    |            |  |   |    |  
|----------------------------------- |  | ----- | - |  | ---- | -------- | -- | ---------- |  | - | -- | -
|                                    |  |       |   |  |      | Total    |   
|                                    |  |       |   |  |      | Increase |   
|                                    |  | ComEd |   |  | PECO |          |    | (Decrease) | 
|                                    |  |       |   |  |      |          |    |            | 
|Taxes on utility revenues(a)        |  | $     | 1 |  |      | $        | 3  |            |  | $ | 4  |  
|Other                               |  |       |  |  |      |          | (3 | )          |  |   | (3 | )
|                                    |  |       |   |  |      |          |    |            | 
|Increase in taxes other than income |  | $     | 1 |  |      | $        |   |            |  | $ | 1  |  
|                                    |  |       |   |  |      |          |    |            | 






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

Interest Expense.


Equity in Losses of Unconsolidated Affiliates.


Other, Net.


|                                                         |  |       |    |   |      |          |   |            |  |   |    |  
|-------------------------------------------------------- |  | ----- | -- | - | ---- | -------- | - | ---------- |  | - | -- | -
|                                                         |  |       |    |   |      | Total    |  
|                                                         |  |       |    |   |      | Increase |  
|                                                         |  | ComEd |    |   | PECO |          |   | (Decrease) | 
|                                                         |  |       |    |   |      |          |   |            | 
|Interest income on long-term receivable from UII, LLC(a) |  | $     | (4 | ) |      | $        |  |            |  | $ | (4 | )
|Gain on disposition of assets and investments, net       |  |       | 2  |   |      |          | 2 |            |  |   | 4  |  
|Other                                                    |  |       | 2  |   |      |          | 1 |            |  |   | 3  |  
|                                                         |  |       |    |   |      |          |   |            | 
|Increase 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.




81



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##### Table of Contents





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



|                                                 |                             |              |        |        |      |  |        |          |  |  |          |       |   |  |       |      |   
|------------------------------------------------ | --------------------------- | ------------ | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ----- | - |  | ----- | ---- | --
|                                                 |                             | Three Months |        |        |      |  |       
|                                                 |                             | Ended        |        |        |      |  |       
|                                                 |                             | June 30,     |        |        |      |  |       
|                                                 |                             |              |        |        |      |  |       
|Retail Deliveries  (in gigawatthours (GWhs))(a) |                             | 2005         |        |        | 2004 |  |        | Variance |  |  | % Change |      
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      
|Full service(b)                                  |                             |              |        |        |      |  |        |          |  |  |          |       |   |  |       |     
|Residential                                      |                             |              | 8,921  |        |      |  | 8,065  |          |  |  | 856      |       |   |  | 10.6  | %   
|Small commercial & industrial                    |                             |              | 6,833  |        |      |  | 6,704  |          |  |  | 129      |       |   |  | 1.9   | %   
|Large commercial & industrial                    |                             |              | 5,808  |        |      |  | 5,433  |          |  |  | 375      |       |   |  | 6.9   | %   
|Public authorities & electric railroads          |                             |              | 726    |        |      |  | 893    |          |  |  | (167     | )     |   |  | (18.7 | )%  
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      
|                                                 | Total full service          |              |        | 22,288 |      |  |        | 21,095   |  |  |          | 1,193 |   |  |       | 5.7  | % 
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      
|PPO (ComEd only)                                 |                             |              |        |        |      |  |        |          |  |  |          |       |   |  |       |     
|Small commercial & industrial                    |                             |              | 1,433  |        |      |  | 1,128  |          |  |  | 305      |       |   |  | 27.0  | %   
|Large commercial & industrial                    |                             |              | 1,635  |        |      |  | 1,196  |          |  |  | 439      |       |   |  | 36.7  | %   
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      
|                                                 |                             |              | 3,068  |        |      |  | 2,324  |          |  |  | 744      |       |   |  | 32.0  | %   
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      
|Delivery only(c)                                 |                             |              |        |        |      |  |        |          |  |  |          |       |   |  |       |     
|Residential                                      |                             |              | 74     |        |      |  | 488    |          |  |  | (414     | )     |   |  | (84.8 | )%  
|Small commercial & industrial                    |                             |              | 1,810  |        |      |  | 1,982  |          |  |  | (172     | )     |   |  | (8.7  | )%  
|Large commercial & industrial                    |                             |              | 3,476  |        |      |  | 3,898  |          |  |  | (422     | )     |   |  | (10.8 | )%  
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      
|                                                 |                             |              | 5,360  |        |      |  | 6,368  |          |  |  | (1,008   | )     |   |  | (15.8 | )%  
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      
|                                                 | Total PPO and delivery only |              |        | 8,428  |      |  |        | 8,692    |  |  |          | (264  | ) |  |       | (3.0 | )%
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      
|Total retail deliveries                          |                             |              | 30,716 |        |      |  | 29,787 |          |  |  | 929      |       |   |  | 3.1   | %   
|                                                 |                             |              |        |        |      |  |        |          |  |  |          |      






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

82



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|                                        |                                        |              |       |       |      |   |       |          |  |   |          |     |   |  |       |      |   
|--------------------------------------- | -------------------------------------- | ------------ | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | --- | - |  | ----- | ---- | --
|                                        |                                        | Three Months |       |       |      |   |      
|                                        |                                        | Ended        |       |       |      |   |      
|                                        |                                        | June 30,     |       |       |      |   |      
|                                        |                                        |              |       |       |      |   |      
|Electric Revenue                        |                                        | 2005         |       |       | 2004 |   |       | Variance |  |   | % Change |    
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                                        |              |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        | $            | 918   |       |      | $ | 819   |          |  | $ | 99       |     |   |  | 12.1  | %   
|Small commercial & industrial           |                                        |              | 616   |       |      |   | 597   |          |  |   | 19       |     |   |  | 3.2   | %   
|Large commercial & industrial           |                                        |              | 388   |       |      |   | 378   |          |  |   | 10       |     |   |  | 2.6   | %   
|Public authorities & electric railroads |                                        |              | 51    |       |      |   | 64    |          |  |   | (13      | )   |   |  | (20.3 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service                     |              |       | 1,973 |      |   |       | 1,858    |  |   |          | 115 |   |  |       | 6.2  | % 
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|PPO (ComEd only)(b)                     |                                        |              |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Small commercial & industrial           |                                        |              | 99    |       |      |   | 73    |          |  |   | 26       |     |   |  | 35.6  | %   
|Large commercial & industrial           |                                        |              | 93    |       |      |   | 69    |          |  |   | 24       |     |   |  | 34.8  | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |              | 192   |       |      |   | 142   |          |  |   | 50       |     |   |  | 35.2  | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|Delivery only(c)                        |                                        |              |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        |              | 6     |       |      |   | 38    |          |  |   | (32      | )   |   |  | (84.2 | )%  
|Small commercial & industrial           |                                        |              | 44    |       |      |   | 56    |          |  |   | (12      | )   |   |  | (21.4 | )%  
|Large commercial & industrial           |                                        |              | 45    |       |      |   | 59    |          |  |   | (14      | )   |   |  | (23.7 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |              | 95    |       |      |   | 153   |          |  |   | (58      | )   |   |  | (37.9 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        | Total PPO and delivery only            |              |       | 287   |      |   |       | 295      |  |   |          | (8  | ) |  |       | (2.7 | )%
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                                        |              | 2,260 |       |      |   | 2,153 |          |  |   | 107      |     |   |  | 5.0   | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|                                        | Wholesale and miscellaneous revenue(d) |              |       | 172   |      |   |       | 163      |  |   |          | 9   |   |  |       | 5.5  | % 
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    
|Total electric and other revenue        |                                        | $            | 2,432 |       |      | $ | 2,316 |          |  | $ | 116      |     |   |  | 5.0   | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    






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

83



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



|                                        |                             |              |        |        |      |  |        |          |  |  |          |     |  |  |       |     |  
|--------------------------------------- | --------------------------- | ------------ | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | --- |  |  | ----- | --- | -
|                                        |                             | Three Months |        |        |      |  |       
|                                        |                             | Ended        |        |        |      |  |       
|                                        |                             | June 30,     |        |        |      |  |       
|                                        |                             |              |        |        |      |  |       
|Retail Deliveries  (in GWhs)           |                             | 2005         |        |        | 2004 |  |        | Variance |  |  | % Change |    
|                                        |                             |              |        |        |      |  |        |          |  |  |          |    
|Full service(a)                         |                             |              |        |        |      |  |        |          |  |  |          |     |  |  |       |    
|Residential                             |                             |              | 6,235  |        |      |  | 5,793  |          |  |  | 442      |     |  |  | 7.6   | %  
|Small commercial & industrial           |                             |              | 5,103  |        |      |  | 5,018  |          |  |  | 85       |     |  |  | 1.7   | %  
|Large commercial & industrial           |                             |              | 2,103  |        |      |  | 1,730  |          |  |  | 373      |     |  |  | 21.6  | %  
|Public authorities & electric railroads |                             |              | 521    |        |      |  | 669    |          |  |  | (148     | )   |  |  | (22.1 | )% 
|                                        |                             |              |        |        |      |  |        |          |  |  |          |    
|                                        | Total full service          |              |        | 13,962 |      |  |        | 13,210   |  |  |          | 752 |  |  |       | 5.7 | %
|                                        |                             |              |        |        |      |  |        |          |  |  |          |    
|PPO                                     |                             |              |        |        |      |  |        |          |  |  |          |     |  |  |       |    
|Small commercial & industrial           |                             |              | 1,433  |        |      |  | 1,128  |          |  |  | 305      |     |  |  | 27.0  | %  
|Large commercial & industrial           |                             |              | 1,635  |        |      |  | 1,196  |          |  |  | 439      |     |  |  | 36.7  | %  
|                                        |                             |              |        |        |      |  |        |          |  |  |          |    
|                                        |                             |              | 3,068  |        |      |  | 2,324  |          |  |  | 744      |     |  |  | 32.0  | %  
|                                        |                             |              |        |        |      |  |        |          |  |  |          |    
|Delivery only(b)                        |                             |              |        |        |      |  |        |          |  |  |          |     |  |  |       |    
|Small commercial & industrial           |                             |              | 1,495  |        |      |  | 1,549  |          |  |  | (54      | )   |  |  | (3.5  | )% 
|Large commercial & industrial           |                             |              | 3,330  |        |      |  | 3,708  |          |  |  | (378     | )   |  |  | (10.2 | )% 
|                                        |                             |              |        |        |      |  |        |          |  |  |          |    
|                                        |                             |              | 4,825  |        |      |  | 5,257  |          |  |  | (432     | )   |  |  | (8.2  | )% 
|                                        |                             |              |        |        |      |  |        |          |  |  |          |    
|                                        | Total PPO and delivery only |              |        | 7,893  |      |  |        | 7,581    |  |  |          | 312 |  |  |       | 4.1 | %
|                                        |                             |              |        |        |      |  |        |          |  |  |          |    
|Total retail deliveries                 |                             |              | 21,855 |        |      |  | 20,791 |          |  |  | 1,064    |     |  |  | 5.1   | %  
|                                        |                             |              |        |        |      |  |        |          |  |  |          |    






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

84



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|                                        |                                        |              |       |       |      |   |       |          |  |   |          |    |  |  |       |      |  
|--------------------------------------- | -------------------------------------- | ------------ | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | -- |  |  | ----- | ---- | -
|                                        |                                        | Three Months |       |       |      |   |      
|                                        |                                        | Ended        |       |       |      |   |      
|                                        |                                        | June 30,     |       |       |      |   |      
|                                        |                                        |              |       |       |      |   |      
|Electric Revenue                        |                                        | 2005         |       |       | 2004 |   |       | Variance |  |   | % Change |   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|Full service(a)                         |                                        |              |       |       |      |   |       |          |  |   |          |    |  |  |       |     
|Residential                             |                                        | $            | 559   |       |      | $ | 521   |          |  | $ | 38       |    |  |  | 7.3   | %   
|Small commercial & industrial           |                                        |              | 413   |       |      |   | 400   |          |  |   | 13       |    |  |  | 3.3   | %   
|Large commercial & industrial           |                                        |              | 105   |       |      |   | 97    |          |  |   | 8        |    |  |  | 8.2   | %   
|Public authorities & electric railroads |                                        |              | 32    |       |      |   | 44    |          |  |   | (12      | )  |  |  | (27.3 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|                                        | Total full service                     |              |       | 1,109 |      |   |       | 1,062    |  |   |          | 47 |  |  |       | 4.4  | %
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|PPO(b)                                  |                                        |              |       |       |      |   |       |          |  |   |          |    |  |  |       |     
|Small commercial & industrial           |                                        |              | 99    |       |      |   | 73    |          |  |   | 26       |    |  |  | 35.6  | %   
|Large commercial & industrial           |                                        |              | 93    |       |      |   | 69    |          |  |   | 24       |    |  |  | 34.8  | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|                                        |                                        |              | 192   |       |      |   | 142   |          |  |   | 50       |    |  |  | 35.2  | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|Delivery only(c)                        |                                        |              |       |       |      |   |       |          |  |   |          |    |  |  |       |     
|Small commercial & industrial           |                                        |              | 27    |       |      |   | 33    |          |  |   | (6       | )  |  |  | (18.2 | )%  
|Large commercial & industrial           |                                        |              | 41    |       |      |   | 54    |          |  |   | (13      | )  |  |  | (24.1 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|                                        |                                        |              | 68    |       |      |   | 87    |          |  |   | (19      | )  |  |  | (21.8 | )%  
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|                                        | Total PPO and delivery only            |              |       | 260   |      |   |       | 229      |  |   |          | 31 |  |  |       | 13.5 | %
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|Total electric retail revenues          |                                        |              | 1,369 |       |      |   | 1,291 |          |  |   | 78       |    |  |  | 6.0   | %   
|                                        | Wholesale and miscellaneous revenue(d) |              |       | 119   |      |   |       | 112      |  |   |          | 7  |  |  |       | 6.3  | %
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   
|Total operating revenues                |                                        | $            | 1,488 |       |      | $ | 1,403 |          |  | $ | 85       |    |  |  | 6.1   | %   
|                                        |                                        |              |       |       |      |   |       |          |  |   |          |   






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

85



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



|                                        |                     |              |       |       |      |  |       |          |  |  |          |      |   |  |       |       |   
|--------------------------------------- | ------------------- | ------------ | ----- | ----- | ---- |  | ----- | -------- |  |  | -------- | ---- | - |  | ----- | ----- | --
|                                        |                     | Three Months |       |       |      |  |      
|                                        |                     | Ended        |       |       |      |  |      
|                                        |                     | June 30,     |       |       |      |  |      
|                                        |                     |              |       |       |      |  |      
|Retail Deliveries  (in GWhs)           |                     | 2005         |       |       | 2004 |  |       | Variance |  |  | % Change |     
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|Full service(a)                         |                     |              |       |       |      |  |       |          |  |  |          |      |   |  |       |      
|Residential                             |                     |              | 2,686 |       |      |  | 2,272 |          |  |  | 414      |      |   |  | 18.2  | %    
|Small commercial & industrial           |                     |              | 1,730 |       |      |  | 1,686 |          |  |  | 44       |      |   |  | 2.6   | %    
|Large commercial & industrial           |                     |              | 3,705 |       |      |  | 3,703 |          |  |  | 2        |      |   |  | 0.1   | %    
|Public authorities & electric railroads |                     |              | 205   |       |      |  | 224   |          |  |  | (19      | )    |   |  | (8.5  | )%   
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|                                        | Total full service  |              |       | 8,326 |      |  |       | 7,885    |  |  |          | 441  |   |  |       | 5.6   | % 
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|Delivery only(b)                        |                     |              |       |       |      |  |       |          |  |  |          |      |   |  |       |      
|Residential                             |                     |              | 74    |       |      |  | 488   |          |  |  | (414     | )    |   |  | (84.8 | )%   
|Small commercial & industrial           |                     |              | 315   |       |      |  | 433   |          |  |  | (118     | )    |   |  | (27.3 | )%   
|Large commercial & industrial           |                     |              | 146   |       |      |  | 190   |          |  |  | (44      | )    |   |  | (23.2 | )%   
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|                                        | Total delivery only |              |       | 535   |      |  |       | 1,111    |  |  |          | (576 | ) |  |       | (51.8 | )%
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     
|Total retail deliveries                 |                     |              | 8,861 |       |      |  | 8,996 |          |  |  | (135     | )    |   |  | (1.5  | )%   
|                                        |                     |              |       |       |      |  |       |          |  |  |          |     






|    |  |                                                                                                                          
|--- |  | -------------------------------------------------------------------------------------------------------------------------
|(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        |     |     |      |   |    
|                                        |                     | June 30,     |     |     |      |   |    
|                                        |                     |              |     |     |      |   |    
|Electric Revenue                        |                     | 2005         |     |     | 2004 |   |     | Variance |  |   | % Change |    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Full service(a)                         |                     |              |     |     |      |   |     |          |  |   |          |     |   |  |       |      
|Residential                             |                     | $            | 359 |     |      | $ | 298 |          |  | $ | 61       |     |   |  | 20.5  | %    
|Small commercial & industrial           |                     |              | 203 |     |      |   | 197 |          |  |   | 6        |     |   |  | 3.0   | %    
|Large commercial & industrial           |                     |              | 283 |     |      |   | 281 |          |  |   | 2        |     |   |  | 0.7   | %    
|Public authorities & electric railroads |                     |              | 19  |     |      |   | 20  |          |  |   | (1       | )   |   |  | (5.0  | )%   
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|                                        | Total full service  |              |     | 864 |      |   |     | 796      |  |   |          | 68  |   |  |       | 8.5   | % 
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Delivery only(b)                        |                     |              |     |     |      |   |     |          |  |   |          |     |   |  |       |      
|Residential                             |                     |              | 6   |     |      |   | 38  |          |  |   | (32      | )   |   |  | (84.2 | )%   
|Small commercial & industrial           |                     |              | 17  |     |      |   | 23  |          |  |   | (6       | )   |   |  | (26.1 | )%   
|Large commercial & industrial           |                     |              | 4   |     |      |   | 5   |          |  |   | (1       | )   |   |  | (20.0 | )%   
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|                                        | Total delivery only |              |     | 27  |      |   |     | 66       |  |   |          | (39 | ) |  |       | (59.1 | )%
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Total electric retail revenues          |                     |              | 891 |     |      |   | 862 |          |  |   | 29       |     |   |  | 3.4   | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Wholesale and miscellaneous revenue(c)  |                     |              | 53  |     |      |   | 51  |          |  |   | 2        |     |   |  | 3.9   | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    
|Total electric and other revenue        |                     | $            | 944 |     |      | $ | 913 |          |  | $ | 31       |     |   |  | 3.4   | %    
|                                        |                     |              |     |     |      |   |     |          |  |   |          |    






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

86



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



|                                                       |  |              |        |  |      |  |        |          |  |  |          |   |  |  |      |   
|------------------------------------------------------ |  | ------------ | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ---- | --
|                                                       |  | Three Months |        |  |      |  |       
|                                                       |  | Ended        |        |  |      |  |       
|                                                       |  | June 30,     |        |  |      |  |       
|                                                       |  |              |        |  |      |  |       
|Deliveries to customers (in million cubic feet (mmcf)) |  | 2005         |        |  | 2004 |  |        | Variance |  |  | % Change |  
|                                                       |  |              |        |  |      |  |        |          |  |  |          |  
|Retail sales                                           |  |              | 7,398  |  |      |  | 8,162  |          |  |  | (764     | ) |  |  | (9.4 | )%
|Transportation                                         |  |              | 6,019  |  |      |  | 6,410  |          |  |  | (391     | ) |  |  | (6.1 | )%
|                                                       |  |              |        |  |      |  |        |          |  |  |          |  
|Total                                                  |  |              | 13,417 |  |      |  | 14,572 |          |  |  | (1,155   | ) |  |  | (7.9 | )%
|                                                       |  |              |        |  |      |  |        |          |  |  |          |  

|                  |  |              |     |  |      |   |     |          |  |   |          |   |  |  |       |   
|----------------- |  | ------------ | --- |  | ---- | - | --- | -------- |  | - | -------- | - |  |  | ----- | --
|                  |  | Three Months |     |  |      |   |    
|                  |  | Ended        |     |  |      |   |    
|                  |  | June 30,     |     |  |      |   |    
|                  |  |              |     |  |      |   |    
|Revenue           |  | 2005         |     |  | 2004 |   |     | Variance |  |   | % Change |  
|                  |  |              |     |  |      |   |     |          |  |   |          |  
|Retail sales      |  | $            | 95  |  |      | $ | 102 |          |  | $ | (7       | ) |  |  | (6.9  | )%
|Transportation    |  |              | 4   |  |      |   | 4   |          |  |   |         |   |  |  | 0.0   | % 
|Resales and other |  |              | 1   |  |      |   | 13  |          |  |   | (12      | ) |  |  | (92.3 | )%
|                  |  |              |     |  |      |   |     |          |  |   |          |  
|Total gas revenue |  | $            | 100 |  |      | $ | 119 |          |  | $ | (19      | ) |  |  | (16.0 | )%
|                  |  |              |     |  |      |   |     |          |  |   |          |  

87



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

|                                                                                |                                                 |                                   |       |     |           |   |       |               |       |   |     |     |     |  
|------------------------------------------------------------------------------- | ----------------------------------------------- | --------------------------------- | ----- | --- | --------- | - | ----- | ------------- | ----- | - | --- | --- | --- | -
|                                                                                |                                                 | Three Months                      |       |     |          
|                                                                                |                                                 | Ended                             |       |     |          
|                                                                                |                                                 | June 30,                          |       |     |          
|                                                                                |                                                 |                                   |       |     | Favorable |  
|                                                                                |                                                 | 2005                              |       |     | 2004      |   |       | (Unfavorable) |      
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|Operating revenues                                                              |                                                 | $                                 | 2,105 |     |           | $ | 1,881 |               |       | $ | 224 |    
|Operating expenses                                                              |                                                 |                                   |       |     |           |   |       |               |       |   |     |    
|                                                                                | Purchased power                                 |                                   |       | 517 |           |   |       | 576           |       |   |     | 59  |    
|                                                                                | Fuel                                            |                                   |       | 428 |           |   |       | 390           |       |   |     | (38 | )  
|                                                                                | Operating and maintenance                       |                                   |       | 602 |           |   |       | 573           |       |   |     | (29 | )  
|                                                                                | Depreciation and amortization                   |                                   |       | 63  |           |   |       | 65            |       |   |     | 2   |    
|                                                                                | Taxes other than income                         |                                   |       | 39  |           |   |       | 46            |       |   |     | 7   |    
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|                                                                                |                                                 | Total operating expenses          |       |     | 1,649     |   |       |               | 1,650 |   |     |     | 1   |  
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|Operating income                                                                |                                                 |                                   | 456   |     |           |   | 231   |               |       |   | 225 |    
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|Other income and deductions                                                     |                                                 |                                   |       |     |           |   |       |               |       |   |     |    
|                                                                                | Interest expense                                |                                   |       | (29 | )         |   |       | (27           | )     |   |     | (2  | )  
|                                                                                | Equity in earnings of unconsolidated affiliates |                                   |       | 4   |           |   |       |              |       |   |     | 4   |    
|                                                                                | Other, net                                      |                                   |       | 51  |           |   |       | 96            |       |   |     | (45 | )  
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|                                                                                |                                                 | Total other income and deductions |       |     | 26        |   |       |               | 69    |   |     |     | (43 | )
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|Income from continuing operations before income taxes and
    minority interest |                                                 |                                   | 482   |     |           |   | 300   |               |       |   | 182 |    
|Income taxes                                                                    |                                                 |                                   | 185   |     |           |   | 114   |               |       |   | (71 | )  
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|Income from continuing operations before minority interest                      |                                                 |                                   | 297   |     |           |   | 186   |               |       |   | 111 |    
|Minority interest                                                               |                                                 |                                   |      |     |           |   | 1     |               |       |   | (1  | )  
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|Income from continuing operations                                               |                                                 |                                   | 297   |     |           |   | 187   |               |       |   | 110 |    
|Discontinued operations                                                         |                                                 |                                   |       |     |           |   |       |               |       |   |     |    
|                                                                                | Loss from discontinued operations               |                                   |       |    |           |   |       | (23           | )     |   |     | 23  |    
|                                                                                | Loss on disposal of discontinued operations     |                                   |       | (2  | )         |   |       |              |       |   |     | (2  | )  
|                                                                                | Income taxes                                    |                                   |       | (1  | )         |   |       | (14           | )     |   |     | (13 | )  
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|                                                                                |                                                 | Loss from discontinued operations |       |     | (1        | ) |       |               | (9    | ) |     |     | 8   |  
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      
|Net income                                                                      |                                                 | $                                 | 296   |     |           | $ | 178   |               |       | $ | 118 |    
|                                                                                |                                                 |                                   |       |     |           |   |       |               |      

Operating Revenues.


|                                    |  |              |       |  |      |   |       |          |  |   |          |   |  |  |      |   
|----------------------------------- |  | ------------ | ----- |  | ---- | - | ----- | -------- |  | - | -------- | - |  |  | ---- | --
|                                    |  | Three Months |       |  |      |   |      
|                                    |  | Ended        |       |  |      |   |      
|                                    |  | June 30,     |       |  |      |   |      
|                                    |  |              |       |  |      |   |      
|Revenue                             |  | 2005         |       |  | 2004 |   |       | Variance |  |   | % Change |  
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Electric sales to affiliates        |  | $            | 1,133 |  |      | $ | 846   |          |  | $ | 287      |   |  |  | 33.9 | % 
|Wholesale and retail electric sales |  |              | 783   |  |      |   | 858   |          |  |   | (75      | ) |  |  | (8.7 | )%
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Total energy sales revenue          |  |              | 1,916 |  |      |   | 1,704 |          |  |   | 212      |   |  |  | 12.4 | % 
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Retail gas sales                    |  |              | 95    |  |      |   | 83    |          |  |   | 12       |   |  |  | 14.5 | % 
|Trading portfolio                   |  |              | 3     |  |      |   | (2    | )        |  |   | 5        |   |  |  | n.m. |   
|Other revenue(a)                    |  |              | 91    |  |      |   | 96    |          |  |   | (5       | ) |  |  | (5.2 | )%
|                                    |  |              |       |  |      |   |       |          |  |   |          |  
|Total revenue                       |  | $            | 2,105 |  |      | $ | 1,881 |          |  | $ | 224      |   |  |  | 11.9 | % 
|                                    |  |              |       |  |      |   |       |          |  |   |          |  






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



88



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##### Table of Contents



|                                    |  |              |        |  |      |  |        |          |  |  |          |   |  |  |       |   
|----------------------------------- |  | ------------ | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ----- | --
|                                    |  | Three Months |        |  |      |  |       
|                                    |  | Ended        |        |  |      |  |       
|                                    |  | June 30,     |        |  |      |  |       
|                                    |  |              |        |  |      |  |       
|Sales (in GWhs)                     |  | 2005         |        |  | 2004 |  |        | Variance |  |  | % Change |  
|                                    |  |              |        |  |      |  |        |          |  |  |          |  
|Electric sales to affiliates        |  |              | 28,582 |  |      |  | 26,133 |          |  |  | 2,449    |   |  |  | 9.4   | % 
|Wholesale and retail electric sales |  |              | 18,410 |  |      |  | 24,976 |          |  |  | (6,566   | ) |  |  | (26.3 | )%
|                                    |  |              |        |  |      |  |        |          |  |  |          |  
|Total sales                         |  |              | 46,992 |  |      |  | 51,109 |          |  |  | (4,117   | ) |  |  | (8.1  | )%
|                                    |  |              |        |  |      |  |        |          |  |  |          |  



Electric Sales to Affiliates.


Wholesale and Retail Electric Sales.


|                                                |  |            |     |  
|----------------------------------------------- |  | ---------- | --- | -
|                                                |  | Increase   |    
|                                                |  | (Decrease) |    
|                                                |  |            |    
|Sale of Boston Generating(a)                    |  | $          | (87 | )
|Volume                                          |  |            | (96 | )
|Price                                           |  |            | 100 |  
|Other                                           |  |            | 8   |  
|                                                |  |            |    
|Decrease in wholesale and retail electric sales |  | $          | (75 | )
|                                                |  |            |    






|    |  |                                                                                       
|--- |  | --------------------------------------------------------------------------------------
|(a) |  | Sales of Boston Generating of $2 million were included in
    other revenues for 2004.



Retail Gas Sales.


Other Revenues.


89



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##### Table of Contents



Purchased Power and Fuel Expense.


|                                       |  |              |        |  |      |  |        |          |  |  |          |   |  |  |       |   
|-------------------------------------- |  | ------------ | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ----- | --
|                                       |  | Three Months |        |  |      |  |       
|                                       |  | Ended        |        |  |      |  |       
|                                       |  | June 30,     |        |  |      |  |       
|                                       |  |              |        |  |      |  |       
|Supply Source (in GWhs)                |  | 2005         |        |  | 2004 |  |        | Variance |  |  | % Change |  
|                                       |  |              |        |  |      |  |        |          |  |  |          |  
|Nuclear generation                     |  |              | 34,685 |  |      |  | 34,254 |          |  |  | 431      |   |  |  | 1.3   | % 
|Purchases  non-trading portfolio      |  |              | 9,061  |  |      |  | 11,904 |          |  |  | (2,843   | ) |  |  | (23.9 | )%
|Fossil and hydroelectric generation(a) |  |              | 3,246  |  |      |  | 4,951  |          |  |  | (1,705   | ) |  |  | (34.4 | )%
|                                       |  |              |        |  |      |  |        |          |  |  |          |  
|Total supply                           |  |              | 46,992 |  |      |  | 51,109 |          |  |  | (4,117   | ) |  |  | (8.1  | )%
|                                       |  |              |        |  |      |  |        |          |  |  |          |  






|    |  |                                                                                                                                                      
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------
|(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                             |  | $          | (76 | )
|Mark-to-market adjustments on economic hedges |  |            | 44  |  
|Volume                                        |  |            | (8  | )
|Price                                         |  |            | 35  |  
|Other                                         |  |            | (16 | )
|                                              |  |            |    
|Decrease in purchased power and fuel expense  |  | $          | (21 | )
|                                              |  |            |    

Boston Generating.


Economic Hedges.


Volume.


Price.


Other.


90



---



##### Table of Contents





|                                                                      |                                         |              |       |       |      |   |       |          |  |  |      |      |  
|--------------------------------------------------------------------- | --------------------------------------- | ------------ | ----- | ----- | ---- | - | ----- | -------- |  |  | ---- | ---- | -
|                                                                      |                                         | Three Months |       |       |     
|                                                                      |                                         | Ended        |       |       |     
|                                                                      |                                         | June 30,     |       |       |     
|                                                                      |                                         |              |       |       |     
|($/MWh)                                                               |                                         | 2005         |       |       | 2004 |   |       | % Change | 
|                                                                      |                                         |              |       |       |      |   |       |          | 
|Average electric revenue                                              |                                         |              |       |       |      |   |       |          |  |  |      |     
|                                                                      | Electric sales to affiliates(a)         |              | $     | 39.64 |      |   | $     | 32.37    |  |  |      | 22.4 | %
|                                                                      | Wholesale and retail electric sales     |              |       | 42.53 |      |   |       | 34.35    |  |  |      | 23.8 | %
|                                                                      | Total  excluding the trading portfolio |              |       | 40.77 |      |   |       | 33.34    |  |  |      | 22.3 | %
|Average electric supply cost(b)  excluding the
    trading portfolio |                                         | $            | 18.17 |       |      | $ | 17.32 |          |  |  | 4.9  | %   
|Average margin  excluding the trading portfolio                      |                                         | $            | 22.60 |       |      | $ | 16.02 |          |  |  | 41.1 | %   






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

Operating and Maintenance Expense.


|                                                                       |  |            |     |  
|---------------------------------------------------------------------- |  | ---------- | --- | -
|                                                                       |  | Increase   |    
|                                                                       |  | (Decrease) |    
|                                                                       |  |            |    
|Boston Generating                                                      |  | $          | (29 | )
|Tamuin International                                                   |  |            | 11  |  
|Refueling outage cost                                                  |  |            | 28  |  
|Accrual for estimated future asbestos-related bodily injury
    claims |  |            | 43  |  
|Payroll, benefits and pension cost                                     |  |            | (17 | )
|Other                                                                  |  |            | (7  | )
|                                                                       |  |            |    
|Increase in operating and maintenance expense                          |  | $          | 29  |  
|                                                                       |  |            |    





|                                                              |  |              |       |   |      |   |       |  
|------------------------------------------------------------- |  | ------------ | ----- | - | ---- | - | ----- | -
|                                                              |  | Three Months |      
|                                                              |  | Ended        |      
|                                                              |  | June 30,     |      
|                                                              |  |              |      
|                                                              |  | 2005         |       |   | 2004 |  
|                                                              |  |              |       |   |      |  
|Nuclear fleet capacity factor(a)                              |  |              | 95.4  | % |      |   | 96.1  | %
|Nuclear fleet production cost per MWh(a)                      |  | $            | 11.93 |   |      | $ | 10.88 |  
|Average purchased power cost for wholesale operations per MWh |  | $            | 57.06 |   |      | $ | 48.39 |  






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



91



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##### Table of Contents







Taxes Other Than Income.


Other, Net.


Effective Income Tax Rate.


Discontinued Operations.


92



---



##### Table of Contents



Results of Operations  Exelon Corporation




| |                                                                              
| | -----------------------------------------------------------------------------
| | Six Months Ended June 30, 2005 Compared To Six Months
    Ended June 30, 2004

|                                                                                |  |            |       |   |               |   |       |          |  |   |      |  
|------------------------------------------------------------------------------- |  | ---------- | ----- | - | ------------- | - | ----- | -------- |  | - | ---- | -
|                                                                                |  | Six Months |       |   |              
|                                                                                |  | Ended      |       |   |              
|                                                                                |  | June 30,   |       |   | Favorable     |  
|                                                                                |  |            |       |   | (Unfavorable) |  
|                                                                                |  | 2005       |       |   | 2004          |   |       | Variance | 
|                                                                                |  |            |       |   |               |   |       |          | 
|Operating revenues                                                              |  | $          | 7,045 |   |               | $ | 7,073 |          |  | $ | (28  | )
|Purchased power and fuel expense                                                |  |            | 2,331 |   |               |   | 2,548 |          |  |   | 217  |  
|Operating and maintenance expense                                               |  |            | 1,893 |   |               |   | 1,918 |          |  |   | 25   |  
|Depreciation and amortization                                                   |  |            | 644   |   |               |   | 612   |          |  |   | (32  | )
|Operating income                                                                |  |            | 1,828 |   |               |   | 1,624 |          |  |   | 204  |  
|Other income and deductions                                                     |  |            | (370  | ) |               |   | (342  | )        |  |   | (28  | )
|Income from continuing operations before income taxes and
    minority interest |  |            | 1,458 |   |               |   | 1,282 |          |  |   | 176  |  
|Income from continuing operations                                               |  |            | 1,023 |   |               |   | 900   |          |  |   | 123  |  
|Income from discontinued operations                                             |  |            | 12    |   |               |   | 1     |          |  |   | 11   |  
|Income before cumulative effect of a change in accounting
    principle         |  |            | 1,035 |   |               |   | 901   |          |  |   | 134  |  
|Net income                                                                      |  |            | 1,035 |   |               |   | 933   |          |  |   | 102  |  
|Diluted earnings per share                                                      |  |            | 1.53  |   |               |   | 1.40  |          |  |   | 0.13 |  

Operating Revenues.


Purchased Power and Fuel Expense.


Operating and Maintenance Expense.


Depreciation and Amortization Expense.


Operating Income.


93



---



##### Table of Contents





Other Income and Deductions.


Effective Income Tax Rate.


Discontinued Operations.






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







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

|                |  |            |       |  |               |   |     |          |  |   |      |  
|--------------- |  | ---------- | ----- |  | ------------- | - | --- | -------- |  | - | ---- | -
|                |  | Six Months |       |  |              
|                |  | Ended      |       |  |              
|                |  | June 30,   |       |  | Favorable     |  
|                |  |            |       |  | (Unfavorable) |  
|                |  | 2005       |       |  | 2004          |   |     | Variance | 
|                |  |            |       |  |               |   |     |          | 
|Energy Delivery |  | $          | 416   |  |               | $ | 619 |          |  | $ | (203 | )
|Generation      |  |            | 601   |  |               |   | 258 |          |  |   | 343  |  
|Other(a)        |  |            | 6     |  |               |   | 23  |          |  |   | (17  | )
|                |  |            |       |  |               |   |     |          | 
|Total           |  | $          | 1,023 |  |               | $ | 900 |          |  | $ | 123  |  
|                |  |            |       |  |               |   |     |          | 






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

94



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##### Table of Contents





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

|                |  |            |       |  |               |   |     |          |  |   |      |  
|--------------- |  | ---------- | ----- |  | ------------- | - | --- | -------- |  | - | ---- | -
|                |  | Six Months |       |  |              
|                |  | Ended      |       |  |              
|                |  | June 30,   |       |  | Favorable     |  
|                |  |            |       |  | (Unfavorable) |  
|                |  | 2005       |       |  | 2004          |   |     | Variance | 
|                |  |            |       |  |               |   |     |          | 
|Energy Delivery |  | $          | 416   |  |               | $ | 619 |          |  | $ | (203 | )
|Generation      |  |            | 616   |  |               |   | 280 |          |  |   | 336  |  
|Other(a)        |  |            | 3     |  |               |   | 34  |          |  |   | (31  | )
|                |  |            |       |  |               |   |     |          | 
|Total           |  | $          | 1,035 |  |               | $ | 933 |          |  | $ | 102  |  
|                |  |            |       |  |               |   |     |          | 






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



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

|                            |                                                       |                                   |       |       |               |   |       |          |       |   |      |      |      |  
|--------------------------- | ----------------------------------------------------- | --------------------------------- | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | ---- | ---- | ---- | -
|                            |                                                       | Six Months                        |       |       |              
|                            |                                                       | Ended                             |       |       |              
|                            |                                                       | June 30,                          |       |       | Favorable     |  
|                            |                                                       |                                   |       |       | (Unfavorable) |  
|                            |                                                       | 2005                              |       |       | 2004          |   |       | Variance |      
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating revenues          |                                                       | $                                 | 5,214 |       |               | $ | 5,010 |          |       | $ | 204  |     
|Operating expenses          |                                                       |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Purchased power and fuel expense                      |                                   |       | 2,879 |               |   |       | 2,239    |       |   |      | (640 | )   
|                            | Operating and maintenance                             |                                   |       | 657   |               |   |       | 704      |       |   |      | 47   |     
|                            | Depreciation and amortization                         |                                   |       | 471   |               |   |       | 455      |       |   |      | (16  | )   
|                            | Taxes other than income                               |                                   |       | 266   |               |   |       | 269      |       |   |      | 3    |     
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total operating expense           |       |       | 4,273         |   |       |          | 3,667 |   |      |      | (606 | )
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Operating income            |                                                       |                                   | 941   |       |               |   | 1,343 |          |       |   | (402 | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Other income and deductions |                                                       |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Interest expense                                      |                                   |       | (293  | )             |   |       | (355     | )     |   |      | 62   |     
|                            | Distributions on preferred securities of subsidiaries |                                   |       | (2    | )             |   |       | (2       | )     |   |      |     |     
|                            | Equity in losses of unconsolidated affiliates         |                                   |       | (16   | )             |   |       | (22      | )     |   |      | 6    |     
|                            | Other, net                                            |                                   |       | 22    |               |   |       | 22       |       |   |      |     |     
|                            |                                                       |                                   |       |       |               |   |       |          |      
|                            |                                                       | Total other income and deductions |       |       | (289          | ) |       |          | (357  | ) |      |      | 68   |  
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Income before income taxes  |                                                       |                                   | 652   |       |               |   | 986   |          |       |   | (334 | )   
|Income taxes                |                                                       |                                   | 236   |       |               |   | 367   |          |       |   | 131  |     
|                            |                                                       |                                   |       |       |               |   |       |          |      
|Net income                  |                                                       | $                                 | 416   |       |               | $ | 619   |          |       | $ | (203 | )   
|                            |                                                       |                                   |       |       |               |   |       |          |      

Net Income.


95



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##### Table of Contents



Operating Revenues.


|                                          |                |          |     |    |          |   |     |          |  |       |      |     |  |            |     |    |  |   |     |     | 
|----------------------------------------- | -------------- | -------- | --- | -- | -------- | - | --- | -------- |  | ----- | ---- | --- |  | ---------- | --- | -- |  | - | --- | --- | 
|                                          |                |          |     |    |          |   |     |          |  | Total |     
|                                          |                | ComEd    |     |    | PECO     |   |     | Total    |  |       | PECO |     |  | Increase   |    
|                                          |                | Electric |     |    | Electric |   |     | Electric |  |       | Gas  |     |  | (Decrease) |    
|                                          |                |          |     |    |          |   |     |          |  |       |      |     |  |            |    
|Customer choice                           |                | $        | 40  |    |          | $ | 48  |          |  | $     | 88   |     |  | $          |    |    |  | $ | 88  |    
|Weather                                   |                |          | 83  |    |          |   | (17 | )        |  |       | 66   |     |  |            | 6   |    |  |   | 72  |    
|Rate changes and mix                      |                |          | (26 | )  |          |   | 22  |          |  |       | (4   | )   |  |            | 23  |    |  |   | 19  |    
|Volume                                    |                |          | (9  | )  |          |   | 14  |          |  |       | 5    |     |  |            | (15 | )  |  |   | (10 | )  
|Other                                     |                |          | 2   |    |          |   |    |          |  |       | 2    |     |  |            |    |    |  |   | 2   |    
|                                          |                |          |     |    |          |   |     |          |  |       |      |     |  |            |    
|                                          | Retail revenue |          |     | 90 |          |   |     | 67       |  |       |      | 157 |  |            |     | 14 |  |   |     | 171 | 
|                                          |                |          |     |    |          |   |     |          |  |       |      |     |  |            |    
|PJM transmission                          |                |          | 60  |    |          |   | (2  | )        |  |       | 58   |     |  |            |    |    |  |   | 58  |    
|T&O/ SECA rates                           |                |          | (25 | )  |          |   | 1   |          |  |       | (24  | )   |  |            |    |    |  |   | (24 | )  
|Other                                     |                |          | 11  |    |          |   | 5   |          |  |       | 16   |     |  |            | (17 | )  |  |   | (1  | )  
|                                          |                |          |     |    |          |   |     |          |  |       |      |     |  |            |    
|Wholesale and miscellaneous revenues      |                |          | 46  |    |          |   | 4   |          |  |       | 50   |     |  |            | (17 | )  |  |   | 33  |    
|                                          |                |          |     |    |          |   |     |          |  |       |      |     |  |            |    
|Increase (decrease) in operating revenues |                | $        | 136 |    |          | $ | 71  |          |  | $     | 207  |     |  | $          | (3  | )  |  | $ | 204 |    
|                                          |                |          |     |    |          |   |     |          |  |       |      |     |  |            |    

Customer Choice.




|                                                                                               |                                       |            |  |        |            |  |  |        |    |  |      |        |   |  |  |         |  
|---------------------------------------------------------------------------------------------- | ------------------------------------- | ---------- |  | ------ | ---------- |  |  | ------ | -- |  | ---- | ------ | - |  |  | ------- | -
|                                                                                               |                                       | ComEd      |  |        | PECO       | 
|                                                                                               |                                       | Six Months |  |        | Six Months | 
|                                                                                               |                                       | Ended      |  |        | Ended      | 
|                                                                                               |                                       | June 30,   |  |        | June 30,   | 
|                                                                                               |                                       |            |  |        |            | 
|                                                                                               |                                       | 2005       |  |        | 2004       |  |  | 2005   |    |  | 2004 |       
|                                                                                               |                                       |            |  |        |            |  |  |        |    |  |      |       
|Retail customers purchasing energy from an alternative electric
    supplier:                  |                                       |            |  |        |            |  |  |        |    |  |      |        |   |  |  |        
|                                                                                               | Volume (GWhs)                         |            |  | 9,651  |            |  |  | 10,457 |    |  |      | 1,222  |   |  |  | 2,267   |  
|                                                                                               | 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                   |            |  | 22,300 |            |  |  | 21,500 |    |  |      | 71,200 |   |  |  | 292,100 |  
|                                                                                               | Percentage of total retail customers  |            |  | (a     | )%         |  |  | (a     | )% |  |      | 5      | % |  |  | 19      | %
|                                                                                               | Volume (GWhs)                         |            |  | 15,228 |            |  |  | 14,693 |    |  |      | 1,222  |   |  |  | 2,267   |  
|                                                                                               | Percentage of total retail deliveries |            |  | 35     | %          |  |  | 34     | %  |  |      | 7      | % |  |  | 12      | %






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



96



---



##### Table of Contents





Weather.


Rate Changes and Mix.






Volume.


PJM Transmission.


T&O/ SECA Rates.


Other Wholesale and Miscellaneous Revenues.


97



---



##### Table of Contents



Purchased Power and Fuel Expense.


|                                             |  |          |     |   |          |   |    |          |  |       |      |   |  |            |     |   |  |   |     |  
|-------------------------------------------- |  | -------- | --- | - | -------- | - | -- | -------- |  | ----- | ---- | - |  | ---------- | --- | - |  | - | --- | -
|                                             |  |          |     |   |          |   |    |          |  | Total |     
|                                             |  | ComEd    |     |   | PECO     |   |    | Total    |  |       | PECO |   |  | Increase   |    
|                                             |  | Electric |     |   | Electric |   |    | Electric |  |       | Gas  |   |  | (Decrease) |    
|                                             |  |          |     |   |          |   |    |          |  |       |      |   |  |            |    
|Prices                                       |  | $        | 446 |   |          | $ | 19 |          |  | $     | 465  |   |  | $          | 23  |   |  | $ | 488 |  
|Customer choice                              |  |          | 29  |   |          |   | 48 |          |  |       | 77   |   |  |            |    |   |  |   | 77  |  
|PJM transmission                             |  |          | 61  |   |          |   | 5  |          |  |       | 66   |   |  |            |    |   |  |   | 66  |  
|Weather                                      |  |          | 34  |   |          |   | (7 | )        |  |       | 27   |   |  |            | 4   |   |  |   | 31  |  
|PJM administrative fees                      |  |          | 5   |   |          |   |   |          |  |       | 5    |   |  |            |    |   |  |   | 5   |  
|T&O/ SECA rates                              |  |          | (17 | ) |          |   | 4  |          |  |       | (13  | ) |  |            |    |   |  |   | (13 | )
|Volume                                       |  |          | 6   |   |          |   | 1  |          |  |       | 7    |   |  |            | (11 | ) |  |   | (4  | )
|Other                                        |  |          | 7   |   |          |   |   |          |  |       | 7    |   |  |            | (17 | ) |  |   | (10 | )
|                                             |  |          |     |   |          |   |    |          |  |       |      |   |  |            |    
|Increase in purchased power and fuel expense |  | $        | 571 |   |          | $ | 70 |          |  | $     | 641  |   |  | $          | (1  | ) |  | $ | 640 |  
|                                             |  |          |     |   |          |   |    |          |  |       |      |   |  |            |    

Prices.


Customer Choice.


PJM Transmission.


Weather.


PJM Administrative Fees.


T&O/ SECA Rates.




Volume.


98



---



##### Table of Contents





Operating and Maintenance Expense.


|                                                        |  |       |     |   |      |          |     |            |  |   |     |  
|------------------------------------------------------- |  | ----- | --- | - | ---- | -------- | --- | ---------- |  | - | --- | -
|                                                        |  |       |     |   |      | Total    |    
|                                                        |  |       |     |   |      | Increase |    
|                                                        |  | ComEd |     |   | PECO |          |     | (Decrease) | 
|                                                        |  |       |     |   |      |          |     |            | 
|Severance-related expenses                              |  | $     | (14 | ) |      | $        | (9  | )          |  | $ | (23 | )
|Pension expense(a)                                      |  |       | (8  | ) |      |          | (6  | )          |  |   | (14 | )
|Allowance for uncollectible accounts(b)                 |  |       | (4  | ) |      |          | (8  | )          |  |   | (12 | )
|Employee fringe benefits(c)                             |  |       | (6  | ) |      |          | (2  | )          |  |   | (8  | )
|Contractors(d)                                          |  |       | 16  |   |      |          | 5   |            |  |   | 21  |  
|Professional fees related to income tax refund claim(e) |  |       | (3  | ) |      |          | 6   |            |  |   | 3   |  
|Other                                                   |  |       | (15 | ) |      |          | 1   |            |  |   | (14 | )
|                                                        |  |       |     |   |      |          |     |            | 
|Decrease in operating and maintenance expense           |  | $     | (34 | ) |      | $        | (13 | )          |  | $ | (47 | )
|                                                        |  |       |     |   |      |          |     |            | 






|    |  |                                                                                                                                                                                                                                                                                                                                                              
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | 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.                                                                                    
|   
|(b) |  | The decrease at PECO is primarily due to the enforcement of
    stricter collection standards beginning in early 2005 as allowed
    by recent legislation in Pennsylvania.                                                                                                                                                                                  
|   
|(c) |  | Excludes severance-related expenses and pension expense.
    Reflects fewer employees compared to prior year and an
    adjustment in 2005 related to medical plan fees.                                                                                                                                                                                     
|   
|(d) |  | Increase was primarily due to increases in vegetation management
    services compared to the prior year at ComEd and PECO and
    consulting services at ComEd related to various regulatory
    proceedings. See Note 5 of the Combined Notes to
    Consolidated Financial Statements for additional information
    regarding the regulatory proceedings.
|   
|(e) |  | See Note 13 of the Combined Notes to Consolidated Financial
    Statements for additional information.                                                                                                                                                                                                                                                       

Depreciation and Amortization Expense.


|                                                             |  |       |    |   |      |          |    |            |  |   |     |  
|------------------------------------------------------------ |  | ----- | -- | - | ---- | -------- | -- | ---------- |  | - | --- | -
|                                                             |  |       |    |   |      | Total    |   
|                                                             |  |       |    |   |      | Increase |   
|                                                             |  | ComEd |    |   | PECO |          |    | (Decrease) | 
|                                                             |  |       |    |   |      |          |    |            | 
|Recoverable transition costs/ CTC amortization               |  | $     | (7 | ) |      | $        | 19 |            |  | $ | 12  |  
|Depreciation expense                                         |  |       | 8  |   |      |          | 1  |            |  |   | 9   |  
|Accelerated amortization of PECO billing system              |  |       |   |   |      |          | 6  |            |  |   | 6   |  
|Other amortization expense                                   |  |       | (8 | ) |      |          | (3 | )          |  |   | (11 | )
|                                                             |  |       |    |   |      |          |    |            | 
|Increase (decrease) in depreciation and amortization expense |  | $     | (7 | ) |      | $        | 23 |            |  | $ | 16  |  
|                                                             |  |       |    |   |      |          |    |            | 







99



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Taxes Other Than Income.


|                                                |  |       |    |   |      |          |    |            |  |   |    |  
|----------------------------------------------- |  | ----- | -- | - | ---- | -------- | -- | ---------- |  | - | -- | -
|                                                |  |       |    |   |      | Total    |   
|                                                |  |       |    |   |      | Increase |   
|                                                |  | ComEd |    |   | PECO |          |    | (Decrease) | 
|                                                |  |       |    |   |      |          |    |            | 
|Reduction in real estate tax accrual in 2005(a) |  | $     |   |   |      | $        | (6 | )          |  | $ | (6 | )
|Taxes on utility revenues(b)                    |  |       | 3  |   |      |          | 5  |            |  |   | 8  |  
|Other                                           |  |       | (3 | ) |      |          | (2 | )          |  |   | (5 | )
|                                                |  |       |    |   |      |          |    |            | 
|Decrease in taxes other than income             |  | $     |   |   |      | $        | (3 | )          |  | $ | (3 | )
|                                                |  |       |    |   |      |          |    |            | 






|    |  |                                                                                                                                                                                                                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Represents a $6 million reduction of a real estate tax
    accrual in March 2005 following settlements between PECO and
    various taxing authorities related to prior year tax
    assessments. See Note 13 of the Combined Notes to the
    Financial Statements for additional information.
|   
|(b) |  | As these taxes are collected from customers and remitted to the
    taxing authorities and included in revenues and expenses, the
    increase in taxes expense was offset by a corresponding increase
    in revenues.                                                                        

Interest Expense.


Equity in Losses of Unconsolidated Affiliates.


Other, Net.


|                                                         |  |       |    |   |      |          |   |            |  |   |    |  
|-------------------------------------------------------- |  | ----- | -- | - | ---- | -------- | - | ---------- |  | - | -- | -
|                                                         |  |       |    |   |      | Total    |  
|                                                         |  |       |    |   |      | Increase |  
|                                                         |  | ComEd |    |   | PECO |          |   | (Decrease) | 
|                                                         |  |       |    |   |      |          |   |            | 
|Interest income on long-term receivable from UII, LLC(a) |  | $     | (9 | ) |      | $        |  |            |  | $ | (9 | )
|Gain on disposition of assets and investment, net        |  |       | 2  |   |      |          | 1 |            |  |   | 3  |  
|Other                                                    |  |       | 3  |   |      |          | 3 |            |  |   | 6  |  
|                                                         |  |       |    |   |      |          |   |            | 
|Increase (decrease) in other, net                        |  | $     | (4 | ) |      | $        | 4 |            |  | $ |   |  
|                                                         |  |       |    |   |      |          |   |            | 






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


100



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



|                                                 |                             |            |        |        |      |  |        |          |  |  |          |       |   |  |       |      |   
|------------------------------------------------ | --------------------------- | ---------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ----- | - |  | ----- | ---- | --
|                                                 |                             | Six Months |        |        |      |  |       
|                                                 |                             | Ended      |        |        |      |  |       
|                                                 |                             | June 30,   |        |        |      |  |       
|                                                 |                             |            |        |        |      |  |       
|Retail Deliveries  (in gigawatthours (GWhs))(a) |                             | 2005       |        |        | 2004 |  |        | Variance |  |  | % Change |      
|                                                 |                             |            |        |        |      |  |        |          |  |  |          |      
|Full service(b)                                  |                             |            |        |        |      |  |        |          |  |  |          |       |   |  |       |     
|Residential                                      |                             |            | 19,301 |        |      |  | 17,821 |          |  |  | 1,480    |       |   |  | 8.3   | %   
|Small commercial & industrial                    |                             |            | 13,673 |        |      |  | 14,080 |          |  |  | (407     | )     |   |  | (2.9  | )%  
|Large commercial & industrial                    |                             |            | 11,097 |        |      |  | 10,520 |          |  |  | 577      |       |   |  | 5.5   | %   
|Public authorities & electric railroads          |                             |            | 1,483  |        |      |  | 1,678  |          |  |  | (195     | )     |   |  | (11.6 | )%  
|                                                 |                             |            |        |        |      |  |        |          |  |  |          |      
|                                                 | Total full service          |            |        | 45,554 |      |  |        | 44,099   |  |  |          | 1,455 |   |  |       | 3.3  | % 
|                                                 |                             |            |        |        |      |  |        |          |  |  |          |      
|PPO (ComEd only)                                 |                             |            |        |        |      |  |        |          |  |  |          |       |   |  |       |     
|Small commercial & industrial                    |                             |            | 2,458  |        |      |  | 1,897  |          |  |  | 561      |       |   |  | 29.6  | %   
|Large commercial & industrial                    |                             |            | 3,119  |        |      |  | 2,339  |          |  |  | 780      |       |   |  | 33.3  | %   
|                                                 |                             |            |        |        |      |  |        |          |  |  |          |      
|                                                 |                             |            | 5,577  |        |      |  | 4,236  |          |  |  | 1,341    |       |   |  | 31.7  | %   
|                                                 |                             |            |        |        |      |  |        |          |  |  |          |      
|Delivery only(c)                                 |                             |            |        |        |      |  |        |          |  |  |          |       |   |  |       |     
|Residential                                      |                             |            | 178    |        |      |  | 1,070  |          |  |  | (892     | )     |   |  | (83.4 | )%  
|Small commercial & industrial                    |                             |            | 3,875  |        |      |  | 3,935  |          |  |  | (60      | )     |   |  | (1.5  | )%  
|Large commercial & industrial                    |                             |            | 6,820  |        |      |  | 7,719  |          |  |  | (899     | )     |   |  | (11.6 | )%  
|                                                 |                             |            |        |        |      |  |        |          |  |  |          |      
|                                                 |                             |            | 10,873 |        |      |  | 12,724 |          |  |  | (1,851   | )     |   |  | (14.5 | )%  
|                                                 |                             |            |        |        |      |  |        |          |  |  |          |      
|                                                 | Total PPO and delivery only |            |        | 16,450 |      |  |        | 16,960   |  |  |          | (510  | ) |  |       | (3.0 | )%
|                                                 |                             |            |        |        |      |  |        |          |  |  |          |      
|Total retail deliveries                          |                             |            | 62,004 |        |      |  | 61,059 |          |  |  | 945      |       |   |  | 1.5   | %   
|                                                 |                             |            |        |        |      |  |        |          |  |  |          |      






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

101



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|                                        |                                        |            |       |       |      |   |       |          |  |   |          |     |   |  |       |      |   
|--------------------------------------- | -------------------------------------- | ---------- | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | --- | - |  | ----- | ---- | --
|                                        |                                        | Six Months |       |       |      |   |      
|                                        |                                        | Ended      |       |       |      |   |      
|                                        |                                        | June 30,   |       |       |      |   |      
|                                        |                                        |            |       |       |      |   |      
|Electric Revenue                        |                                        | 2005       |       |       | 2004 |   |       | Variance |  |   | % Change |    
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                                        |            |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        | $          | 1,868 |       |      | $ | 1,691 |          |  | $ | 177      |     |   |  | 10.5  | %   
|Small commercial & industrial           |                                        |            | 1,170 |       |      |   | 1,161 |          |  |   | 9        |     |   |  | 0.8   | %   
|Large commercial & industrial           |                                        |            | 739   |       |      |   | 730   |          |  |   | 9        |     |   |  | 1.2   | %   
|Public authorities & electric railroads |                                        |            | 105   |       |      |   | 122   |          |  |   | (17      | )   |   |  | (13.9 | )%  
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service                     |            |       | 3,882 |      |   |       | 3,704    |  |   |          | 178 |   |  |       | 4.8  | % 
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|PPO (ComEd only)(b)                     |                                        |            |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Small commercial & industrial           |                                        |            | 165   |       |      |   | 124   |          |  |   | 41       |     |   |  | 33.1  | %   
|Large commercial & industrial           |                                        |            | 171   |       |      |   | 129   |          |  |   | 42       |     |   |  | 32.6  | %   
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |            | 336   |       |      |   | 253   |          |  |   | 83       |     |   |  | 32.8  | %   
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|Delivery only(c)                        |                                        |            |       |       |      |   |       |          |  |   |          |     |   |  |       |     
|Residential                             |                                        |            | 13    |       |      |   | 80    |          |  |   | (67      | )   |   |  | (83.8 | )%  
|Small commercial & industrial           |                                        |            | 93    |       |      |   | 110   |          |  |   | (17      | )   |   |  | (15.5 | )%  
|Large commercial & industrial           |                                        |            | 89    |       |      |   | 111   |          |  |   | (22      | )   |   |  | (19.8 | )%  
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|                                        |                                        |            | 195   |       |      |   | 301   |          |  |   | (106     | )   |   |  | (35.2 | )%  
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|                                        | Total PPO and delivery only            |            |       | 531   |      |   |       | 554      |  |   |          | (23 | ) |  |       | (4.2 | )%
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                                        |            | 4,413 |       |      |   | 4,258 |          |  |   | 155      |     |   |  | 3.6   | %   
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|                                        | Wholesale and miscellaneous revenue(d) |            |       | 340   |      |   |       | 288      |  |   |          | 52  |   |  |       | 18.1 | % 
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    
|Total electric and other revenue        |                                        | $          | 4,753 |       |      | $ | 4,546 |          |  | $ | 207      |     |   |  | 4.6   | %   
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    






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

102



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



|                                        |                             |            |        |        |      |  |        |          |  |  |          |     |  |  |       |     |  
|--------------------------------------- | --------------------------- | ---------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | --- |  |  | ----- | --- | -
|                                        |                             | Six Months |        |        |      |  |       
|                                        |                             | Ended      |        |        |      |  |       
|                                        |                             | June 30,   |        |        |      |  |       
|                                        |                             |            |        |        |      |  |       
|Retail Deliveries  (in GWhs)           |                             | 2005       |        |        | 2004 |  |        | Variance |  |  | % Change |    
|                                        |                             |            |        |        |      |  |        |          |  |  |          |    
|Full service(a)                         |                             |            |        |        |      |  |        |          |  |  |          |     |  |  |       |    
|Residential                             |                             |            | 13,346 |        |      |  | 12,805 |          |  |  | 541      |     |  |  | 4.2   | %  
|Small commercial & industrial           |                             |            | 10,211 |        |      |  | 10,710 |          |  |  | (499     | )   |  |  | (4.7  | )% 
|Large commercial & industrial           |                             |            | 3,883  |        |      |  | 3,200  |          |  |  | 683      |     |  |  | 21.3  | %  
|Public authorities & electric railroads |                             |            | 1,052  |        |      |  | 1,225  |          |  |  | (173     | )   |  |  | (14.1 | )% 
|                                        |                             |            |        |        |      |  |        |          |  |  |          |    
|                                        | Total full service          |            |        | 28,492 |      |  |        | 27,940   |  |  |          | 552 |  |  |       | 2.0 | %
|                                        |                             |            |        |        |      |  |        |          |  |  |          |    
|PPO                                     |                             |            |        |        |      |  |        |          |  |  |          |     |  |  |       |    
|Small commercial & industrial           |                             |            | 2,458  |        |      |  | 1,897  |          |  |  | 561      |     |  |  | 29.6  | %  
|Large commercial & industrial           |                             |            | 3,119  |        |      |  | 2,339  |          |  |  | 780      |     |  |  | 33.3  | %  
|                                        |                             |            |        |        |      |  |        |          |  |  |          |    
|                                        |                             |            | 5,577  |        |      |  | 4,236  |          |  |  | 1,341    |     |  |  | 31.7  | %  
|                                        |                             |            |        |        |      |  |        |          |  |  |          |    
|Delivery only(b)                        |                             |            |        |        |      |  |        |          |  |  |          |     |  |  |       |    
|Small commercial & industrial           |                             |            | 3,163  |        |      |  | 3,078  |          |  |  | 85       |     |  |  | 2.8   | %  
|Large commercial & industrial           |                             |            | 6,488  |        |      |  | 7,379  |          |  |  | (891     | )   |  |  | (12.1 | )% 
|                                        |                             |            |        |        |      |  |        |          |  |  |          |    
|                                        |                             |            | 9,651  |        |      |  | 10,457 |          |  |  | (806     | )   |  |  | (7.7  | )% 
|                                        |                             |            |        |        |      |  |        |          |  |  |          |    
|                                        | Total PPO and delivery only |            |        | 15,228 |      |  |        | 14,693   |  |  |          | 535 |  |  |       | 3.6 | %
|                                        |                             |            |        |        |      |  |        |          |  |  |          |    
|Total retail deliveries                 |                             |            | 43,720 |        |      |  | 42,633 |          |  |  | 1,087    |     |  |  | 2.5   | %  
|                                        |                             |            |        |        |      |  |        |          |  |  |          |    






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

103



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|                                        |                                        |            |       |       |      |   |       |          |  |   |          |    |  |  |       |      |  
|--------------------------------------- | -------------------------------------- | ---------- | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | -- |  |  | ----- | ---- | -
|                                        |                                        | Six Months |       |       |      |   |      
|                                        |                                        | Ended      |       |       |      |   |      
|                                        |                                        | June 30,   |       |       |      |   |      
|                                        |                                        |            |       |       |      |   |      
|Electric Revenue                        |                                        | 2005       |       |       | 2004 |   |       | Variance |  |   | % Change |   
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   
|Full service(a)                         |                                        |            |       |       |      |   |       |          |  |   |          |    |  |  |       |     
|Residential                             |                                        | $          | 1,124 |       |      | $ | 1,080 |          |  | $ | 44       |    |  |  | 4.1   | %   
|Small commercial & industrial           |                                        |            | 784   |       |      |   | 787   |          |  |   | (3       | )  |  |  | (0.4  | )%  
|Large commercial & industrial           |                                        |            | 193   |       |      |   | 179   |          |  |   | 14       |    |  |  | 7.8   | %   
|Public authorities & electric railroads |                                        |            | 65    |       |      |   | 82    |          |  |   | (17      | )  |  |  | (20.7 | )%  
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   
|                                        | Total full service                     |            |       | 2,166 |      |   |       | 2,128    |  |   |          | 38 |  |  |       | 1.8  | %
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   
|PPO(b)                                  |                                        |            |       |       |      |   |       |          |  |   |          |    |  |  |       |     
|Small commercial & industrial           |                                        |            | 165   |       |      |   | 124   |          |  |   | 41       |    |  |  | 33.1  | %   
|Large commercial & industrial           |                                        |            | 171   |       |      |   | 129   |          |  |   | 42       |    |  |  | 32.6  | %   
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   
|                                        |                                        |            | 336   |       |      |   | 253   |          |  |   | 83       |    |  |  | 32.8  | %   
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   
|Delivery only(c)                        |                                        |            |       |       |      |   |       |          |  |   |          |    |  |  |       |     
|Small commercial & industrial           |                                        |            | 58    |       |      |   | 67    |          |  |   | (9       | )  |  |  | (13.4 | )%  
|Large commercial & industrial           |                                        |            | 80    |       |      |   | 102   |          |  |   | (22      | )  |  |  | (21.6 | )%  
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   
|                                        |                                        |            | 138   |       |      |   | 169   |          |  |   | (31      | )  |  |  | (18.3 | )%  
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   
|                                        | Total PPO and delivery only            |            |       | 474   |      |   |       | 422      |  |   |          | 52 |  |  |       | 12.3 | %
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   
|Total electric retail revenues          |                                        |            | 2,640 |       |      |   | 2,550 |          |  |   | 90       |    |  |  | 3.5   | %   
|                                        | Wholesale and miscellaneous revenue(d) |            |       | 235   |      |   |       | 189      |  |   |          | 46 |  |  |       | 24.3 | %
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   
|Total operating revenues                |                                        | $          | 2,875 |       |      | $ | 2,739 |          |  | $ | 136      |    |  |  | 5.0   | %   
|                                        |                                        |            |       |       |      |   |       |          |  |   |          |   






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

104



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



|                                        |                     |            |        |        |      |  |        |          |  |  |          |        |   |  |       |       |   
|--------------------------------------- | ------------------- | ---------- | ------ | ------ | ---- |  | ------ | -------- |  |  | -------- | ------ | - |  | ----- | ----- | --
|                                        |                     | Six Months |        |        |      |  |       
|                                        |                     | Ended      |        |        |      |  |       
|                                        |                     | June 30,   |        |        |      |  |       
|                                        |                     |            |        |        |      |  |       
|Retail Deliveries  (in GWhs)           |                     | 2005       |        |        | 2004 |  |        | Variance |  |  | % Change |       
|                                        |                     |            |        |        |      |  |        |          |  |  |          |       
|Full service(a)                         |                     |            |        |        |      |  |        |          |  |  |          |        |   |  |       |      
|Residential                             |                     |            | 5,955  |        |      |  | 5,016  |          |  |  | 939      |        |   |  | 18.7  | %    
|Small commercial & industrial           |                     |            | 3,462  |        |      |  | 3,370  |          |  |  | 92       |        |   |  | 2.7   | %    
|Large commercial & industrial           |                     |            | 7,214  |        |      |  | 7,320  |          |  |  | (106     | )      |   |  | (1.4  | )%   
|Public authorities & electric railroads |                     |            | 431    |        |      |  | 453    |          |  |  | (22      | )      |   |  | (4.9  | )%   
|                                        |                     |            |        |        |      |  |        |          |  |  |          |       
|                                        | Total full service  |            |        | 17,062 |      |  |        | 16,159   |  |  |          | 903    |   |  |       | 5.6   | % 
|                                        |                     |            |        |        |      |  |        |          |  |  |          |       
|Delivery only(b)                        |                     |            |        |        |      |  |        |          |  |  |          |        |   |  |       |      
|Residential                             |                     |            | 178    |        |      |  | 1,070  |          |  |  | (892     | )      |   |  | (83.4 | )%   
|Small commercial & industrial           |                     |            | 712    |        |      |  | 857    |          |  |  | (145     | )      |   |  | (16.9 | )%   
|Large commercial & industrial           |                     |            | 332    |        |      |  | 340    |          |  |  | (8       | )      |   |  | (2.4  | )%   
|                                        |                     |            |        |        |      |  |        |          |  |  |          |       
|                                        | Total delivery only |            |        | 1,222  |      |  |        | 2,267    |  |  |          | (1,045 | ) |  |       | (46.1 | )%
|                                        |                     |            |        |        |      |  |        |          |  |  |          |       
|Total retail deliveries                 |                     |            | 18,284 |        |      |  | 18,426 |          |  |  | (142     | )      |   |  | (0.8  | )%   
|                                        |                     |            |        |        |      |  |        |          |  |  |          |       






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

|                                        |                     |            |       |       |      |   |       |          |  |   |          |     |   |  |       |       |   
|--------------------------------------- | ------------------- | ---------- | ----- | ----- | ---- | - | ----- | -------- |  | - | -------- | --- | - |  | ----- | ----- | --
|                                        |                     | Six Months |       |       |      |   |      
|                                        |                     | Ended      |       |       |      |   |      
|                                        |                     | June 30,   |       |       |      |   |      
|                                        |                     |            |       |       |      |   |      
|Electric Revenue                        |                     | 2005       |       |       | 2004 |   |       | Variance |  |   | % Change |    
|                                        |                     |            |       |       |      |   |       |          |  |   |          |    
|Full service(a)                         |                     |            |       |       |      |   |       |          |  |   |          |     |   |  |       |      
|Residential                             |                     | $          | 744   |       |      | $ | 611   |          |  | $ | 133      |     |   |  | 21.8  | %    
|Small commercial & industrial           |                     |            | 386   |       |      |   | 374   |          |  |   | 12       |     |   |  | 3.2   | %    
|Large commercial & industrial           |                     |            | 546   |       |      |   | 551   |          |  |   | (5       | )   |   |  | (0.9  | )%   
|Public authorities & electric railroads |                     |            | 40    |       |      |   | 40    |          |  |   |         |     |   |  | 0.0   | %    
|                                        |                     |            |       |       |      |   |       |          |  |   |          |    
|                                        | Total full service  |            |       | 1,716 |      |   |       | 1,576    |  |   |          | 140 |   |  |       | 8.9   | % 
|                                        |                     |            |       |       |      |   |       |          |  |   |          |    
|Delivery only(b)                        |                     |            |       |       |      |   |       |          |  |   |          |     |   |  |       |      
|Residential                             |                     |            | 13    |       |      |   | 80    |          |  |   | (67      | )   |   |  | (83.8 | )%   
|Small commercial & industrial           |                     |            | 35    |       |      |   | 43    |          |  |   | (8       | )   |   |  | (18.6 | )%   
|Large commercial & industrial           |                     |            | 9     |       |      |   | 9     |          |  |   |         |     |   |  | 0.0   | %    
|                                        |                     |            |       |       |      |   |       |          |  |   |          |    
|                                        | Total delivery only |            |       | 57    |      |   |       | 132      |  |   |          | (75 | ) |  |       | (56.8 | )%
|                                        |                     |            |       |       |      |   |       |          |  |   |          |    
|Total electric retail revenues          |                     |            | 1,773 |       |      |   | 1,708 |          |  |   | 65       |     |   |  | 3.8   | %    
|                                        |                     |            |       |       |      |   |       |          |  |   |          |    
|Wholesale and miscellaneous revenue(c)  |                     |            | 105   |       |      |   | 99    |          |  |   | 6        |     |   |  | 6.1   | %    
|                                        |                     |            |       |       |      |   |       |          |  |   |          |    
|Total electric and other revenue        |                     | $          | 1,878 |       |      | $ | 1,807 |          |  | $ | 71       |     |   |  | 3.9   | %    
|                                        |                     |            |       |       |      |   |       |          |  |   |          |    






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

105



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



|                                                       |  |            |        |  |      |  |        |          |  |  |          |   |  |  |      |   
|------------------------------------------------------ |  | ---------- | ------ |  | ---- |  | ------ | -------- |  |  | -------- | - |  |  | ---- | --
|                                                       |  | Six Months |        |  |      |  |       
|                                                       |  | Ended      |        |  |      |  |       
|                                                       |  | June 30,   |        |  |      |  |       
|                                                       |  |            |        |  |      |  |       
|Deliveries to customers (in million cubic feet (mmcf)) |  | 2005       |        |  | 2004 |  |        | Variance |  |  | % Change |  
|                                                       |  |            |        |  |      |  |        |          |  |  |          |  
|Retail sales                                           |  |            | 37,532 |  |      |  | 37,965 |          |  |  | (433     | ) |  |  | (1.1 | )%
|Transportation                                         |  |            | 13,564 |  |      |  | 13,542 |          |  |  | 22       |   |  |  | 0.2  | % 
|                                                       |  |            |        |  |      |  |        |          |  |  |          |  
|Total                                                  |  |            | 51,096 |  |      |  | 51,507 |          |  |  | (411     | ) |  |  | (0.8 | )%
|                                                       |  |            |        |  |      |  |        |          |  |  |          |  

|                  |  |            |     |  |      |   |     |          |  |   |          |   |  |  |       |   
|----------------- |  | ---------- | --- |  | ---- | - | --- | -------- |  | - | -------- | - |  |  | ----- | --
|                  |  | Six Months |     |  |      |   |    
|                  |  | Ended      |     |  |      |   |    
|                  |  | June 30,   |     |  |      |   |    
|                  |  |            |     |  |      |   |    
|Revenue           |  | 2005       |     |  | 2004 |   |     | Variance |  |   | % Change |  
|                  |  |            |     |  |      |   |     |          |  |   |          |  
|Retail sales      |  | $          | 445 |  |      | $ | 431 |          |  | $ | 14       |   |  |  | 3.2   | % 
|Transportation    |  |            | 9   |  |      |   | 9   |          |  |   |         |   |  |  | 0.0   | % 
|Resales and other |  |            | 7   |  |      |   | 24  |          |  |   | (17      | ) |  |  | (70.8 | )%
|                  |  |            |     |  |      |   |     |          |  |   |          |  
|Total gas revenue |  | $          | 461 |  |      | $ | 464 |          |  | $ | (3       | ) |  |  | (0.6  | )%
|                  |  |            |     |  |      |   |     |          |  |   |          |  

106



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

|                                                                                                |                                                          |                                            |       |       |           |   |       |               |       |   |      |     |     |  
|----------------------------------------------------------------------------------------------- | -------------------------------------------------------- | ------------------------------------------ | ----- | ----- | --------- | - | ----- | ------------- | ----- | - | ---- | --- | --- | -
|                                                                                                |                                                          | Six Months                                 |       |       |          
|                                                                                                |                                                          | Ended                                      |       |       |          
|                                                                                                |                                                          | June 30,                                   |       |       |          
|                                                                                                |                                                          |                                            |       |       | Favorable |  
|                                                                                                |                                                          | 2005                                       |       |       | 2004      |   |       | (Unfavorable) |      
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|Operating revenues                                                                              |                                                          | $                                          | 4,125 |       |           | $ | 3,826 |               |       | $ | 299  |    
|Operating expenses                                                                              |                                                          |                                            |       |       |           |   |       |               |       |   |      |    
|                                                                                                | Purchased power                                          |                                            |       | 967   |           |   |       | 1,105         |       |   |      | 138 |    
|                                                                                                | Fuel                                                     |                                            |       | 786   |           |   |       | 958           |       |   |      | 172 |    
|                                                                                                | Operating and maintenance                                |                                            |       | 1,211 |           |   |       | 1,192         |       |   |      | (19 | )  
|                                                                                                | Depreciation and amortization                            |                                            |       | 125   |           |   |       | 120           |       |   |      | (5  | )  
|                                                                                                | Taxes other than income                                  |                                            |       | 74    |           |   |       | 93            |       |   |      | 19  |    
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|                                                                                                |                                                          | Total operating expenses                   |       |       | 3,163     |   |       |               | 3,468 |   |      |     | 305 |  
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|Operating income                                                                                |                                                          |                                            | 962   |       |           |   | 358   |               |       |   | 604  |    
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|Other income and deductions                                                                     |                                                          |                                            |       |       |           |   |       |               |       |   |      |    
|                                                                                                | Interest expense                                         |                                            |       | (58   | )         |   |       | (53           | )     |   |      | (5  | )  
|                                                                                                | Equity in earnings (losses) of unconsolidated affiliates |                                            |       | 4     |           |   |       | (2            | )     |   |      | 6   |    
|                                                                                                | Other, net                                               |                                            |       | 69    |           |   |       | 115           |       |   |      | (46 | )  
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|                                                                                                |                                                          | Total other income and deductions          |       |       | 15        |   |       |               | 60    |   |      |     | (45 | )
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|Income from continuing operations before income taxes                                           |                                                          |                                            | 977   |       |           |   | 418   |               |       |   | 559  |    
|Income taxes                                                                                    |                                                          |                                            | 376   |       |           |   | 160   |               |       |   | (216 | )  
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|Income from continuing operations                                                               |                                                          |                                            | 601   |       |           |   | 258   |               |       |   | 343  |    
|Discontinued operations                                                                         |                                                          |                                            |       |       |           |   |       |               |       |   |      |    
|                                                                                                | Loss from discontinued operations                        |                                            |       | (1    | )         |   |       | (24           | )     |   |      | 23  |    
|                                                                                                | Gain on disposal of discontinued operations              |                                            |       | 19    |           |   |       |              |       |   |      | 19  |    
|                                                                                                | Income taxes                                             |                                            |       | 3     |           |   |       | (14           | )     |   |      | (17 | )  
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|                                                                                                |                                                          | Income (loss) from discontinued operations |       |       | 15        |   |       |               | (10   | ) |      |     | 25  |  
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|Income before cumulative effect of a change in accounting
    principle                         |                                                          |                                            | 616   |       |           |   | 248   |               |       |   | 368  |    
|Cumulative effect of a change in accounting principle (net of
    income taxes of $22 million ) |                                                          |                                            |      |       |           |   | 32    |               |       |   | (32  | )  
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      
|Net income                                                                                      |                                                          | $                                          | 616   |       |           | $ | 280   |               |       | $ | 336  |    
|                                                                                                |                                                          |                                            |       |       |           |   |       |               |      

107



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Operating Revenues.


|                                    |  |            |       |  |      |   |       |          |  |   |          |   |  |  |       |   
|----------------------------------- |  | ---------- | ----- |  | ---- | - | ----- | -------- |  | - | -------- | - |  |  | ----- | --
|                                    |  | Six Months |       |  |      |   |      
|                                    |  | Ended      |       |  |      |   |      
|                                    |  | June 30,   |       |  |      |   |      
|                                    |  |            |       |  |      |   |      
|Revenue                             |  | 2005       |       |  | 2004 |   |       | Variance |  |   | % Change |  
|                                    |  |            |       |  |      |   |       |          |  |   |          |  
|Electric sales to affiliates        |  | $          | 2,251 |  |      | $ | 1,706 |          |  | $ | 545      |   |  |  | 31.9  | % 
|Wholesale and retail electric sales |  |            | 1,443 |  |      |   | 1,742 |          |  |   | (299     | ) |  |  | (17.2 | )%
|                                    |  |            |       |  |      |   |       |          |  |   |          |  
|Total energy sales revenue          |  |            | 3,694 |  |      |   | 3,448 |          |  |   | 246      |   |  |  | 7.1   | % 
|                                    |  |            |       |  |      |   |       |          |  |   |          |  
|Retail gas sales                    |  |            | 284   |  |      |   | 252   |          |  |   | 32       |   |  |  | 12.7  | % 
|Trading portfolio                   |  |            | 9     |  |      |   | (2    | )        |  |   | 11       |   |  |  | n.m.  |   
|Other revenue(a)                    |  |            | 138   |  |      |   | 128   |          |  |   | 10       |   |  |  | 7.8   | % 
|                                    |  |            |       |  |      |   |       |          |  |   |          |  
|Total revenue                       |  | $          | 4,125 |  |      | $ | 3,826 |          |  | $ | 299      |   |  |  | 7.8   | % 
|                                    |  |            |       |  |      |   |       |          |  |   |          |  






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



|                                    |  |            |        |  |      |  |         |          |  |  |          |   |  |  |       |   
|----------------------------------- |  | ---------- | ------ |  | ---- |  | ------- | -------- |  |  | -------- | - |  |  | ----- | --
|                                    |  | Six Months |        |  |      |  |        
|                                    |  | Ended      |        |  |      |  |        
|                                    |  | June 30,   |        |  |      |  |        
|                                    |  |            |        |  |      |  |        
|Sales (in GWhs)                     |  | 2005       |        |  | 2004 |  |         | Variance |  |  | % Change |  
|                                    |  |            |        |  |      |  |         |          |  |  |          |  
|Electric sales to affiliates        |  |            | 57,035 |  |      |  | 53,597  |          |  |  | 3,438    |   |  |  | 6.4   | % 
|Wholesale and retail electric sales |  |            | 35,420 |  |      |  | 48,959  |          |  |  | (13,539  | ) |  |  | (27.7 | )%
|                                    |  |            |        |  |      |  |         |          |  |  |          |  
|Total sales                         |  |            | 92,455 |  |      |  | 102,556 |          |  |  | (10,101  | ) |  |  | (9.8  | )%
|                                    |  |            |        |  |      |  |         |          |  |  |          |  



Electric Sales to Affiliates.


Wholesale and Retail Electric Sales.


|                                                |  |            |      |  
|----------------------------------------------- |  | ---------- | ---- | -
|                                                |  | Increase   |     
|                                                |  | (Decrease) |     
|                                                |  |            |     
|Sale of Boston Generating(a)                    |  | $          | (239 | )
|Volume                                          |  |            | (226 | )
|Price                                           |  |            | 158  |  
|Other                                           |  |            | 8    |  
|                                                |  |            |     
|Decrease in wholesale and retail electric sales |  | $          | (299 | )
|                                                |  |            |     






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



108



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Retail Gas Sales.


Other Revenues.


Purchased Power and Fuel Expense.


|                                       |  |            |        |  |      |  |         |          |  |  |          |   |  |  |       |   
|-------------------------------------- |  | ---------- | ------ |  | ---- |  | ------- | -------- |  |  | -------- | - |  |  | ----- | --
|                                       |  | Six Months |        |  |      |  |        
|                                       |  | Ended      |        |  |      |  |        
|                                       |  | June 30,   |        |  |      |  |        
|                                       |  |            |        |  |      |  |        
|Supply Source (in GWhs)                |  | 2005       |        |  | 2004 |  |         | Variance |  |  | % Change |  
|                                       |  |            |        |  |      |  |         |          |  |  |          |  
|Nuclear generation                     |  |            | 67,465 |  |      |  | 67,665  |          |  |  | (200     | ) |  |  | (0.3  | )%
|Purchases  non-trading portfolio      |  |            | 18,607 |  |      |  | 23,595  |          |  |  | (4,988   | ) |  |  | (21.1 | )%
|Fossil and hydroelectric generation(a) |  |            | 6,383  |  |      |  | 11,296  |          |  |  | (4,913   | ) |  |  | (43.5 | )%
|                                       |  |            |        |  |      |  |         |          |  |  |          |  
|Total supply                           |  |            | 92,455 |  |      |  | 102,556 |          |  |  | (10,101  | ) |  |  | (9.8  | )%
|                                       |  |            |        |  |      |  |         |          |  |  |          |  






|    |  |                                                                                                                                                      
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------
|(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                             |  | $          | (226 | )
|Mark-to-market adjustments on economic hedges |  |            | (58  | )
|Volume                                        |  |            | (83  | )
|Price                                         |  |            | 91   |  
|Other                                         |  |            | (34  | )
|                                              |  |            |     
|Decrease in purchased power and fuel expense  |  | $          | (310 | )
|                                              |  |            |     

Boston Generating.


Economic Hedges.


Volume.


Price.


Other.


109



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|                                                                      |                                         |            |       |       |      |   |       |          |  |  |      |      |  
|--------------------------------------------------------------------- | --------------------------------------- | ---------- | ----- | ----- | ---- | - | ----- | -------- |  |  | ---- | ---- | -
|                                                                      |                                         | Six Months |       |       |     
|                                                                      |                                         | Ended      |       |       |     
|                                                                      |                                         | June 30,   |       |       |     
|                                                                      |                                         |            |       |       |     
|($/MWh)                                                               |                                         | 2005       |       |       | 2004 |   |       | % Change | 
|                                                                      |                                         |            |       |       |      |   |       |          | 
|Average electric revenue                                              |                                         |            |       |       |      |   |       |          |  |  |      |     
|                                                                      | Electric sales to affiliates(a)         |            | $     | 39.47 |      |   | $     | 31.83    |  |  |      | 24.0 | %
|                                                                      | Wholesale and retail electric sales     |            |       | 40.74 |      |   |       | 35.58    |  |  |      | 14.5 | %
|                                                                      | Total  excluding the trading portfolio |            |       | 39.95 |      |   |       | 33.62    |  |  |      | 18.8 | %
|Average electric supply cost(b)  excluding the
    trading portfolio |                                         | $          | 16.04 |       |      | $ | 17.75 |          |  |  | (9.6 | )%  
|Average margin  excluding the trading portfolio                      |                                         | $          | 23.91 |       |      | $ | 15.87 |          |  |  | 50.7 | %   






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

Operating and Maintenance Expense.


|                                                                       |  |            |     |  
|---------------------------------------------------------------------- |  | ---------- | --- | -
|                                                                       |  | Increase   |    
|                                                                       |  | (Decrease) |    
|                                                                       |  |            |    
|Boston Generating                                                      |  | $          | (57 | )
|Tamuin International                                                   |  |            | 26  |  
|Accrual for estimated future asbestos-related bodily injury
    claims |  |            | 43  |  
|Refueling outage cost                                                  |  |            | 22  |  
|Payroll, benefits and pension                                          |  |            | (18 | )
|Other                                                                  |  |            | 3   |  
|                                                                       |  |            |    
|Increase in operating and maintenance expense                          |  | $          | 19  |  
|                                                                       |  |            |    





|                                                              |  |            |       |   |      |   |       |  
|------------------------------------------------------------- |  | ---------- | ----- | - | ---- | - | ----- | -
|                                                              |  | Six Months |      
|                                                              |  | Ended      |      
|                                                              |  | June 30,   |      
|                                                              |  |            |      
|                                                              |  | 2005       |       |   | 2004 |  
|                                                              |  |            |       |   |      |  
|Nuclear fleet capacity factor(a)                              |  |            | 92.7  | % |      |   | 93.3  | %
|Nuclear fleet production cost per MWh(a)                      |  | $          | 13.24 |   |      | $ | 12.54 |  
|Average purchased power cost for wholesale operations per MWh |  | $          | 51.97 |   |      | $ | 46.83 |  






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



110



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Depreciation and Amortization.


Taxes Other Than Income.


Other, Net.


Effective Income Tax Rate.


Discontinued Operations.


111



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##### Table of Contents



Liquidity and Capital Resources








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







112



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##### Table of Contents





|                                                                              |  |            |        |   |      |   |       |          |  |   |        |  
|----------------------------------------------------------------------------- |  | ---------- | ------ | - | ---- | - | ----- | -------- |  | - | ------ | -
|                                                                              |  | Six Months |        |   |     
|                                                                              |  | Ended,     |        |   |     
|                                                                              |  | June 30,   |        |   |     
|                                                                              |  |            |        |   |     
|                                                                              |  | 2005       |        |   | 2004 |   |       | Variance | 
|                                                                              |  |            |        |   |      |   |       |          | 
|Net income                                                                    |  | $          | 1,035  |   |      | $ | 933   |          |  | $ | 102    |  
|Non-cash operating activities(a)                                              |  |            | 1,547  |   |      |   | 980   |          |  |   | 567    |  
|Income taxes                                                                  |  |            | 24     |   |      |   | 168   |          |  |   | (144   | )
|Changes in working capital and other noncurrent assets and
    liabilities(b) |  |            | (393   | ) |      |   | 1     |          |  |   | (394   | )
|Pension contributions and postretirement healthcare benefit
    payments, net |  |            | (1,927 | ) |      |   | (175  | )        |  |   | (1,752 | )
|                                                                              |  |            |        |   |      |   |       |          | 
|Net cash flows provided by operations                                         |  | $          | 286    |   |      | $ | 1,907 |          |  | $ | (1,621 | )
|                                                                              |  |            |        |   |      |   |       |          | 






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





|           |  |            |      |   |      |   |       | 
|---------- |  | ---------- | ---- | - | ---- | - | ----- | 
|           |  | Six Months |     
|           |  | Ended      |     
|           |  | June 30,   |     
|           |  |            |     
|           |  | 2005       |      |   | 2004 |  
|           |  |            |      |   |      |  
|Exelon     |  | $          | 286  |   |      | $ | 1,907 | 
|ComEd      |  |            | (128 | ) |      |   | 602   | 
|PECO       |  |            | 301  |   |      |   | 509   | 
|Generation |  |            | 380  |   |      |   | 616   | 







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

113



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



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



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



|           |  |            |        |   |      |   |      |  
|---------- |  | ---------- | ------ | - | ---- | - | ---- | -
|           |  | Six Months |       
|           |  | Ended      |       
|           |  | June 30,   |       
|           |  |            |       
|           |  | 2005       |        |   | 2004 |  
|           |  |            |        |   |      |  
|Exelon     |  | $          | (1,143 | ) |      | $ | (697 | )
|ComEd      |  |            | (104   | ) |      |   | (133 | )
|PECO       |  |            | (58    | ) |      |   | (139 | )
|Generation |  |            | (592   | ) |      |   | (438 | )



|                                  |  |            |       |  |           |   |     |      |  |   |       | 
|--------------------------------- |  | ---------- | ----- |  | --------- | - | --- | ---- |  | - | ----- | 
|                                  |  | Six Months |       |  |          
|                                  |  | Ended      |       |  |          
|                                  |  | June 30,   |       |  | Projected |  
|                                  |  |            |       |  |           |  
|                                  |  | 2005       |       |  | 2004      |   |     | 2005 | 
|                                  |  |            |       |  |           |   |     |      | 
|ComEd                             |  | $          | 391   |  |           | $ | 369 |      |  | $ | 742   | 
|PECO                              |  |            | 126   |  |           |   | 105 |      |  |   | 281   | 
|                                  |  |            |       |  |           |   |     |      | 
|Energy Delivery                   |  |            | 517   |  |           |   | 474 |      |  |   | 1,023 | 
|                                  |  |            |       |  |           |   |     |      | 
|Generation                        |  |            | 484   |  |           |   | 366 |      |  |   | 1,073 | 
|Other(a)                          |  |            | 6     |  |           |   | 4   |      |  |   | 56    | 
|                                  |  |            |       |  |           |   |     |      | 
|Total Exelon capital expenditures |  | $          | 1,007 |  |           | $ | 844 |      |  | $ | 2,152 | 
|                                  |  |            |       |  |           |   |     |      | 






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



ComEd and PECO.


Generation.






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



| |   |                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exelon contributed $56 million and $16 million to its
    investments in synthetic fuel-producing facilities during the
    six months ended June 30, 2005 and 2004, respectively.

114



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



| |   |                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As a result of its prior contributions to the Exelon
    intercompany money pool, $287 million and $207 million
    were returned to ComEd during the six months ended June 30,
    2005 and 2004, respectively.



| |     
| | ----
| | PECO



| |   |                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As a result of its prior contributions to the Exelon
    intercompany money pool, $34 million was returned to PECO
    during the six months ended June 30, 2005, and
    $35 million was contributed by PECO during the six months
    ended June 30, 2004.
|
| |  | During the six months ended June 30, 2005, there was a net
    decrease in restricted cash that provided $28 million of
    cash.                                                                                                                           



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



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | During the six months ended June 30, 2005, Generation
    received approximately $33 million from Generations
    nuclear decommissioning trust funds for reimbursement of
    expenditures previously incurred for nuclear plant
    decommissioning activities related to the retired units.                                                                                                                                                                                                                                            
|
| |  | On January 31, 2005, subsidiaries of Generation completed a
    series of transactions that resulted in Generations sale
    of its investment in Sithe. Specifically, subsidiaries of
    Generation closed on the acquisition of Reservoir Capital
    Groups 50% interest in Sithe for cash proceeds of
    $97 million and the sale of 100% of Sithe to Dynegy, for
    net cash proceeds of $103 million. See Note 4 of the
    Combined Notes to Consolidated Financial Statements for further
    discussion of the sale of Sithe.
|
| |  | On March 31, 2004, Generation consolidated the assets and
    liabilities of Sithe under the provisions of FIN 46-R,
    which resulted in an increase in cash of $19 million. See
    Note 1 and Note 4 of the Combined Notes to
    Consolidated Financial Statements for further information
    regarding the FIN 46-R consolidation of Sithe.                                                                                                                                                                                         
|
| |  | Generation received cash proceeds of $42 million from the
    January 2004 sale of three gas turbines that were classified as
    assets held for sale at December 31, 2003.                                                                                                                                                                                                                                                                                                                                                               
|
| |  | During the six months ended June 30, 2004, Generation
    provided $29 million of restricted cash related to
    Sithes operating activities and used $11 million of
    restricted cash to support the operations of Boston Generating.                                                                                                                                                                                                                                                                                                  



| |      
| | -----
| | Other



| |   |                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Cash proceeds of $210 million were received during the six
    months ended June 30, 2004 from the sales of Exelon Thermal
    Holdings, Inc., certain businesses of Exelon Services, Inc. and
    Enterprises investments in PECO Telcove and other equity
    method investments.
|
| |  | Early settlement of an acquisition note receivable from the 2003
    disposition of InfraSource, Inc. resulted in cash proceeds of
    $30 million during the six months ended June 30, 2004.                                                                                       

115



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



|           |  |            |      |   |      |   |      |  
|---------- |  | ---------- | ---- | - | ---- | - | ---- | -
|           |  | Six Months |     
|           |  | Ended      |     
|           |  | June 30,   |     
|           |  |            |     
|           |  | 2005       |      |   | 2004 |  
|           |  |            |      |   |      |  
|Exelon     |  | $          | 903  |   |      | $ | (937 | )
|ComEd      |  |            | 339  |   |      |   | (476 | )
|PECO       |  |            | (268 | ) |      |   | (317 | )
|Generation |  |            | 241  |   |      |   | (141 | )









|           |  |            |     |  |      |   |     | 
|---------- |  | ---------- | --- |  | ---- | - | --- | 
|           |  | Six Months |    
|           |  | Ended      |    
|           |  | June 30,   |    
|           |  |            |    
|           |  | 2005       |     |  | 2004 |  
|           |  |            |     |  |      |  
|Exelon     |  | $          | 535 |  |      | $ | 364 | 
|ComEd      |  |            | 245 |  |      |   | 207 | 
|PECO       |  |            | 233 |  |      |   | 182 | 
|Generation |  |            | 319 |  |      |   | 109 | 





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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 |            |  | $ | 329 | 
|ComEd            |  |             | 50  |  |             |             | 23  |            |  |   |    | 
|PECO             |  |             | 300 |  |             |             | 300 |            |  |   |    | 
|Generation       |  |             | 450 |  |             |             | 388 |            |  |   |    | 






|    |  |                                                                                                                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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                  |  |              | 35 | % |       |  | 26 | %       |  |  | 19         | % |  |  | 31 | %
|Long-term debt to affiliates(b) |  |              | 21 |   |       |  | 12 |         |  |  | 55         |   |  |  |   |  
|Common equity                   |  |              | 41 |   |       |  | 62 |         |  |  | 24         |   |  |  |   |  
|Members equity                 |  |              |   |   |       |  |   |         |  |  |           |   |  |  | 69 |  
|Preferred securities            |  |              |   |   |       |  |   |         |  |  | 2          |   |  |  |   |  
|Notes payable                   |  |              | 3  |   |       |  |   |         |  |  |           |   |  |  |   |  
|Minority interest               |  |              |   |   |       |  |   |         |  |  |           |   |  |  |   |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | As of June 30, 2005, PECOs capital structure,
    excluding the deduction from shareholders equity of the
    $1.3 billion receivable from Exelon (which amount is
    deducted for GAAP purposes as reflected in the table, but is
    excluded from the percentages in this footnote), consisted of
    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 $3 billion
    owed to unconsolidated affiliates of Exelon, ComEd and PECO,
    respectively, that qualify as special purpose entities under
    FIN 46-R. These special purpose entities were created for
    the sole purpose of issuing debt obligations to securitize
    intangible transition property and CTCs of Energy Delivery or
    mandatorily redeemable preferred securities. See Note 1 of
    the Exelons Notes to Consolidated Financial Statements
    within Exelons 2004 Annual Report on Form 10-K and
    Form 8-K filed on May 13, 2005 to recast information
    contained in Exelons and Generations 2004 Annual
    Report on Form 10-K for further information regarding
    FIN 46-R.

Intercompany Money Pool.


|           |  |             |     |  |          |          |     |             |  |   |     |  
|---------- |  | ----------- | --- |  | -------- | -------- | --- | ----------- |  | - | --- | -
|           |  |             |     |  |          | June 30, |    
|           |  |             |     |  |          | 2005     |    
|           |  | Maximum     |     |  | Maximum  |          |     | Contributed | 
|           |  | Contributed |     |  | Borrowed |          |     | (Borrowed)  | 
|           |  |             |     |  |          |          |     |             | 
|ComEd      |  | $           | 517 |  |          | $        |    |             |  | $ | 21  |  
|PECO       |  |             | 210 |  |          |          |    |             |  |   |    |  
|Generation |  |             |    |  |          |          | 540 |             |  |   |    |  
|BSC        |  |             |    |  |          |          | 156 |             |  |   | (21 | )
|UII, LLC   |  |             | 2   |  |          |          |    |             |  |   |    |  

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|           |  |               |   |  |          |   |   | 
|---------- |  | ------------- | - |  | -------- | - | - | 
|           |  | For the       |  
|           |  | Six Months    |  
|           |  | Ended         |  
|           |  | June 30, 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.






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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 $108 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 $174 million, primarily as
    a result of the wind-down of Enterprises operations.                                                                                         



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



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | IRS Refund Claims. ComEd and PECO have several pending
    tax refund claims seeking acceleration of certain tax deductions
    and additional tax credits. ComEd and PECO are unable to
    estimate the ultimate outcome of these refund claims and will
    account for any amounts received in the period the matters are
    settled with the IRS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |   | ComEd and PECO had entered into several agreements with a tax
    consultant related to the filing of these refund claims with the
    IRS. ComEd and PECO previously made refundable prepayments to
    the tax consultants of $11 million and $5 million,
    respectively. The fees for these agreements are contingent upon
    a successful outcome of the claims and are based upon a
    percentage of the refunds recovered from the IRS, if any. These
    potential tax benefits and associated fees could be material to
    the financial position, results of operations and cash flows of
    ComEd and PECO. A portion of ComEds tax benefits,
    including any associated interest for periods prior to the
    merger among PECO, Unicom Corporation (Unicom), the former
    parent company of ComEd, and Exelon (PECO/ Unicom Merger) would
    be recorded as a reduction of goodwill pursuant to a
    reallocation of the PECO/ Unicom Merger purchase price. ComEd
    and PECO cannot predict the timing of the final resolution of
    these refund claims.
|
| |   | In 2004, the IRS granted preliminary approval for one of
    ComEds refund claims and final approval was obtained in
    the first quarter of 2005. The investment tax credit refund and
    associated interest have been recorded in the financial
    statements. Approximately $14 million of tax and interest
    benefit received in the second quarter of 2005 has been
    reflected in the financial statements of which $12 million
    ($9 million after-tax) was recorded to goodwill under the
    provisions of EITF Issue 93-7,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Uncertainties Related to Income Taxes in a Purchase
    Business Combination. As a result, ComEd recorded
    consulting expenses of $5 million (pre-tax) in 2004.                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | Based on recent negotiations with the IRS, PECO believes it will
    receive a refund related to one of its claims. As of
    June 30, 2005, PECO had not reflected the tax benefit
    associated with the refund claim pending final approval of the
    IRS. During 2005, PECO recorded total consulting expenses of
    $6 million (pre-tax). The charge represents an estimate of
    the fee owed to the tax consultant which may be adjusted upward
    or downward depending on the final resolution of the matter with
    the IRS.



| |           
| | ----------
| | 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 $109 million and guarantees
    decreased $40 million, both primarily as a result of the
    sale of Sithe. See Note 4 of the Combined Notes to
    Consolidated Financial Statements for further discussion.                                                                                                                                                         
|
| |  | During the second quarter of 2005, in the normal course of
    business, Generation entered into long-term contracts for
    uranium enrichment services, increasing commitments in years
    beyond 2009 by approximately $400 million.                                                                                                                                                          

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COMMONWEALTH EDISON COMPANY




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





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





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



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

|                            |                                               |                                   |       |     |               |   |       |          |     |   |      |      |      |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | --- | ------------- | - | ----- | -------- | --- | - | ---- | ---- | ---- | -
|                            |                                               | Three Months                      |       |     |              
|                            |                                               | Ended                             |       |     |              
|                            |                                               | June 30,                          |       |     | Favorable     |  
|                            |                                               |                                   |       |     | (Unfavorable) |  
|                            |                                               | 2005                              |       |     | 2004          |   |       | Variance |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|Operating revenues          |                                               | $                                 | 1,488 |     |               | $ | 1,403 |          |     | $ | 85   |     
|Operating expenses          |                                               |                                   |       |     |               |   |       |          |     |   |      |     
|                            | Purchased power                               |                                   |       | 858 |               |   |       | 574      |     |   |      | (284 | )   
|                            | Operating and maintenance                     |                                   |       | 202 |               |   |       | 223      |     |   |      | 21   |     
|                            | Depreciation and amortization                 |                                   |       | 101 |               |   |       | 103      |     |   |      | 2    |     
|                            | Taxes other than income                       |                                   |       | 73  |               |   |       | 72       |     |   |      | (1   | )   
|                            |                                               |                                   |       |     |               |   |       |          |    
|                            |                                               | Total operating expense           |       |     | 1,234         |   |       |          | 972 |   |      |      | (262 | )
|                            |                                               |                                   |       |     |               |   |       |          |    
|Operating income            |                                               |                                   | 254   |     |               |   | 431   |          |     |   | (177 | )   
|                            |                                               |                                   |       |     |               |   |       |          |    
|Other income and deductions |                                               |                                   |       |     |               |   |       |          |     |   |      |     
|                            | Interest expense                              |                                   |       | (77 | )             |   |       | (96      | )   |   |      | 19   |     
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (4  | )             |   |       | (6       | )   |   |      | 2    |     
|                            | Other, net                                    |                                   |       | 7   |               |   |       | 7        |     |   |      |     |     
|                            |                                               |                                   |       |     |               |   |       |          |    
|                            |                                               | Total other income and deductions |       |     | (74           | ) |       |          | (95 | ) |      |      | 21   |  
|                            |                                               |                                   |       |     |               |   |       |          |    
|Income before income taxes  |                                               |                                   | 180   |     |               |   | 336   |          |     |   | (156 | )   
|Income taxes                |                                               |                                   | 71    |     |               |   | 132   |          |     |   | 61   |     
|                            |                                               |                                   |       |     |               |   |       |          |    
|Net income                  |                                               | $                                 | 109   |     |               | $ | 204   |          |     | $ | (95  | )   
|                            |                                               |                                   |       |     |               |   |       |          |    




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| |                                                                              
| | -----------------------------------------------------------------------------
| | Six Months Ended June 30, 2005 Compared to Six Months
    Ended June 30, 2004

|                            |                                               |                                   |       |       |               |   |       |          |       |   |      |      |      |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | ----- | ------------- | - | ----- | -------- | ----- | - | ---- | ---- | ---- | -
|                            |                                               | Six Months                        |       |       |              
|                            |                                               | Ended                             |       |       |              
|                            |                                               | June 30,                          |       |       | Favorable     |  
|                            |                                               |                                   |       |       | (Unfavorable) |  
|                            |                                               | 2005                              |       |       | 2004          |   |       | Variance |      
|                            |                                               |                                   |       |       |               |   |       |          |      
|Operating revenues          |                                               | $                                 | 2,875 |       |               | $ | 2,739 |          |       | $ | 136  |     
|Operating expenses          |                                               |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Purchased power                               |                                   |       | 1,679 |               |   |       | 1,108    |       |   |      | (571 | )   
|                            | Operating and maintenance                     |                                   |       | 404   |               |   |       | 438      |       |   |      | 34   |     
|                            | Depreciation and amortization                 |                                   |       | 198   |               |   |       | 205      |       |   |      | 7    |     
|                            | Taxes other than income                       |                                   |       | 151   |               |   |       | 151      |       |   |      |     |     
|                            |                                               |                                   |       |       |               |   |       |          |      
|                            |                                               | Total operating expense           |       |       | 2,432         |   |       |          | 1,902 |   |      |      | (530 | )
|                            |                                               |                                   |       |       |               |   |       |          |      
|Operating income            |                                               |                                   | 443   |       |               |   | 837   |          |       |   | (394 | )   
|                            |                                               |                                   |       |       |               |   |       |          |      
|Other income and deductions |                                               |                                   |       |       |               |   |       |          |       |   |      |     
|                            | Interest expense                              |                                   |       | (151  | )             |   |       | (202     | )     |   |      | 51   |     
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (8    | )             |   |       | (9       | )     |   |      | 1    |     
|                            | Other, net                                    |                                   |       | 13    |               |   |       | 17       |       |   |      | (4   | )   
|                            |                                               |                                   |       |       |               |   |       |          |      
|                            |                                               | Total other income and deductions |       |       | (146          | ) |       |          | (194  | ) |      |      | 48   |  
|                            |                                               |                                   |       |       |               |   |       |          |      
|Income before income taxes  |                                               |                                   | 297   |       |               |   | 643   |          |       |   | (346 | )   
|Income taxes                |                                               |                                   | 118   |       |               |   | 255   |          |       |   | 137  |     
|                            |                                               |                                   |       |       |               |   |       |          |      
|Net income                  |                                               | $                                 | 179   |       |               | $ | 388   |          |       | $ | (209 | )   
|                            |                                               |                                   |       |       |               |   |       |          |      



Liquidity and Capital Resources








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



123



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





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





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





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



124



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PECO ENERGY COMPANY




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





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





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



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

|                            |                                               |                                   |       |     |               |   |       |          |     |   |    |     |     |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | --- | ------------- | - | ----- | -------- | --- | - | -- | --- | --- | -
|                            |                                               | Three Months                      |       |     |              
|                            |                                               | Ended                             |       |     |              
|                            |                                               | June 30,                          |       |     | Favorable     |  
|                            |                                               |                                   |       |     | (Unfavorable) |  
|                            |                                               | 2005                              |       |     | 2004          |   |       | Variance |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|Operating revenues          |                                               | $                                 | 1,044 |     |               | $ | 1,032 |          |     | $ | 12 |    
|Operating expenses          |                                               |                                   |       |     |               |   |       |          |     |   |    |    
|                            | Purchased power                               |                                   |       | 437 |               |   |       | 402      |     |   |    | (35 | )  
|                            | Fuel                                          |                                   |       | 66  |               |   |       | 83       |     |   |    | 17  |    
|                            | Operating and maintenance                     |                                   |       | 119 |               |   |       | 132      |     |   |    | 13  |    
|                            | Depreciation and amortization                 |                                   |       | 137 |               |   |       | 125      |     |   |    | (12 | )  
|                            | Taxes other than income                       |                                   |       | 60  |               |   |       | 60       |     |   |    |    |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|                            |                                               | Total operating expenses          |       |     | 819           |   |       |          | 802 |   |    |     | (17 | )
|                            |                                               |                                   |       |     |               |   |       |          |    
|Operating income            |                                               |                                   | 225   |     |               |   | 230   |          |     |   | (5 | )  
|                            |                                               |                                   |       |     |               |   |       |          |    
|Other income and deductions |                                               |                                   |       |     |               |   |       |          |     |   |    |    
|                            | Interest expense                              |                                   |       | (70 | )             |   |       | (76      | )   |   |    | 6   |    
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (4  | )             |   |       | (7       | )   |   |    | 3   |    
|                            | Other, net                                    |                                   |       | 6   |               |   |       | 3        |     |   |    | 3   |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|                            |                                               | Total other income and deductions |       |     | (68           | ) |       |          | (80 | ) |    |     | 12  |  
|                            |                                               |                                   |       |     |               |   |       |          |    
|Income before income taxes  |                                               |                                   | 157   |     |               |   | 150   |          |     |   | 7  |    
|Income taxes                |                                               |                                   | 47    |     |               |   | 50    |          |     |   | 3  |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|Net income                  |                                               |                                   | 110   |     |               |   | 100   |          |     |   | 10 |    
|Preferred stock dividends   |                                               |                                   | 1     |     |               |   | 1     |          |     |   |   |    
|                            |                                               |                                   |       |     |               |   |       |          |    
|Net income on common stock  |                                               | $                                 | 109   |     |               | $ | 99    |          |     | $ | 10 |    
|                            |                                               |                                   |       |     |               |   |       |          |    



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| |                                                                              
| | -----------------------------------------------------------------------------
| | Six Months Ended June 30, 2005 Compared to Six Months
    Ended June 30, 2004

|                            |                                               |                                   |       |      |               |   |       |          |       |   |    |     |     |  
|--------------------------- | --------------------------------------------- | --------------------------------- | ----- | ---- | ------------- | - | ----- | -------- | ----- | - | -- | --- | --- | -
|                            |                                               | Six Months                        |       |      |              
|                            |                                               | Ended                             |       |      |              
|                            |                                               | June 30,                          |       |      | Favorable     |  
|                            |                                               |                                   |       |      | (Unfavorable) |  
|                            |                                               | 2005                              |       |      | 2004          |   |       | Variance |      
|                            |                                               |                                   |       |      |               |   |       |          |      
|Operating revenues          |                                               | $                                 | 2,339 |      |               | $ | 2,271 |          |       | $ | 68 |    
|Operating expenses          |                                               |                                   |       |      |               |   |       |          |       |   |    |    
|                            | Purchased power                               |                                   |       | 869  |               |   |       | 799      |       |   |    | (70 | )  
|                            | Fuel                                          |                                   |       | 331  |               |   |       | 332      |       |   |    | 1   |    
|                            | Operating and maintenance                     |                                   |       | 253  |               |   |       | 266      |       |   |    | 13  |    
|                            | Depreciation and amortization                 |                                   |       | 273  |               |   |       | 250      |       |   |    | (23 | )  
|                            | Taxes other than income                       |                                   |       | 115  |               |   |       | 118      |       |   |    | 3   |    
|                            |                                               |                                   |       |      |               |   |       |          |      
|                            |                                               | Total operating expenses          |       |      | 1,841         |   |       |          | 1,765 |   |    |     | (76 | )
|                            |                                               |                                   |       |      |               |   |       |          |      
|Operating income            |                                               |                                   | 498   |      |               |   | 506   |          |       |   | (8 | )  
|                            |                                               |                                   |       |      |               |   |       |          |      
|Other income and deductions |                                               |                                   |       |      |               |   |       |          |       |   |    |    
|                            | Interest expense                              |                                   |       | (142 | )             |   |       | (153     | )     |   |    | 11  |    
|                            | Equity in losses of unconsolidated affiliates |                                   |       | (8   | )             |   |       | (13      | )     |   |    | 5   |    
|                            | Other, net                                    |                                   |       | 9    |               |   |       | 5        |       |   |    | 4   |    
|                            |                                               |                                   |       |      |               |   |       |          |      
|                            |                                               | Total other income and deductions |       |      | (141          | ) |       |          | (161  | ) |    |     | 20  |  
|                            |                                               |                                   |       |      |               |   |       |          |      
|Income before income taxes  |                                               |                                   | 357   |      |               |   | 345   |          |       |   | 12 |    
|Income taxes                |                                               |                                   | 118   |      |               |   | 112   |          |       |   | (6 | )  
|                            |                                               |                                   |       |      |               |   |       |          |      
|Net income                  |                                               |                                   | 239   |      |               |   | 233   |          |       |   | 6  |    
|Preferred stock dividends   |                                               |                                   | 2     |      |               |   | 2     |          |       |   |   |    
|                            |                                               |                                   |       |      |               |   |       |          |      
|Net income on common stock  |                                               | $                                 | 237   |      |               | $ | 231   |          |       | $ | 6  |    
|                            |                                               |                                   |       |      |               |   |       |          |      



Liquidity and Capital Resources








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



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





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





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





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



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EXELON GENERATION COMPANY, LLC




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





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





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



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





| |                                                                              
| | -----------------------------------------------------------------------------
| | Six Months Ended June 30, 2005 Compared to Six Months
    Ended June 30, 2004



Liquidity and Capital Resources








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



128



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





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





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





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



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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.


130



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Proprietary Trading Activities.






131



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|                                                                                         |  |       |      |  
|---------------------------------------------------------------------------------------- |  | ----- | ---- | -
|                                                                                         |  | Total |     
|                                                                                         |  |       |     
|Total mark-to-market energy contract net liabilities at
    January 1, 2005              |  | $     | (145 | )
|Total change in fair value during 2005 of contracts recorded in
    earnings             |  |       | 34   |  
|Reclassification to realized at settlement of contracts recorded
    in earnings         |  |       | 16   |  
|Reclassification to realized at settlement from OCI                                      |  |       | 189  |  
|Effective portion of changes in fair value  recorded
    in OCI                         |  |       | (336 | )
|Purchase/sale/disposal of existing contracts or portfolios
    subject to mark-to-market |  |       | (97  | )
|                                                                                         |  |       |     
|Total mark-to-market energy contract net liabilities at
    June 30, 2005                |  | $     | (339 | )
|                                                                                         |  |       |     



|                                                     |  |          |        |   |              |   |      |  
|---------------------------------------------------- |  | -------- | ------ | - | ------------ | - | ---- | -
|                                                     |  | June 30, |        |   | December 31, |  
|                                                     |  | 2005     |        |   | 2004         |  
|                                                     |  |          |        |   |              |  
|Current assets                                       |  | $        | 508    |   |              | $ | 403  |  
|Noncurrent assets                                    |  |          | 330    |   |              |   | 373  |  
|                                                     |  |          |        |   |              |  
|Total mark-to-market energy contract assets          |  |          | 838    |   |              |   | 776  |  
|                                                     |  |          |        |   |              |  
|Current liabilities                                  |  |          | (756   | ) |              |   | (598 | )
|Noncurrent liabilities                               |  |          | (421   | ) |              |   | (323 | )
|                                                     |  |          |        |   |              |  
|Total mark-to-market energy contract liabilities     |  |          | (1,177 | ) |              |   | (921 | )
|                                                     |  |          |        |   |              |  
|Total mark-to-market energy contract net liabilities |  | $        | (339   | ) |              | $ | (145 | )
|                                                     |  |          |        |   |              |  



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|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   |  |  |   |   |  |  |   |      |  
|--------------------------------------------------------------- | ------------------------------------------------ | ----------------- | - | -------- | ---- | ---------- | - | ---- | - |  | ---- | --- | - | ---- | - | ------ | - | ----- | - | - |  |  | - | - |  |  | - | ---- | -
|                                                                |                                                  | Maturities Within |   |         
|                                                                |                                                  |                   |   |         
|                                                                |                                                  |                   |   | 2010 and |      | Total Fair |  
|(In millions)                                                   |                                                  | 2005              |   |          | 2006 |            |   | 2007 |   |  | 2008 |     |   | 2009 |   | Beyond |   | Value |  
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |  
|Normal Operations, qualifying cash-flow hedge
    contracts(a): |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   |  |  |   |   |  |  |   |     
|                                                                | Actively quoted prices                           |                   | $ | 1        |      |            | $ | 1    |   |  | $    |    |   |      | $ |       |   |       | $ |  |  |  | $ |  |  |  | $ | 2    |  
|                                                                | Prices provided by other external sources        |                   |   | (181     | )    |            |   | (151 | ) |  |      | (37 | ) |      |   | (1     | ) |       |   |  |  |  |   |  |  |  |   | (370 | )
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   | 
|                                                                | Total                                            |                   | $ | (180     | )    |            | $ | (150 | ) |  | $    | (37 | ) |      | $ | (1     | ) |       | $ |  |  |  | $ |  |  |  | $ | (368 | )
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   | 
|Normal Operations, other derivative contracts(b):               |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   |  |  |   |   |  |  |   |     
|                                                                | Actively quoted prices                           |                   | $ | 31       |      |            | $ | 23   |   |  | $    | (6  | ) |      | $ |       |   |       | $ |  |  |  | $ |  |  |  | $ | 48   |  
|                                                                | Prices provided by other external sources        |                   |   | (10      | )    |            |   | (2   | ) |  |      | 6   |   |      |   |       |   |       |   |  |  |  |   |  |  |  |   | (6   | )
|                                                                | Prices based on model or other valuation methods |                   |   | (4       | )    |            |   | (6   | ) |  |      | (3  | ) |      |   |       |   |       |   |  |  |  |   |  |  |  |   | (13  | )
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   | 
|                                                                | Total                                            |                   | $ | 17       |      |            | $ | 15   |   |  | $    | (3  | ) |      | $ |       |   |       | $ |  |  |  | $ |  |  |  | $ | 29   |  
|                                                                |                                                  |                   |   |          |      |            |   |      |   |  |      |     |   |      |   |        |   |       |   |   | 






|    |                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------
|(a) | Mark-to-market gains and losses on contracts that qualify as
    cash-flow hedges are recorded in other comprehensive income.



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



|                                                   |  |                                     |      |   |               |   |    |           |  |   |      |  
|-------------------------------------------------- |  | ----------------------------------- | ---- | - | ------------- | - | -- | --------- |  | - | ---- | -
|                                                   |  | Total Cash-Flow Hedge OCI Activity, |     
|                                                   |  | Net of Income Tax                   |     
|                                                   |  |                                     |     
|                                                   |  | Power Team Normal                   |      |   | Interest-Rate |   |    | Total     | 
|                                                   |  | Operations and                      |      |   | and Other     |   |    | Cash-Flow | 
|(In millions)                                      |  | Hedging Activities                  |      |   | Hedges        |   |    | Hedges    | 
|                                                   |  |                                     |      |   |               |   |    |           | 
|Accumulated OCI derivative loss at January 1, 2005 |  | $                                   | (137 | ) |               | $ | (9 | )         |  | $ | (146 | )
|Changes in fair value                              |  |                                     | (204 | ) |               |   | 2  |           |  |   | (202 | )
|Reclassifications from OCI to net income           |  |                                     | 117  |   |               |   |   |           |  |   | 117  |  
|                                                   |  |                                     |      |   |               |   |    |           | 
|Accumulated OCI derivative loss at June 30, 2005   |  | $                                   | (224 | ) |               | $ | (7 | )         |  | $ | (231 | )
|                                                   |  |                                     |      |   |               |   |    |           | 

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Credit Risk (Exelon and Generation)




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





|                              |                                          |               |     |    |            |   |    |          |                |   |                  |                 |  |                  |   |   |  |   |    |   | 
|----------------------------- | ---------------------------------------- | ------------- | --- | -- | ---------- | - | -- | -------- | -------------- | - | ---------------- | --------------- |  | ---------------- | - | - |  | - | -- | - | 
|                              |                                          | Total         |     |    |            |   |    |          | Number Of      |   |                  | Net Exposure Of | 
|                              |                                          | Exposure      |     |    |            |   |    |          | Counterparties |   |                  | Counterparties  | 
|                              |                                          | Before Credit |     |    | Credit     |   |    | Net      |                |   | Greater than 10% |                 |  | Greater than 10% |  
|Rating as of June 30, 2005(a) |                                          | Collateral    |     |    | Collateral |   |    | Exposure |                |   | of Net Exposure  |                 |  | of Net Exposure  |  
|                              |                                          |               |     |    |            |   |    |          |                |   |                  |                 |  |                  |  
|Investment grade              |                                          | $             | 162 |    |            | $ | 35 |          |                | $ | 127              |                 |  |                  | 2 |   |  | $ | 42 |  
|Non-investment grade          |                                          |               | 17  |    |            |   | 12 |          |                |   | 5                |                 |  |                  |  |   |  |   |   |  
|No external ratings           |                                          |               |     |    |            |   |    |          |                |   |                  |                 |  |                  |   |   |  |   |    |  
|                              | Internally rated  investment grade      |               |     | 16 |            |   |    | 4        |                |   |                  | 12              |  |                  |   |  |  |   |    |  | 
|                              | Internally rated  non- investment grade |               |     | 1  |            |   |    |         |                |   |                  | 1               |  |                  |   |  |  |   |    |  | 
|                              |                                          |               |     |    |            |   |    |          |                |   |                  |                 |  |                  |  
|Total                         |                                          | $             | 196 |    |            | $ | 51 |          |                | $ | 145              |                 |  |                  | 2 |   |  | $ | 42 |  
|                              |                                          |               |     |    |            |   |    |          |                |   |                  |                 |  |                  |  






|    |                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------
|(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 June 30, 2005(a) |                                         | 2 Years                          |     |          | 2-5 Years |   |                | 5 Years |  |               | Collateral |  
|                              |                                         |                                  |     |          |           |   |                |         |  |               |            |  
|Investment grade              |                                         | $                                | 157 |          |           | $ | 4              |         |  | $             | 1          |   |  | $ | 162 |   
|Non-investment grade          |                                         |                                  | 17  |          |           |   |               |         |  |               |           |   |  |   | 17  |   
|No external ratings           |                                         |                                  |     |          |           |   |                |         |  |               |            |   |  |   |     |   
|                              | Internally rated  investment grade     |                                  |     | 16       |           |   |                |        |  |               |            |  |  |   |     | 16 | 
|                              | Internally rated  non-investment grade |                                  |     | 1        |           |   |                |        |  |               |            |  |  |   |     | 1  | 
|                              |                                         |                                  |     |          |           |   |                |         |  |               |            |  
|Total                         |                                         | $                                | 191 |          |           | $ | 4              |         |  | $             | 1          |   |  | $ | 196 |   
|                              |                                         |                                  |     |          |           |   |                |         |  |               |            |  






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

Collateral.


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ISOs.




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



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




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





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



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





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





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



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









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



Equity Price Risk (Exelon and Generation)




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








PART II  OTHER INFORMATION







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



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





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





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

Cromby Generating Station. 2 2


137



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

Exelon




|                         |  |              |        |  |                |                  |                     |                 |                  |                  |                 |  |  |  |    |  
|------------------------ |  | ------------ | ------ |  | -------------- | ---------------- | ------------------- | --------------- | ---------------- | ---------------- | --------------- |  |  |  | -- | -
|                         |  |              |        |  |                |                  |                     | Maximum Number  |                 
|                         |  |              |        |  |                |                  |                     | (or Approximate |                 
|                         |  |              |        |  |                | Total Number of  |                     |                 | Dollar Value) of |                 
|                         |  |              |        |  |                | Shares Purchased |                     |                 | Shares that May  |                 
|                         |  | Total Number |        |  |                |                  | As Part of Publicly |                 |                  | Yet Be Purchased |                
|                         |  | of Shares    |        |  | Average Price  |                  |                     | Announced Plans |                  |                  | Under the Plans | 
|Period                   |  | Purchased(a) |        |  | Paid per Share |                  |                     | or Programs(b)  |                  |                  | or Programs     | 
|                         |  |              |        |  |                |                  |                     |                 |                  |                  |                 | 
|April 1  April 30, 2005 |  |              | 8,462  |  |                |                  | 45.88               |                 |                  |                  |                |  |  |  | (b | )
|May 1  May 31, 2005     |  |              | 567    |  |                |                  | 46.56               |                 |                  |                  |                |  |  |  | (b | )
|June 1  June 30, 2005   |  |              | 2,441  |  |                |                  | 48.36               |                 |                  |                  |                |  |  |  | (b | )
|                         |  |              |        |  |                |                  |                     |                 |                  |                  |                 | 
|Total                    |  |              | 11,470 |  |                |                  | 46.44               |                 |                  |                  |                |  |  |  | (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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(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. No
    purchases were made pursuant to this program during the quarter
    covered by this Report.






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

Exelon


Amendment of Employment Agreement






| |   |                                                                
| | - | ---------------------------------------------------------------
| |  | modifies the severance provisions of the existing agreement to:



| |   |                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | extend from March 16, 2006 (the normal retirement
    date specified in the existing agreement) to
    March 16, 2010, the expiration of Mr. Rowes
    ability to terminate his employment and receive special
    termination benefits if Exelon fails to appoint him as
    Chairman of the Board (other than during E. James Ferlands
    term as Chairman), President and CEO;
|
| |  | limit any severance payment period with respect to a termination
    of Mr. Rowes employment occurring prior to
    March 16, 2010 to the shorter of the applicable period
    specified in the existing agreement or the period remaining
    until March 16, 2010;                                                                                                                   
|
| |  | require Mr. Rowe to sign a waiver and release of claims in
    favor of Exelon as a condition to receiving severance benefits
    upon a termination of his employment; and                                                                                                                                                                                                             
|
| |  | grant Exelon the ability to terminate Mr. Rowes
    employment on or after March 16, 2010 without triggering
    severance benefits.                                                                                                                                                                                                                                                   



| |   |                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | modifies a limitation applicable to the supplemental executive
    retirement plan, or SERP, benefit available to
    Mr. Rowe under the existing agreement upon a termination of
    his employment. That limitation provides that the SERP benefit
    is forfeited in the event of a termination of employment for

138



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##### Table of Contents



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | cause. As amended, the forfeiture will be limited, in the event
    of a termination for cause after the March 16, 2006
    normal retirement date specified in the existing
    agreement, to the portion of the benefit that accrues after
    March 16, 2006.                                                                                                                                                                                                                                    
|
| |  | provides that any future award of restricted stock would, to the
    extent an applicable restriction has not lapsed, be forfeited
    upon his retirement prior March 16, 2006 or termination of
    employment for cause, and become vested upon his retirement on
    or after March 16, 2006 (unless otherwise provided in the
    grant instrument) or other termination of employment other than
    for cause.                                                                                 
|
| |  | clarifies that upon a retirement or other termination of
    Mr. Rowes employment other than a termination for
    cause, any previously earned but non-vested performance shares
    will become vested (consistent with the current terms of
    Exelons performance share program under its long-term
    incentive plan) and he will receive a target award for the year
    in which the termination occurs.                                                                                   
|
| |  | requires Mr. Rowe, upon his retirement or other termination
    of employment other than a termination for cause, to provide up
    to ten hours per week of transition services for six months and
    thereafter, until the third anniversary of his termination, at
    Exelons request, to provide consulting services, attend a
    reasonable number of civic, charitable and corporate events, and
    serve on civic and charitable boards as Exelons
    representative as mutually agreed.
|
| |  | requires Exelon to provide office space, a personal secretary
    and reasonably-requested tax, financial and estate planning
    services to Mr. Rowe for three years following his
    retirement or termination of employment other than a termination
    for cause (or one year following his death).                                                                                                                                                                                            
|
| |  | provides that if any payment to Mr. Rowe would be subject
    to a penalty under new section 409A of the Internal Revenue
    Code, then Exelon may postpone such payment for up to six months
    or Mr. Rowe may defer such payment if doing so would avoid
    the penalty, and otherwise Exelon and Mr. Rowe will
    negotiate in good faith to modify the amended agreement to
    comply with section 409A and provide approximately equivalent
    value.                                     





139



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##### Table of Contents








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

|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2-1   |  | Amended and Restated Agreement and Plan of Merger dated as of
    October 20, 2000, among PECO Energy Company, Exelon
    Corporation and Unicom Corporation (File No. 1-01401, PECO
    Energy Company Form 10-Q for the quarter ended
    September 30, 2000, Exhibit 2-1).                                                                                                                                                                                               
|     
|2-2   |  | Agreement and Plan of Merger between Exelon Corporation and
    Public Service Enterprise Group Incorporated dated as of
    December 20, 2004 (File No. 1-16169, Form 8-K
    dated December 21, 2004, Exhibit 2.1).                                                                                                                                                                                                                                                       
|     
|3-1   |  | Articles of Incorporation of Exelon Corporation (Registration
    Statement No. 333-37082, Form S-4, Exhibit 3-1).                                                                                                                                                                                                                                                                                                                                                          
|     
|3-2   |  | Amendment to Articles of Incorporation for Exelon Corporation
    (File No. 1-16169, Form 10-Q for the quarter ended
    June 30, 2004, Exhibit 3-1).                                                                                                                                                                                                                                                                                                                       
|     
|3-3   |  | Amended and Restated Bylaws of Exelon Corporation, adopted
    January 27, 2004 (File No. 1-16169, 2003
    Form 10-K, Exhibit 3-2).                                                                                                                                                                                                                                                                                                                                        
|     
|3-4   |  | Amended and Restated Articles of Incorporation of PECO Energy
    Company (File No. 1-01401, 2000 Form 10-K,
    Exhibit 3-3).                                                                                                                                                                                                                                                                                                                                              
|     
|3-5   |  | Bylaws of PECO Energy Company, adopted February 26, 1990
    and amended January 26, 1998 (File No. 1-01401, 1997
    Form 10-K, Exhibit 3-2).                                                                                                                                                                                                                                                                                                                              
|     
|3-6   |  | Restated Articles of Incorporation of Commonwealth Edison
    Company effective February 20, 1985, including Statements
    of Resolution Establishing Series, relating to the establishment
    of three new series of Commonwealth Edison Company preference
    stock known as the $9.00 Cumulative Preference
    Stock, the $6.875 Cumulative Preference Stock
    and the $2.425 Cumulative Preference Stock (File
    No. 1-1839, 1994 Form 10-K, Exhibit 3-2).
|     
|3-7   |  | Bylaws of Commonwealth Edison Company, effective
    September 2, 1998, as amended through October 20, 2000
    (File No. 1-1839, 2000 Form 10-K, Exhibit 3-6).                                                                                                                                                                                                                                                                                                             
|     
|3-8   |  | Certificate of Formation of Exelon Generation Company, LLC
    (Registration Statement No. 333-85496, Form S-4,
    Exhibit 3-1).                                                                                                                                                                                                                                                                                                                                           
|     
|3-9   |  | First Amended and Restated Operating Agreement of Exelon
    Generation Company, LLC executed as of January 1, 2001
    (File No. 333-85496, 2003 Form 10-K, Exhibit 3-8).                                                                                                                                                                                                                                                                                                  
|     
|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 | 

140



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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 | 
|April 1, 1993      |  | 33-64028, Form S-3     |  |             | 4-12 | 

141



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|                  |  |                                                              |  |             |       | 
|----------------- |  | ------------------------------------------------------------ |  | ----------- | ----- | 
|Dated as of       |  | File Reference                                               |  | Exhibit No. |      
|                  |  |                                                              |  |             |      
|April 15, 1993    |  | 33-64028, Form S-3                                           |  |             | 4-13  | 
|June 15, 1993     |  | 1-1839, Form 8-K dated May 21, 1993                          |  |             | 4-1   | 
|July 15, 1993     |  | 1-1839, Form 10-Q for quarter ended June 30, 1993.           |  |             | 4-1   | 
|January 15, 1994  |  | 1-1839, 1993 Form 10-K                                       |  |             | 4-15  | 
|December 1, 1994  |  | 1-1839, 1994 Form 10-K                                       |  |             | 4-16  | 
|June 1, 1996      |  | 1-1839, 1996 Form 10-K                                       |  |             | 4-16  | 
|March 1, 2002     |  | 1-1839, 2001 Form 10-K                                       |  |             | 4-4-1 | 
|May 20, 2002      |  | 1-1839, 2001 Form 10-K                                       |  |             | 4-4-1 | 
|June 1, 2002      |  | 1-1839, 2001 Form 10-K                                       |  |             | 4-4-1 | 
|October 7, 2002   |  | 1-1839, 2001 Form 10-K                                       |  |             | 4-4-1 | 
|January 13, 2003  |  | 1-1839, Form 8-K dated January 22, 2003                      |  |             | 4-4   | 
|March 14, 2003    |  | 1-1839, Form 8-K dated April 7, 2003                         |  |             | 4-4   | 
|August 13, 2003   |  | 1-1839, Form 8-K dated August 25, 2003                       |  |             | 4-4   | 
|February 15, 2005 |  | 1-16169, Form 10-Q for the quarter ended March 31,
    2005. |  |             | 4-3-1 | 

|      |  |                                                                                                                                                                                                                                                                                 
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4-3-2 |  | Instrument of Resignation, Appointment and Acceptance dated as
    of February 20, 2002, under the provisions of the Mortgage
    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).
|    
|4-10 |  | Indenture dated May 1, 2001 between Exelon and
    J.P. Morgan Trust Company, National Association (formerly
    known as Chase Manhattan Trust Company, National Association),
    as trustee.                                                                                                                                                                                                                                                         
|    
|4-11 |  | Form of $400,000,000 4.45% senior notes due 2010 dated
    June 9, 2005 issued by Exelon Corporation (File
    No. 1-16169, Exelon Corporation Form 8-K dated
    June 9, 2005, Exhibit 99.1).                                                                                                                                                                                                                                                          
|    
|4-12 |  | Form of $800,000,000 4.90% senior notes due 2015 dated
    June 9, 2005 issued by Exelon Corporation (File
    No. 1-16169, Exelon Corporation Form 8-K dated
    June 9, 2005, Exhibit 99.2).                                                                                                                                                                                                                                                          

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|     |  |                                                                                                                                                                                                                                                                                                     
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    
|4-13 |  | Form of $500,000,000 5.625% senior notes due 2035 dated
    June 9, 2005 issued by Exelon Corporation (File
    No. 1-16169, Exelon Corporation Form 8-K dated
    June 9, 2005, Exhibit 99.3).                                                                                                     
|    
|10-1 |  | $500 million term loan agreement dated April 1, 2005
    among Exelon Corporation, lenders named within the agreement and
    Dresdner Bank AG, New York and Grand Cayman Branches, as
    Administrative Agent (File No. 1-16169, Exelon Corporation
    Form 8-K dated April 1, 2005, Exhibit 99).
|10-2 |  | Amended and Restated Employment Agreement by and between Exelon
    Corporation and John W. Rowe, dated as of July 22, 2005.                                                                                                                                                                        



|     |  |   |  |                                                              
|---- |  | - |  | -------------------------------------------------------------
|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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SIGNATURES







EXELON CORPORATION


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



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##### Table of Contents








PECO ENERGY COMPANY


|                                                                                                                                        |  |                                                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                       
|/s/ John L. SkoldsJohn L. Skolds
    President, Exelon Energy Delivery
    (Principal Executive Officer)                                |  | /s/ J. Barry MitchellJ. Barry Mitchell
    Senior Vice President, 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BrienDenis P. OBrien
    President, PECO                                                                                 








EXELON GENERATION COMPANY, LLC


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



145