Exelon Generation Adjusted Results Lifted by Texas Weather, Expired PECO PPA

Exelon's Generation unit, which includes the results from its competitive retail sales operations, posted higher adjusted earnings of $522 million for the third quarter, up from $499 million a year ago.

Higher adjusted earnings were driven by higher margins from the expiration of the prior PECO PPA, and from increased volume and prices for Exelon's ERCOT generation, due to favorable weather.

Higher margins due to expiration of the PECO PPA contributed $179 million to the improvement.

Favorable market conditions in Texas contributed another $66 million. Total generation in ERCOT for the quarter increased to 2,400 GWh for the quarter, versus 2,000 GWh a year ago, on acquisitions and favorable weather.

Partially offsetting these factors was a $93 million decline from lower capacity pricing, as well as several other factors including higher operations and maintenance costs and higher nuclear fuel costs.

On a GAAP basis, Generation's quarterly earnings were $386 million, compared with $605 million in the third quarter of 2010. GAAP earnings include the impacts from unrealized losses related to Nuclear Decommissioning Trust fund investments, and mark-to-market losses.

Market and Retail sales by the Generation unit were 45,593 GWh for the quarter, versus 33,521 GWh a year ago.

Generation's average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $39.19 per MWh in the third quarter of 2011, compared with $35.11 per MWh in the third quarter of 2010