Q2 2011 Earnings Call
July 27, 2011 11:00 am ET
Matthew Hilzinger - Chief Financial Officer, Senior Vice President and Treasurer
Anne Pramaggiore - President of ComEd and Chief Operating Officer of ComEd
Stacie Frank - Vice President of Investor Relations
Ronald DeGregorio - Chief Operating Officer of Exelon Transmission Company and Senior Vice President of Exelon Transmission Company
William Von Hoene - Executive Vice President of Finance & Legal
Kenneth Cornew - Senior Vice President and President of Power Team
Previous Statements by EXC
» Exelon's CEO Discusses Q1 2011 Results - Earnings Call Transcript
» Exelon's CEO Discusses Q4 2010 Results - Earnings Call Transcript
» Exelon Management Discussion Q3 2010 Results – Earnings Call Transcript
John Rowe - Chairman, Chief Executive Officer, Chairman of PECO, Chairman of Exelon Enterprises, Chairman of Exelon Energy Delivery and President of Exelon Generation
Kathleen Barron - Vice President of Federal Regulatory Affairs & Policy
Greg Gordon - Morgan Stanley
Paul Fremont - Jefferies & Company, Inc.
Jonathan Arnold - Deutsche Bank AG
James Dobson - Wunderlich Securities Inc.
Brian Chin - Citigroup Inc
Hugh Wynne - Sanford C. Bernstein & Co., Inc.
Steven Fleishman - BofA Merrill Lynch
Good morning. My name is Theresa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Exelon Corporation Second Quarter 2011 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Ms. Stacie Frank to begin. Please go ahead, ma'am.
Thank you, and good morning, everyone. Welcome to Exelon's Second Quarter 2011 Earnings Conference Call. Thank you for joining us today. We issued our earnings release this morning. If you haven't received it, the release is available on the Exelon website. The earnings release and other matters we will discuss in today's call contain forward-looking statements and estimates that are subject to various risks and uncertainties, as well as adjusted non-GAAP operating earnings. Please refer to today's 8-K and Exelon's other filings for a discussion of factors that may cause results to differ from management's projections, forecasts and expectations and for a reconciliation of operating to GAAP earnings.
In addition, during the call, we will be discussing the proposed merger of Exelon Corporation and Constellation Energy Group, Inc. Today's discussion does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval. Furthermore, today's discussion is not a substitute for the registration statement on Form S-4 that Exelon filed with the SEC on June 27, 2011, that included a preliminary joint proxy statement prospectus or for the definitive joint proxy statement prospectus and other relevant documents that Exelon will send to a security holder in connection with the proposed merger.
For important additional information regarding the proposed merger, including the risks and uncertainties associated with it, please refer to the earnings release and today's 8-K, as well as the joint proxy statement prospectus.
Leading today's call are John Rowe, Exelon's Chairman and Chief Executive Officer; and Matt Hilzinger, Exelon's Senior Vice President and Chief Financial Officer. They are joined by other members of Exelon's senior management team, who will be available to answer your questions. We've scheduled 60 minutes for the call, and I'd like to now turn the call over to John Rowe, Exelon's CEO.
Thank you, Stacie, and good morning, everyone. As you know from our earnings release we had another fine quarter. Our operating earnings were $1.05 per share, which I think significantly exceeded your consensus expectations. We have had a very busy summer at both ComEd and PECO with extreme heat and violent thunderstorms. One in July, on ComEd, knocked out over 850,000 customers, and it took us nearly a week to get them all back. But the ComEd system is performing better than ever before, and handled without major trouble, a new all-time peak of 23,753 megawatts on the 20th of July. ComEd got a reasonable result in class rate case considering the appellate court decision that you had all heard about 6 or 9 months ago. And it's continuing its work to get Illinois Senate Bill 1652 enacted. This legislation would support a broad infrastructure improvement program and finally bring some real regulatory stability to Illinois.
We simply don't know what the odds are of the governor signing it. He hasn't been sounding promising to date, and we don't know whether the legislation would overturn the [indiscernible]. It is certainly possible that they would because they want big chops very badly.
In Philadelphia, PECO continues to produce genuinely exceptional financial results. And it has handled its extreme heat superbly. PECO also hit an all-time peak last Thursday and again topped it on Friday.
During the second quarter, Exelon Generation's capacity factor in its nuclear fleet was 89.6%, largely as a result of 103 refueling outage days at 4 units. For the first 6 months of the year, the capacity factor was 92.2%. And in spite of a year of -- with an extraordinary number of refueling outages, our nuclear group continues to strive to achieve its usual 93% this year.
Our performance this quarter was distinguished by some positive tax items, which are not simply accidents, but the result of very hard work by Tom Terry and his tax guidance. We are on or slightly ahead of plan just with basic operating use, but the tax benefits allow us to increase our earnings guidance for 2011, up from $4.05 to $4.25 per share. This range already includes about $0.04 per share of incremental storm costs from the major July 11 storm, which we will book in the third quarter. Now we've had continued storms in ComEd. I don't have a good number yet on the expense of the whole, but that was the big one, and we've already got that pretty well boxed.