Dear Exelon Shareholders:

Exelon’s operating performance in 2013 was exemplary. Each of our three utilities had its best year ever in reliability and customer satisfaction. Our nuclear fleet turned in its highest generation ever; and our natural gas and hydro plants were available 99% of the time the market demanded them. That performance, however, is not always properly priced in our current markets and under current energy policies. Throughout the year, low power prices, low gas prices, subsidized generation and sluggish load growth prevailed in the market and drove a declining share price. Exelon is working diligently on strategies to improve our opportunities to compete in current markets, and promote competitive market structures that appropriately compensate clean reliable generation. We are acting aggressively on both the things we can control as well as the energy and environmental policy issues we are able to influence to improve value for our shareholders.