Financial Strategy

Our highest financial priority is maintaining Exelon's investment grade credit rating, which we believe is essential to the viability and value of our commercial and nuclear operations. Our commitment to a strong balance sheet is a constant. By demonstrating financial and market discipline, we create efficient capital market access through all economic cycles. Facing the prospect of long-term low prices, we took a hard look at our financial and growth strategies and market and balance sheet trends and realities. We have been unsentimental in our analysis of our capital investment plans and dividend policy. The outlook for prolonged low prices led us to examine the right dividend policy for Exelon, given the priority of our credit rating and our need to continue to invest for growth. Our decision to revise the dividend policy to be more congruent with our business model, our financial priorities, and our peer group will enable us to provide shareholder value through sustainable dividends and continued earnings growth. Our yield is in line with our peers, but we believe we have the most upside to price recovery. We are committed to return increased value to you, our shareholders, and we will continue to find ways to do that.

Growth Investments

Despite substantial economic headwinds, our growth investments in 2012 have paid off. We added nearly 500 MW of new, clean generating capacity in 2012: 404 MW in new wind power projects, 31 MW in new solar at our Antelope Valley Solar Ranch project, and 63 MW in nuclear power uprates. We will add approximately 200 MW of solar to our generation base in 2013 through continued development at Antelope Valley Solar Ranch. Work continues on license renewal of our valuable nuclear and hydroelectric assets. We have a track record of successful investment throughout the energy value chain in both organic growth and acquisitions.