ComEd 2006 Annual Report Download - page 152

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
PECO
Executive Overview
A discussion of items pertinent to PECO’s executive overview is set forth under “EXELON
CORPORATION—Executive Overview” of this Report.
Results of Operations
Year Ended December 31, 2006 Compared To Year Ended December 31, 2005
A discussion of PECO’s results of operations for 2006 compared to 2005 is set forth under
“Results of Operations—PECO” in “EXELON CORPORATION—Results of Operations” of this Report.
Year Ended December 31, 2005 Compared to Year Ended December 31, 2004
A discussion of PECO’s results of operations for 2005 compared to 2004 is set forth under
“Results of Operations—PECO” in “EXELON CORPORATION—Results of Operations” of this Report.
Liquidity and Capital Resources
PECO’s business is capital intensive and requires considerable capital resources. PECO’s capital
resources are primarily provided by internally generated cash flows from operations and, to the extent
necessary, external financing, including the issuance of commercial paper, participation in the
intercompany money pool or capital contributions from Exelon. PECO’s access to external financing at
reasonable terms is dependent on its credit ratings and general business conditions, as well as that of
the utility industry in general. If these conditions deteriorate to where PECO no longer has access to
the capital markets at reasonable terms, PECO has access to a revolving credit facility that PECO
currently utilizes to support its commercial paper program. See the “Credit Issues” section of “Liquidity
and Capital Resources” for further discussion.
Capital resources are used primarily to fund PECO’s capital requirements, including construction,
retirement of debt, the payment of dividends and contributions to Exelon’s pension plans.
Cash Flows from Operating Activities
A discussion of items pertinent to PECO’s cash flows from operating activities is set forth under
“Cash Flows from Operating Activities” in “EXELON CORPORATION—Liquidity and Capital
Resources” of this Report.
Cash Flows from Investing Activities
A discussion of items pertinent to PECO’s cash flows from investing activities is set forth under
“Cash Flows from Investing Activities” in “EXELON CORPORATION—Liquidity and Capital Resources”
of this Report.
Cash Flows from Financing Activities
A discussion of items pertinent to PECO’s cash flows from financing activities is set forth under
“Cash Flows from Financing Activities” in “EXELON CORPORATION—Liquidity and Capital
Resources” of this Report.
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