ComEd 2006 Annual Report Download - page 85

Net Income (Loss) by Business Segment
2006 2005
Favorable
(unfavorable)
variance
Generation ................................................. $1,407 $1,098 $ 309
ComEd .................................................... (112) (685) 573
PECO ..................................................... 441 517 (76)
Other (a) .................................................... (144) (7) (137)
Total ...................................................... $1,592 $ 923 $ 669
(a) Other includes corporate operations, shared service entities, including BSC, Enterprises, investments in synthetic fuel-
producing facilities and intersegment eliminations.
Results of Operations—Generation
2006 2005
Favorable
(unfavorable)
variance
Operating revenues ......................................... $9,143 $9,046 $ 97
Operating expenses
Purchased power and fuel ................................. 3,978 4,482 504
Operating and maintenance ............................... 2,305 2,288 (17)
Depreciation and amortization .............................. 279 254 (25)
Taxes other than income .................................. 185 170 (15)
Total operating expenses .............................. 6,747 7,194 447
Operating income .......................................... 2,396 1,852 544
Other income and deductions
Interest expense ......................................... (159) (128) (31)
Equity in losses of unconsolidated affiliates ................... (9) (1) (8)
Other, net .............................................. 41 95 (54)
Total other income and deductions ...................... (127) (34) (93)
Income from continuing operations before income taxes ........ 2,269 1,818 451
Income taxes .............................................. 866 709 (157)
Income from continuing operations ........................... 1,403 1,109 294
Discontinued operations
Gain on disposal of discontinued operations .................. 4 19 (15)
Income from discontinued operations .................... 4 19 (15)
Income before cumulative effect of changes in accounting
principles ................................................ 1,407 1,128 279
Cumulative effect of changes in accounting principles .......... — (30) 30
Net income ................................................ $1,407 $1,098 $ 309
Net Income.Generation’s net income for 2006 compared to 2005 increased due to higher
revenue, net of purchased power and fuel expense partially offset by higher operating and
maintenance expense, higher depreciation expense, higher interest expense and lower other income.
The increase in Generation’s revenue, net of purchased power and fuel expense was due to realized
revenues associated with forward sales contracts entered into in prior periods which were recognized
at higher prices, combined with lower purchased power and fuel expense due to the impact of higher
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