Exelon reports drop in 2Q net income as cost of nuclear energy rises

Exelon 2Q profit down on nuclear fuel, storm costs

NEW YORK — Exelon Corp. said Thursday its second-quarter net income dropped 32 percent as fuel costs for its fleet of nuclear power plants increased and its utilities spent more on battling storms.

The Chicago utility, which powers customers in northern Illinois and southern Pennsylvania, said earnings fell to $445 million, or 67 cents per share, for the three months ended June 30 from $657 million, or 99 cents per share, a year ago.

Revenue rose to $4.4 billion from $4.14 billion.

Adjusted to exclude certain items, Exelon earned 99 cents per share this quarter compared with $1.03 a year earlier. Analysts had expected earnings of 91 cents for the quarter on revenue of $4.19 billion.

Exelon serves about 5.4 million customers, operating in Illinois with its ComEd utility and in Pennsylvania with PECO. It also operates the nation’s largest fleet of nuclear power plants. Those utilities benefited from the hotter weather in late spring and early summer but also incurred higher costs from storms.

ComEd reported earnings of $9 million in the quarter, compared with net income of $116 million in the same part of 2009. The results include a tax-related charge of $106 million.

PECO posted profits of $75 million in the quarter, up from $71 million in the year-ago period. Those results include a tax-related charge of $22 million.

The adjusted earnings for the latest quarter exceeded the company’s expectations and Exelon raised its 2010 earnings guidance from $3.70 to $4 per share to $3.80 to $4.10 per share.