Press Release: Oct 3, 2005 (2:48 pm)

The ratings on all Exelon affiliates remain on CreditWatch with negative implications pending the completion of the merger with Public Service Enterprise Group Inc. (BBB/Watch Dev/A-3). As of June 30, 2005, the Chicago, Ill.-based company had $10 billion of debt outstanding.

"The rating action for Exelon and its affiliates recognizes the heightened adversarial regulatory environment in Illinois, the potential impact of cash flow degradation at Commonwealth Edison Co. on the consolidated entity, and Standard & Poor's view that final regulatory resolution of this dispute will weaken credit protection measures to a level more appropriate with the lower rating," said Standard & Poor's credit analyst John Kennedy.

Prior to the merger announcement in December 2004, the ratings on the Exelon companies had borne negative outlooks precisely for the regulatory uncertainties facing Commonwealth Edison in 2007, when the rate freeze expires and rules for the new rate structure and power procurement process are needed.

The senior secured ratings at subsidiaries Commonwealth Edison and PECO Energy were unchanged at 'A-' reflecting Standard & Poor's assessment of the security package, which determined there is sufficient collateral to support the current rating level.

Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com.

All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search.

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Primary Credit Analyst:

John Kennedy, 212-438-7670

john_kennedy@standardandpoors.com