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Exelon, Peco’s parent, sees 3Q profit fall on charges

CHICAGO - Exelon's third-quarter profit tumbled 29 percent, the power provider said Wednesday, weighed down over the three months by hefty, onetime charges.

CHICAGO - Exelon's third-quarter profit tumbled 29 percent, the power provider said Wednesday, weighed down over the three months by hefty, onetime charges.

The Chicago company, owner of Philadelphia's Peco Energy, earned $601 million, or 90 cents per share, down from $845 million, or $1.27 per share, in the same quarter last year. Operating revenue was flat at $5.3 billion.

The recent quarter's results included onetime items such as $76 million in unrealized losses related to nuclear decommissioning trust fund investments, $55 million in mark-to-market losses mainly related to economic hedging activities, along with a $23 million gain related to an acquisition.

Excluding those items and others, the company posted an adjusted profit of $743 million, or $1.12 per share, up from an adjusted $739 million, or $1.11 per share, in the third quarter of 2010.

Adjusted operating revenue fell less than a percent to $5.26 billion from $5.3 billion.

Analysts, on average, expected an adjusted profit of $1.10 per share on $5.33 billion in revenue, according to a FactSet poll.

The company credited the increase in adjusted profit to higher energy margins at its Exelon Generation Co., stemming from the expiration of a power purchase agreement and favorable market and portfolio conditions in the south. In addition, new distribution rates took effect this year at two of Exelon's other companies, the company said.

Exelon also backed its full-year profit prediction, saying it still expects an adjusted profit of $4.05 to $4.25 per share. Analysts polled by FactSet expect a profit of $4.14 per share.

Exelon also said Wednesday that its $7.9 billion acquisition of Constellation Energy Group Inc. continues to move forward on schedule and is expected to close early next year.

In afternoon trading, Exelon shares rose 42 cents to $42.73.