exc-20211103
PA10 South Dearborn StreetP.O. Box 805379ChicagoIL60680-5379(800)483-3220PA300 Exelon WayKennett SquarePA19348-2473(610)765-5959IL10 South Dearborn Street49th FloorChicagoIL60603-2300(312)394-4321PAP.O. Box 86992301 Market StreetPhiladelphiaPA19101-8699(215)841-4000MD2 Center Plaza110 West Fayette StreetBaltimoreMD21201-3708(410)234-5000DE701 Ninth Street, N.W.Washington, District of Columbia20068-0001(202)872-2000DCVA701 Ninth Street, N.W.Washington, District of Columbia20068-0001(202)872-2000DEVA500 North Wakefield DriveNewarkDE19702-5440(202)872-2000NJ500 North Wakefield DriveNewarkDE19702-5440(202)872-2000Common stock, without par valueEXCNasdaqEXC/28NYSECumulative Preferred Security, Series D,000110935700011681650000022606000007810000000094660001135971000007973200000278790000008192False00011093572021-11-032021-11-030001109357exc:ExelonGenerationCoLLCMember2021-11-032021-11-030001109357exc:CommonwealthEdisonCoMember2021-11-032021-11-030001109357exc:PecoEnergyCoMember2021-11-032021-11-030001109357exc:BaltimoreGasAndElectricCompanyMember2021-11-032021-11-030001109357exc:PepcoHoldingsLLCMember2021-11-032021-11-030001109357exc:PotomacElectricPowerCompanyMember2021-11-032021-11-030001109357exc:DelmarvaPowerandLightCompanyMember2021-11-032021-11-030001109357exc:AtlanticCityElectricCompanyMember2021-11-032021-11-030001109357stpr:DCexc:PotomacElectricPowerCompanyMember2021-11-032021-11-030001109357stpr:VAexc:PotomacElectricPowerCompanyMember2021-11-032021-11-030001109357exc:DelmarvaPowerandLightCompanyMemberstpr:DE2021-11-032021-11-030001109357exc:DelmarvaPowerandLightCompanyMemberstpr:VA2021-11-032021-11-03

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
November 3, 2021
Date of Report (Date of earliest event reported)
Commission
File Number
Name of Registrant; State or Other Jurisdiction of Incorporation; Address of Principal Executive Offices; and Telephone NumberIRS Employer Identification Number
001-16169EXELON CORPORATION23-2990190
(a Pennsylvania corporation)
10 South Dearborn Street
P.O. Box 805379
Chicago, Illinois 60680-5379
(800) 483-3220
333-85496EXELON GENERATION COMPANY, LLC23-3064219
(a Pennsylvania limited liability company)
300 Exelon Way
Kennett Square, Pennsylvania 19348-2473
(610) 765-5959
001-01839COMMONWEALTH EDISON COMPANY36-0938600
(an Illinois corporation)
10 South Dearborn Street
49th Floor
Chicago, Illinois 60603-2300
(312) 394-4321
000-16844PECO ENERGY COMPANY23-0970240
(a Pennsylvania corporation)
P.O. Box 8699
2301 Market Street
Philadelphia, Pennsylvania 19101-8699
(215) 841-4000
001-01910BALTIMORE GAS AND ELECTRIC COMPANY52-0280210
(a Maryland corporation)
2 Center Plaza
110 West Fayette Street
Baltimore, Maryland 21201-3708
(410) 234-5000
001-31403PEPCO HOLDINGS LLC52-2297449
(a Delaware limited liability company)
701 Ninth Street, N.W.
Washington, District of Columbia 20068-0001
(202) 872-2000
001-01072POTOMAC ELECTRIC POWER COMPANY53-0127880
(a District of Columbia and Virginia corporation)
701 Ninth Street, N.W.
Washington, District of Columbia 20068-0001
(202) 872-2000
001-01405DELMARVA POWER & LIGHT COMPANY51-0084283
(a Delaware and Virginia corporation)
500 North Wakefield Drive
Newark, Delaware 19702-5440
(202) 872-2000
001-03559ATLANTIC CITY ELECTRIC COMPANY21-0398280
(a New Jersey corporation)
500 North Wakefield Drive
Newark, Delaware 19702-5440
(202) 872-2000



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
EXELON CORPORATION:
Common Stock, without par valueEXCThe Nasdaq Stock Market LLC
PECO ENERGY COMPANY:
Trust Receipts of PECO Energy Capital Trust III, each representing a 7.38% Cumulative Preferred Security, Series D, $25 stated value, issued by PECO Energy Capital, L.P. and unconditionally guaranteed by PECO Energy CompanyEXC/28New York Stock Exchange

Indicate by check mark whether any of the registrants are emerging growth companies as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if any of the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
    


Section 2 - Financial Information
Item 2.02. Results of Operations and Financial Condition.
Section 7 - Regulation FD
Item 7.01. Regulation FD Disclosure.
 
On November 3, 2021, Exelon Corporation (Exelon) announced via press release its results for the third quarter ended September 30, 2021. A copy of the press release and related attachments are attached hereto as Exhibit 99.1. Also attached as Exhibit 99.2 to this Current Report on Form 8-K are the presentation slides to be used at the third quarter 2021 earnings conference call. This Form 8-K and the attached exhibits are provided under Items 2.02, 7.01 and 9.01 of Form 8-K and are furnished to, but not filed with, the Securities and Exchange Commission.

Exelon has scheduled the conference call for 9:00 AM CT (10:00 AM ET) on November 3, 2021. The call-in number in the U.S. and Canada is 833-397-0944. If requested, the conference ID number is 5398029. Media representatives are invited to participate on a listen-only basis. The call will be webcast and archived on the Investor Relations page of Exelon’s website: www.exeloncorp.com.

Section 9 - Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits

(d)    Exhibits.
Exhibit No.Description
101Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
104The cover page from the Current Report on Form 8-K, formatted as Inline XBRL.

* * * * *
This combined Current Report on Form 8-K is being furnished separately by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants). Information contained herein relating to any individual Registrant has been furnished by such Registrant on its own behalf. No Registrant makes any representation as to information relating to any other Registrant.

This report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties including, among others, those related to the timing, manner, tax-free nature and expected benefits associated with the potential separation of Exelon’s competitive power generation, and customer-facing energy business from its six regulated electric and gas utilities. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.
The factors that could cause actual results to differ materially from the forward-looking statements made by the Registrants include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2020 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies; (2) the Registrants' Third Quarter 2021 Quarterly Report on Form 10-Q (to be filed on November 3, 2021) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 15, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.
Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this report. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this report.



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
EXELON CORPORATION
/s/ Joseph Nigro
Joseph Nigro
Senior Executive Vice President and Chief Financial Officer
Exelon Corporation
EXELON GENERATION COMPANY, LLC
/s/ Daniel L. Eggers
Daniel L. Eggers
Chief Financial Officer
Exelon Generation Company, LLC
COMMONWEALTH EDISON COMPANY
/s/ Jeanne M. Jones
Jeanne M. Jones
Senior Vice President, Chief Financial Officer and Treasurer
Commonwealth Edison Company
PECO ENERGY COMPANY
/s/ Robert J. Stefani
Robert J. Stefani
Senior Vice President, Chief Financial Officer and Treasurer
PECO Energy Company
BALTIMORE GAS AND ELECTRIC COMPANY
/s/ David M. Vahos
David M. Vahos
Senior Vice President, Chief Financial Officer and Treasurer
Baltimore Gas and Electric Company



PEPCO HOLDINGS LLC
/s/ Phillip S. Barnett
Phillip S. Barnett
Senior Vice President, Chief Financial Officer and Treasurer
Pepco Holdings LLC
POTOMAC ELECTRIC POWER COMPANY
/s/ Phillip S. Barnett
Phillip S. Barnett
Senior Vice President, Chief Financial Officer and Treasurer
Potomac Electric Power Company
DELMARVA POWER & LIGHT COMPANY
/s/ Phillip S. Barnett
Phillip S. Barnett
Senior Vice President, Chief Financial Officer and Treasurer
Delmarva Power & Light Company
ATLANTIC CITY ELECTRIC COMPANY
/s/ Phillip S. Barnett
Phillip S. Barnett
Senior Vice President, Chief Financial Officer and Treasurer
Atlantic City Electric Company
November 3, 2021




EXHIBIT INDEX
Exhibit No.Description
101Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
104The cover page from the Current Report on Form 8-K, formatted as Inline XBRL.


Document


Exhibit 99.1
News Release
https://cdn.kscope.io/d7e87f1ece02295abaf7339f74487c5e-exclogoa49.jpg
Contact:  Paul Adams
Corporate Communications
410-245-8717

Emily Duncan
Investor Relations
312-394-2345
EXELON REPORTS THIRD QUARTER 2021 RESULTS
Earnings Release Highlights
GAAP Net Income of $1.23 per share and Adjusted (non-GAAP) Operating Earnings of $1.09 per share for the third quarter of 2021
Narrowing guidance range for full year 2021 Adjusted (non-GAAP) Operating Earnings from $2.60-$3.00 per share to $2.70-$2.90 per share
Strong utility reliability performance - every utility achieved top decile in outage frequency, every utility achieved top quartile in outage duration, and all gas utilities achieved top decile in gas odor response
Generation’s nuclear fleet capacity factor was 96.0% (owned and operated units)
Federal Energy Regulatory Commission (FERC) approved the planned separation of Generation in August
Exelon Generation purchased EDF’s 49.99% equity interest in CENG for a net purchase price of $885 million
Passage of the Illinois Clean Energy Law in September preserved operation of Byron and Dresden generating stations, strengthening the state’s clean energy leadership; the law also contains requirements associated with ComEd’s transition away from the performance-based electric distribution formula rate
Delmarva Power Maryland filed an electric distribution rate case with the Maryland Public Service Commission (MDPSC) in September seeking an increase in base rates to support an updated depreciation study and continued investments in the system to enhance grid reliability and customer service
An order from the Delaware Public Service Commission (DPSC) in Delmarva Power Delaware’s electric distribution rate case was received in September
CHICAGO (Nov. 3, 2021) — Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2021.
“We achieved several critical milestones during the third quarter, starting with passage of landmark clean energy legislation in Illinois that preserves our nuclear fleet and puts the state on a path to zero emissions by 2045,” said Chris Crane, president and CEO of Exelon. “We also remain on track to complete the separation of our utility and competitive generation businesses in the first quarter of next year, having recently named executive leadership, secured approval from the Federal Energy Regulatory Commission
1


and completed acquisition of EDF’s stake in three of our nuclear plants. We continue to live our values by launching a $36 million Racial Equity Capital Fund to help minority-owned businesses in our communities finance their growth and establishing a $3 million scholarship program for local students attending Historically Black Colleges and Universities.”

“Adjusted (non-GAAP) Operating Earnings of $1.09 per share in the third quarter was $0.05 ahead of the same period last year, driven in part by rate adjustments resulting from our continued investments at the utilities to improve reliability and service for customers,” said Joseph Nigro, senior executive vice president and CFO of Exelon. “Our ongoing capital investments in technology and infrastructure continue to drive strong financial and operational results across our utilities, with each of our electric and gas distribution companies achieving top 10 percent rankings for outage frequency and high marks for customer satisfaction relative to peers. Our Generation fleet also continued to perform at a high level, with nuclear achieving a capacity factor of 96 percent and the Power fleet at a 99.4 percent dispatch match and 95.8 percent wind/solar energy capture rate. Based on our results to date, we are narrowing our 2021 earnings per share guidance range to $2.70 to $2.90 per share from $2.60 to $3.00 per share.”
Third Quarter 2021
Exelon's GAAP Net Income for the third quarter of 2021 increased to $1.23 per share from $0.51 GAAP Net Income per share in the third quarter of 2020. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 increased to $1.09 per share from $1.04 per share in the third quarter of 2020. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 6.
Adjusted (non-GAAP) Operating Earnings in the third quarter of 2021 primarily reflect:
Higher utility earnings primarily due to higher electric distribution earnings at ComEd from higher rate base and higher allowed ROE due to an increase in treasury rates; the favorable impacts of the multi-year plan at BGE; and regulatory rate increases at PHI.
Lower Generation earnings primarily due to higher net unrealized and realized losses on equity investments, lower capacity revenues, and increased nuclear outage days, partially offset by increased revenue from ZECs in New York and higher realized gains on nuclear decommissioning trust (NDT) funds.
Operating Company Results1
ComEd
ComEd's third quarter of 2021 GAAP Net Income increased to $220 million from a GAAP Net Income of $196 million in the third quarter of 2020. ComEd's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 increased to $224 million from $197 million in the third quarter of 2020, primarily due to higher electric distribution earnings from higher rate base and higher allowed ROE due to an increase in treasury rates. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.
___________
1Exelon’s five business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware; and Generation, which consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products and risk management services.
2


PECO
PECO’s third quarter of 2021 GAAP Net Income decreased to $111 million from $138 million in the third quarter of 2020. PECO's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 decreased to $114 million from $141 million in the third quarter of 2020, primarily due to an increase in storm cost activity, net of tax repair deductions.
BGE
BGE’s third quarter of 2021 GAAP Net Income decreased to $36 million from $53 million in the third quarter of 2020. BGE's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 decreased to $40 million from $54 million in the third quarter of 2020. The decrease includes the impacts of higher depreciation and amortization expense partially offset by the favorable impacts of the multi-year plan. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.
PHI
PHI’s third quarter of 2021 GAAP Net Income increased to $266 million from $216 million in the third quarter of 2020. PHI’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 increased to $272 million from $220 million in the third quarter of 2020, primarily due to distribution rate increases at DPL and Pepco. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not affected by actual weather or customer usage patterns.
Generation
Generation's third quarter of 2021 GAAP Net Income increased to $607 million from $49 million in the third quarter of 2020. Generation's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 decreased to $427 million from $456 million in the third quarter of 2020, primarily due to higher net unrealized and realized losses on equity investments, lower capacity revenues, and increased nuclear outage days, partially offset by increased revenue from ZECs in New York and higher realized gains on NDT funds.
As of Sept. 30, 2021, the percentage of expected generation hedged is 96%-99% for the remainder of 2021.
Recent Developments and Third Quarter Highlights
Planned Separation: On Aug. 24, 2021, the FERC approved the planned separation of Generation and on Sept. 23, 2021, Exelon received a private letter ruling from the Internal Revenue Service (IRS) confirming the tax-free treatment of the planned separation. Exelon is targeting the completion of the separation in the first quarter of 2022.

Clean Energy Law and Reversal of Decision to Early Retire Byron and Dresden Nuclear Facilities: On Sept. 15, 2021, the Illinois Public Act 102-0662 was signed into law by the Governor of Illinois (“Clean Energy Law”). The Clean Energy Law establishes decarbonization requirements for Illinois as well as programs to support the retention and development of emissions-free sources of electricity including the authorization of 54.5 million carbon mitigation credits for qualifying nuclear plants for a five-year period beginning on June 1, 2022 through May 31, 2027 in which the Byron, Dresden and Braidwood nuclear plants will be eligible to participate in the procurement process. With the passage of the Clean Energy Law, Generation has reversed its decision to permanently cease generation operations at the Byron and Dresden nuclear plants
3


given the opportunity for additional revenue. In addition, Generation no longer considers the Braidwood or LaSalle nuclear plants to be at risk for premature retirement. Pursuant to this development, in the third quarter of 2021 Exelon and Generation reversed $94 million of the one-time charges initially recorded in 2020 associated with the early retirements and adjusted the expected economic useful life to 2044 and 2046 for Byron Units 1 and 2, respectively, and to 2029 and 2031 for Dresden Units 2 and 3, respectively, the end of the respective operating license for each unit.

The Clean Energy Law also contains requirements associated with ComEd’s transition away from the performance-based electric distribution formula rate. The law authorizing that rate setting process sunsets at the end of 2022. The Clean Energy Law, and tariffs adopted under it, governs both the remaining reconciliations of rates set under that process and requires ComEd to file in 2023 its choice of either a general rate case or a four-year multi-year plan to set rates that take effect in 2024. If ComEd elects to file a multi-year plan, that plan would set rates for 2024 – 2027, based on forecasted revenue requirements and an Illinois Commerce Commission determined rate of return on rate base, including the cost of common equity.

CENG Put Option: On Aug. 6, 2021, Generation and Electricite de France SA (EDF) entered into a settlement agreement pursuant to which Generation, through a wholly owned subsidiary, purchased EDF’s equity interest in Constellation Energy Nuclear Group, LLC (CENG) for a net purchase price of $885 million.

In connection with the settlement agreement, on Aug. 6, 2021, Generation entered into a term loan agreement of approximately of $880 million to fund the transaction, which will expire on Aug. 5, 2022. Pursuant to the loan agreement, loans made thereunder bear interest at a variable rate equal to LIBOR plus 0.875% until March 31, 2022 and a rate of LIBOR plus 1% thereafter and all indebtedness thereunder is unsecured.

DPL Delaware Electric Distribution Base Rate Case: On Sept. 15, 2021, the DPSC approved an increase in DPL's annual electric distribution base rates of $14 million, reflecting an ROE of 9.6%. Interim rates went into effect on Oct. 6, 2020, subject to refund. Rates associated with the approved order were effective on Sept. 17, 2021.
DPL Maryland Electric Distribution Base Rate Case: On Sept. 1, 2021, DPL filed an application with the MDPSC to increase its annual electric distribution base rates by $29 million, reflecting an ROE of 10.1%. DPL expects a decision in the first quarter of 2022 but cannot predict if the MDPSC will approve the application as filed.
ACE Conservation Incentive Program (CIP): On April 27, 2021, the New Jersey Board of Public Utilities approved a settlement filed by ACE that included ACE’s ability to implement a CIP prospectively effective July 1, 2021 which would eliminate the favorable and unfavorable impacts of weather and customer usage patterns on distribution revenue for most customers. As a result of this decoupling mechanism, operating revenues will no longer be impacted by abnormal weather or usage for most customers.
Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100% of the CENG units, produced 44,850 gigawatt-hours (GWhs) in the third quarter of 2021, compared with 44,884 GWhs in the third quarter of 2020. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 96.0% capacity factor for the third quarter of 2021, compared with 96.0% for the third quarter of 2020. The number of planned
4


refueling outage days in the third quarter of 2021 totaled 22, compared with 17 in the third quarter of 2020. There were no non-refueling outage days in the third quarter of 2021 and four in the third quarter of 2020.
Fossil and Renewables Operations: The Dispatch Match rate for Generation’s gas and hydro fleet was 99.4% in the third quarter of 2021, compared with 98.9% in the third quarter of 2020.
Energy Capture for the wind and solar fleet was 95.8% in the third quarter of 2021, compared with 91.9% in the third quarter of 2020.
Financing Activities:
On Aug. 12, 2021, ComEd issued $450 million of its First Mortgage 2.75% Bonds, Series 131, due Sept. 1, 2051. ComEd used the proceeds to repay existing indebtedness and for general corporate purposes.
On Sept. 14, 2021, PECO issued $375 million of its First and Refunding Mortgage Bonds, 2.85% Series, due Sept. 15, 2051. PECO used the proceeds to repay existing indebtedness and for general corporate purposes.
On Sept. 28, 2021, Pepco issued $125 million of its First Mortgage Bonds 3.29% Series, due Sept. 28, 2051. Pepco used the proceeds to repay existing indebtedness and for general corporate purposes.
5


GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation
Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 do not include the following items (after tax) that were included in reported GAAP Net Income:
(in millions)Exelon
Earnings per
Diluted
Share
ExelonComEdPECOBGEPHIGeneration
2021 GAAP Net Income (Loss)$1.23 $1,203 $220 $111 $36 $266 $607 
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $192 and $190, respectively)(0.57)(559)— — — — (565)
Unrealized Losses Related to NDT Fund Investments (net of taxes of $70)0.06 55 — — — — 55 
Asset Impairments (net of taxes of $11)0.03 33 — — — — 33 
Plant Retirements and Divestitures (net of taxes of $71)0.22 211 — — — — 211 
Cost Management Program (net of taxes of $1)0.01 — 
Change in Environmental Liabilities (net of taxes of $1)— — — — — 
COVID-19 Direct Costs (net of taxes of $1, $0, $0, $0, and $1, respectively)0.01 — 
Asset Retirement Obligation (net of taxes of $12, $1, and $13, respectively)(0.04)(35)— — — (37)
Acquisition Related Costs (net of taxes of $2)0.01 — — — — 
ERP System Implementation Costs (net of taxes of $1)— — — — — 
Planned Separation Costs (net of taxes of $10, $2, $1, $1, $1, and $4, respectively)0.03 27 12 
Costs Related to Suspension of Contractual Offset (net of taxes of $33)0.11 107 — — — — 107 
Income Tax-Related Adjustments (entire amount represents tax expense)0.02 19 — — — — (2)
Noncontrolling Interests (net of taxes of $5)(0.02)(17)— — — — (17)
2021 Adjusted (non-GAAP) Operating Earnings$1.09 $1,070 $224 $114 $40 $272 $427 
6


Adjusted (non-GAAP) Operating Earnings for the third quarter of 2020 do not include the following items (after tax) that were included in reported GAAP Net Income:
(in millions)Exelon
Earnings per
Diluted
Share
ExelonComEdPECOBGEPHIGeneration
2020 GAAP Net Income (Loss)$0.51 $501 $196 $138 $53 $216 $49 
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $62 and $64, respectively)(0.19)(183)— — — — (192)
Unrealized Gains Related to NDT Fund Investments (net of taxes of $161)(0.18)(172)— — — — (172)
Asset Impairments (net of taxes of $126)0.38 375 — — — — 375 
Plant Retirements and Divestitures (net of taxes of $111)0.34 329 — — — — 329 
Cost Management Program (net of taxes of $5, $0, $0, $1, and $4, respectively)0.02 15 — 12 
Change in Environmental Liabilities (net of taxes of $6)0.02 17 — — — — 17 
COVID-19 Direct Costs (net of taxes of $3, $1, $0, and $2, respectively)0.01 10 — — 
Asset Retirement Obligation (net of taxes of $1)— — — — — 
Acquisition Related Costs (net of taxes of $1)— — — — — 
Income Tax-Related Adjustments (entire amount represents tax expense)0.06 62 — — — (1)(28)
Noncontrolling Interests (net of taxes of $12)0.06 57 — — — — 57 
2020 Adjusted (non-GAAP) Operating Earnings$1.04 $1,017 $197 $141 $54 $220 $456 
Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2021 and 2020 ranged from 25.0% to 29.0%. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 56.2% and 48.3% for the three months ended Sept. 30, 2021 and 2020, respectively.

7


Webcast Information
Exelon will discuss third quarter 2021 earnings in a conference call scheduled for today at 9 a.m. Central Time (10 a.m. Eastern Time). The webcast and associated materials can be accessed at www.exeloncorp.com/investor-relations.
About Exelon
Exelon Corporation (Nasdaq: EXC) is a Fortune 100 energy company with the largest number of electricity and natural gas customers in the U.S. Exelon does business in 48 states, the District of Columbia, and Canada and had 2020 revenue of $33 billion. Exelon serves approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey, and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO, and Pepco subsidiaries. Exelon is one of the largest competitive U.S. power generators, with more than 31,000 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 2 million residential, public sector, and business customers, including three fourths of the Fortune 100. Follow Exelon on Twitter @Exelon.
Non-GAAP Financial Measures
In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) Operating Earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) Operating Earnings exclude certain costs, expenses, gains and losses, and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. Adjusted (non-GAAP) Operating Earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. The Company has provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted (non-GAAP) Operating Earnings should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP Net Income measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of Adjusted (non-GAAP) Operating Earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: www.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on Nov. 3, 2021.
Cautionary Statements Regarding Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties including, among others, those related to the timing, manner, tax-free nature, and expected benefits associated with the potential separation of Exelon’s competitive power generation and customer-facing energy business from its six regulated electric and gas utilities. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future
8


events and operational, economic, and financial performance, are intended to identify such forward-looking statements.
The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2020 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies; (2) the Registrants' Third Quarter 2021 Quarterly Report on Form 10-Q (to be filed on Nov. 3, 2021) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 15, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.
Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.

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Table of Contents

Earnings Release Attachments
Table of Contents


Table of Contents
Consolidating Statements of Operations
(unaudited)
(in millions)
ComEdPECOBGEPHIGenerationOther (a)Exelon
Three Months Ended September 30, 2021
Operating revenues$1,789 $818 $770 $1,470 $4,406 $(343)$8,910 
Operating expenses
Purchased power and fuel703 277 290 540 1,546 (323)3,033 
Operating and maintenance330 263 205 278 938 (22)1,992 
Depreciation and amortization304 86 142 210 866 16 1,624 
Taxes other than income taxes91 51 72 127 115 12 468 
Total operating expenses1,428 677 709 1,155 3,465 (317)7,117 
Gain on sales of assets and businesses— — — — 65 — 65 
Operating income (loss)361 141 61 315 1,006 (26)1,858 
Other income and (deductions)
Interest expense, net(98)(40)(36)(67)(77)(79)(397)
Other, net13 16 (115)17 (55)
Total other income and (deductions)(85)(33)(29)(51)(192)(62)(452)
Income (loss) before income taxes276 108 32 264 814 (88)1,406 
Income taxes56 (3)(4)(2)177 (50)174 
Equity in (losses) earnings of unconsolidated affiliates— — — — (4)(3)
Net income (loss)220 111 36 266 633 (37)1,229 
Net income attributable to noncontrolling interests— — — — 26 — 26 
Net income (loss) attributable to common shareholders$220 $111 $36 $266 $607 $(37)$1,203 
Three Months Ended September 30, 2020
Operating revenues$1,643 $813 $731 $1,368 $4,659 $(361)$8,853 
Operating expenses
Purchased power and fuel606 269 250 506 2,314 (331)3,614 
Operating and maintenance321 251 191 275 1,737 (43)2,732 
Depreciation and amortization294 85 133 200 558 19 1,289 
Taxes other than income taxes81 53 68 121 118 11 452 
Total operating expenses1,302 658 642 1,102 4,727 (344)8,087 
Gain on sales of assets and businesses— — — — — 
Operating income (loss)341 155 89 266 (68)(14)769 
Other income and (deductions)
Interest expense, net(95)(39)(34)(67)(80)(89)(404)
Other, net10 16 367 16 421 
Total other income and (deductions)(85)(33)(28)(51)287 (73)17 
Income (loss) before income taxes256 122 61 215 219 (87)786 
Income taxes60 (16)(1)100 65 216 
Equity in (losses) earnings of unconsolidated affiliates— — — — (2)(1)
Net income (loss)196 138 53 216 117 (151)569 
Net income attributable to noncontrolling interests— — — — 68 — 68 
Net income (loss) attributable to common shareholders$196 $138 $53 $216 $49 $(151)$501 
Change in Net income from 2020 to 2021$24 $(27)$(17)$50 $558 $114 $702 

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Table of Contents
Consolidating Statements of Operations
(unaudited)
(in millions)
 ComEdPECOBGEPHIGenerationOther (a)Exelon
Nine Months Ended September 30, 2021
Operating revenues$4,840 $2,399 $2,426 $3,854 $14,117 $(921)$26,715 
Operating expenses
Purchased power and fuel1,728 800 840 1,414 8,103 (868)12,017 
Operating and maintenance969 706 595 790 3,413 (57)6,416 
Depreciation and amortization893 259 434 614 2,735 53 4,988 
Taxes other than income taxes243 143 211 349 354 37 1,337 
Total operating expenses3,833 1,908 2,080 3,167 14,605 (835)24,758 
Gain on sales of assets and businesses— — — — 144 147 
Operating income (loss)1,007 491 346 687 (344)(83)2,104 
Other income and (deductions)
Interest expense, net(292)(119)(103)(201)(225)(240)(1,180)
Other, net35 20 23 52 561 60 751 
Total other income and (deductions)(257)(99)(80)(149)336 (180)(429)
Income (loss) before income taxes750 392 266 538 (8)(263)1,675 
Income taxes141 (24)108 (8)229 
Equity in (losses) earnings of unconsolidated affiliates— — — — (6)(5)
Net income (loss)609 383 290 535 (122)(254)1,441 
Net income attributable to noncontrolling interests— — — — 125 126 
Net income (loss) attributable to common shareholders$609 $383 $290 $535 $(247)$(255)$1,315 
Nine Months Ended September 30, 2020
Operating revenues$4,499 $2,306 $2,284 $3,554 $13,272 $(990)$24,925 
Operating expenses
Purchased power and fuel1,557 768 731 1,316 6,961 (927)10,406 
Operating and maintenance1,173 742 567 813 4,188 (113)7,370 
Depreciation and amortization841 259 405 585 1,161 61 3,312 
Taxes other than income taxes227 131 200 343 364 34 1,299 
Total operating expenses3,798 1,900 1,903 3,057 12,674 (945)22,387 
Gain on sales of assets and businesses— — — 12 16 
Operating income (loss)701 406 381 499 610 (43)2,554 
Other income and (deductions)
Interest expense, net(287)(108)(99)(201)(277)(269)(1,241)
Other, net32 12 17 42 199 50 352 
Total other income and (deductions)(255)(96)(82)(159)(78)(219)(889)
Income (loss) before income taxes446 310 299 340 532 (262)1,665 
Income taxes142 (7)26 (77)41 16 141 
Equity in earnings (losses) of unconsolidated affiliates— — — (6)— (5)
Net income (loss)304 317 273 418 485 (278)1,519 
Net loss attributable to noncontrolling interests — — — — (85)— (85)
Net income (loss) attributable to common shareholders$304 $317 $273 $418 $570 $(278)$1,604 
Change in Net income from 2020 to 2021$305 $66 $17 $117 $(817)$23 $(289)
__________
(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
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Table of Contents
Exelon
Consolidated Balance Sheets
(unaudited)
(in millions)
September 30, 2021December 31, 2020
Assets
Current assets
Cash and cash equivalents$2,957 $663 
Restricted cash and cash equivalents473 438 
Accounts receivable
Customer accounts receivable3,5303,597
Customer allowance for credit losses(409)(366)
Customer accounts receivable, net3,121 3,231 
Other accounts receivable1,6161,469
Other allowance for credit losses(77)(71)
Other accounts receivable, net1,539 1,398 
Mark-to-market derivative assets1,507 644 
Unamortized energy contract assets36 38 
Inventories, net
Fossil fuel and emission allowances343 297 
Materials and supplies1,475 1,425 
Regulatory assets1,258 1,228 
Renewable energy credits492 633 
Assets held for sale 11 958 
Other1,665 1,609 
Total current assets14,877 12,562 
Property, plant, and equipment, net82,852 82,584 
Deferred debits and other assets
Regulatory assets8,628 8,759 
Nuclear decommissioning trust funds15,404 14,464 
Investments435 440 
Goodwill6,677 6,677 
Mark-to-market derivative assets665 555 
Unamortized energy contract assets265 294 
Other2,818 2,982 
Total deferred debits and other assets34,892 34,171 
Total assets$132,621 $129,317 
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Table of Contents
September 30, 2021December 31, 2020
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings$2,667 $2,031 
Long-term debt due within one year3,375 1,819 
Accounts payable3,694 3,562 
Accrued expenses1,949 2,078 
Payables to affiliates
Regulatory liabilities460 581 
Mark-to-market derivative liabilities1,717 295 
Unamortized energy contract liabilities92 100 
Renewable energy credit obligation684 661 
Liabilities held for sale 375 
Other1,180 1,264 
Total current liabilities15,826 12,771 
Long-term debt35,269 35,093 
Long-term debt to financing trusts390 390 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits13,816 13,035 
Asset retirement obligations12,907 12,300 
Pension obligations3,777 4,503 
Non-pension postretirement benefit obligations1,980 2,011 
Spent nuclear fuel obligation1,209 1,208 
Regulatory liabilities9,448 9,485 
Mark-to-market derivative liabilities721 473 
Unamortized energy contract liabilities169 238 
Other2,850 2,942 
Total deferred credits and other liabilities46,877 46,195 
Total liabilities 98,362 94,449 
Commitments and contingencies
Shareholders’ equity
Common stock20,271 19,373 
Treasury stock, at cost(123)(123)
Retained earnings16,926 16,735 
Accumulated other comprehensive loss, net(3,223)(3,400)
Total shareholders’ equity33,851 32,585 
Noncontrolling interests408 2,283 
Total equity34,259 34,868 
Total liabilities and shareholders’ equity$132,621 $129,317 
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Table of Contents
Exelon
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
Nine Months Ended September 30,
 20212020
Cash flows from operating activities
Net income$1,441 $1,519 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization6,204 4,419 
Asset impairments541 567 
Gain on sales of assets and businesses(147)(16)
Deferred income taxes and amortization of investment tax credits(45)164 
Net fair value changes related to derivatives(1,244)(448)
Net realized and unrealized gains on NDT funds(383)(59)
Net unrealized losses on equity investments83 — 
Other non-cash operating activities(293)988 
Changes in assets and liabilities:
Accounts receivable(254)1,195 
Inventories(101)(67)
Accounts payable and accrued expenses354 (519)
Option premiums paid, net(186)(131)
Collateral received, net2,111 644 
Income taxes250 (31)
Pension and non-pension postretirement benefit contributions(602)(580)
Other assets and liabilities(3,588)(3,423)
Net cash flows provided by operating activities4,141 4,222 
Cash flows from investing activities
Capital expenditures(5,970)(5,606)
Proceeds from NDT fund sales5,766 3,370 
Investment in NDT funds(5,900)(3,438)
Collection of DPP3,052 2,518 
Proceeds from sales of assets and businesses801 46 
Other investing activities40 (2)
Net cash flows used in investing activities(2,211)(3,112)
Cash flows from financing activities
Changes in short-term borrowings(744)(689)
Proceeds from short-term borrowings with maturities greater than 90 days1,380 500 
Issuance of long-term debt3,406 6,756 
Retirement of long-term debt(1,618)(5,158)
Dividends paid on common stock(1,121)(1,119)
Acquisition of CENG noncontrolling interest(885)— 
Proceeds from employee stock plans63 62 
Other financing activities(93)(104)
Net cash flows provided by financing activities388 248 
Increase in cash, restricted cash, and cash equivalents2,318 1,358 
Cash, restricted cash, and cash equivalents at beginning of period1,166 1,122 
Cash, restricted cash, and cash equivalents at end of period$3,484 $2,480 

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Table of Contents
Exelon
Reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings
Three Months Ended September 30, 2021 and 2020
(unaudited)
(in millions, except per share data)
Exelon
Earnings per
Diluted
Share
ComEdPECOBGEPHIGenerationOther (a)Exelon
2020 GAAP Net Income (Loss)$0.51 $196 $138 $53 $216 $49 $(151)$501 
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $64, $2, and $62, respectively)(0.19)— — — — (192)(183)
Unrealized Gains Related to NDT Fund Investments (net of taxes of $161) (1)(0.18)— — — — (172)— (172)
Asset Impairments (net of taxes of $126) (2) 0.38 — — — — 375 — 375 
Plant Retirements and Divestitures (net of taxes of $111) (3)0.34 — — — — 329 — 329 
Cost Management Program (net of taxes of $0, $0, $1, $4, and $5, respectively) (4)0.02 — 12 — 15 
Change in Environmental Liabilities (net of taxes of $6)0.02 — — — — 17 — 17 
COVID-19 Direct Costs (net of taxes of $1, $0, $2, and $3, respectively) (5)0.01 — — — 10 
Asset Retirement Obligation (net of taxes of $1)— — — — — — 
Acquisition Related Costs (net of taxes of $1) (6)— — — — — — 
Income Tax-Related Adjustments (entire amount represents tax expense) (7)0.06 — — — (1)(28)91 62 
Noncontrolling Interest (net of taxes of $12) (8)0.06 — — — — 57 — 57 
2020 Adjusted (non-GAAP) Operating Earnings (Loss)1.04 197 141 54 220 456 (51)1,017 
Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings:
ComEd, PECO, BGE and PHI:
Weather(0.01)— (b)(10)— (b)(4)(b)— — (14)
Load0.01 — (b)— (b)(b)— — 
Other Energy Delivery (13)0.09 35 (c)(c)(1)(c)51 (c)— — 86 
Generation, Excluding Mark-to-Market:
Nuclear Volume— — — — — (3)— (3)
Nuclear Fuel Cost (14)0.01 — — — — 11 — 11 
Capacity Revenue (15)(0.03)— — — — (34)— (34)
Market and Portfolio Conditions (16)0.05 — — — — 51 — 51 
Operating and Maintenance Expense:
Labor, Contracting and Materials0.02 (2)(6)19 — 18 
Planned Nuclear Refueling Outages (17)(0.01)— — — — (12)— (12)
Pension and Non-Pension Postretirement Benefits— (1)— — (4)(2)
Other Operating and Maintenance(0.04)(4)(12)(6)(24)— (43)
Depreciation and Amortization Expense (18)(0.02)(7)(1)(7)(7)(19)
Interest Expense, Net(0.01)(2)(1)(1)— — (1)(5)
Income Taxes (19)0.07 (16)16 12 46 71 
Noncontrolling Interests (20)(0.03)— — — — (29)— (29)
Other (21)(0.03)(6)(1)(4)(18)(3)(30)
Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings0.05 27 (27)(14)52 (29)44 53 
2021 GAAP Net Income (Loss)1.23 220 111 36 266 607 (37)1,203 
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $190, $2, and $192, respectively)(0.57)— — — — (565)(559)
Unrealized Losses Related to NDT Fund Investments (net of taxes of $70) (1)0.06 — — — — 55 — 55 
Asset Impairments (net of taxes of $11) (2)0.03 — — — — 33 — 33 
Plant Retirements and Divestitures (net of taxes of $71) (3)0.22 — — — — 211 — 211 
Cost Management Program (net of taxes of $1) (4)0.01 — — 
Change in Environmental Liabilities (net of taxes of $1)— — — — — — 
COVID-19 Direct Costs (net of taxes of $0, $0, $0, $1, and $1, respectively) (5)0.01 — — 
Asset Retirement Obligation (net of taxes of $1, $13, and $12) (9)(0.04)— — — (37)— (35)
Acquisition Related Costs (net of taxes of $2) (6)0.01 — — — — — 
ERP System Implementation Costs (net of taxes of $1) (10)— — — — — — 
Planned Separation Costs (net of taxes of $2, $1, $1, $1, $4, $1, and $10, respectively) (11)0.03 12 27 
Costs Related to Suspension of Contractual Offset (net of taxes of $33) (12)0.11 — — — — 107 — 107 
Income Tax-Related Adjustments (entire amount represents tax expense) (7)0.02 — — — — (2)21 19 
Noncontrolling Interest (net of taxes of $5) (8)(0.02)— — — — (17)— (17)
2021 Adjusted (non-GAAP) Operating Earnings (Loss)$1.09 $224 $114 $40 $272 $427 $(7)$1,070 
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Table of Contents
Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2021 and 2020 ranged from 25.0% to 29.0%. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 56.2% and 48.3% for the three months ended September 30, 2021 and 2020, respectively.

(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
(b)For ComEd, BGE, Pepco, DPL Maryland, and ACE customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.
(c)For regulatory recovery mechanisms, including ComEd’s distribution formula rate, ComEd, PECO, BGE, and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure and ROE (which impact net earnings).
(1)Reflects the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units.
(2)In 2020, primarily reflects an impairment in the New England asset group. In 2021, reflects an impairment of a wind project at Generation.
(3)In 2020, primarily reflects one-time charges and accelerated depreciation and amortization expenses associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024. In 2021, primarily reflects accelerated depreciation and amortization associated with Generation's decisions to early retire Byron and Dresden, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates.
(4)Primarily represents reorganization and severance costs related to cost management programs.
(5)Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(6)Reflects costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021.
(7)Primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment.
(8)Represents elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment.
(9)For Generation, reflects an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021.
(10)Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(11)Represents costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(12)Decommissioning-related activities for the former ComEd and PECO units (Regulatory Agreement Units), net of applicable taxes, including realized and unrealized gains and losses on the NDT funds, depreciation of the ARC, and accretion of the decommissioning obligation, are generally offset within Exelon’s and Generation’s consolidated statements of operations. These costs reflect the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021 reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date.
(13)For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues (due to higher rate base, higher electric distribution ROE due to increased treasury rates, and higher fully recoverable costs). For PHI, reflects increased revenue primarily due to distribution rate increases and increased transmission revenues.
(14)Primarily reflects a decrease in fuel prices.
(15)Reflects decreased capacity revenues in the Mid-Atlantic, Midwest, and Other Power Regions, partially offset by increased revenues in New York.
(16)Primarily reflects an increase in New York ZEC revenues due to higher generation and an increase in ZEC prices and higher gas revenues, net of fuel costs, due to higher natural gas prices.
(17)Primarily reflects an increase in the number of nuclear outage days in 2021, excluding Salem.
(18)Reflects ongoing capital expenditures across all utilities.
(19)For PECO, primarily reflects a decrease in the tax repairs deduction. For BGE, primarily reflects the multi-year plan which resulted in the acceleration of certain income tax benefits. For PHI, primarily due to a distribution rate case settlement which allows PHI to retain certain tax benefits. For Generation and Corporate, primarily reflects the reversal of part of the tax expense recorded in the first quarter, due to the loss before income taxes at Generation due to the February 2021 extreme cold weather event.
(20)Reflects elimination from Generation’s results of activity attributable to noncontrolling interests, primarily for CENG prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021.
(21)For Generation, primarily reflects net unrealized and realized losses on equity investments, partially offset by higher realized NDT fund gains.
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Table of Contents
Exelon
Reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings and Analysis of Earnings
Nine Months Ended September 30, 2021 and 2020
(unaudited)
(in millions, except per share data)
Exelon
Earnings 
per Diluted
Share
ComEdPECOBGEPHIGenerationOther (a)Exelon
2020 GAAP Net Income (Loss)$1.64 $304 $317 $273 $418 $570 $(278)$1,604 
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $117, $5, and $112, respectively)(0.34)— — — — (349)20 (329)
Unrealized Losses Related to NDT Fund Investments (net of taxes of $31) (1)0.01 — — — — — 
Asset Impairments (net of taxes of $4, $130, and $134, respectively) (2)0.40 11 — — — 385 — 396 
Plant Retirements and Divestitures (net of taxes of $117) (3)0.36 — — — — 348 — 348 
Cost Management Program (net of taxes of $1, $1, $2, $8, $1, and $11, respectively) (4)0.03 — 26 (2)34 
Change in Environmental Liabilities (net of taxes of $6)0.02 — — — — 18 — 18 
COVID-19 Direct Costs (net of taxes of $3, $1, $1, $8, and $13, respectively) (5)0.04 — 23 — 37 
Deferred Prosecution Agreement Payments (net of taxes of $0) (6)0.20 200 — — — — — 200 
Asset Retirement Obligation (net of taxes of $1)— — — — — — 
Acquisition Related Costs (net of taxes of $1) (7)— — — — — — 
Income Tax-Related Adjustments (entire amount represents tax expense) (8)0.07 — — — (1)(28)95 66 
Noncontrolling Interests (net of taxes of $2) (9)0.02 — — — — 17 — 17 
2020 Adjusted (non-GAAP) Operating Earnings (Loss)2.46 514 326 279 429 1,020 (165)2,403 
Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings:
ComEd, PECO, BGE and PHI:
Weather0.03 — (b)24 — (b)(b)— — 27 
Load0.03 — (b)13 — (b)14 (b)— — 27 
Other Energy Delivery (14)0.29 121 (c)(c)24 (c)129 (c)— — 280 
Generation, Excluding Mark-to-Market:
Nuclear Volume (15)0.01 — — — — — 
Nuclear Fuel Cost (16)0.02 — — — — 22 — 22 
Capacity Revenue (17)(0.01)— — — — (13)— (13)
Market and Portfolio Conditions (18)(0.74)— — — — (721)— (721)
Operating and Maintenance Expense:
Labor, Contracting and Materials— (4)(11)(4)22 — 
Planned Nuclear Refueling Outages (19)0.04 — — — — 37 — 37 
Pension and Non-Pension Postretirement Benefits— (2)(1)(1)(2)
Other Operating and Maintenance (20)— 35 (14)(24)(8)
Depreciation and Amortization Expense (21)(0.08)(38)— (21)(21)(1)(74)
Interest Expense, Net(0.02)(5)(8)(3)— 16 (19)(19)
Income Taxes (22)(0.12)32 42 (25)(130)(43)(116)
Noncontrolling Interests (23)(0.16)— — — — (161)— (161)
Other (24)0.17 (7)(1)(4)176 168 
Total Year Over Year Effects on Adjusted (non-GAAP) Operating Earnings(0.54)103 65 19 117 (770)(58)(524)
2021 GAAP Net Income (Loss)1.34 609 383 290 535 (247)(255)1,315 
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $314, $3, and $317, respectively)(0.94)— — — — (933)(924)
Unrealized Gains Related to NDT Fund Investments (net of taxes of $24) (1)(0.03)— — — — (32)— (32)
Asset Impairments (net of taxes of $135) (2)0.41 — — — — 401 — 401 
Plant Retirements and Divestitures (net of taxes of $290) (3)0.88 — — — — 865 — 865 
Cost Management Program (net of taxes of $0, $0, $0, $2, and $2) (4)0.01 — — 10 
Change in Environmental Liabilities (net of taxes of $2)0.01 — — — — — 
COVID-19 Direct Costs (net of taxes of $1, $1, $1, $6, and $9, respectively) (5)0.02 — 17 — 24 
Asset Retirement Obligation (net of taxes of $1, $13, and $12) (10)(0.04)— — — (37)— (35)
Acquisition Related Costs (net of taxes of $5) (7)0.02 — — — — 15 — 15 
ERP System Implementation Costs (net of taxes of $0, $0, $0, $2, and $2, respectively) (11)0.01 — — 10 
Planned Separation Costs (net of taxes of $3, $1, $1, $2, $6, $3, and $16, respectively) (12)0.05 19 46 
Costs Related to Suspension of Contractual Offset (net of taxes of $45) (13)0.15 — — — — 148 — 148 
Income Tax-Related Adjustments (entire amount represents tax expense) (8)0.02 — — — — (2)17 15 
Noncontrolling Interests (net of taxes of $2) (9)0.02 — — — — 16 — 16 
2021 Adjusted (non-GAAP) Operating Earnings (Loss)$1.92 $617 $391 $298 $546 $250 $(223)$1,879 
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Note:
Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2021 and 2020 ranged from 25.0% to 29.0%. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 42.4% and 134.1% for the nine months ended September 30, 2021 and 2020, respectively.
(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
(b)For ComEd, BGE, Pepco, DPL Maryland, and ACE customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.
(c)For regulatory recovery mechanisms, including ComEd’s distribution formula rate, ComEd, PECO, BGE, and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure and ROE (which impact net earnings).
(1)Reflects the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units.
(2)In 2020, reflects an impairment at ComEd related to the acquisition of transmission assets and an impairment in the New England asset group in the third quarter of 2020. In 2021, reflects an impairment in the New England asset group, an impairment recorded as a result of the agreement to sell the Albany Green Energy biomass facility, and an impairment of a wind project at Generation.
(3)In 2020, primarily reflects one-time charges and accelerated depreciation and amortization expenses associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024. In 2021, primarily reflects accelerated depreciation and amortization associated with Generation's decisions to early retire Byron, Dresden, and Mystic Units 8 and 9, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021 and a gain on sale of Generation's solar business. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates.
(4)Primarily represents reorganization and severance costs related to cost management programs.
(5)Represents direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(6)Reflects the payments made by ComEd under the Deferred Prosecution Agreement, which ComEd entered in July 2020 with the U.S. Attorney’s Office for the Northern District of Illinois.
(7)Reflects costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021.
(8)Primarily reflects the adjustment to deferred income taxes due to changes in forecasted apportionment.
(9)Represents elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment.
(10)For Generation, reflects an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021.
(11)Reflects costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(12)Represents costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(13)Decommissioning-related activities for the former ComEd and PECO units (Regulatory Agreement Units), net of applicable taxes, including realized and unrealized gains and losses on the NDT funds, depreciation of the ARC, and accretion of the decommissioning obligation, are generally offset within Exelon’s and Generation’s consolidated statements of operations. These costs reflect the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021 reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date.
(14)For ComEd, reflects increased electric distribution, transmission, and energy efficiency revenues (due to higher rate base, higher electric distribution ROE due to increased treasury rates, and higher fully recoverable costs). For BGE and PHI, primarily reflects an increase in revenue as a result of the reduction in revenue in 2020 due to the settlement agreement of ongoing transmission related income tax regulatory liabilities. For BGE, also reflects increased distribution revenue due to customer growth. For PHI, also reflects increased revenue primarily due to distribution and transmission rate increases.
(15)Primarily reflects a decrease in nuclear outage days at Salem.
(16)Primarily reflects a decrease in fuel prices.
(17)Reflects decreased capacity revenues in the Midwest and Other Power Regions, partially offset by increased revenues in the Mid-Atlantic and New York.
(18)Primarily reflects the impacts of the February 2021 extreme cold weather event, partially offset by an increase in New York ZEC revenues due to higher generation and an increase in ZEC prices and higher gas revenues, net of fuel costs, due to higher natural gas prices.
(19)Primarily reflects a decrease in the number of nuclear outage days in 2021, excluding Salem.
(20)For PECO, primarily reflects a net decrease in storm costs resulting from the absence of the June and August 2020 storms, partially offset by storm costs in 2021. For PHI, primarily reflects the absence of costs in 2021 due to the August 2020 storms. For Generation, reflects increased credit loss expense primarily due to the impacts of the February 2021 extreme cold weather event, partially offset by a decrease in planned nuclear outage days at Salem in 2021.
(21)Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects increased amortization of deferred energy efficiency costs.
(22)For BGE, primarily due to the multi-year plan which resulted in the acceleration of certain income tax benefits, partially offset by the absence of the impacts associated with the prior year settlement agreement of ongoing transmission related income tax regulatory liabilities. For PHI, primarily due to the absence of the impacts associated with the prior year settlement agreement of ongoing transmission related income tax regulatory liabilities, partially offset by the multi-year plan which resulted in the acceleration of certain income tax benefits and a distribution rate case settlement which allows PHI to retain certain tax benefits. For Generation and Corporate, primarily reflects the timing of tax expense driven primarily by the loss before income taxes at Generation due to the February 2021 extreme cold weather event. These timing impacts will continue to reverse by the end of the year. For Generation, also reflects the absence of a prior year one-time tax settlement.
(23)Reflects elimination from Generation’s results of activity attributable to noncontrolling interests, primarily for CENG prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021.
(24)For Generation, primarily reflects higher realized NDT fund gains, partially offset by net unrealized and realized losses on equity investments.
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Exelon
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
 Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments
Operating revenues$8,910 $635 (b)$8,853 $(37)(b)
Operating expenses
Purchased power and fuel3,033 1,347 (b),(c)3,614 194 (b),(c)
Operating and maintenance1,992 90 (c),(d),(e),(f),(g),(h),(i),(j),(k),(l)2,732 (718)(c),(d),(e),(f),(g),(j),(l)
Depreciation and amortization1,624 (573)(c),(k)1,289 (262)(c)
Taxes other than income taxes468 — 452 — 
Total operating expenses7,117 8,087 
Gain on sales of assets and businesses65 (c)— 
Operating income1,858 769 
Other income and (deductions)
Interest expense, net(397)(1)(b)(404)(b)
Other, net(55)95 (b),(c),(k),(m)421 (333)(m)
Total other income and (deductions)(452)17 
Income before income taxes1,406 786 
Income taxes174 (26)(b),(c),(d),(e),(f),(g),(h),(i),(j),(k),(l),(m),(n)216 (34)(b),(c),(d),(e),(f),(g),(j),(l),(m),(n)
Equity in losses of unconsolidated affiliates(3)— (1)— 
Net income1,229 569 
Net income attributable to noncontrolling interests26 23 (o)68 (57)(o)
Net income attributable to common shareholders$1,203 $501 
Effective tax rate(p)
12.4 %27.5 %
Earnings per average common share
Basic$1.23 $0.51 
Diluted$1.23 $0.51 
Average common shares outstanding
Basic979 976 
Diluted980 977 
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(c)In 2021, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions to early retire Byron and Dresden, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates. In 2020, adjustment to exclude primarily one-time charges and accelerated depreciation and amortization associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024.
(d)Adjustment to exclude primarily reorganization and severance costs related to cost management programs.
(e)In 2021, adjustment to exclude an impairment of a wind project at Generation. In 2020, adjustment to exclude primarily an impairment in the New England asset group.
(f)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(g)Adjustment to exclude costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021.
(h)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(i)Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(j)Adjustment to exclude changes in environmental liabilities.
(k)Adjustment to exclude the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021, reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date.
(l)In 2021, adjustment to exclude an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021. In 2020, adjustment to exclude ARO updates.
(m)Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units.
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(n)Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment.
(o)Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment.
(p)The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 11.6% and 15.0% for the three months ended September 30, 2021 and 2020, respectively.

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Exelon
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
Nine Months Ended
September 30, 2021
Nine Months Ended
September 30, 2020
GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments
Operating revenues$26,715 $958 (b)$24,925 $(238)(b)
Operating expenses
Purchased power and fuel
12,017 2,052 (b),(c)10,406 210 (b),(c)
Operating and maintenance
6,416 (98)(c),(d),(e),(f),(g),(h),(i),(j),(k),(l)7,370 (1,023)(c),(d),(e),(f),(g),(j),(l),(p)
Depreciation and amortization
4,988 (1,848)(c),(k)3,312 (275)(c)
Taxes other than income taxes
1,337 — 1,299 — 
Total operating expenses
24,758 22,387 
Gain on sales of assets and businesses147 (68)(c)16 (4)(b),(c)
Operating income2,104 2,554 
Other income and (deductions)
Interest expense, net
(1,180)(4)(b)(1,241)48 (b)
Other, net
751 (90)(b),(c),(k),(m)352 (22)(m)
Total other income and (deductions)(429)(889)
Income before income taxes1,675 1,665 
Income taxes229 135 (b),(c),(d),(e),(f),(g),(h),(i),(j),(k),(l),(m),(n)141 87 (b),(c),(d),(e),(f),(g),(j),(m),(n)
Equity in losses of unconsolidated affiliates(5)— (5)— 
Net income1,441 1,519 
Net income (loss) attributable to noncontrolling interests126 (10)(o)(85)(15)(o)
Net income attributable to common shareholders$1,315 $1,604 
Effective tax rate(q)
13.7 %8.5 %
Earnings per average common share
Basic$1.34 $1.64 
Diluted$1.34 $1.64 
Average common shares outstanding
Basic978 976 
Diluted979 976 
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(c)In 2021, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions to early retire Byron, Dresden, and Mystic Units 8 and 9, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021 and a gain on sale of Generation's solar business. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates. In 2020, adjustment to exclude primarily one-time charges and accelerated depreciation and amortization associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024.
(d)Adjustment to exclude primarily reorganization and severance costs related to cost management programs.
(e)In 2021, adjustment to exclude an impairment in the New England asset group, an impairment recorded as a result of the agreement to sell the Albany Green Energy biomass facility, and an impairment of a wind project at Generation. In 2020, adjustment to exclude an impairment at ComEd related to the acquisition of transmission assets and an impairment in the New England asset group in the third quarter of 2020.
(f)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(g)Adjustment to exclude costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021.
(h)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(i)Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(j)Adjustment to exclude changes in environmental liabilities.
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(k)Adjustment to exclude the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021, reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date.
(l)In 2021, adjustment to exclude an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021. In 2020, adjustment to exclude ARO updates.
(m)Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units.
(n)Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment.
(o)Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment.
(p)Adjustment to exclude the payments made by ComEd under the Deferred Prosecution Agreement, which ComEd entered in July 2020 with the U.S. Attorney’s Office for the Northern District of Illinois.
(q)The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 15.4% and 9.0% for the nine months ended September 30, 2021 and 2020, respectively.
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ComEd
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
 GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments 
Operating revenues$1,789 $— $1,643 $— 
Operating expenses
Purchased power and fuel703 — 606 —  
Operating and maintenance330 (6)(d)321 — 
Depreciation and amortization304 — 294 — 
Taxes other than income taxes91 — 81 — 
Total operating expenses1,428 1,302 
Operating income361 341 
Other income and (deductions)
Interest expense, net(98)— (95)— 
Other, net13 — 10 — 
Total other income and (deductions)(85)(85)
Income before income taxes276 256 
Income taxes56 (d)60 — 
Net income$220 $196 
 Nine Months Ended
September 30, 2021
Nine Months Ended
September 30, 2020
 GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments
Operating revenues$4,840 $— $4,499 $— 
Operating expenses
Purchased power and fuel1,728 — 1,557 — 
Operating and maintenance969 (10)(d)1,173 (215)(b), (c)
Depreciation and amortization893 — 841 — 
Taxes other than income taxes243 — 227 — 
Total operating expenses3,833 3,798 
Operating income1,007 701 
Other income and (deductions)
Interest expense, net(292)— (287)— 
Other, net35 — 32 — 
Total other income and (deductions)(257)(255)
Income before income taxes750 446 
Income taxes141 (d)142 (b)
Net income$609 $304 
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude an impairment related to the acquisition of transmission assets.
(c)Adjustment to exclude the payments made by ComEd under the Deferred Prosecution Agreement, which ComEd entered in July 2020 with the U.S. Attorney’s Office for the Northern District of Illinois.
(d)Represents costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
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PECO
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
 GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments 
Operating revenues$818 $— $813 $—  
Operating expenses
Purchased power and fuel
277 — 269 —  
Operating and maintenance
263 (5)(b),(c)251 (4)(b),(e)
Depreciation and amortization
86 — 85 —  
Taxes other than income taxes
51 — 53 —  
Total operating expenses
677 658 
Operating income141 155  
Other income and (deductions)
Interest expense, net
(40)— (39)—  
Other, net
— —  
Total other income and (deductions)(33)(33) 
Income before income taxes108 122  
Income taxes(3)(b),(c)(16)(b),(e)
Net income$111 $138  
 Nine Months Ended
September 30, 2021
Nine Months Ended
September 30, 2020
 GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments 
Operating revenues$2,399 $— $2,306 $—  
Operating expenses
Purchased power and fuel
800 — 768 —  
Operating and maintenance
706 (11)(b),(c),(d) 742 (13)(b),(e)
Depreciation and amortization
259 — 259 —  
Taxes other than income taxes
143 — 131 —  
Total operating expenses
1,908 1,900 
Operating income491 406  
Other income and (deductions)
Interest expense, net
(119)— (108)—  
Other, net
20 — 12 —  
Total other income and (deductions)(99)(96) 
Income before income taxes392 310  
Income taxes(b),(c),(d) (7)(b),(e)
Net income$383 $317  
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(c)Represents costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(d)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(e)Adjustment to exclude reorganization costs related to cost management programs.
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BGE
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
 GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments 
Operating revenues$770 $— $731 $—  
Operating expenses
Purchased power and fuel
290 — 250 —  
Operating and maintenance
205 (5)(b),(c)191 (1)(b),(e)
Depreciation and amortization
142 — 133 —  
Taxes other than income taxes
72 — 68 —  
Total operating expenses
709 642 
Operating income61 89  
Other income and (deductions)
Interest expense, net
(36)— (34)—  
Other, net
— —  
Total other income and (deductions)(29)(28) 
Income before income taxes32 61  
Income taxes(4)(b),(c)— 
Net income$36 $53  
 Nine Months Ended
September 30, 2021
Nine Months Ended
September 30, 2020
 GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments 
Operating revenues$2,426 $— $2,284 $—  
Operating expenses
Purchased power and fuel
840 — 731 —  
Operating and maintenance
595 (11)(b),(c),(d)567 (8)(b),(e)
Depreciation and amortization
434 — 405 —  
Taxes other than income taxes
211 — 200 —  
Total operating expenses
2,080 1,903  
Operating income346 381 
Other income and (deductions)
Interest expense, net
(103)— (99)—  
Other, net
23 — 17 —  
Total other income and (deductions)(80)(82) 
Income before income taxes266 299 
Income taxes(24)(b),(c),(d)26 (b),(e)
Net income$290 $273 
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(c)Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(d)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(e)Adjustment to exclude reorganization costs related to cost management programs.
16

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PHI
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
 GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments
Operating revenues$1,470 $— $1,368 $— 
Operating expenses
Purchased power and fuel
540 — 506 — 
Operating and maintenance
278 (9)(b),(c),(d),(e),(f)275 (7)(d),(e),(f)
Depreciation and amortization
210 — 200 — 
Taxes other than income taxes
127 — 121 — 
Total operating expenses
1,155 1,102 
Operating income315 266 
Other income and (deductions)
Interest expense, net
(67)— (67)— 
Other, net
16 — 16 — 
Total other income and (deductions)(51)(51)
Income before income taxes264 215 
Income taxes(2)(b),(c),(d),(e),(f)(1)(d),(e),(f),(g)
Net income$266 $216 
 Nine Months Ended
September 30, 2021
Nine Months Ended
September 30, 2020
 GAAP (a)Non-GAAP AdjustmentsGAAP (a)Non-GAAP Adjustments
Operating revenues$3,854 $— $3,554 $— 
Operating expenses
Purchased power and fuel
1,414 — 1,316 — 
Operating and maintenance
790 (15)(b),(c),(d),(e),(f)813 (17)(d),(e),(f)
Depreciation and amortization
614 — 585 — 
Taxes other than income taxes
349 — 343 — 
Total operating expenses
3,167 3,057 
Gain on sales of assets— — — 
Operating income 687 499 
Other income and (deductions)
Interest expense, net
(201)— (201)— 
Other, net
52 — 42 — 
Total other income and (deductions)(149)(159)
Income before income taxes538 340 
Income taxes(b),(c),(d),(e),(f)(77)(d),(e),(f),(g)
Equity in earnings of unconsolidated affiliates— 
Net income$535 $418 
__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(c)Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(d)Adjustment to exclude reorganization and severance costs related to cost management programs.
(e)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(f)Adjustment to exclude an ARO update.
(g)Adjustment to exclude deferred income taxes due to changes in forecasted appointment.


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Generation
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
 GAAP (a)Non-GAAP Adjustments GAAP (a)Non-GAAP Adjustments 
Operating revenues$4,406 $635 (b)$4,659 $(37)(b)
Operating expenses
Purchased power and fuel1,546 1,347 (b),(c)2,314 194 (b),(c)
Operating and maintenance938 121 (c),(d),(e),(f),(g),(h),(i),(j),(k),(l)1,737 (706)(c),(d),(e),(f),(g),(j)
Depreciation and amortization866 (573)(c),(k)558 (262)(c)
Taxes other than income taxes115 — 118 — 
Total operating expenses3,465 4,727 
Gain on sales of assets and businesses65 (c)— — 
Operating income (loss)1,006 (68)
Other income and (deductions)
Interest expense, net(77)(1)(b)(80)(2)(b)
Other, net(115)91 (c),(k),(m)367 (333)(m)
Total other income and (deductions)(192)287 
Income before income taxes814 219 
Income taxes177 (11)(b),(c),(d),(e),(f),(g),(h),(i),(j),(k),(l),(m),(n)100 52 (b),(c),(d),(e),(f),(g),(j),(m),(n)
Equity in losses of unconsolidated affiliates(4)— (2)— 
Net income633 117 
Net income attributable to noncontrolling interests26 23 (o)68 (57)(o)
Net income attributable to membership interest$607 $49 
 Nine Months Ended
September 30, 2021
Nine Months Ended
September 30, 2020
 GAAP (a)Non-GAAP Adjustments GAAP (a)Non-GAAP Adjustments 
Operating revenues$14,117 $958 (b)$13,272 $(238)(b)
Operating expenses
Purchased power and fuel8,103 2,052 (b),(c)6,961 210 (b),(c)
Operating and maintenance3,413 (40)(c),(d),(e),(f),(g),(h),(i),(j),(k),(l)4,188 (773)(c),(d),(e),(f),(g),(j)
Depreciation and amortization2,735 (1,848)(c),(k)1,161 (275)(c)
Taxes other than income taxes354 — 364 — 
Total operating expenses14,605 12,674 
Gain on sales of assets and businesses144 (68)(c)12 (4)(b),(c)
Operating (loss) income(344)610 
Other income and (deductions)
Interest expense, net(225)(4)(b)(277)10 (b)
Other, net561 (96)(c),(k),(m)199 (22)(m)
Total other income and (deductions)336 (78)
(Loss) income before income taxes(8)532 
Income taxes108 139 (b),(c),(d),(e),(f),(g),(h),(i),(j),(k),(l),(m),(n)41 149 (b),(c),(d),(e),(f),(g),(j),(m),(n)
Equity in losses of unconsolidated affiliates(6)— (6)— 
Net (loss) income(122)485 
Net income (loss) attributable to noncontrolling interests125 (10)(o)(85)(15)(o)
Net (loss) income attributable to membership interest$(247)$570  
18

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__________
(a)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(c)In 2021, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions to early retire Byron, Dresden, and Mystic Units 8 and 9, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021 and a gain on sale of Generation's solar business. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates. In 2020, adjustment to exclude primarily one-time charges and accelerated depreciation and amortization associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024.
(d)Adjustment to exclude primarily reorganization and severance costs related to cost management programs.
(e)In 2021, adjustment to exclude an impairment in the New England asset group, an impairment recorded as a result of the agreement to sell the Albany Green Energy biomass facility, and an impairment of a wind project at Generation. In 2020, adjustment to exclude primarily an impairment in the New England asset group in the third quarter of 2020.
(f)Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees.
(g)Adjustment to exclude costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021.
(h)Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation.
(i)Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(j)Adjustment to exclude changes in environmental liabilities.
(k)Adjustment to exclude the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021 reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date.
(l)In 2021, adjustment to exclude an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021.
(m)Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units.
(n)Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment.
(o)Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment.


19

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Other (a)
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
 GAAP (b)Non-GAAP Adjustments GAAP (b)Non-GAAP Adjustments 
Operating revenues$(343)$—  $(361)$— 
Operating expenses
Purchased power and fuel(323)— (331)—  
Operating and maintenance(22)(6)(c)(43)— 
Depreciation and amortization16 — 19 — 
Taxes other than income taxes12 — 11 — 
Total operating expenses(317)(344)
Gain on sales of assets and businesses— — — 
Operating loss(26)(14)
Other income and (deductions)
Interest expense, net(79)— (89)10 (d)
Other, net17 (d)16 — 
Total other income and (deductions)(62)(73)
Loss before income taxes(88)(87)
Income taxes(50)(21)(c),(d),(e)65 (90)(d),(e)
Equity in earnings of unconsolidated affiliates— — 
Net loss(37)(151)
Net income attributable to noncontrolling interests— — 
Net loss attributable to common shareholders$(37) $(151) 
 Nine Months Ended
September 30, 2021
Nine Months Ended
September 30, 2020
 GAAP (b)Non-GAAP Adjustments GAAP (b)Non-GAAP Adjustments 
Operating revenues$(921)$—  $(990)$— 
Operating expenses
Purchased power and fuel(868)— (927)— 
Operating and maintenance(57)(11)(c)(113)(f)
Depreciation and amortization53 — 61 — 
Taxes other than income taxes37 — 34 — 
Total operating expenses(835)(945)
Gain on sales of assets and businesses— — 
Operating loss(83)(43)
Other income and (deductions)
Interest expense, net(240)— (269)38 (d),(e)
Other, net60 (d)50 — 
Total other income and (deductions)(180)(219)
Loss before income taxes(263)(262)
Income taxes(8)(17)(c),(d),(e)16 (78)(d),(e),(f)
Equity in earnings of unconsolidated affiliates— — — 
Net loss(254)(278)
Net income attributable to noncontrolling interests— 
Net loss attributable to common shareholders$(255) $(278) 
__________
(a)Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities.
(b)Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(c)Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs.
(d)Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.
(e)Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment.
(f)Adjustment to exclude reorganization costs related to cost management programs.

20

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ComEd Statistics
Three Months Ended September 30, 2021 and 2020
 Electric Deliveries (in GWhs)Revenue (in millions)
 20212020% ChangeWeather - Normal % Change20212020% Change
Rate-Regulated Deliveries and Revenues(a)
Residential8,986 9,022 (0.4)%4.6 %$978 $920 6.3 %
Small commercial & industrial8,243 7,809 5.6 %6.9 %433 379 14.2 %
Large commercial & industrial7,109 6,949 2.3 %3.5 %148 135 9.6 %
Public authorities & electric railroads228 235 (3.0)%(2.9)%11 10 10.0 %
Other(b)
— — n/an/a245 234 4.7 %
Total rate-regulated electric revenues(c)
24,566 24,015 2.3 %4.9 %1,815 1,678 8.2 %
Other Rate-Regulated Revenues(d)
(26)(35)(25.7)%
Total Electric Revenues$1,789 $1,643 8.9 %
Purchased Power$703 $606 16.0 %
   % Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days16 58 97 (72.4)%(83.5)%
Cooling Degree-Days866 923 641 (6.2)%35.1 %

Nine Months Ended September 30, 2021 and 2020

 Electric Deliveries (in GWhs)Revenue (in millions)
 20212020% ChangeWeather - Normal % Change20212020% Change
Rate-Regulated Deliveries and Revenues(a)
Residential22,228 21,928 1.4 %2.2 %$2,479 $2,389 3.8 %
Small commercial & industrial22,610 21,803 3.7 %3.4 %1,176 1,067 10.2 %
Large commercial & industrial19,956 19,619 1.7 %1.5 %420 388 8.2 %
Public authorities & electric railroads698 744 (6.2)%(6.6)%33 33 — %
Other(b)
— — n/an/a676 663 2.0 %
Total rate-regulated electric revenues(c)
65,492 64,094 2.2 %2.3 %4,784 4,540 5.4 %
Other Rate-Regulated Revenues(d)
56 (41)(236.6)%
Total Electric Revenues$4,840 $4,499 7.6 %
Purchased Power$1,728 $1,557 11.0 %
   % Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days3,632 3,451 3,972 5.2 %(8.6)%
Cooling Degree-Days1,257 1,286 882 (2.3)%42.5 %

Number of Electric Customers20212020
Residential3,699,376 3,685,192 
Small commercial & industrial389,348 386,428 
Large commercial & industrial1,865 1,977 
Public authorities & electric railroads4,853 4,870 
Total4,095,442 4,078,467 
__________
(a)Reflects revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier, as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenues also reflect the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $9 million and $15 million for the three months ended September 30, 2021 and 2020, respectively, and $19 million and $31 million for the nine months ended September 30, 2021 and 2020, respectively.
(d)Includes alternative revenue programs and late payment charges.


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PECO Statistics
Three Months Ended September 30, 2021 and 2020
 Electric and Natural Gas DeliveriesRevenue (in millions)
 20212020% ChangeWeather-
Normal
% Change
20212020% Change
Electric (in GWhs)
Rate-Regulated Electric Deliveries and Revenues(a)
Residential4,318 4,477 (3.6)%(1.4)%$509 $518 (1.7)%
Small commercial & industrial2,157 2,017 6.9 %7.7 %113 104 8.7 %
Large commercial & industrial3,880 3,791 2.3 %2.7 %67 66 1.5 %
Public authorities & electric railroads155 145 6.9 %7.2 %— %
Other(b)
— — n/an/a61 58 5.2 %
Total rate-regulated electric revenues(c)
10,510 10,430 0.8 %2.0 %757 753 0.5 %
Other Rate-Regulated Revenues(d)
(16.7)%
Total Electric Revenues762 759 0.4 %
Natural Gas (in mmcfs)
Rate-Regulated Gas Deliveries and Revenues(e)
Residential2,244 2,121 5.8 %8.2 %36 32 12.5 %
Small commercial & industrial1,926 2,157 (10.7)%(11.7)%13 16 (18.8)%
Large commercial & industrial(55.6)%1.3 %— — n/a
Transportation5,356 5,269 1.7 %5.0 %(16.7)%
Other(f)
— — n/an/a100.0 %
Total rate-regulated natural gas revenues(g)
9,530 9,556 (0.3)%2.0 %56 55 1.8 %
Other Rate-Regulated Revenues(d)
— (1)n/a
Total Natural Gas Revenues56 54 3.7 %
Total Electric and Natural Gas Revenues$818 $813 0.6 %
Purchased Power and Fuel$277 $269 3.0 %
    % Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days37 25 (89.2)%(84.0)%
Cooling Degree-Days1,094 1,128 1,013 (3.0)%8.0 %






















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Nine Months Ended September 30, 2021 and 2020
Electric and Natural Gas DeliveriesRevenue (in millions)
20212020% ChangeWeather-
Normal
% Change
20212020% Change
Electric (in GWhs)
Rate-Regulated Electric Deliveries and Revenues(a)
Residential11,201 10,874 3.0 %1.0 %$1,325 $1,277 3.8 %
Small commercial & industrial5,796 5,493 5.5 %3.9 %312 291 7.2 %
Large commercial & industrial10,627 10,393 2.3 %1.8 %183 174 5.2 %
Public authorities & electric railroads425 407 4.4 %4.3 %24 21 14.3 %
Other(b)
— — n/an/a167 171 (2.3)%
Total rate-regulated electric revenues(c)
28,049 27,167 3.2 %2.0 %2,011 1,934 4.0 %
Other Rate-Regulated Revenues(d)
22 14 57.1 %
Total Electric Revenues2,033 1,948 4.4 %
Natural Gas (in mmcfs)
Rate-Regulated Natural Gas Deliveries and Revenues(e)
Residential27,945 25,867 8.0 %0.8 %251 252 (0.4)%
Small commercial & industrial15,217 13,020 16.9 %7.5 %94 86 9.3 %
Large commercial & industrial13 20 (35.0)%7.7 %— — N/A
Transportation18,474 17,553 5.2 %4.0 %17 18 (5.6)%
Other(f)
— — n/an/a33.3 %
Total rate-regulated natural gas revenues(g)
61,649 56,460 9.2 %3.3 %366 359 1.9 %
Other Rate-Regulated Revenues(d)
— (1)100.0 %
Total Natural Gas Revenues366 358 2.2 %
Total Electric and Natural Gas Revenues$2,399 $2,306 4.0 %
Purchased Power and Fuel$800 $768 4.2 %
% Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days2,710 2,594 2,865 4.5 %(5.4)%
Cooling Degree-Days1,517 1,504 1,402 0.9 %8.2 %
Number of Electric Customers20212020Number of Natural Gas Customers20212020
Residential1,514,836 1,505,080 Residential495,752 490,158 
Small commercial & industrial155,006 154,183 Small commercial & industrial44,435 44,138 
Large commercial & industrial3,108 3,105 Large commercial & industrial
Public authorities & electric railroads10,271 10,149 Transportation670 715 
Total1,683,221 1,672,517 Total540,863 535,016 
__________
(a)Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, revenues also reflect the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $2 million and $3 million for the three months ended September 30, 2021 and 2020, and $5 million and $6 million for the nine months ended September 30, 2021 and 2020 respectively.
(d)Includes alternative revenue programs and late payment charges.
(e)Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.
(f)Includes revenues primarily from off-system sales.
(g)Includes operating revenues from affiliates totaling less than $1 million for both the three months ended September 30, 2021 and 2020, and $1 million for both the nine months ended September 30, 2021 and 2020, respectively.
23

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BGE Statistics
Three Months Ended September 30, 2021 and 2020
 Electric and Natural Gas DeliveriesRevenue (in millions)
 20212020% ChangeWeather-
Normal
% Change
20212020% Change
Electric (in GWhs)
Rate-Regulated Electric Deliveries and Revenues(a)
Residential3,736 3,919 (4.7)%(2.3)%$383 $389 (1.5)%
Small commercial & industrial779 756 3.0 %3.2 %73 65 12.3 %
Large commercial & industrial3,753 3,580 4.8 %3.6 %128 113 13.3 %
Public authorities & electric railroads52 51 2.0 %3.6 %— %
Other(b)
— — n/an/a104 78 33.3 %
Total rate-regulated electric revenues(c)
8,320 8,306 0.2 %0.9 %695 652 6.6 %
Other Rate-Regulated Revenues(d)
(18)(6)200.0 %
Total Electric Revenues677 646 4.8 %
Natural Gas (in mmcfs)
Rate-Regulated Natural Gas Deliveries and Revenues(e)
Residential2,359 2,520 (6.4)%(3.8)%57 55 3.6 %
Small commercial & industrial902 862 4.6 %5.6 %10 11.1 %
Large commercial & industrial7,296 7,971 (8.5)%(7.2)%22 21 4.8 %
Other(f)
612 1,417 (56.8)% n/a 100.0 %
Total rate-regulated natural gas revenues(g)
11,169 12,770 (12.5)%(5.5)%95 88 8.0 %
Other Rate-Regulated Revenues(d)
(2)(3)(33.3)%
Total Natural Gas Revenues93 85 9.4 %
Total Electric and Natural Gas Revenues$770 $731 5.3 %
Purchased Power and Fuel$290 $250 16.0 %
   % Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days42 69 72 (39.1)%(41.7)%
Cooling Degree-Days739 751 607 (1.6)%21.7 %

























24

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Nine Months Ended September 30, 2021 and 2020

Electric and Natural Gas DeliveriesRevenue (in millions)
20212020% ChangeWeather-
Normal
% Change
20212020% Change
Electric (in GWhs)
Rate-Regulated Electric Deliveries and Revenues(a)
Residential10,046 9,807 2.4 %(0.2)%$1,044 $1,034 1.0 %
Small commercial & industrial2,128 2,035 4.6 %2.1 %202 183 10.4 %
Large commercial & industrial10,054 9,657 4.1 %2.0 %342 311 10.0 %
Public authorities & electric railroads149 157 (5.1)%(4.8)%20 20 — %
Other(b)
— — n/an/a269 233 15.5 %
Total rate-regulated electric revenues(c)
22,377 21,656 3.3 %1.0 %1,877 1,781 5.4 %
Other Rate-Regulated Revenues(d)
(11)(18)(38.9)%
Total Electric Revenues1,866 1,763 5.8 %
Natural Gas (in mmcfs)
Rate-Regulated Natural Gas Deliveries and Revenues(e)
Residential25,758 26,394 (2.4)%(11.3)%354 342 3.5 %
Small commercial & industrial6,226 6,241 (0.2)%(7.5)%59 55 7.3 %
Large commercial & industrial29,559 28,236 4.7 %1.4 %103 96 7.3 %
Other(f)
9,125 5,095 79.1 %n/a41 16 156.3 %
Total rate-regulated natural gas revenues(g)
70,668 65,966 7.1 %(5.4)%557 509 9.4 %
Other Rate-Regulated Revenues(d)
12 (75.0)%
Total Natural Gas Revenues560 521 7.5 %
Total Electric and Natural Gas Revenues$2,426 $2,284 6.2 %
Purchased Power and Fuel$840 $731 14.9 %
   % Change
Heating Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days2,708 2,499 2,956 8.4 %(8.4)%
Cooling Degree-Days1,039 998 867 4.1 %19.8 %
Number of Electric Customers20212020Number of Natural Gas Customers20212020
Residential1,194,254 1,187,498 Residential649,745 644,872 
Small commercial & industrial114,814 114,038 Small commercial & industrial38,216 38,173 
Large commercial & industrial12,584 12,428 Large commercial & industrial6,167 6,083 
Public authorities & electric railroads268 267 Total694,128 689,128 
Total1,321,920 1,314,231 
__________
(a)Reflects revenues from customers purchasing electricity directly from BGE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from BGE, revenues also reflect the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $4 million and $3 million for the three months ended September 30, 2021 and 2020, respectively, and $10 million and $9 million for the nine months ended September 30, 2021 and 2020, respectively.
(d)Includes alternative revenue programs and late payment charges.
(e)Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas.
(f)Includes revenues primarily from off-system sales.
(g)Includes operating revenues from affiliates totaling $3 million for both the three months ended September 30, 2021 and 2020, and $10 million and $7 million for the nine months ended September 30, 2021 and 2020, respectively.
25

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Pepco Statistics
Three Months Ended September 30, 2021 and 2020
 Electric Deliveries (in GWhs)Revenue (in millions)
 20212020% ChangeWeather-
Normal
% Change
20212020% Change
Rate-Regulated Deliveries and Revenues(a)
Residential2,457 2,532 (3.0)%(2.4)%$309 $307 0.7 %
Small commercial & industrial306 308 (0.6)%(0.5)%36 36 — %
Large commercial & industrial3,862 3,615 6.8 %7.1 %244 195 25.1 %
Public authorities & electric railroads165 148 11.5 %11.6 %— %
Other(b)
— — n/an/a53 47 12.8 %
Total rate-regulated electric revenues(c)
6,790 6,603 2.8 %3.2 %650 593 9.6 %
Other Rate-Regulated Revenues(d)
10 18 (44.4)%
Total Electric Revenues$660 $611 8.0 %
Purchased Power$172 $163 5.5 %
   % Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days— 30 10 (100.0)%(100.0)%
Cooling Degree-Days1,221 1,211 1,171 0.8 %4.3 %

Nine Months Ended September 30, 2021 and 2020

Electric Deliveries (in GWhs)Revenue (in millions)
20212020% ChangeWeather-
Normal
% Change
20212020% Change
Rate-Regulated Deliveries and Revenues(a)
Residential6,495 6,270 3.6 %1.1 %$785 $779 0.8 %
Small commercial & industrial884 870 1.6 %0.6 %101 101 — %
Large commercial & industrial10,091 9,918 1.7 %1.4 %616 558 10.4 %
Public authorities & electric railroads506 501 1.0 %0.6 %24 25 (4.0)%
Other(b)
— — n/an/a154 166 (7.2)%
Total rate-regulated electric revenues(c)
17,976 17,559 2.4 %1.2 %1,680 1,629 3.1 %
Other Rate-Regulated Revenues(d)
56 21 166.7 %
Total Electric Revenues$1,736 $1,650 5.2 %
Purchased Power$471 $467 0.9 %
   % Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days2,343 2,140 2,442 9.5 %(4.1)%
Cooling Degree-Days1,724 1,665 1,677 3.5 %2.8 %
Number of Electric Customers20212020
Residential839,574 828,578 
Small commercial & industrial53,849 53,813 
Large commercial & industrial22,586 22,485 
Public authorities & electric railroads179 167 
Total916,188 905,043 
__________
(a)Reflects revenues from customers purchasing electricity directly from Pepco and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from Pepco, revenues also reflect the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $2 million and $3 million for the three months ended September 30, 2021 and 2020, respectively, and $4 million and $6 million for the nine months ended September 30, 2021 and 2020, respectively.
(d)Includes alternative revenue programs and late payment charge revenues.
26

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DPL Statistics
Three Months Ended September 30, 2021 and 2020
 Electric and Natural Gas DeliveriesRevenue (in millions)
 20212020% ChangeWeather -
Normal
% Change
20212020% Change
Electric (in GWhs)
Rate-Regulated Electric Deliveries and Revenues(a)
Residential1,594 1,635 (2.5)%(1.5)%$198 $193 2.6 %
Small commercial & industrial671 621 8.1 %8.5 %53 45 17.8 %
Large commercial & industrial1,160 1,064 9.0 %9.6 %27 21 28.6 %
Public authorities & electric railroads10 10 — %5.9 %33.3 %
Other(b)
— — n/an/a56 44 27.3 %
Total rate-regulated electric revenues(c)
3,435 3,330 3.2 %4.0 %338 306 10.5 %
Other Rate-Regulated Revenues(d)
(1)(112.5)%
Total Electric Revenues337 314 7.3 %
Natural Gas (in mmcfs)
Rate-Regulated Gas Deliveries and Revenues(e)
Residential399 441 (9.5)%8.8 %10 11 (9.1)%
Small commercial & industrial352 339 3.8 %13.9 %(16.7)%
Large commercial & industrial395 402 (1.7)%(1.8)%100.0 %
Transportation1,303 1,231 5.8 %7.2 %— %
Other(f)
— — n/an/a50.0 %
Total rate-regulated natural gas revenues2,449 2,413 1.5 %6.9 %23 23 — %
Other Rate-Regulated Revenues(d)
— — n/a
Total Natural Gas Revenues23 23 — %
Total Electric and Natural Gas Revenues$360 $337 6.8 %
Purchased Power and Fuel$138 $131 5.3 %
Electric Service Territory   % Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days47 27 (80.9)%(66.7)%
Cooling Degree-Days998 1,012 894 (1.4)%11.6 %
Natural Gas Service Territory   % Change
Heating Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days11 55 38 (80.0)%(71.1)%
27

Table of Contents
Nine Months Ended September 30, 2021 and 2020
Electric and Natural Gas Deliveries
Revenue (in millions)
20212020% ChangeWeather -
Normal
% Change
20212020% Change
Electric (in GWhs)
Rate-Regulated Electric Deliveries and Revenues(a)
Residential4,245 4,088 3.8 %1.5 %$535 $501 6.8 %
Small commercial & industrial1,787 1,581 13.0 %11.9 %145 127 14.2 %
Large commercial & industrial3,145 3,185 (1.3)%(1.7)%70 66 6.1 %
Public authorities & electric railroads34 32 6.3 %8.5 %11 10 10.0 %
Other(b)
— — n/an/a143 148 (3.4)%
Total rate-regulated electric revenues(c)
9,211 8,886 3.7 %2.3 %904 852 6.1 %
Other Rate-Regulated Revenues(d)
18 (14)(228.6)%
Total Electric Revenues922 838 10.0 %
Natural Gas (in mmcfs)
Rate-Regulated Natural Gas Deliveries and Revenues(e)
Residential5,507 5,256 4.8 %(1.2)%67 68 (1.5)%
Small commercial & industrial2,647 2,567 3.1 %(2.2)%29 30 (3.3)%
Large commercial & industrial1,247 1,265 (1.4)%(1.6)%66.7 %
Transportation4,997 4,811 3.9 %2.3 %11 10 10.0 %
Other(f)
— — n/an/a20.0 %
Total rate-regulated natural gas revenues14,398 13,899 3.6 %(0.3)%118 116 1.7 %
Other Rate-Regulated Revenues(d)
— — n/a
Total Natural Gas Revenues118 116 1.7 %
Total Electric and Natural Gas Revenues$1,040 $954 9.0 %
Purchased Power and Fuel$402 $379 6.1 %
Electric Service Territory% Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days2,739 2,551 2,904 7.4 %(5.7)%
Cooling Degree-Days1,376 1,332 1,239 3.3 %11.1 %
Natural Gas Service Territory% Change
Heating Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days2,848 2,664 3,025 6.9 %(5.9)%
Number of Electric Customers20212020Number of Natural Gas Customers20212020
Residential476,008 471,875 Residential127,740 126,659 
Small commercial & industrial62,990 62,291 Small commercial & industrial9,935 9,885 
Large commercial & industrial1,215 1,234 Large commercial & industrial21 17 
Public authorities & electric railroads605 610 Transportation158 160 
Total540,818 536,010 Total137,854 136,721 
__________
(a)Reflects delivery volumes and revenues from customers purchasing electricity directly from DPL and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from DPL, revenues also reflect the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $2 million and $3 million for the three months ended September 30, 2021 and 2020, respectively, and $6 million and $7 million for the nine months ended September 30, 2021 and 2020, respectively.
(d)Includes alternative revenue programs and late payment charges.
(e)Reflects delivery volumes and revenues from customers purchasing natural gas directly from DPL and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from DPL, revenue also reflects the cost of natural gas.
(f)Includes revenues primarily from off-system sales.
28

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ACE Statistics
Three Months Ended September 30, 2021 and 2020
 Electric Deliveries (in GWhs)Revenue (in millions)
 20212020% ChangeWeather -
Normal
% Change
20212020% Change
Rate-Regulated Deliveries and Revenues(a)
Residential1,540 1,533 0.5 %2.3 %$275 $263 4.6 %
Small commercial & industrial435 397 9.6 %12.8 %61 53 15.1 %
Large commercial & industrial874 851 2.7 %4.4 %49 46 6.5 %
Public authorities & electric railroads— %(1.3)%— %
Other(b)
— — n/an/a63 50 26.0 %
Total rate-regulated electric revenues(c)
2,858 2,790 2.4 %4.4 %451 415 8.7 %
Other Rate-Regulated Revenues(d)
— (100.0)%
Total Electric Revenues$451 $420 7.4 %
Purchased Power $230 $211 9.0 %
    % Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days11 58 34 (81.0)%(67.6)%
Cooling Degree-Days922 989 860 (6.8)%7.2 %

Nine Months Ended September 30, 2021 and 2020

Electric Deliveries (in GWhs)Revenue (in millions)
20212020% ChangeWeather -
Normal
% Change
20212020% Change
Rate-Regulated Deliveries and Revenues(a)
Residential3,443 3,193 7.8 %7.1 %$604 $545 10.8 %
Small commercial & industrial1,073 967 11.0 %11.1 %146 127 15.0 %
Large commercial & industrial2,351 2,287 2.8 %3.1 %139 131 6.1 %
Public authorities & electric railroads33 33 — %0.7 %10 10 — %
Other(b)
— — n/an/a158 159 (0.6)%
Total rate-regulated electric revenues(c)
6,900 6,480 6.5 %6.3 %1,057 972 8.7 %
Other Rate-Regulated Revenues(d)
23 (20)(215.0)%
Total Electric Revenues$1,080 $952 13.4 %
Purchased Power $541 $469 15.4 %
    % Change
Heating and Cooling Degree-Days20212020NormalFrom 2020From Normal
Heating Degree-Days2,884 2,618 3,042 10.2 %(5.2)%
Cooling Degree-Days1,246 1,300 1,165 (4.2)%7.0 %
Number of Electric Customers20212020
Residential499,775 497,222 
Small commercial & industrial61,838 61,521 
Large commercial & industrial3,209 3,305 
Public authorities & electric railroads707 694 
Total565,529 562,742 
__________
(a)Reflects delivery volumes and revenues from customers purchasing electricity directly from ACE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from ACE, revenues also reflect the cost of energy and transmission.
(b)Includes transmission revenue from PJM, wholesale electric revenue, and mutual assistance revenue.
(c)Includes operating revenues from affiliates totaling $1 million for both the three months ended September 30, 2021 and 2020, and $2 million and $3 million for the nine months ended September 30, 2021 and 2020, respectively.
(d)Includes alternative revenue programs.
29

Table of Contents
Generation Statistics
 Three Months EndedNine Months Ended
 September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Supply Source (GWhs)
Nuclear Generation(a)
Mid-Atlantic13,753 13,679 40,203 39,630 
Midwest23,909 24,471 70,363 71,929 
New York7,188 6,734 21,323 19,296 
Total Nuclear Generation
44,850 44,884 131,889 130,855 
Fossil and Renewables
Mid-Atlantic491 304 1,675 1,864 
Midwest177 196 763 852 
New York— 
ERCOT4,670 4,394 10,250 10,658 
Other Power Regions(b)
2,409 2,794 7,641 8,905 
Total Fossil and Renewables
7,747 7,689 20,330 22,282 
Purchased Power
Mid-Atlantic4,565 8,252 12,123 17,924 
Midwest77 71 386 595 
ERCOT595 1,104 2,626 3,351 
Other Power Regions(b)
13,585 14,512 38,778 37,981 
Total Purchased Power
18,822 23,939 53,913 59,851 
Total Supply/Sales by Region
Mid-Atlantic(c)
18,809 22,235 54,001 59,418 
Midwest(c)
24,163 24,738 71,512 73,376 
New York7,188 6,735 21,324 19,299 
ERCOT5,265 5,498 12,876 14,009 
Other Power Regions(b)
15,994 17,306 46,419 46,886 
Total Supply/Sales by Region71,419 76,512 206,132 212,988 
 Three Months EndedNine Months Ended
 September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Outage Days(d)
Refueling22 17 172 203 
Non-refueling— 10 15 
Total Outage Days22 21 182 218 
__________
(a)Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants. Includes the total output for fully owned plants and the total output for CENG prior to the acquisition of EDF’s interest on August 6, 2021 as CENG was fully consolidated.
(b)Other Power Regions includes New England, South, West, and Canada.
(c)Includes affiliate sales to PECO, BGE, Pepco, DPL, and ACE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region.
(d)Outage days exclude Salem.

30

Table of Contents
Three Months EndedNine Months Ended
ZEC PricesSeptember 30, 2021September 30, 2020September 30, 2021September 30, 2020
State (Region)
New Jersey (Mid-Atlantic)$10.00 $10.00 $10.00 $10.00 
Illinois (Midwest)16.50 16.50 16.50 16.50 
New York (New York)21.38 19.59 20.78 19.59 
Three Months EndedNine Months Ended
Capacity PricesSeptember 30, 2021September 30, 2020September 30, 2021September 30, 2020
Location (Region)
Eastern Mid-Atlantic Area Council (Mid-Atlantic and Midwest)$165.73 $187.87 $178.03 $159.50 
ComEd (Midwest)195.55 188.12 191.42 194.22 
Rest of State (New York)160.44 89.30 94.12 54.32 
Southeast New England (Other)154.37 176.67 166.76 200.69 
Three Months EndedNine Months Ended
Electricity PricesSeptember 30, 2021September 30, 2020September 30, 2021September 30, 2020
Location (Region)
PJM West (Mid-Atlantic)$41.77 $22.75 $33.70 $20.24 
ComEd (Midwest)39.68 20.98 31.76 18.57 
Central (New York)36.27 19.53 26.58 16.33 
North (ERCOT)42.67 27.14 182.23 21.83 
Southeast Massachusetts (Other)(a)
45.23 22.95 41.54 21.26 
__________
(a)Reflects New England, which comprises the majority of the activity in the Other region.
31
exc-20211103992
Earnings Conference Call Third Quarter 2021 November 3, 2021


 
2 Q3 2021 Earnings Release Slides Cautionary Statements Regarding Forward-Looking Information This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties including, among others, those related to the timing, manner, tax-free nature, and expected benefits associated with the potential separation of Exelon’s competitive power generation and customer-facing energy business from its six regulated electric and gas utilities. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements. The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2020 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies; (2) the Registrants’ Third Quarter 2021 Quarterly Report on Form 10-Q (to be filed on Nov. 3, 2021) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 15, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants. Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this presentation. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this presentation.


 
3 Q3 2021 Earnings Release Slides Non-GAAP Financial Measures Exelon reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). Exelon supplements the reporting of financial information determined in accordance with GAAP with certain non-GAAP financial measures, including: • Adjusted operating earnings exclude certain costs, expenses, gains and losses and other specified items, including mark-to-market adjustments from economic hedging activities, unrealized gains and losses from nuclear decommissioning trust fund investments, asset impairments, certain amounts associated with plant retirements and divestitures, costs related to cost management programs, asset retirement obligations and other items as set forth in the reconciliation in the Appendix • Adjusted operating and maintenance expense excludes regulatory operating and maintenance costs for the utility businesses and direct cost of sales for certain Constellation and Power businesses, decommissioning costs that do not affect profit and loss, the impact from operating and maintenance expense related to variable interest entities at Generation, EDF’s ownership of O&M expenses, and other items as set forth in the reconciliation in the Appendix • Total gross margin is defined as operating revenues less purchased power and fuel expense, excluding revenue related to decommissioning, gross receipts tax, JExel Nuclear JV, variable interest entities, and net of direct cost of sales for certain Constellation and Power businesses • Adjusted cash flow from operations primarily includes net cash flows from operating activities and net cash flows from investing activities excluding capital expenditures, net merger and acquisitions, and equity investments • Free cash flow primarily includes net cash flows from operating activities and net cash flows from investing activities excluding certain capital expenditures, net merger and acquisitions, and equity investments • Operating ROE is calculated using operating net income divided by average equity for the period. The operating income reflects all lines of business for the utility business (Electric Distribution, Gas Distribution, Transmission). • EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Includes nuclear fuel amortization expense. • Adjusted operating revenues exclude the Mark-to-Market impact of economic hedging activities due to the volatility and unpredictability of the future changes to power prices • Adjusted purchased power and fuel excludes the Mark-to-Market impact of economic hedging activities due to the volatility and unpredictability of the future changes to power prices Due to the forward-looking nature of some forecasted non-GAAP measures, information to reconcile the forecasted adjusted (non-GAAP) measures to the most directly comparable GAAP measure may not be currently available, as management is unable to project all of these items for future periods


 
4 Q3 2021 Earnings Release Slides Non-GAAP Financial Measures Continued This information is intended to enhance an investor’s overall understanding of period over period financial results and provide an indication of Exelon’s baseline operating performance by excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this information is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting of future periods. These non-GAAP financial measures are not a presentation defined under GAAP and may not be comparable to other companies’ presentations. Exelon has provided these non-GAAP financial measures as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. These non-GAAP measures should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP measures provided in the materials presented. Non-GAAP financial measures are identified by the phrase “non-GAAP” or an asterisk (*). Reconciliations of these non-GAAP measures to the most comparable GAAP measures are provided in the appendices and attachments to this presentation, except for the reconciliation for total gross margin, which appears on slide 32 of this presentation.


 
5 Q3 2021 Earnings Release Slides Third Quarter Results • Passage of clean energy legislation in Illinois • Announced continued operation of Byron and Dresden nuclear stations • Completed the acquisition of EDF’s ownership stake of CENG nuclear plants • FERC approved separation of utility and generation businesses • Awarded DOE grant to support hydrogen production project at Nine Mile Point nuclear station • Delmarva DE received order in its electric distribution rate case • Pepco filed 5-Year Action Plan to support D.C.’s clean energy and climate goals • Exelon launched $36 million Racial Equity Capital Fund and $3 million Exelon HBCU Corporate Scholars Program • ComEd, PECO and BGE named to Site Selection Magazine’s annual list of top 20 utilities in economic development Q3 2021 EPS Results Q3 2021 Highlights/Key Developments $0.22 $0.23 $0.27 $0.28 $0.11 $0.12 $0.62 $0.44 Q3 Adjusted Operating Earnings* $0.04 Q3 GAAP Earnings ($0.04) ExGen $0.04BGE ($0.01) PECO PHI ComEd HoldCo $1.23 $1.09 Note: Amounts may not sum due to rounding


 
6 Q3 2021 Earnings Release Slides Operating Highlights (1) 2.5 Beta SAIFI is YE projection (2) Excludes Salem. Nuclear operations prior to Q3 2021 reflect Exelon’s 50.01% ownership share of the CENG Joint Venture. Reflects 100% ownership of CENG beginning August 7, 2021. Exelon Utilities Operational Metrics Exelon Generation Operational Performance • Best in class performance across our Nuclear fleet: ― Q3 2021 Nuclear Capacity Factor: 96.0% ― Owned and operated Q3 2021 production of 40.5 TWh • Q3 2021 Power Dispatch Match: 99.4% • Q3 2021 Wind/Solar Energy Capture: 95.8% Operations Metric YTD 2021 BGE ComEd PECO PHI Electric Operations OSHA Recordable Rate 2.5 Beta SAIFI (Outage Frequency)(1) 2.5 Beta CAIDI (Outage Duration) Customer Operations Customer Satisfaction Abandon Rate Gas Operations Gas Odor Response No Gas Operations Fossil and Renewable Fleet Exelon Nuclear Fleet(2) 80% 82% 84% 86% 88% 90% 92% 94% 96% 98% 100% 30 32 34 36 38 40 42 44 C a p a c ity F a c to r Q1 20Q3 19 T W h rs Q4 19 Q4 20Q2 20 Q3 20 Q1 21 Q2 21 Q3 21 Capacity FactorTWhrs Q1 Q2 Q3 Q4 Quartile • Reliability performance was strong across the utilities: ― All utilities delivered top decile SAIFI performance, and ComEd scored in the top decile in CAIDI • Each utility continued to deliver on key customer operations metrics: ― BGE, ComEd and PECO achieved top decile performance in customer satisfaction ― PHI recorded top decile performance in abandon rate • BGE, PECO and PHI remained top decile in gas odor response • Focused on improving safety at BGE, ComEd and PECO


 
7 Q3 2021 Earnings Release Slides Progress on Separation Commission Application Filing Key Regulatory Milestones Approved? New York Public Service Commission (NY PSC) (Case No. 21-E-0130) February 25, 2021 • Comments/intervention were due June 8, 2021 • Notice of Impending Settlement Negotiations issued on October 25, 2021 Federal Energy Regulatory Commission (FERC) (Docket No. EC21-57) February 25, 2021 • Initial comments/intervention were due March 18, 2021 • Subsequent comments/intervention were due May 13, 2021 • Approved on August 24, 2021 ✓ Nuclear Regulatory Commission (NRC) February 25, 2021 • Comments were due June 23, 2021 • Deadline to request hearing closed July 12, 2021(1) • Updated financials and decommissioning funding status submitted September 29, 2021 • Estimated approval by November 30, 2021 • Named CEOs and direct reports, including CFOs, for Exelon and Constellation • Separation planning and preparation continues • Below is the current status of the regulatory filings: (1) Hearing requests may still be pending and resolved later, but approval will be subject to modification by Commission through hearing process


 
8 Q3 2021 Earnings Release Slides $0.23 $0.28 $0.12 $0.44 ComEd $0.04 ($0.01) ExGen PHI Q3 2021 BGE PECO HoldCo $1.09 Third Quarter Adjusted Operating Earnings* Results and Full Year Adjusted Operating Earnings* Guidance Note: Amounts may not sum due to rounding (1) 2021 earnings guidance based on expected average outstanding shares of 980M Narrowing 2021 Adjusted Operating Earnings* to $2.70 - $2.90 per share(1) 2021 Adjusted Operating EPS* Guidance Q3 2021 Adjusted Operating EPS* Results $0.45 - $0.55 ($0.25) $0.55 - $0.75 2021 Revised Guidance $0.40 - $0.50 $0.60 - $0.70 $0.75 - $0.85 ExGen BGE PECO PHI ComEd HoldCo $2.70 - $2.90(1) $0.66


 
9 Q3 2021 Earnings Release Slides Q3 2021 QTD Adjusted Operating Earnings* Waterfall $1.04 $1.09 $0.05 ComEd PECO2020 ($0.02)$0.03 ($0.02) BGE PHI ($0.03) ExGen(5) $0.04 Corp 2021 ($0.09) Net Unrealized and Realized Losses on Equity Investments ($0.03) Capacity Revenues ($0.02) Nuclear Outages(3) $0.06 Higher Realized NDT Fund Gains $0.02 ZEC Revenues $0.03 Other $0.05 Distribution and Transmission Rates $0.01 Storm Costs(2) ($0.01) Depreciation and Amortization Note: Amounts may not sum due to rounding (1) Reflects higher rate base and higher allowed electric distribution ROE due to an increase in treasury rates (2) At PECO, primarily reflects a net increase in storm costs resulting from storms in the third quarter of 2021, partially offset by the absence of the August 2020 storms, net of tax repairs. At PHI, primarily reflects the absence of costs in 2021 due to the August 2020 storms. (3) Reflects revenue and operating and maintenance expense impacts of higher nuclear outage days in 2021, excluding Salem (4) Reflects the reversal of part of the tax expense recorded in the first quarter due to the loss before income taxes at ExGen resulting from the February 2021 extreme cold weather event (5) Drivers reflect CENG ownership at 100% ($0.02) Storm Costs(2) $0.01 Distribution Rates ($0.01) Depreciation and Amortization ($0.02) Other $0.02 Distribution Investment(1) $0.01 Other $0.04 Income Taxes(4)


 
10 Q3 2021 Earnings Release Slides Exelon Utilities Trailing Twelve Month Earned ROEs* Exelon Utilities’ Consolidated Trailing Twelve Month Earned ROEs* 9.6% 9.6% 10.2% 10.2% 10.1% 10.0% 9.7% 9.1% 8.9% 8.7% 8.9% 9.4% 9.3% Q4 2019Q3 2019 Q3 2021Q1 2020Q3 2018 Q2 2019Q1 2019Q4 2018 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Note: Represents the twelve-month periods ending September 30, 2018-2021, June 30, 2019-2021, March 31, 2019-2021 and December 31, 2018-2020. Earned ROEs* represent weighted average across all lines of business (Electric Distribution, Gas Distribution, and Electric Transmission). Exelon Utilities’ Consolidated TTM Earned ROE* remains within our 9-10% targeted range


 
11 Q3 2021 Earnings Release Slides Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Revenue Requirement Requested ROE / Equity Ratio Expected Order $41.0M (1,2) 9.60% / 50.21% Jul 14, 2021 $13.5M (1,3) 9.60% / 50.37% Sep 15, 2021 (4) $132.0M (1) 10.95% / 53.41% Dec 2021 $45.8M (1,5) 7.36% / 48.70% Dec 2021 $28.8M (1) 10.10% / 50.61% Mar 30, 2022 Exelon Utilities’ Distribution Rate Case Updates Rate Case Schedule and Key Terms Note: Unless otherwise noted, based on schedules of Illinois Commerce Commission (ICC), Maryland Public Service Commission (MDPSC), Pennsylvania Public Utility Commission (PAPUC), Delaware Public Service Commission (DPSC), Public Service Commission of the District of Columbia (DCPSC), and New Jersey Board of Public Utilities (NJBPU) that are subject to change (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings (2) Reflects annual gross incremental revenue requirement (before offsets), effective January 1, 2022. Pro-rated gross incremental revenue requirement for 2021 (July 14, 2021 through December 31, 2021) is approximately $16M and will be offset in customer rates by $16M of certain accelerated tax benefits. (3) Requested revenue requirement excludes the transfer of $3.2M of revenues from the Distribution System Improvement Charge (DSIC) capital tracker into base distribution rates. As permitted by Delaware law, Delmarva Power implemented full allowable rates on October 6, 2020, subject to refund. (4) The DPSC issued a minute order on September 15, 2021 with new rates effective on September 17, 2021. The final order with further justification is expected shortly. (5) Revenue requirement in initial filing was an increase of $51.2M. Through the discovery period in the current proceeding, ComEd agreed to ~($5.3M) in adjustments to limit issues in the case. DPL DE Electric ACE Rate case filed Rebuttal testimony Initial briefs Final commission order Intervenor direct testimony Evidentiary hearings Reply briefs Settlement agreement CF IT RT EH IB RB FO SA PECO Electric ComEd RT EH FO RT EH IB RB FO FOSA CF FODPL MD SA FO IT RT EH IB


 
12 Q3 2021 Earnings Release Slides Exelon Utilities Path to Clean: Advancing Energy Efficiency Driving Emissions Reductions Reducing Customer Energy Consumption Supporting Customer Affordability ➢ Helped our customers save 22.3 million MWhs of electricity in 2020 ➢ Behavioral programs notify customers about atypical energy use and available load curtailment programs ➢ Hourly pricing and smart usage rewards programs help customers manage costs during peak-demand hours Developing Innovative Solutions For Customers Incentivizing Efficiency Upgrades Promoting the Expansion of Energy Efficiency Offerings Exelon Utilities’ energy efficiency investments are helping our customers and communities reduce emissions and save money ➢ ComEd, BGE and PECO were recognized as top utilities in the nation for efficiency by the American Council for an Energy-Efficient Economy in 2020 ➢ Avoided 8.1 million mtCO2e emissions in 2020 ➢ Developing strategies to deploy next generation technologies and explore business models through research & development and other pilot programs ➢ Market development initiatives grow the diversity of our partners and vendors ➢ Energy audits assess customer efficiency and recommend usage reduction remediation measures ➢ Offer discounts, rebates, and other incentives to install higher- efficiency equipment and controls ➢ Working with stakeholders to expand business, residential and low-income offerings that are needed to achieve state targets ➢ All six utility jurisdictions have voluntary or mandated targets to increase annual energy savings


 
13 Q3 2021 Earnings Release Slides Exelon Generation: Gross Margin* Update (1) Gross margin* categories rounded to nearest $50M (2) Reflects Exelon’s 50.01% ownership share of CENG Joint venture from January 1 to August 6, 2021 and Exelon’s full ownership share beginning August 7, 2021 (3) Mark-to-Market of Hedges assumes mid-point of hedge percentages (4) Based on September 30, 2021 market conditions (5) Reflects the midpoint of the current gross margin estimate of $(850)-$(1,050)M across our portfolios. Excludes bad debt and other P&L offsets. Recent Developments • 2021 Total Gross Margin* is projected to be $500M higher primarily due to acquisition of EDF’s ownership stake of CENG nuclear plants and the reversal of the Byron and Dresden retirements – Executed $200M of Power New Business and $50M of Non-Power New Business September 30, 2021 Change from June 30, 2021 Gross Margin Category ($M) (1) 2021 2021 Open Gross Margin* (2) (including South, West, New England, Canada hedged gross margin) $5,850 $1,600 Capacity and ZEC Revenues (2) $1,900 $100 Mark-to-Market of Hedges (2,3) $(1,100) $(1,000) Power New Business / To Go $50 $(200) Non-Power Margins Executed $400 $50 Non-Power New Business / To Go $100 $(50) Total Gross Margin* (Excluding Impact of February Weather Event) (4) $7,200 $500 Estimated Gross Margin Impact of February Weather Event (5) $(950) - Total Gross Margin* $6,250 $500


 
14 Q3 2021 Earnings Release Slides 2021 Business Priorities and Commitments Meet or exceed our financial commitments Effectively deploy ~$6.6B of utility capex Ensure timely recovery on investments to enable customer benefits Support enactment of clean energy policies Continued demonstration of corporate responsibility Prepare for separation of businesses Maintain industry-leading operational excellence


 
15 Q3 2021 Earnings Release Slides Additional Disclosures


 
16 Q3 2021 Earnings Release Slides Q3 2021 YTD Adjusted Operating Earnings* Waterfall $1.92 $0.07 $0.01 2020 BGE $0.10 PECOComEd $0.12 PHI ($0.78) ExGen(7) ($0.06) Corp 2021 $2.46 ($0.80) Market and Portfolio Conditions(3) ($0.13) Income Taxes(4) ($0.04) Credit Loss Expense(3) $0.17 Higher Realized NDT Fund Gains $0.06 Nuclear Outages(5) $0.05 ZEC Revenues $0.02 Nuclear Fuel Costs ($0.11) Other(6) $0.08 Distribution and Transmission Rates $0.02 Favorable Weather and Load $0.02 Storm Costs(2) $0.01 Credit Loss Expense ($0.02) Depreciation and Amortization $0.01 Other Note: Amounts may not sum due to rounding (1) Reflects higher rate base and higher allowed electric distribution ROE due to an increase in treasury rates (2) At PECO, primarily reflects a net decrease in storm costs resulting from the absence of the June and August 2020 storms, net of tax repairs, partially offset by storm costs in 2021. At PHI, primarily reflects the absence of costs in 2021 due to the August 2020 storms. (3) Primarily reflects the impacts of the February 2021 extreme cold weather event (4) ($0.05) at ExGen and the ($0.04) at Corp relate to timing of tax expense driven primarily by the loss before income taxes at ExGen in the first quarter due to the February 2021 extreme cold weather event. These timing impacts will continue to reverse by the end of the year. ($0.07) at ExGen reflects the absence of a prior year one-time tax settlement. (5) Reflects the revenue and operating and maintenance expense impacts of lower nuclear outage days in 2021, including Salem (6) Primarily reflects the elimination of activity attributable to noncontrolling interest of ($0.16), primarily for CENG prior to Generation’s acquisition of Electricite de France SA’s (EDF’s) interest in CENG on August 6, 2021 (7) Drivers reflect CENG ownership at 100% $0.04 Favorable Weather and Load $0.02 Storm Costs(2) ($0.01) Depreciation and Amortization $0.02 Other $0.06 Distribution Rates ($0.02) Depreciation and Amortization ($0.01) Storm Costs ($0.02) Other $0.06 Distribution Investment(1) $0.01 Transmission Revenues $0.03 Other ($0.04) Income Taxes(4) ($0.02) Other


 
17 Q3 2021 Earnings Release Slides Constellation Technology Ventures’ Portfolio Note: Constellation’s active technology investments can be found at http://technologyventures.constellation.com/; reflects current portfolio as of September 30, 2021 (1) Green boxes reflect companies that have executed Initial Public Offerings (IPOs) or merger transactions with Special Purpose Acquisition Companies (SPACs). XL Fleet (SPAC) transaction closed in Q4 2020. ChargePoint (SPAC) transaction closed in Q1 2021. STEM (SPAC) and Proterra (SPAC) transactions closed in Q2 2021. Renewable PPA Marketplace Building sustainability reporting platform Electric buses for public and private mass transit HVAC optimization for SMB and C&I EV charging network and service equipment Energy storage systems and controls Residential load disaggregation platform Battery monitoring and management software EE financing and building optimization for SMB and C&I Class 2-6 HEV and PHEV fleet electrification Residential PV and EE for low-to- middle income homeowners Unmanned aerial vehicle software control platform Non-invasive energy data collection and reporting Investing in venture stage energy technology companies(1) that can provide new solutions to Exelon and its customers


 
18 Q3 2021 Earnings Release Slides Exelon’s weighted average LTD maturity is approximately 16 years (1) Maturity profile excludes non-recourse debt, securitized debt, capital leases, fair value adjustments, unamortized debt issuance costs and unamortized discount/premium (2) Long-term debt balances reflect Q3 2021 10-Q GAAP financials, which include items listed in footnote 1 (3) Includes $258M of legacy CEG debt in 2032 As of 9/30/2021 ($M) 850 833 807 750 360 997 303 258 763 295 833 675 700 900 350 788 650 741 750 750 900 850 600 185 175 600 910 500 2025 1,178 1,023 2021 1,150 2026 2049 2,150 2023 20242022 2051 1,225 20412027 2028 2029 1,400 1,250 2030 2031 2032 2033 2034 2035 2039 1,430 2036 2037 2038 1,550 2040 2042 2043 204620452044 1,200 1,275 2047 2048 1,650 2050 2,150 EXC RegulatedPHI Holdco ExGen(3) ExCorp Exelon Long-Term Debt Maturity Profile(1,2) BGE 4.0B ComEd 10.0B PECO 4.4B PHI 7.5B ExGen recourse (3) 4.3B ExGen non-recourse 1.8B HoldCo 7.1B Consolidated 39.0B LT Debt Balances (as of 9/30/21) (1,2)


 
19 Q3 2021 Earnings Release Slides Exelon Utilities


 
20 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. ER20120746 • December 9, 2020, ACE filed a distribution base rate case with the New Jersey Board of Public Utilities (NJBPU) to increase distribution base rates • July 14, 2021, the NJBPU approved the settlement with new rates effective on January 1, 2022 • No rate increases to customers until January 1, 2022 due to the acceleration of certain tax benefits Test Year January 1, 2020 – December 31, 2020 Test Period 12 months actual Common Equity Ratio 50.21% Rate of Return ROE: 9.60%; ROR: 6.99% Rate Base (Adjusted) $1.8B Revenue Requirement Increase $41.0M(1,2) Residential Total Bill % Increase 3.3% ACE Distribution Rate Case Filing Detailed Rate Case Schedule Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Filed rate case 7/2/2021 12/9/2020 Settlement agreement Commission order 7/14/2021 (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings (2) Reflects annual gross incremental revenue requirement (before offsets), effective January 1, 2022. Pro-rated gross incremental revenue requirement for 2021 (July 14, 2021 through December 31, 2021) is approximately $16M and will be offset in customer rates by $16M of certain accelerated tax benefits.


 
21 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. 20-0149 • March 6, 2020, Delmarva Power filed an application with the Delaware Public Service Commission (DPSC) seeking an increase in electric distribution base rates • A partial settlement agreement, primarily on customer care issues, was filed with the DPSC on February 2, 2021 • September 15, 2021, the DPSC issued a minute order with new rates effective on September 17, 2021. The final order with further justification is expected shortly. Test Year April 1, 2019 – March 31, 2020 Test Period 9 months actual + 3 months estimated Common Equity Ratio 50.37% Rate of Return ROE: 9.60%; ROR: 6.80% Rate Base (Adjusted) $900.0M Revenue Requirement Increase $13.5M(1,2) Residential Total Bill % Increase 2.4% Delmarva DE (Electric) Distribution Rate Case Filing Detailed Rate Case Schedule Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Filed rate case 3/6/2020 9/9/2020Intervenor testimony 10/26/2020 2/10/2021 - 2/15/2021 Rebuttal testimony 9/15/2021 Evidentiary hearings 3/17/2021 5/12/2021Reply briefs Commission order Initial briefs (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings (2) Requested revenue requirement excludes the transfer of $3.2M of revenues from the Distribution System Improvement Charge (DSIC) capital tracker into base distribution rates. As permitted by Delaware law, Delmarva Power implemented full allowable rates on October 6, 2020, subject to refund.


 
22 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. R-2021-3024601 • March 30, 2021, PECO filed a general base rate request with the Pennsylvania Public Utility Commission (PAPUC) seeking an increase in electric distribution base rates • Rate increase amount is driven by continued investments in infrastructure that will enhance the local electric grid as well as to enable the advancement of clean technologies • September 15, 2021, PECO filed a Joint Petition for Settlement of Rate Investigation, which included a revenue requirement increase of $132M, but no stipulation on ROE and Equity Ratio Test Year January 1, 2022 – December 31, 2022 Test Period 12 Months Budget Proposed Common Equity Ratio 53.41% Proposed Rate of Return ROE: 10.95%; ROR: 7.68% Proposed Rate Base (Adjusted) $6,386M Revenue Requirement Increase $132.0M(1) Residential Total Bill % Increase 6.6% PECO (Electric) Distribution Rate Case Filing Detailed Rate Case Schedule Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 9/15/2021 Rebuttal testimony 7/22/2021 Commission order expected Settlement agreement 12/2021 3/30/2021Filed rate case 6/28/2021Intervenor testimony 8/11/2021Evidentiary hearings (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings


 
23 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Docket No. 21-0367 • April 16, 2021, ComEd filed its annual distribution formula rate update with the Illinois Commerce Commission (ICC) seeking a $51.2M increase to distribution base rates • Rate increase amount is driven by continued investments in infrastructure that will enhance the reliability of the grid and enable the advancement of clean technologies and renewable energy • A final order is expected in early December Test Year January 1, 2020 – December 31, 2020 Test Period 2020 Actual Costs + 2021 Projected Plant Additions Proposed Common Equity Ratio 48.70% Proposed Rate of Return ROE: 7.36%; ROR: 5.72% Proposed Rate Base (Adjusted) $13,035M Requested Revenue Requirement Increase $45.8M(1,2) Residential Total Bill % Increase 0.2% ComEd Distribution Rate Case Filing Detailed Rate Case Schedule Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Initial briefs Reply briefs 12/2021Commission order expected 10/1/2021 Filed rate case 4/16/2021 9/13/2021Evidentiary hearings Intervenor testimony 6/30/2021 7/28/2021Rebuttal testimony 10/15/2021 (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings (2) Revenue requirement in initial filing was an increase of $51.2M. Through the discovery period in the current proceeding, ComEd agreed to ~($5.3M) in adjustments to limit issues in the case.


 
24 Q3 2021 Earnings Release Slides Rate Case Filing Details Notes Case No. 9670 • September 1, 2021, Delmarva Power filed an application with the Maryland Public Service Commission (MDPSC) seeking an increase in electric distribution base rates • Request is driven by $18.3M of higher depreciation expense related to the Company’s updated depreciation study and continued investments in electric distribution system to maintain and increase reliability and customer service Test Year October 1, 2020 – September 30, 2021 Test Period 9 months actual + 3 months estimated Proposed Common Equity Ratio 50.61% Proposed Rate of Return ROE: 10.10%; ROR: 6.90% Proposed Rate Base (Adjusted) $930.1M Requested Revenue Requirement Increase $28.8M(1) Residential Total Bill % Increase 5.0% Delmarva MD Distribution Rate Case Filing Detailed Rate Case Schedule Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Rebuttal testimony 3/30/2022 Evidentiary hearings 2/9/2022 12/2/2021 Initial briefs Filed rate case 1/19/2022 - 1/24/2022 Commission order expected PULJ proposed order expected(2) 9/1/2021 Intervenor testimony 12/23/2021 2/28/2022 (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings (2) Public Utility Law Judge (PULJ)


 
25 Q3 2021 Earnings Release Slides Exelon Generation Disclosures September 30, 2021


 
26 Q3 2021 Earnings Release Slides Portfolio Management Strategy Protect Balance Sheet Ensure Earnings Stability Create Value Exercising Market Views % H e d g e d Purely ratable Actual hedge % Market views on timing, product allocation and regional spreads reflected in actual hedge % High End of Profit Low End of Profit % Hedged Open Generation with LT Contracts Portfolio Management & Optimization Portfolio Management Over TimeAlign Hedging & Financials Establishing Minimum Hedge Targets Credit Rating Capital & Operating Expenditure Dividend Capital Structure


 
27 Q3 2021 Earnings Release Slides Components of Gross Margin* Categories Open Gross Margin* •Generation Gross Margin* at current market prices, including ancillary revenues, nuclear fuel amortization and fuels expense •Power Purchase Agreement (PPA) Costs and Revenues •Provided at a consolidated level for all regions (includes hedged gross margin* for South, West, New England and Canada(1)) Capacity and ZEC Revenues •Expected capacity revenues for generation of electricity •Expected revenues from Zero Emissions Credits (ZEC) MtM of Hedges(2) •Mark-to-Market (MtM) of power, capacity and ancillary hedges, including cross commodity, retail and wholesale load transactions •Provided directly at a consolidated level for four major regions. Provided indirectly for each of the four major regions via Effective Realized Energy Price (EREP), reference price, hedge %, expected generation. “Power” New Business •Retail, Wholesale planned electric sales •Portfolio Management new business •Mid marketing new business “Non Power” Executed •Retail, Wholesale executed gas sales •Energy Efficiency(4) •BGE Home(4) •Distributed Solar “Non Power” New Business •Retail, Wholesale planned gas sales •Energy Efficiency(4) •BGE Home(4) •Distributed Solar •Portfolio Management / origination fuels new business •Proprietary trading(3) Margins move from new business to MtM of hedges over the course of the year as sales are executed(5) Margins move from “Non power new business” to “Non power executed” over the course of the year Gross margin* linked to power production and sales Gross margin* from other business activities (1) Hedged gross margins* for South, West, New England & Canada region will be included with Open Gross Margin*; no expected generation, hedge %, EREP or reference prices provided for this region (2) MtM of hedges provided directly for the four larger regions; MtM of hedges is not provided directly at the regional level but can be easily estimated using EREP, reference price and hedged MWh (3) Proprietary trading gross margins* will generally remain within “Non Power” New Business category and only move to “Non Power” Executed category upon management discretion (4) Gross margin* for these businesses are net of direct “cost of sales” (5) Margins for South, West, New England & Canada regions and optimization of fuel and PPA activities captured in Open Gross Margin*


 
28 Q3 2021 Earnings Release Slides ExGen Disclosures (1) Gross margin* categories rounded to nearest $50M (2) Reflects Exelon’s 50.01% ownership share of CENG Joint venture from January 1 to August 6, 2021 and Exelon’s full ownership share beginning August 7, 2021 (3) Mark-to-Market of Hedges assumes mid-point of hedge percentages (4) Based on September 30, 2021 market conditions (5) Reflects the midpoint of the current gross margin estimate of $(850)-$(1,050)M across our portfolios. Excludes bad debt and other P&L offsets. (6) Reflects full year prices based on Exelon’s portfolio hedging strategy September 30, 2021 Gross Margin Category ($M) (1) 2021 Open Gross Margin (including South, West, New England & Canada hedged GM)* (2) $5,850 Capacity and ZEC Revenues (2) $1,900 Mark-to-Market of Hedges (2,3) $(1,100) Power New Business / To Go $50 Non-Power Margins Executed $400 Non-Power New Business / To Go $100 Total Gross Margin* (Excluding Impact of February Weather Event) (4) $7,200 Estimated Gross Margin Impact of February Weather Event (5) $(950) Total Gross Margin* $6,250 Reference Prices (4,6) 2021 Henry Hub Natural Gas ($/MMBtu) $3.94 Midwest: NiHub ATC prices ($/MWh) $36.10 Mid-Atlantic: PJM-W ATC prices ($/MWh) $39.21 ERCOT-N ATC Spark Spread ($/MWh) HSC Gas, 7.2HR, $2.50 VOM $87.14 New York: NY Zone A ($/MWh) $31.32


 
29 Q3 2021 Earnings Release Slides ExGen Disclosures (1) Expected generation is the volume of energy that best represents our commodity position in energy markets from owned or contracted for capacity based upon a simulated dispatch model that makes assumptions regarding future market conditions, which are calibrated to market quotes for power, fuel, load following products, and options. Expected generation assumes 13 refueling outages in 2021 at Exelon-operated nuclear plants and Salem. Expected generation assumes capacity factor of 94.5% in 2021 at Exelon-operated nuclear plants, at ownership. (2) Reflects Exelon’s 50.01% ownership share of CENG Joint venture from January 1 to August 6, 2021 and Exelon’s full ownership share beginning August 7, 2021 (3) Percent of expected generation hedged is the amount of equivalent sales divided by expected generation. Includes all hedging products, such as wholesale and retail sales of power, options and swaps. (4) Effective realized energy price is representative of an all-in hedged price, on a per MWh basis, at which expected generation has been hedged. It is developed by considering the energy revenues and costs associated with our hedges and by considering the fossil fuel that has been purchased to lock in margin. It excludes uranium costs, RPM capacity and ZEC revenues, but includes the mark-to-market value of capacity contracted at prices other than RPM clearing prices including our load obligations. It can be compared with the reference prices used to calculate open gross margin* in order to determine the mark-to-market value of Exelon Generation's energy hedges. September 30, 2021 Generation and Hedges 2021 Expected Generation (GWh) (1) 183,400 Midwest 95,000 Mid-Atlantic (2) 51,500 ERCOT 16,300 New York (2) 20,600 % of Expected Generation Hedged (3) 96%-99% Midwest 96%-99% Mid-Atlantic (2) 95%-98% ERCOT 94%-97% New York (2) 95%-98% Effective Realized Energy Price ($/MWh) (4) Midwest $27.50 Mid-Atlantic (2) $34.50 New York (2) $27.50


 
30 Q3 2021 Earnings Release Slides ExGen Hedged Gross Margin* Sensitivities (1) Based on September 30, 2021 market conditions and hedged position; gas price sensitivities are based on an assumed gas-power relationship derived from an internal model that is updated periodically; power price sensitivities are derived by adjusting the power price assumption while keeping all other price inputs constant; due to correlation of the various assumptions, the hedged gross margin* impact calculated by aggregating individual sensitivities may not be equal to the hedged gross margin* impact calculated when correlations between the various assumptions are also considered; sensitivities based on commodity exposure which includes open generation and all committed transactions; reflects Exelon’s 50.01% ownership share of CENG Joint venture from January 1 to August 6, 2021 and Exelon’s full ownership share beginning August 7, 2021 September 30, 2021 Gross Margin* Sensitivities (with existing hedges) (1,2) 2021 Henry Hub Natural Gas ($/MMBtu) + $1/MMBtu - - $1/MMBtu $10 NiHub ATC Energy Price + $5/MWh $5 - $5/MWh $(5) PJM-W ATC Energy Price + $5/MWh - - $5/MWh - NYPP Zone A ATC Energy Price + $5/MWh - - $5/MWh - Nuclear Capacity Factor +/- 1% +/- $10


 
31 Q3 2021 Earnings Release Slides 5,000 5,500 6,000 6,500 7,000 2021 ExGen Hedged Gross Margin* Upside/Risk A p p ro xi m a te G ro s s M a rg in * ( $ m il li o n )(1 ) (1) Represents an approximate range of expected gross margin*, taking into account hedges in place, between the 5th and 95th percent confidence levels assuming all unhedged supply is sold into the spot market; approximate gross margin* range is based upon an internal simulation model and are subject to change based upon market inputs, future transactions and potential modeling changes; the price distributions that generate this range are calibrated to market quotes for power, fuel, load following products, and options as of September 30, 2021. Gross Margin* Upside/Risk based on commodity exposure which includes open generation and all committed transactions. $6,100 $6,350


 
32 Q3 2021 Earnings Release Slides Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2021 Adjusted Operating Revenues*(2,3) $19,875 Adjusted Purchased Power and Fuel*(2,3) $(13,175) Other Revenues(4) $(175) Direct cost of sales incurred to generate revenues for certain Constellation and Power businesses $(275) Total Gross Margin* (Non-GAAP) $6,250 (1) All amounts rounded to the nearest $25M (2) Reflects Exelon’s 50.01% ownership share of CENG from January 1 to August 6, 2021 and Exelon’s full ownership share beginning August 7, 2021 (3) Excludes the Mark-to-Market impact of economic hedging activities due to the volatility and unpredictability of the future changes to power prices (4) Other Revenues primarily reflects revenues from variable interest entities, funds collected through revenues for decommissioning the former PECO nuclear plants through regulated rates and gross receipts tax revenues (5) O&M, TOTI and Depreciation & Amortization reflect Exelon’s 50.01% ownership share of CENG Joint venture from January 1 to August 6, 2021 and Exelon’s full ownership share beginning August 7, 2021 (6) Other reflects Other Revenues excluding gross receipts tax revenues, includes nuclear decommissioning trust fund earnings from unregulated sites, includes the minority interest in ExGen Renewables JV, and unrealized gains or losses from equity investments (7) 2021 Adjusted O&M* includes $175M of non-cash expense related to the increase in the ARO liability due to the passage of time and a preliminary estimate of bad debt associated with the February weather event that is subject to change (8) 2021 TOTI excludes gross receipts tax of $100M Key ExGen Modeling Inputs (in $M)(1,5) 2021 Other(6) $350 Adjusted O&M*(7) $(4,075) Taxes Other Than Income (TOTI)(8) $(350) Depreciation & Amortization* $(1,025) Interest Expense $(300) Effective Tax Rate 25.0%


 
33 Q3 2021 Earnings Release Slides Appendix Reconciliation of Non-GAAP Measures


 
34 Q3 2021 Earnings Release Slides Q3 QTD GAAP EPS Reconciliation Three Months Ended September 30, 2021 ComEd PECO BGE PHI ExGen Other Exelon 2021 GAAP Earnings (Loss) Per Share $0.22 $0.11 $0.04 $0.27 $0.62 ($0.04) $1.23 Mark-to-market impact of economic hedging activities - - - - (0.58) 0.01 (0.57) Unrealized losses related to NDT funds - - - - 0.06 - 0.06 Asset impairments - - - - 0.03 - 0.03 Plant retirements and divestitures - - - - 0.22 - 0.22 Cost management program - - - - - - 0.01 COVID-19 direct costs - - - - - - 0.01 Asset retirement obligation - - - - (0.04) - (0.04) Acquisition related costs - - - - 0.01 - 0.01 Planned separation costs - - - - 0.01 - 0.03 Costs related to suspension of contractual offset - - - - 0.11 - 0.11 Income tax-related adjustments - - - - - 0.02 0.02 Noncontrolling interests - - - - (0.02) - (0.02) 2021 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $0.23 $0.12 $0.04 $0.28 $0.44 ($0.01) $1.09 Note: All amounts shown are per Exelon share and represent contributions to Exelon's EPS. Amounts may not sum due to rounding.


 
35 Q3 2021 Earnings Release Slides Q3 QTD GAAP EPS Reconciliation (continued) Three Months Ended September 30, 2020 ComEd PECO BGE PHI ExGen Other Exelon 2020 GAAP Earnings (Loss) Per Share $0.20 $0.14 $0.05 $0.22 $0.05 ($0.16) $0.51 Mark-to-market impact of economic hedging activities - - - - (0.20) 0.01 (0.19) Unrealized gains related to NDT funds - - - - (0.18) - (0.18) Asset impairments - - - - 0.38 - 0.38 Plant retirements and divestitures - - - - 0.34 - 0.34 Cost management program - - - - 0.01 - 0.02 Change in environmental liabilities - - - - 0.02 - 0.02 COVID-19 direct costs - - - - 0.01 - 0.01 Income tax-related adjustments - - - - (0.03) 0.09 0.06 Noncontrolling interests - - - - 0.06 - 0.06 2020 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $0.20 $0.14 $0.06 $0.23 $0.47 ($0.05) $1.04 Note: All amounts shown are per Exelon share and represent contributions to Exelon's EPS. Amounts may not sum due to rounding.


 
36 Q3 2021 Earnings Release Slides Q3 YTD GAAP EPS Reconciliation Nine Months Ended September 30, 2021 ComEd PECO BGE PHI ExGen Other Exelon 2021 GAAP Earnings (Loss) Per Share $0.62 $0.39 $0.30 $0.55 ($0.25) ($0.26) $1.34 Mark-to-market impact of economic hedging activities - - - - (0.95) 0.01 (0.94) Unrealized gains related to NDT funds - - - - (0.03) - (0.03) Asset impairments - - - - 0.41 - 0.41 Plant retirements and divestitures - - - - 0.88 - 0.88 Cost management program - - - - 0.01 - 0.01 Change in environmental liabilities - - - - 0.01 - 0.01 COVID-19 direct costs - - - - 0.02 - 0.02 Asset retirement obligation - - - - (0.04) - (0.04) Acquisition related costs - - - - 0.02 - 0.02 ERP system implementation costs - - - - 0.01 - 0.01 Planned separation costs 0.01 - - 0.01 0.02 0.01 0.05 Costs related to suspension of contractual offset - - - - 0.15 - 0.15 Income tax-related adjustments - - - - - 0.02 0.02 Noncontrolling interests - - - - 0.02 - 0.02 2021 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $0.63 $0.40 $0.30 $0.56 $0.26 ($0.23) $1.92 Note: All amounts shown are per Exelon share and represent contributions to Exelon's EPS. Amounts may not sum due to rounding.


 
37 Q3 2021 Earnings Release Slides Q3 YTD GAAP EPS Reconciliation (continued) Nine Months Ended September 30, 2020 ComEd PECO BGE PHI ExGen Other Exelon 2020 GAAP Earnings (Loss) Per Share $0.31 $0.32 $0.28 $0.43 $0.58 ($0.28) $1.64 Mark-to-market impact of economic hedging activities - - - - (0.36) 0.02 (0.34) Unrealized losses related to NDT funds - - - - 0.01 - 0.01 Asset impairments 0.01 - - - 0.39 - 0.40 Plant retirements and divestitures - - - - 0.36 - 0.36 Cost management program - - - 0.01 0.03 - 0.03 Change in environmental liabilities - - - - 0.02 - 0.02 COVID-19 direct costs - 0.01 - - 0.02 - 0.04 Deferred Prosecution Agreement payments 0.20 - - - - - 0.20 Income tax-related adjustments - - - - (0.03) 0.10 0.07 Noncontrolling interests - - - - 0.02 - 0.02 2020 Adjusted (non-GAAP) Operating Earnings (Loss) Per Share $0.53 $0.33 $0.29 $0.44 $1.04 ($0.17) $2.46 Note: All amounts shown are per Exelon share and represent contributions to Exelon's EPS. Amounts may not sum due to rounding.


 
38 Q3 2021 Earnings Release Slides Projected GAAP to Operating Adjustments • Exelon’s projected 2021 adjusted (non-GAAP) operating earnings excludes the earnings effects of the following: − Mark-to-market adjustments from economic hedging activities; − Unrealized gains and losses from NDT funds to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements; − Asset impairments; − Certain costs related to plant retirements and divestitures; − Certain costs incurred to achieve cost management program savings; − Direct costs related to the novel coronavirus (COVID-19) pandemic; − Certain acquisition-related costs; − Costs related to a multi-year Enterprise Resource Program (ERP) system implementation; − Costs related to the planned separation; − Costs related to the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021; − Asset retirement obligations; − Adjustment to deferred income taxes as a result of changes in forecasted apportionment; − Other items not directly related to the ongoing operations of the business; and − Generation's noncontrolling interest related to exclusion items.


 
39 Q3 2021 Earnings Release Slides GAAP to Non-GAAP Reconciliations Consolidated EU Operating TTM ROE Reconciliation ($M) Q4 2018 Q3 2018 Net Income (GAAP) $1,836 $1,770 Operating Exclusions $32 $40 Adjusted Operating Earnings $1,869 $1,810 Average Equity $19,367 $18,878 Operating (Non-GAAP) TTM ROE (Adjusted Operating Earnings/Average Equity) 9.6% 9.6% Consolidated EU Operating TTM ROE Reconciliation ($M) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net Income (GAAP) $2,065 $2,037 $2,011 $1,967 Operating Exclusions $30 $33 $31 $33 Adjusted Operating Earnings $2,095 $2,070 $2,042 $1,999 Average Equity $20,913 $20,500 $20,111 $19,639 Operating (Non-GAAP) TTM ROE (Adjusted Operating Earnings/Average Equity) 10.0% 10.1% 10.2% 10.2% Consolidated EU Operating TTM ROE Reconciliation ($M) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Net Income (GAAP) 1,737 1,747 $1,728 $2,060 Operating Exclusions 246 243 $254 $31 Adjusted Operating Earnings 1,984 1,990 $1,982 $2,091 Average Equity 22,690 22,329 $21,885 $21,502 Operating (Non-GAAP) TTM ROE (Adjusted Operating Earnings/Average Equity) 8.7% 8.9% 9.1% 9.7% Consolidated EU Operating TTM ROE Reconciliation ($M) Q3 2021 Q2 2021 Q1 2021 Net Income (GAAP) $2,243 $2,214 $1,841 Operating Exclusions $42 $36 $249 Adjusted Operating Earnings $2,284 $2,250 $2,090 Average Equity $24,651 $23,882 $23,598 Operating (Non-GAAP) TTM ROE (Adjusted Operating Earnings/Average Equity) 9.3% 9.4% 8.9% Note: Represents the twelve-month periods ending September 30, 2018-2021, June 30, 2019-2021, March 31, 2019-2021 and December 31, 2018-2020. Earned ROEs* represent weighted average across all lines of business (Electric Distribution, Gas Distribution, and Electric Transmission).


 
40 Q3 2021 Earnings Release Slides GAAP to Non-GAAP Reconciliations ExGen Adjusted O&M Reconciliation ($M)(1) 2021 GAAP O&M $4,600 Decommissioning(2) $25 Byron and Dresden(3) $575 Asset Impairments(4) ($525) Direct cost of sales incurred to generate revenues for certain Constellation and Power businesses(5) ($275) O&M for managed plants that are partially owned ($250) Other ($75) Adjusted O&M (Non-GAAP) $4,075 Note: Items may not sum due to rounding (1) All amounts rounded to the nearest $25M (2) Reflects earnings neutral O&M (3) Includes $500M of accelerated earnings neutral O&M associated with the decision to early retire Byron and Dresden that cannot be reversed. The remaining amount primarily reflects the reversal of one-time charges resulting from the previous decision to retire Byron and Dresden. (4) Reflects an impairment in the New England asset group, an impairment recorded as a result of the agreement to sell the Albany Green Energy biomass facility, and an impairment of a wind project (5) Reflects the direct cost of sales of certain businesses, which are included in Total Gross Margin*