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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
 
 
 
 
 
 
 
 
 
 
FORM 8-K 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
May 2, 2019
Date of Report (Date of earliest event reported)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commission
File Number
 
Exact Name of Registrant as Specified in Its Charter; State of Incorporation;
Address of Principal Executive Offices; and
Telephone Number
 
IRS Employer 
Identification 
Number
 
1-16169
 
EXELON CORPORATION
 
 
23-2990190
 
 
 
(a Pennsylvania corporation)
10 South Dearborn Street
P.O. Box 805379
Chicago, Illinois 60680-5379
(800) 483-3220
 
 
 
 
333-85496
 
EXELON GENERATION COMPANY, LLC
 
 
23-3064219
 
 
 
(a Pennsylvania limited liability company)
300 Exelon Way
Kennett Square, Pennsylvania 19348-2473
(610) 765-5959
 
 
 
 
1-1839
 
COMMONWEALTH EDISON COMPANY
 
 
36-0938600
 
 
 
(an Illinois corporation)
440 South LaSalle Street
Chicago, Illinois 60605-1028
(312) 394-4321
 
 
 
 
000-16844
 
PECO ENERGY COMPANY
 
 
23-0970240
 
 
 
(a Pennsylvania corporation)
P.O. Box 8699
2301 Market Street
Philadelphia, Pennsylvania 19101-8699
(215) 841-4000
 
 
 
 
1-1910
 
BALTIMORE GAS AND ELECTRIC COMPANY
 
 
52-0280210
 
 
 
(a Maryland corporation)
2 Center Plaza
110 West Fayette Street
Baltimore, Maryland 21201
(410) 234-5000
 
 
 
 
001-31403
 
PEPCO HOLDINGS LLC
 
 
52-2297449
 
 
 
(a Delaware limited liability company)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000
 
 
 
 
001-01072
 
POTOMAC ELECTRIC POWER COMPANY
 
 
53-0127880
 
 
 
(a District of Columbia and Virginia corporation)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000
 
 
 




 
001-01405
 
DELMARVA POWER & LIGHT COMPANY
 
 
51-0084283
 
 
 
(a Delaware and Virginia corporation)
500 North Wakefield Drive
Newark, Delaware 19702
(202) 872-2000
 
 
 
 
001-03559
 
ATLANTIC CITY ELECTRIC COMPANY
 
 
21-0398280
 
 
 
(a New Jersey corporation)
500 North Wakefield Drive
Newark, Delaware 19702
(202) 872-2000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
EXELON CORPORATION;
 
 
 
 
Common Stock, without par value
 
EXC
 
New York and Chicago
Series A Junior Debt Subordinated Debentures
 
EXC22
 
New York
 
 
 
 
 
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 Company
 
EXC/28
 
New York
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))

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. ☐

- 2 -


Section 2 - Financial Information
Item 2.02. Results of Operations and Financial Condition.
Section 7 - Regulation FD
Item 7.01. Regulation FD Disclosure.
 
On May 2, 2019, Exelon Corporation (Exelon) announced via press release its results for the first quarter ended March 31, 2019. A copy of the press release and related attachments is attached hereto as Exhibit 99.1. Also attached as Exhibits 99.2 and 99.3 to this Current Report on Form 8-K are the presentation slides to be used at the first quarter 2019 earnings conference call and the first quarter 2019 infographic. 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 May 2, 2019. The call-in number in the U.S. and Canada is 800-690-3108, and the international call-in number is 973-935-8753. If requested, the conference ID number is 3593099. Media representatives are invited to participate on a listen-only basis. The call will be web-cast and archived on Exelon’s Web site: www.exeloncorp.com. (Please select the Investors page.)

Telephone replays will be available until May 16, 2019. The U.S. and Canada call-in number for replays is 855-859-2056, and the international call-in number is 404-537-3406. The conference ID number is 3593099.

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

(d)    Exhibits.
Exhibit No.
Description

* * * * *
This combined Current Report on Form 8-K is being furnished separately by Exelon, 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. 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’ 2018 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 22, Commitments and Contingencies; (2) the Registrants’ First Quarter 2019 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 16, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, 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/ Bryan P. Wright
 
Bryan P. Wright
 
Senior Vice President and 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
May 2, 2019





EXHIBIT INDEX

Exhibit No.
Description


Exhibit
Exhibit 99.1
News Release
https://cdn.kscope.io/b335a042990d31e947f3a035414ed756-exclogoa41.jpg
Contact:
  
Robin Gray
Corporate Communications
202-637-0317

Emily Duncan
Investor Relations
312-394-2345

EXELON REPORTS FIRST QUARTER 2019 RESULTS
Earnings Release Highlights
•
GAAP Net Income of $0.93 per share and Adjusted (non-GAAP) Operating Earnings of $0.87 per share for the first quarter of 2019
•
Exelon and subsidiaries upgraded by S&P and Fitch on successful execution of utility growth strategy
•
Supreme Court upholds the legality of the ZEC program in Illinois and New York
•
New Jersey BPU voted to grant ZECs to Hope Creek and Salem 1 and 2
•
Strong utility operations with every utility achieving top decile CAIDI performance
CHICAGO (May 2, 2019) — Exelon Corporation (NYSE: EXC) today reported its financial results for the first quarter of 2019.
“Delivering clean energy to address climate change while meeting the needs of our customers and the communities we serve continues to drive Exelon’s business results. Our electric and gas companies earned top marks on key customer satisfaction and operating metrics, while our nuclear generation fleet had its best quarterly capacity factor in 10 years,” said Christopher M. Crane, president and CEO. “The Supreme Court declined to hear cases disputing Illinois’ and New York’s Zero Emissions Credit programs, preserving these states’ emissions-free nuclear power plants and the economic and environmental benefits they provide. We marked the anniversaries of our mergers with Constellation and Pepco Holdings, which not only have improved service for our customers but also increased our regulated business mix and provided more stable earnings.”
“Exelon made a strong start to 2019, with adjusted (non-GAAP) operating earnings this quarter above the midpoint of our guidance range, at $0.87 per share,” said Joseph Nigro, Exelon’s senior executive vice president and CFO. “Our strategy to invest in advanced technology and infrastructure to grow our regulated business continues to prove successful and, in recognition of this, both S&P and Fitch upgraded Exelon’s credit ratings.”
First Quarter 2019
Exelon's GAAP Net Income for the first quarter of 2019 increased to $0.93 per share from $0.60 per share in the first quarter of 2018. Adjusted (non-GAAP) Operating Earnings decreased to $0.87 per share in the first quarter of 2019 from $0.96 per share in the first quarter of 2018. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 5.

1

The Adjusted (non-GAAP) Operating Earnings in the first quarter of 2019 reflect lower realized energy prices and the absence of the revenue recognized in the first quarter of 2018 related to Zero Emissions Credits (ZECs) generated in Illinois from June through December 2017, partially offset by increased capacity prices at Generation. On the utility side, the Adjusted (non-GAAP) Operating Earnings reflect higher utility earnings due to regulatory rate increases at PECO, BGE and PHI and lower storm costs at PECO and BGE.
Operating Company Results1 
ComEd
ComEd's first quarter of 2019 GAAP Net Income and Adjusted (non-GAAP) remained relatively consistent compared with the first quarter of 2018. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.
PECO
PECO’s first quarter of 2019 GAAP Net Income increased to $168 million from $113 million in the first quarter of 2018. PECO’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 increased to $169 million from $114 million in the first quarter of 2018, primarily due to regulatory rate increases and the absence of the March 2018 winter storm costs.
BGE
BGE’s first quarter of 2019 GAAP Net Income increased to $160 million from $128 million in the first quarter of 2018. BGE’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 increased to $161 million from $129 million compared with the first quarter of 2018, primarily due to regulatory rate increases and the absence of the March 2018 winter storm costs. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.
PHI
PHI’s first quarter of 2019 GAAP Net Income increased to $117 million from $65 million in the first quarter of 2018. PHI’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 increased to $118 million from $65 million in the first quarter of 2018, primarily due to regulatory rate increases. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland and Pepco District of Columbia are not affected by actual weather or customer usage patterns.
Generation
Generation's first quarter of 2019 GAAP Net Income increased to $363 million from $136 million in the first quarter of 2018. Generation’s Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 decreased to $294 million from $474 million in the first quarter of 2018, primarily due to lower realized energy prices and the absence of the revenue recognized in the first quarter of 2018 related to ZECs generated in Illinois from June through December 2017, partially offset by increased capacity prices.
The proportion of expected generation hedged as of March 31, 2019, was 90 percent to 93 percent for 2019, 64 percent to 67 percent for 2020 and 38 percent to 41 percent for 2021.

___________
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

Recent Developments and First Quarter Highlights
•
Credit Ratings Upgrade: On March 1, 2019, S&P upgraded Exelon and all its subsidiaries by one notch. Exelon’s issuer credit rating was raised from BBB to BBB+. On March 14, 2019, Fitch Ratings upgraded the senior unsecured rating for Exelon from BBB to BBB+ and the senior unsecured ratings of PECO and BGE to A- from BBB+. In addition, Fitch upgraded PECO’s first mortgage bonds from A to A+ and BGE’s first mortgage bonds from A- to A. Both agencies noted that their upgrades reflect Exelon’s solid 2018 financial results, which demonstrated successful execution of its value proposition to grow the utilities and harvest free cash flow from Generation to support that growth. S&P and Fitch were encouraged by Exelon’s discipline and commitment to delivering on its long-term strategy to maintain strong operational and financial measures, succeed in the execution of ZECs, improve operations and regulatory framework at PHI, and focus on utility growth. This strategy has led to a meaningful reduction in overall business risk by changing the long-term earnings profile outlook of the Company to become more regulated.
•
New Jersey Board of Public Utilities (NJBPU) Awards ZEC Payments: In 2017, Public Service Enterprise Group Incorporated (PSEG) announced that its New Jersey nuclear plants, including Salem, of which Generation owns a 42.59 percent ownership interest, were showing increased signs of economic distress, which could lead to early retirement. PSEG is the operator of Salem and has the decision-making authority to retire Salem. In 2018, New Jersey enacted legislation that established a ZEC program that provides compensation for nuclear plants that demonstrate to the NJBPU that they meet certain requirements, including that they make a significant contribution to air quality in the state and that their revenues are insufficient to cover their costs and risks. On April 18, 2019, the NJBPU approved the award of ZECs to Salem 1 and Salem 2. Assuming the New Jersey ZEC program operates as expected, Generation no longer considers Salem to be at heightened risk for early retirement.
•
Supreme Court Upholds Illinois and New York ZECs: On April 15, 2019, the U.S. Supreme Court denied the plaintiffs' petition seeking a review of circuit court decisions in Illinois and New York related to ZECs. The U.S. Supreme Court decision affirmed the right for states to create climate and clean energy policies.
•
ComEd Distribution Formula Rate Filing: On April 8, 2019, ComEd filed its annual distribution formula rate update with the Illinois Commerce Commission (ICC). The ICC approval is due by December 2019 and the rates will take effect in January 2020. The filing request includes a total decrease to the revenue requirement of $6 million, reflecting an increase of $57 million for the initial revenue requirement for 2019 and a decrease of $63 million related to the annual reconciliation for 2018. The revenue requirement for 2019 and annual reconciliation for 2018 provide for a weighted average debt and equity return on distribution rate base of 6.53 percent inclusive of a requested ROE of 8.91 percent.
•
ACE New Jersey Electric Distribution Base Rate Case: On March 13, 2019, the NJBPU issued its order providing for a net increase to ACE's annual electric distribution base rates of $70 million (before New Jersey sales and use tax) and reflecting a ROE of 9.6 percent. The new rates were effective April 1, 2019.
•
Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100 percent of the CENG units, produced 45,715 gigawatt-hours (GWhs) in the first quarter of 2019, compared with 46,941 GWhs in the first quarter of 2018. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 97.1 percent capacity factor for the first quarter of 2019, compared with 96.5 percent for the first quarter of 2018. The number of planned

3

refueling outage days in the first quarter of 2019 totaled 74, compared with 68 in the first quarter of 2018. There were no non-refueling outage days in the first quarter of 2019, compared with six in the first quarter of 2018.
•
Fossil and Renewables Operations: The Dispatch Match rate for Generation’s gas and hydro fleet was 97.8 percent in the first quarter of 2019, compared with 98.1 percent in the first quarter of 2018. Energy Capture for the wind and solar fleet was 96.5 percent in the first quarter of 2019, compared with 95.2 percent in the first quarter of 2018.
•
Financing Activities:
◦
On February 19, 2019, ComEd issued $400 million aggregate principal amount of its First Mortgage Bonds, 4.00 percent Series 126, due March 1, 2049. ComEd used the proceeds to repay a portion of its outstanding commercial paper obligations and for general corporate purposes.

4

GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation
Adjusted (non-GAAP) Operating Earnings for the first quarter of 2019 do not include the following items (after tax) that were included in reported GAAP Net Income:
(in millions)
Exelon
Earnings per
Diluted
Share
Exelon
ComEd
PECO
BGE
PHI
Generation
2019 GAAP Net Income
$
0.93

$
907

$
157

$
168

$
160

$
117

$
363

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $12 and $10, respectively)
0.03

31

—

—

—

—

26

Unrealized Gains Related to Nuclear Decommissioning Trust (NDT) Fund Investments (net of taxes of $161)
(0.20
)
(193
)
—

—

—

—

(193
)
Long-Lived Asset Impairments (net of taxes of $1)
—

4

—

—

—

—

4

Plant Retirements and Divestitures (net of taxes of $6)
0.02

19

—

—

—

—

19

Cost Management Program (net of taxes of $3, $0, $0, $0 and $3, respectively)
0.01

11

—

1

1

1

8

Noncontrolling Interests (net of taxes of $13)
0.07

67

—

—

—

—

67

2019 Adjusted (non-GAAP) Operating Earnings
$
0.87

$
846

$
157

$
169

$
161

$
118

$
294


5

Adjusted (non-GAAP) Operating Earnings for the first quarter of 2018 do not include the following items (after tax) that were included in reported GAAP Net Income:
(in millions)
Exelon
Earnings per
Diluted
Share
Exelon
ComEd
PECO
BGE
PHI
Generation
2018 GAAP Net Income
$
0.60

$
585

$
165

$
113

$
128

$
65

$
136

Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $69)
0.20

197

—

—

—

—

197

Unrealized Losses Related to NDT Fund Investments (net of taxes of $45)
0.07

66

—

—

—

—

66

Merger and Integrations Costs (net of taxes of $1)
—

3

—

—

—

—

3

Plant Retirements and Divestitures (net of taxes of $32)
0.10

92

—

—

—

—

92

Cost Management Program (net of taxes of $1, $0, $0 and $1, respectively)
0.01

5

—

1

1

—

3

Noncontrolling Interests (net of taxes of $5)
(0.02
)
(23
)
—

—

—

—

(23
)
2018 Adjusted (non-GAAP) Operating Earnings
$
0.96

$
925

$
165

$
114

$
129

$
65

$
474

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 2019 and 2018 ranged from 26.0 percent to 29.0 percent. 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 45.4 percent and 40.3 percent for the three months ended March 31, 2019 and 2018, respectively.
Webcast Information
Exelon will discuss first quarter 2019 earnings in a one-hour 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 (NYSE: 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 2018 revenue of $36 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 32,000 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,

6

public sector and business customers, including more than two-thirds 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 May 2, 2019.
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. 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' 2018 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 22, Commitments and Contingencies; (2) the Registrants' First Quarter 2019 Quarterly Report on Form 10-Q (to be filed on May 2, 2019) in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 16, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, 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.

7


Earnings Release Attachments
Table of Contents

 
 
Consolidating Statements of Operations - three months ended March 31, 2019 and 2018
 
 
Business Segment Comparative Statements of Operations - Generation and ComEd - three months ended March 31, 2019 and 2018
 
 
Business Segment Comparative Statements of Operations - PECO and BGE - three months ended March 31, 2019 and 2018
 
 
Business Segment Comparative Statements of Operations - PHI and Other - three months ended March 31, 2019 and 2018
 
 
Consolidated Balance Sheets - March 31, 2019 and December 31, 2018
 
 
Consolidated Statements of Cash Flows - three months ended March 31, 2019 and 2018
 
 
GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - Exelon - three months ended March 31, 2019 and 2018
 
 
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income - three months ended March 31, 2019 and 2018
 
 
GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - Generation - three months ended March 31, 2019 and 2018
 
 
GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - ComEd - three months ended March 31, 2019 and 2018
 
 
GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - PECO - three months ended March 31, 2019 and 2018
 
 
GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - BGE - three months ended March 31, 2019 and 2018
 
 
GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - PHI - three months ended March 31, 2019 and 2018
 
 
GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments - Other - three months ended March 31, 2019 and 2018
 
 
Generation Statistics - three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018
 
 
ComEd Statistics - three months ended March 31, 2019 and 2018
 
 
PECO Statistics - three months ended March 31, 2019 and 2018
 
 
BGE Statistics - three months ended March 31, 2019 and 2018
 
 
Pepco Statistics - three months ended March 31, 2019 and 2018
 
 
DPL Statistics - three months ended March 31, 2019 and 2018
 
 
ACE Statistics - three months ended March 31, 2019 and 2018




EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
 
 
Three Months Ended March 31, 2019
 
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI (a)
 
Other (b)
 
Exelon
Consolidated
Operating revenues
 
$
5,296

 
$
1,408

 
$
900

 
$
976

 
$
1,228

 
$
(331
)
 
$
9,477

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased power and fuel
 
3,205

 
485

 
331

 
360

 
490

 
(318
)
 
4,553

Operating and maintenance
 
1,218

 
321

 
225

 
192

 
272

 
(39
)
 
2,189

Depreciation and amortization
 
405

 
251

 
81

 
136

 
180

 
22

 
1,075

Taxes other than income
 
135

 
78

 
41

 
68

 
111

 
12

 
445

Total operating expenses
 
4,963

 
1,135

 
678

 
756

 
1,053

 
(323
)
 
8,262

Gain on sales of assets and businesses
 
—

 
3

 
—

 
—

 
—

 
—

 
3

Operating income (loss)
 
333

 
276

 
222

 
220

 
175

 
(8
)
 
1,218

Other income and (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(111
)
 
(87
)
 
(33
)
 
(29
)
 
(65
)
 
(78
)
 
(403
)
Other, net
 
430

 
8

 
4

 
5

 
12

 
8

 
467

Total other income and (deductions)
 
319

 
(79
)
 
(29
)
 
(24
)
 
(53
)
 
(70
)
 
64

Income (loss) before income taxes
 
652

 
197

 
193

 
196

 
122

 
(78
)
 
1,282

Income taxes
 
224

 
40

 
25

 
36

 
5

 
(20
)
 
310

Equity in losses of unconsolidated affiliates
 
(6
)
 
—

 
—

 
—

 
—

 
—

 
(6
)
Net income (loss)
 
422

 
157

 
168

 
160

 
117

 
(58
)
 
966

Net income attributable to noncontrolling interests
 
59

 
—

 
—

 
—

 
—

 
—

 
59

Net income (loss) attributable to common shareholders
 
$
363

 
$
157

 
$
168

 
$
160

 
$
117

 
$
(58
)
 
$
907

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2018
 
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI (a)
 
Other (b)
 
Exelon
Consolidated
Operating revenues
 
$
5,512

 
$
1,512

 
$
866

 
$
977

 
$
1,251

 
$
(425
)
 
$
9,693

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased power and fuel
 
3,293

 
605

 
333

 
380

 
520

 
(404
)
 
4,727

Operating and maintenance
 
1,339

 
313

 
275

 
221

 
309

 
(73
)
 
2,384

Depreciation and amortization
 
448

 
228

 
75

 
134

 
183

 
23

 
1,091

Taxes other than income
 
138

 
77

 
41

 
65

 
113

 
12

 
446

Total operating expenses
 
5,218

 
1,223

 
724

 
800

 
1,125

 
(442
)
 
8,648

Gain on sales of assets and businesses
 
53

 
3

 
—

 
—

 
—

 
—

 
56

Operating income
 
347

 
292

 
142

 
177

 
126

 
17

 
1,101

Other income and (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(101
)
 
(89
)
 
(33
)
 
(25
)
 
(63
)
 
(60
)
 
(371
)
Other, net
 
(44
)
 
8

 
2

 
4

 
11

 
(9
)
 
(28
)
Total other income and (deductions)
 
(145
)
 
(81
)
 
(31
)
 
(21
)
 
(52
)
 
(69
)
 
(399
)
Income (loss) before income taxes
 
202

 
211


111


156

 
74

 
(52
)
 
702

Income taxes
 
9

 
46

 
(2
)
 
28

 
9

 
(31
)
 
59

Equity in losses of unconsolidated affiliates
 
(7
)
 
—

 
—

 
—

 
—

 
—

 
(7
)
Net income (loss)
 
186

 
165

 
113

 
128

 
65

 
(21
)
 
636

Net income attributable to noncontrolling interests
 
50

 
—

 
—

 
—

 
—

 
1

 
51

Net income (loss) attributable to common shareholders
 
$
136

 
$
165

 
$
113

 
$
128

 
$
65

 
$
(22
)
 
$
585

(a)
PHI consolidated results includes Pepco, DPL and ACE.
(b)
Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

2


EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
 
 
Generation
 
 
Three Months Ended March 31,
 
 
2019
 
2018
 
Variance
Operating revenues
 
$
5,296

 
$
5,512

 
$
(216
)
Operating expenses
 
 
 
 
 
 
Purchased power and fuel
 
3,205

 
3,293

 
(88
)
Operating and maintenance
 
1,218

 
1,339

 
(121
)
Depreciation and amortization
 
405

 
448

 
(43
)
Taxes other than income
 
135

 
138

 
(3
)
Total operating expenses
 
4,963

 
5,218

 
(255
)
Gain on sales of assets and businesses
 
—

 
53

 
(53
)
Operating income
 
333

 
347

 
(14
)
Other income and (deductions)
 
 
 
 
 
 
Interest expense, net
 
(111
)
 
(101
)
 
(10
)
Other, net
 
430

 
(44
)
 
474

Total other income and (deductions)
 
319

 
(145
)
 
464

Income before income taxes
 
652

 
202

 
450

Income taxes
 
224

 
9

 
215

Equity in losses of unconsolidated affiliates
 
(6
)
 
(7
)
 
1

Net income
 
422

 
186

 
236

Net income attributable to noncontrolling interests
 
59

 
50

 
9

Net income attributable to membership interest
 
$
363

 
$
136

 
$
227

 
 
 
 
 
 
 
 
 
ComEd
 
 
Three Months Ended March 31,
 
 
2019
 
2018
 
Variance
Operating revenues
 
$
1,408

 
$
1,512

 
$
(104
)
Operating expenses
 
 
 
 
 
 
Purchased power
 
485

 
605

 
(120
)
Operating and maintenance
 
321

 
313

 
8

Depreciation and amortization
 
251

 
228

 
23

Taxes other than income
 
78

 
77

 
1

Total operating expenses
 
1,135

 
1,223

 
(88
)
Gain on sales of assets
 
3

 
3

 
—

Operating income
 
276

 
292

 
(16
)
Other income and (deductions)
 
 
 
 
 
 
Interest expense, net
 
(87
)
 
(89
)
 
2

Other, net
 
8

 
8

 
—

Total other income and (deductions)
 
(79
)
 
(81
)
 
2

Income before income taxes
 
197

 
211

 
(14
)
Income taxes
 
40

 
46

 
(6
)
Net income
 
$
157

 
$
165

 
$
(8
)

3


EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
 
 
PECO
 
 
Three Months Ended March 31,
 
 
2019
 
2018
 
Variance
Operating revenues
 
$
900

 
$
866

 
$
34

Operating expenses
 
 
 
 
 
 
Purchased power and fuel
 
331

 
333

 
(2
)
Operating and maintenance
 
225

 
275

 
(50
)
Depreciation and amortization
 
81

 
75

 
6

Taxes other than income
 
41

 
41

 
—

Total operating expenses
 
678

 
724

 
(46
)
Operating income
 
222

 
142

 
80

Other income and (deductions)
 
 
 
 
 
 
Interest expense, net
 
(33
)
 
(33
)
 
—

Other, net
 
4

 
2

 
2

Total other income and (deductions)
 
(29
)
 
(31
)
 
2

Income before income taxes
 
193

 
111

 
82

Income taxes
 
25

 
(2
)
 
27

Net income
 
$
168

 
$
113

 
$
55

 
 
 
 
 
 
 
 
 
BGE
 
 
Three Months Ended March 31,
 
 
2019
 
2018
 
Variance
Operating revenues
 
$
976

 
$
977

 
$
(1
)
Operating expenses
 
 
 
 
 
 
Purchased power and fuel
 
360

 
380

 
(20
)
Operating and maintenance
 
192

 
221

 
(29
)
Depreciation and amortization
 
136

 
134

 
2

Taxes other than income
 
68

 
65

 
3

Total operating expenses
 
756

 
800

 
(44
)
Operating income
 
220

 
177

 
43

Other income and (deductions)
 
 
 
 
 
 
Interest expense, net
 
(29
)
 
(25
)
 
(4
)
Other, net
 
5

 
4

 
1

Total other income and (deductions)
 
(24
)
 
(21
)
 
(3
)
Income before income taxes
 
196

 
156

 
40

Income taxes
 
36

 
28

 
8

Net income
 
$
160

 
$
128

 
$
32


4


EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
 
 
PHI (a)
 
 
Three Months Ended March 31,
 
 
2019
 
2018
 
Variance
Operating revenues
 
$
1,228

 
$
1,251

 
$
(23
)
Operating expenses
 
 
 
 
 
 
Purchased power and fuel
 
490

 
520

 
(30
)
Operating and maintenance
 
272

 
309

 
(37
)
Depreciation and amortization
 
180

 
183

 
(3
)
Taxes other than income
 
111

 
113

 
(2
)
Total operating expenses
 
1,053

 
1,125

 
(72
)
Operating income
 
175

 
126

 
49

Other income and (deductions)
 
 
 
 
 
 
Interest expense, net
 
(65
)
 
(63
)
 
(2
)
Other, net
 
12

 
11

 
1

Total other income and (deductions)
 
(53
)
 
(52
)
 
(1
)
Income before income taxes
 
122

 
74

 
48

Income taxes
 
5

 
9

 
(4
)
Net income
 
$
117

 
$
65

 
$
52

 
 
 
 
 
 
 
 
 
Other (b)
 
 
Three Months Ended March 31,
 
 
2019
 
2018
 
Variance
Operating revenues
 
$
(331
)
 
$
(425
)
 
$
94

Operating expenses
 
 
 
 
 
 
Purchased power and fuel
 
(318
)
 
(404
)
 
86

Operating and maintenance
 
(39
)
 
(73
)
 
34

Depreciation and amortization
 
22

 
23

 
(1
)
Taxes other than income
 
12

 
12

 
—

Total operating expenses
 
(323
)
 
(442
)
 
119

Operating income
 
(8
)
 
17

 
(25
)
Other income and (deductions)
 
 
 
 
 
 
Interest expense, net
 
(78
)
 
(60
)
 
(18
)
Other, net
 
8

 
(9
)
 
17

Total other income and (deductions)
 
(70
)
 
(69
)
 
(1
)
Loss before income taxes
 
(78
)
 
(52
)
 
(26
)
Income taxes
 
(20
)
 
(31
)
 
11

Net loss
 
$
(58
)
 
$
(21
)
 
$
(37
)
Net income attributable to noncontrolling interests
 
—

 
1

 
(1
)
Net loss attributable to common shareholders
 
$
(58
)
 
$
(22
)
 
$
(36
)
(a)
PHI consolidated results includes Pepco, DPL and ACE.
(b)
Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.


5


EXELON CORPORATION
Consolidated Balance Sheets
(unaudited) (in millions)
 
 
March 31, 2019
 
December 31, 2018
Assets
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
880

 
$
1,349

Restricted cash and cash equivalents
 
223

 
247

Accounts receivable, net
 
 
 
 
Customer
 
4,564

 
4,607

Other
 
1,062

 
1,256

Mark-to-market derivative assets
 
652

 
804

Unamortized energy contract assets
 
49

 
48

Inventories, net
 
 
 
 
Fossil fuel and emission allowances
 
179

 
334

Materials and supplies
 
1,380

 
1,351

Regulatory assets
 
1,191

 
1,222

Assets held for sale
 
890

 
904

Other
 
1,406

 
1,238

Total current assets
 
12,476

 
13,360

Property, plant and equipment, net
 
77,460

 
76,707

Deferred debits and other assets
 
 
 
 
Regulatory assets
 
8,222

 
8,237

Nuclear decommissioning trust funds
 
12,302

 
11,661

Investments
 
620

 
625

Goodwill
 
6,677

 
6,677

Mark-to-market derivative assets
 
454

 
452

Unamortized energy contract assets
 
365

 
372

Other
 
3,017

 
1,575

Total deferred debits and other assets
 
31,657

 
29,599

Total assets
 
$
121,593

 
$
119,666

 
 
 
 
 

6


 
 
March 31, 2019
 
December 31, 2018
Liabilities and shareholders’ equity
 
 
 
 
Current liabilities
 
 
 
 
Short-term borrowings
 
$
1,254

 
$
714

Long-term debt due within one year
 
2,508

 
1,349

Accounts payable
 
3,327

 
3,800

Accrued expenses
 
1,725

 
2,112

Payables to affiliates
 
5

 
5

Regulatory liabilities
 
522

 
644

Mark-to-market derivative liabilities
 
345

 
475

Unamortized energy contract liabilities
 
151

 
149

Renewable energy credit obligation
 
348

 
344

Liabilities held for sale
 
799

 
777

Other
 
1,245

 
1,035

Total current liabilities
 
12,229

 
11,404

Long-term debt
 
32,960

 
34,075

Long-term debt to financing trusts
 
390

 
390

Deferred credits and other liabilities
 
 
 
 
Deferred income taxes and unamortized investment tax credits
 
11,642

 
11,330

Asset retirement obligations
 
9,967

 
9,679

Pension obligations
 
3,734

 
3,988

Non-pension postretirement benefit obligations
 
1,984

 
1,928

Spent nuclear fuel obligation
 
1,178

 
1,171

Regulatory liabilities
 
9,781

 
9,559

Mark-to-market derivative liabilities
 
434

 
479

Unamortized energy contract liabilities
 
432

 
463

Other
 
3,158

 
2,130

Total deferred credits and other liabilities
 
42,310

 
40,727

Total liabilities
 
87,889

 
86,596

Commitments and contingencies
 
 
 
 
Shareholders’ equity
 
 
 
 
Common stock
 
19,171

 
19,116

Treasury stock, at cost
 
(123
)
 
(123
)
Retained earnings
 
15,321

 
14,766

Accumulated other comprehensive loss, net
 
(3,012
)
 
(2,995
)
Total shareholders’ equity
 
31,357

 
30,764

Noncontrolling interests
 
2,347

 
2,306

Total equity
 
33,704

 
33,070

Total liabilities and shareholders’ equity
 
$
121,593

 
$
119,666


7


EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
 
 
Three Months Ended March 31,
 
 
2019
 
2018
Cash flows from operating activities
 
 
 
 
Net income
 
$
966

 
$
636

Adjustments to reconcile net income to net cash flows provided by operating activities:
 
 
 
 
Depreciation, amortization and accretion, including nuclear fuel and energy contract amortization
 
1,460

 
1,501

Impairment of long-lived assets
 
7

 
—

Gain on sales of assets and businesses
 
—

 
(56
)
Deferred income taxes and amortization of investment tax credits
 
187

 
(14
)
Net fair value changes related to derivatives
 
31

 
259

Net realized and unrealized (gains) losses on NDT funds
 
(308
)
 
68

Other non-cash operating activities
 
127

 
240

Changes in assets and liabilities:
 
 
 
 
Accounts receivable
 
79

 
133

Inventories
 
128

 
167

Accounts payable and accrued expenses
 
(764
)
 
(451
)
Option premiums received (paid), net
 
6

 
(27
)
Collateral posted, net
 
(101
)
 
(214
)
Income taxes
 
141

 
86

Pension and non-pension postretirement benefit contributions
 
(328
)
 
(331
)
Other assets and liabilities
 
(587
)
 
(495
)
Net cash flows provided by operating activities
 
1,044

 
1,502

Cash flows from investing activities
 
 
 
 
Capital expenditures
 
(1,873
)
 
(1,880
)
Proceeds from NDT fund sales
 
3,713

 
1,189

Investment in NDT funds
 
(3,666
)
 
(1,248
)
Proceeds from sales of assets and businesses
 
8

 
79

Other investing activities
 
32

 
3

Net cash flows used in investing activities
 
(1,786
)
 
(1,857
)
Cash flows from financing activities
 
 
 
 
Changes in short-term borrowings
 
540

 
726

Proceeds from short-term borrowings with maturities greater than 90 days
 
—

 
1

Repayments on short-term borrowings with maturities greater than 90 days
 
—

 
(1
)
Issuance of long-term debt
 
402

 
1,130

Retirement of long-term debt
 
(352
)
 
(1,241
)
Dividends paid on common stock
 
(352
)
 
(333
)
Proceeds from employee stock plans
 
51

 
12

Other financing activities
 
(14
)
 
(30
)
Net cash flows provided by financing activities
 
275

 
264

Decrease in cash, cash equivalents and restricted cash
 
(467
)
 
(91
)
Cash, cash equivalents and restricted cash at beginning of period
 
1,781

 
1,190

Cash, cash equivalents and restricted cash at end of period
 
$
1,314

 
$
1,099


8


EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share data)
 
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
Operating revenues
 
$
9,477

 
$
52

 
(b)
 
$
9,693

 
$
97

 
(b)
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Purchased power and fuel
 
4,553

 
20

 
(b),(c)
 
4,727

 
(183
)
 
(b),(c)
Operating and maintenance
 
2,189

 
56

 
(c),(d),(e)
 
2,384

 
(36
)
 
(c),(d),(f)
Depreciation and amortization
 
1,075

 
(100
)
 
(c)
 
1,091

 
(137
)
 
(c)
Taxes other than income
 
445

 
—

 
 
 
446

 
—

 
 
Total operating expenses
 
8,262

 


 
 
 
8,648

 


 
 
Gain on sales of assets and businesses
 
3

 
—

 
 
 
56

 
(53
)
 
(c)
Operating income
 
1,218

 


 
 
 
1,101

 


 
 
Other income and (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(403
)
 
15

 
(b)
 
(371
)
 
—

 
 
Other, net
 
467

 
(358
)
 
(c),(g)
 
(28
)
 
111

 
(g)
Total other income and (deductions)
 
64

 


 
 
 
(399
)
 


 
 
Income before income taxes
 
1,282

 


 
 
 
702

 


 
 
Income taxes
 
310

 
(139
)
 
(b),(c),(d),(e),(g),(h)
 
59

 
148

 
(b),(c),(d),(f),(g),(h)
Equity in losses of unconsolidated affiliates
 
(6
)
 
—

 
 
 
(7
)
 
—

 
 
Net income
 
966

 


 
 
 
636

 


 
 
Net income attributable to noncontrolling interests
 
59

 
(67
)
 
(i)
 
51

 
23

 
(i)
Net income attributable to common shareholders
 
$
907

 


 
 
 
$
585

 


 
 
Effective tax rate(h)
 
24.2
%
 
 
 
 
 
8.4
%
 
 
 
 
Earnings per average common share
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.93

 
 
 
 
 
$
0.61

 
 
 
 
Diluted
 
$
0.93

 
 
 
 
 
$
0.60

 
 
 
 
Average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
971

 
 
 
 
 
966

 
 
 
 
Diluted
 
972

 
 
 
 
 
968

 
 
 
 
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market impact of economic hedging activities (b)
 
$
0.03

 
 
 
 
 
$
0.20

 
 
Unrealized (gains) losses related to NDT fund investments (g)
 
(0.20
)
 
 
 
 
 
0.07

 
 
Plant retirements and divestitures (c)
 
0.02

 
 
 
 
 
0.10

 
 
Cost management program (d)
 
0.01

 
 
 
 
 
0.01

 
 
Noncontrolling interests (i)
 
0.07

 
 
 
 
 
(0.02
)
 
 
Total adjustments
 
$
(0.06
)
 
(j)
 
 
 
$
0.36

 
 
(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 2018, adjustment to exclude accelerated depreciation and amortization expenses and one-time charges associated with Generation's decision to early retire the Oyster Creek nuclear facility and accelerated depreciation and amortization expenses associated with the 2017 decision to early retire the Three Mile Island (TMI) nuclear facility, partially offset by a gain associated with Generation's sale of its electrical contracting business. In 2019, adjustment to exclude accelerated depreciation and amortization expenses associated with Generation's previous decision to early retire the TMI nuclear facility and a benefit associated with a remeasurement of the TMI asset retirement obligation.
(d)
Adjustment to exclude reorganization costs related to cost management programs.
(e)
Adjustment to exclude the impairment of certain wind projects at Generation.
(f)
Adjustment to exclude costs related to the PHI acquisition.
(g)
Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact.
(h)
The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 16.8 percent and 17.1 percent for the three months ended March 31, 2019 and March 31, 2018, respectively.
(i)
Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments at CENG.
(j)
Amounts may not sum due to rounding.

9


EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating
Earnings to GAAP Net Income (in millions)
Three Months Ended March 31, 2019 and 2018
(unaudited)
 
 
Exelon
Earnings 
per Diluted 
Share
 
Generation
 
ComEd
 
PECO
 
BGE
 
PHI
(a)
 
Other 
(b)
 
Exelon
2018 GAAP Net Income
 
$
0.60

 
$
136

 
$
165

 
$
113

 
$
128

 
$
65

 
$
(22
)
 
$
585

2018 Adjusted (non-GAAP) Operating (Earnings) Loss Adjustments:
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $69)
 
0.20

 
197

 
—

 
—

 
—

 
—

 
—

 
197

Unrealized Losses Related to NDT Fund Investments (net of taxes of $45) (1)
 
0.07

 
66

 
—

 
—

 
—

 
—

 
—

 
66

PHI Merger and Integration Costs (net of taxes of $1)
 
—

 
3

 
—

 
—

 
—

 
—

 
—

 
3

Plant Retirements and Divestitures (net of taxes of $32) (2)
 
0.10

 
92

 
—

 
—

 
—

 
—

 
—

 
92

Cost Management Program (net of taxes of $1, $0, $0 and $1, respectively) (3)
 
0.01

 
3

 
—

 
1

 
1

 
—

 
—

 
5

Noncontrolling Interests (net of taxes of $5) (4)
 
(0.02
)
 
(23
)
 
—

 
—

 
—

 
—

 
—

 
(23
)
2018 Adjusted (non-GAAP) Operating Earnings (Loss)
 
0.96

 
474

 
165


114


129


65


(22
)
 
925

Year Over Year Effects on Earnings:
ComEd, PECO, BGE and PHI Margins:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weather
 
—

 
—

 
—

(c)
1

 
—

(c)
—

(c)
—

 
1

Load
 
—

 
—

 
—

(c)
2

 
—

(c)
(1
)
(c)
—

 
1

Other Energy Delivery (5)
 
0.06

 
—

 
11

(d)
23

(d)
14

(d)
6

(d)
—

 
54

Generation Energy Margins, Excluding Mark-to-Market:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nuclear Volume (6)
 
(0.04
)
 
(43
)
 
—

 
—

 
—

 
—

 
—

 
(43
)
Nuclear Fuel Cost (7)
 
0.01

 
11

 
—

 
—

 
—

 
—

 
—

 
11

Capacity Pricing (8)
 
0.04

 
35

 
—

 
—

 
—

 
—

 
—

 
35

Zero Emission Credit Revenue (9)
 
(0.10
)
 
(102
)
 
—

 
—

 
—

 
—

 
—

 
(102
)
Market and Portfolio Conditions (10)
 
(0.19
)
 
(182
)
 
—

 
—

 
—

 
—

 
—

 
(182
)
Operating and Maintenance Expense:
 
 
 
 
 
 
 
 
 
 
 

 
 
 

Labor, Contracting and Materials (11)
 
0.03

 
25

 
4

 
(5
)
 
—

 
5

 
—

 
29

Planned Nuclear Refueling Outages
 
—

 
(2
)
 
—

 
—

 
—

 
—

 
—

 
(2
)
Pension and Non-Pension Postretirement Benefits (12)
 
0.02

 
12

 
8

 
1

 
—

 
(1
)
 
3

 
23

Other Operating and Maintenance (13)
 
0.04

 
(14
)
 
(18
)
 
39

 
21

 
23

 
(10
)
 
41

Depreciation and Amortization Expense (14)
 
(0.02
)
 
4

 
(16
)
 
(4
)
 
(1
)
 
2

 
(1
)
 
(16
)
Interest Expense, Net
 
—

 
9

 
1

 
—

 
(2
)
 
(1
)
 
(6
)
 
1

Income Taxes (15)
 
(0.01
)
 
(15
)
 
2

 
(2
)
 
3

 
18

 
(17
)
 
(11
)
Noncontrolling Interests (16)
 
0.09

 
85

 
—

 
—

 
—

 
—

 
—

 
85

Other
 
—

 
(3
)
 
—

 
—

 
(3
)
 
2

 
—

 
(4
)
2019 Adjusted (non-GAAP) Operating Earnings (Loss)
 
0.87

 
294

 
157


169


161


118


(53
)
 
846

2019 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $10, $2 and $12, respectively)
 
(0.03
)
 
(26
)
 
—

 
—

 
—

 
—

 
(5
)
 
(31
)
Unrealized Gains Related to NDT Fund Investments (net of taxes of $161) (1)
 
0.20

 
193

 
—

 
—

 
—

 
—

 
—

 
193

Long-Lived Asset Impairments (net of taxes of $1)
 
—

 
(4
)
 
—

 
—

 
—

 
—

 
—

 
(4
)
Plant Retirements and Divestitures (net of taxes of $6) (2)
 
(0.02
)
 
(19
)
 
—

 
—

 
—

 
—

 
—

 
(19
)
Cost Management Program (net of taxes of $3, $0, $0, $0 and $3, respectively) (3)
 
(0.01
)
 
(8
)
 
—

 
(1
)
 
(1
)
 
(1
)
 
—

 
(11
)
Noncontrolling Interests (net of taxes of $13) (4)
 
(0.07
)
 
(67
)
 
—

 
—

 
—

 
—

 
—

 
(67
)
2019 GAAP Net Income (Loss)
 
$
0.93

 
$
363

 
$
157


$
168


$
160


$
117


$
(58
)
 
$
907


10


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 2019 and 2018 ranged from 26.0 percent to 29.0 percent. 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 45.4 percent and 40.3 percent for the three months ended March 31, 2019 and 2018, respectively.
(a)
PHI consolidated results includes Pepco, DPL and ACE.
(b)
Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.
(c)
For ComEd, BGE, Pepco and DPL Maryland, customer rates are adjusted to eliminate the impacts of weather and customer usage on distribution volumes.
(d)
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 and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact.
(2)
In 2018, primarily reflects accelerated depreciation and amortization expenses and one-time charges associated with Generation's decision to early retire the Oyster Creek nuclear facility and accelerated depreciation and amortization expenses associated with the 2017 decision to early retire the Three Mile Island (TMI) nuclear facility, partially offset by a gain associated with Generation's sale of its electrical contracting business. In 2019, primarily reflects accelerated depreciation and amortization expenses associated with Generation's previous decision to early retire the TMI nuclear facility and a benefit associated with a remeasurement of the TMI asset retirement obligation.
(3)
Primarily represents reorganization costs related to cost management programs.
(4)
Represents elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments at CENG.
(5)
For ComEd, reflects increased electric distribution, energy efficiency and transmission revenues due to higher rate base. For PECO, BGE, and PHI, reflects increased revenue as a result of rate increases. For PECO, also reflects increased revenue as a result of the absence in 2019 of the 2010 and 2011 electric and gas distribution tax repair credits fully refunded in 2018. For PHI, the rate increases were partially offset by the accelerated amortization of certain deferred income tax regulatory liabilities established upon the enactment of TCJA as the result of regulatory settlements. Additionally, for all utilities, reflects decreased mutual assistance revenues.
(6)
Primarily reflects the permanent cease of generation operations at Oyster Creek in September 2018.
(7)
Primarily reflects a decrease in fuel prices and decreased nuclear output as a result of the permanent cease of generation operations at Oyster Creek.
(8)
Primarily reflects increased capacity prices in the Mid-Atlantic and Midwest regions, partially offset by decreased capacity prices in Other Power Regions.
(9)
Primarily reflects the absence of the revenue recognized in the first quarter 2018 related to zero emissions credits generated in Illinois from June through December 2017.
(10)
Primarily reflects lower realized energy prices.
(11)
For Generation, primarily reflects decreased costs related to the permanent cease of generation operations at Oyster Creek. For the utilities, primarily reflects decreased mutual assistance expenses.
(12)
Primarily reflects an increase in discount rates and the favorable impacts of the merger of two of Exelon’s pension plans effective in January 2019, partially offset by lower than expected asset returns in 2018.
(13)
For Generation, primarily reflects the absence of a supplemental NEIL insurance distribution received in the first quarter 2018. For ComEd, primarily reflects increased storm costs. For PECO and BGE, primarily reflects decreased storm costs related to March 2018 winter storms. For PHI, primarily reflects a decrease in uncollectible accounts expense.
(14)
Reflects ongoing capital expenditures across all utilities. For ComEd, also reflects higher depreciation rates effective January 2019. For PHI, the impact of ongoing capital expenditures is more than offset by decreased regulatory asset amortization.
(15)
For Generation, primarily reflects renewable tax credits and one-time adjustments. For PECO, primarily reflects the decline in the amortization of income tax regulatory liabilities established in 2010 and 2011 for electric and gas repair deductions that were fully refunded to customers in 2018. For PHI, primarily reflects the accelerated amortization of certain deferred income tax regulatory liabilities established upon the enactment of TCJA as the result of regulatory settlements.
(16)
Reflects elimination from Generation’s results of activity attributable to noncontrolling interests, primarily for CENG.

11


EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 
 
Generation
 
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
Operating revenues
 
$
5,296

 
$
52

 
(b)
 
$
5,512

 
$
97

 
(b)
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Purchased power and fuel
 
3,205

 
20

 
(b),(c)
 
3,293

 
(183
)
 
(b),(c)
Operating and maintenance
 
1,218

 
59

 
(c),(d),(e)
 
1,339

 
(34
)
 
(c),(d),(f)
Depreciation and amortization
 
405

 
(100
)
 
(c)
 
448

 
(137
)
 
(c)
Taxes other than income
 
135

 
—

 
 
 
138

 
—

 
 
Total operating expenses
 
4,963

 


 
 
 
5,218

 


 
 
Gain on sales of assets and businesses
 
—

 
—

 

 
53

 
(53
)
 
(c)
Operating income
 
333

 


 
 
 
347

 


 
 
Other income and (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(111
)
 
8

 
(b)
 
(101
)
 
—

 

Other, net
 
430

 
(358
)
 
(b),(c),(g)
 
(44
)
 
111

 
(g)
Total other income and (deductions)
 
319

 


 
 
 
(145
)
 


 
 
Income before income taxes
 
652

 


 
 
 
202

 


 
 
Income taxes
 
224

 
(141
)
 
(b),(c),(d),(e),(g)
 
9

 
148

 
(b),(c),(d),(f),(g)
Equity in losses of unconsolidated affiliates
 
(6
)
 
—

 
 
 
(7
)
 
—

 
 
Net income
 
422

 


 
 
 
186

 


 
 
Net income attributable to noncontrolling interests
 
59

 
(67
)
 
(h)
 
50

 
23

 
(h)
Net income attributable to membership interest
 
$
363

 


 
 
 
$
136

 


 
 
(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 Generation’s economic hedging activities, net of intercompany eliminations.
(c)
In 2018, adjustment to exclude accelerated depreciation and amortization expenses and one-time charges associated with Generation's decision to early retire the Oyster Creek nuclear facility and accelerated depreciation and amortization expenses associated with the 2017 decision to early retire the Three Mile Island (TMI) nuclear facility, partially offset by a gain associated with Generation's sale of its electrical contracting business. In 2019, adjustment to exclude accelerated depreciation and amortization expenses associated with Generation's previous decision to early retire the TMI nuclear facility and a benefit associated with a remeasurement of the TMI asset retirement obligation.
(d)
Adjustment to exclude reorganization costs related to cost management programs.
(e)
Adjustment to exclude the impairment of certain wind projects.
(f)
Adjustment to exclude costs related to the PHI acquisition.
(g)
Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory and Regulatory Agreement Units. The impacts of the Regulatory Agreement Units, including the associated income taxes, are contractually eliminated, resulting in no earnings impact.
(h)
Adjustment to exclude the elimination from Generation’s results of the noncontrolling interest related to certain exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments at CENG.

12


EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 
 
ComEd
 
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
Operating revenues
 
$
1,408

 
$
—

 
 
 
$
1,512

 
$
—

 
 
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Purchased power and fuel
 
485

 
—

 
 
 
605

 
—

 
 
Operating and maintenance
 
321

 
—

 
 
 
313

 
—

 
 
Depreciation and amortization
 
251

 
—

 
 
 
228

 
—

 
 
Taxes other than income
 
78

 
—

 
 
 
77

 
—

 
 
Total operating expenses
 
1,135

 


 
 
 
1,223

 


 
 
Gain on sales of assets
 
3

 
—

 
 
 
3

 
—

 
 
Operating income
 
276

 


 
 
 
292

 


 
 
Other income and (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(87
)
 
—

 
 
 
(89
)
 
—

 
 
Other, net
 
8

 
—

 
 
 
8

 
—

 
 
Total other income and (deductions)
 
(79
)
 


 
 
 
(81
)
 


 
 
Income before income taxes
 
197

 


 
 
 
211

 


 
 
Income taxes
 
40

 
—

 
 
 
46

 
—

 
 
Net income
 
$
157

 


 
 
 
$
165

 


 
 
(a)
Results reported in accordance with accounting principles generally accepted in the United States (GAAP).


13


EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 
 
PECO
 
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
Operating revenues
 
$
900

 
$
—

 
 
 
$
866

 
$
—

 
 
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Purchased power and fuel
 
331

 
—

 
 
 
333

 
—

 
 
Operating and maintenance
 
225

 
(1
)
 
(b)
 
275

 
(1
)
 
(b)
Depreciation and amortization
 
81

 
—

 
 
 
75

 
—

 
 
Taxes other than income
 
41

 
—

 
 
 
41

 
—

 
 
Total operating expenses
 
678

 


 
 
 
724

 


 
 
Operating income
 
222

 


 
 
 
142

 


 
 
Other income and (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(33
)
 
—

 
 
 
(33
)
 
—

 
 
Other, net
 
4

 
—

 
 
 
2

 
—

 
 
Total other income and (deductions)
 
(29
)
 


 
 
 
(31
)
 


 
 
Income before income taxes
 
193

 


 
 
 
111

 


 
 
Income taxes
 
25

 
—

 
 
 
(2
)
 
—

 
 
Net income
 
$
168

 


 
 
 
$
113

 


 
 
(a)
Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)
Adjustment to exclude reorganization costs related to cost management programs.

14


EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 
 
BGE
 
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
Operating revenues
 
$
976

 
$
—

 
 
 
$
977

 
$
—

 
 
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Purchased power and fuel
 
360

 
—

 
 
 
380

 
—

 
 
Operating and maintenance
 
192

 
(1
)
 
(b)
 
221

 
(1
)
 
(b)
Depreciation and amortization
 
136

 
—

 
 
 
134

 
—

 
 
Taxes other than income
 
68

 
—

 
 
 
65

 
—

 
 
Total operating expenses
 
756

 


 
 
 
800

 


 
 
Operating income
 
220

 


 
 
 
177

 


 
 
Other income and (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(29
)
 
—

 
 
 
(25
)
 
—

 
 
Other, net
 
5

 
—

 
 
 
4

 
—

 
 
Total other income and (deductions)
 
(24
)
 


 
 
 
(21
)
 


 
 
Income before income taxes
 
196

 


 
 
 
156

 


 
 
Income taxes
 
36

 
—

 
 
 
28

 
—

 
 
Net income
 
$
160

 


 
 
 
$
128

 


 
 
(a)
Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)
Adjustment to exclude reorganization costs related to cost management programs.

15


EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 
 
PHI (b)
 
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
 
GAAP (a)
 
Non-GAAP Adjustments
 
 
Operating revenues
 
$
1,228

 
$
—

 
 
 
$
1,251

 
$
—

 
 
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Purchased power and fuel
 
490

 
—

 
 
 
520

 
—

 
 
Operating and maintenance
 
272

 
(1
)
 
(c)
 
309

 
—

 

Depreciation and amortization
 
180

 
—

 
 
 
183

 
—

 
 
Taxes other than income
 
111

 
—

 
 
 
113

 
—

 
 
Total operating expenses
 
1,053

 


 
 
 
1,125

 


 
 
Operating income
 
175

 


 
 
 
126

 


 
 
Other income and (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(65
)
 
—

 
 
 
(63
)
 
—

 
 
Other, net
 
12

 
—

 
 
 
11

 
—

 
 
Total other income and (deductions)
 
(53
)
 


 
 
 
(52
)
 


 
 
Income before income taxes
 
122

 


 
 
 
74

 


 
 
Income taxes
 
5

 
—

 
 
 
9

 
—

 
 
Net income
 
$
117

 


 
 
 
$
65

 


 
 
(a)
Results reported in accordance with accounting principles generally accepted in the United States (GAAP).
(b)
PHI consolidated results includes Pepco, DPL and ACE.
(c)
Adjustment to exclude reorganization costs related to cost management programs.

16


EXELON CORPORATION
GAAP Consolidated Statements of Operations and
Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments
(unaudited)
(in millions)
 
 
Other (a)
 
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
 
GAAP (b)
 
Non-GAAP Adjustments
 
 
 
GAAP (b)
 
Non-GAAP Adjustments
 
 
Operating revenues
 
$
(331
)
 
$
—

 
 
 
$
(425
)
 
$
—

 
 
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Purchased power and fuel
 
(318
)
 
—

 
 
 
(404
)
 
—

 
 
Operating and maintenance
 
(39
)
 
—

 

 
(73
)
 
—

 
 
Depreciation and amortization
 
22

 
—

 
 
 
23

 
—

 
 
Taxes other than income
 
12

 
—

 
 
 
12

 
—

 
 
Total operating expenses
 
(323
)
 
 
 
 
 
(442
)
 
 
 
 
Operating income
 
(8
)
 


 
 
 
17

 
 
 
 
Other income and (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(78
)
 
7

 
(c)
 
(60
)
 
—

 
 
Other, net
 
8

 
—

 
 
 
(9
)
 
—

 
 
Total other income and (deductions)
 
(70
)
 


 
 
 
(69
)
 
 
 
 
Loss before income taxes
 
(78
)
 


 
 
 
(52
)
 


 
 
Income taxes
 
(20
)
 
2

 
(c)
 
(31
)
 
—

 
 
Equity in earnings of unconsolidated affiliates
 
—

 
—

 
 
 
—

 
—

 
 
Net (loss) income
 
(58
)
 
 
 
 
 
(21
)
 
 
 
 
Net income attributable to noncontrolling interests
 
—

 
 
 
 
 
1

 
 
 
 
Net (loss) income attributable to common shareholders
 
$
(58
)
 


 
 
 
$
(22
)
 
 
 
 
(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 the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.


17


EXELON CORPORATION
Generation Statistics
 
 
Three Months Ended
 
 
March 31, 2019
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
Supply (in GWhs)
 
 
 
 
 
 
 
 
 
 
Nuclear Generation
 
 
 
 
 
 
 
 
 
 
Mid-Atlantic(a)
 
15,080

 
15,175

 
16,197

 
16,498

 
16,229

Midwest
 
23,733

 
23,752

 
23,834

 
23,100

 
23,597

New York(a)
 
6,902

 
6,882

 
6,518

 
6,125

 
7,115

Total Nuclear Generation
 
45,715

 
45,809

 
46,549

 
45,723

 
46,941

Fossil and Renewables
 
 
 
 
 
 
 
 
 
 
Mid-Atlantic
 
951

 
1,010

 
853

 
907

 
900

Midwest
 
392

 
353

 
244

 
321

 
455

New York
 
1

 
—

 
1

 
1

 
1

ERCOT
 
3,078

 
2,791

 
3,137

 
2,303

 
2,949

Other Power Regions(b)
 
3,141

 
2,563

 
3,628

 
3,037

 
4,028

Total Fossil and Renewables
 
7,563

 
6,717

 
7,863

 
6,569

 
8,333

Purchased Power
 
 
 
 
 
 
 
 
 
 
Mid-Atlantic
 
2,566

 
1,678

 
3,504

 
557

 
766

Midwest
 
288

 
263

 
174

 
223

 
336

ERCOT
 
1,042

 
1,046

 
1,811

 
2,320

 
1,373

Other Power Regions(b)
 
12,569

 
12,268

 
12,705

 
10,455

 
9,570

Total Purchased Power
 
16,465

 
15,255

 
18,194

 
13,555

 
12,045

Total Supply/Sales by Region
 
 
 
 
 
 
 
 
 
 
Mid-Atlantic(c)
 
18,597

 
17,863

 
20,554

 
17,962

 
17,895

Midwest(c)
 
24,413

 
24,368

 
24,252

 
23,644

 
24,388

New York
 
6,903

 
6,882

 
6,519

 
6,126

 
7,116

ERCOT
 
4,120

 
3,837

 
4,948

 
4,623

 
4,322

Other Power Regions(b)
 
15,710

 
14,831

 
16,333

 
13,492

 
13,598

Total Supply/Sales by Region
 
69,743

 
67,781

 
72,606

 
65,847

 
67,319

 
 
Three Months Ended
 
 
March 31, 2019
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
Outage Days(d)
 
 
 
 
 
 
 
 
 
 
Refueling
 
74

 
76

 
36

 
94

 
68

Non-refueling
 
—

 
18

 
12

 
2

 
6

Total Outage Days
 
74

 
94

 
48

 
96

 
74

(a)
Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and includes the total output of plants that are fully consolidated (e.g. CENG).
(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.

18


EXELON CORPORATION
ComEd Statistics
Three Months Ended March 31, 2019 and 2018
 
 
 
 
 
 
 
 
 
Revenue (in millions)
 
 
2019
 
2018
 
% Change
Rate-Regulated Electric Revenues(a)
 
 
 
 
 
 
Residential
 
$
710

 
$
717

 
(1.0
)%
Small commercial & industrial
 
360

 
385

 
(6.5
)%
Large commercial & industrial
 
132

 
152

 
(13.2
)%
Public authorities & electric railroads
 
13

 
14

 
(7.1
)%
Other(b)
 
217

 
230

 
(5.7
)%
Total rate-regulated electric revenues(c)
 
1,432

 
1,498

 
(4.4
)%
Other Rate-Regulated Revenue(d)
 
(24
)
 
14

 
(271.4
)%
Total Electric Revenue
 
$
1,408

 
$
1,512

 
(6.9
)%
Purchased Power
 
$
485

 
$
605

 
(19.8
)%
(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 revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue.
(c)
Includes operating revenues from affiliates totaling $4 million and $14 million for the three months ended March 31, 2019 and 2018, respectively.
(d)
Includes alternative revenue programs and late payment charges.

19


EXELON CORPORATION
PECO Statistics
Three Months Ended March 31, 2019 and 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric and Natural Gas Deliveries
 
Revenue (in millions)
 
 
2019
 
2018
 
% Change
 
Weather-
Normal
% Change
 
2019
 
2018
 
% Change
Electric (in GWhs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate-Regulated Electric Deliveries and Revenues(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
3,641

 
3,628

 
0.4
 %
 
0.4
 %
 
$
409

 
$
403

 
1.5
 %
Small commercial & industrial
 
2,066

 
2,029

 
1.8
 %
 
1.8
 %
 
96

 
101

 
(5.0
)%
Large commercial & industrial
 
3,571

 
3,703

 
(3.6
)%
 
(3.6
)%
 
48

 
58

 
(17.2
)%
Public authorities & electric railroads
 
195

 
197

 
(1.0
)%
 
(0.9
)%
 
7

 
8

 
(12.5
)%
Other(b)
 
—

 
—

 
n/a

 
n/a

 
62

 
62

 
—
 %
Total rate-regulated electric revenues(c)
 
9,473

 
9,557

 
(0.9
)%
 
(0.9
)%
 
622

 
632

 
(1.6
)%
Other Rate-Regulated Revenue(d)
 
 
 
 
 
 
 
 
 
(2
)
 
2

 
(200.0
)%
Total Electric Revenue
 
 
 
 
 
 
 
 
 
620

 
634

 
(2.2
)%
Natural Gas (in mmcfs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate-Regulated Gas Deliveries and Revenues(e)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
21,218

 
20,574

 
3.1
 %
 
1.2
 %
 
198

 
161

 
23.0
 %
Small commercial & industrial
 
10,644

 
10,417

 
2.2
 %
 
0.1
 %
 
72

 
62

 
16.1
 %
Large commercial & industrial
 
19

 
47

 
(59.6
)%
 
(10.8
)%
 
1

 
1

 
—
 %
Transportation
 
7,973

 
7,568

 
5.4
 %
 
5.6
 %
 
7

 
6

 
16.7
 %
Other(f)
 
—

 
—

 
n/a

 
n/a

 
2

 
2

 
—
 %
Total rate-regulated natural gas revenues(g)
 
39,854

 
38,606

 
3.2
 %
 
1.7
 %
 
280

 
232

 
20.7
 %
Other Rate-Regulated Revenue(d)
 
 
 
 
 
 
 
 
 
—

 
—

 
n/a

Total Natural Gas Revenues
 
 
 
 
 
 
 
 
 
280

 
232

 
20.7
 %
Total Electric and Natural Gas Revenues
 
 
 
 
 
$
900

 
$
866

 
3.9
 %
Purchased Power and Fuel
 
 
 
 
 
 
 
 
 
$
331

 
$
333

 
(0.6
)%
 
 
 
 
 
 
 
 
% Change
Heating and Cooling Degree-Days
 
2019
 
2018
 
Normal
 
From 2018
 
From Normal
Heating Degree-Days
 
2,432

 
2,397

 
2,429

 
1.5
%
 
0.1
%
Cooling Degree-Days
 
2

 
—

 
1

 
200.0
%
 
100.0
%
Number of Electric Customers
 
2019
 
2018
 
Number of Natural Gas Customers
 
2019
 
2018
Residential
 
1,485,698

 
1,474,555

 
Residential
 
483,560

 
478,565

Small Commercial & Industrial
 
153,042

 
151,947

 
Small Commercial & Industrial
 
44,274

 
44,053

Large Commercial & Industrial
 
3,107

 
3,113

 
Large Commercial & Industrial
 
1

 
4

Public Authorities & Electric Railroads
 
9,638

 
9,541

 
Transportation
 
744

 
768

Total
 
1,651,485

 
1,639,156

 
Total
 
528,579

 
523,390

(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 revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue.
(c)
Includes operating revenues from affiliates totaling $1 million and $2 million for the three months ended March 31, 2019 and 2018, 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 March 31, 2019 and 2018.

20



EXELON CORPORATION
BGE Statistics
Three Months Ended March 31, 2019 and 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue (in millions)
 
2019
 
2018
 
% Change
Rate-Regulated Electric Revenues(a)
 
 
 
 
 
Residential
$
385

 
$
393

 
(2.0
)%
Small commercial & industrial
70

 
68

 
2.9
 %
Large commercial & industrial
110

 
106

 
3.8
 %
Public authorities & electric railroads
7

 
7

 
—
 %
Other(b)
80

 
78

 
2.6
 %
Total rate-regulated electric revenues(c)
652

 
652

 
—
 %
Other Rate-Regulated Revenue(d)
6

 
6

 
—
 %
Total Electric Revenue
658

 
658

 
—
 %
Rate-Regulated Gas Revenues(e)
 
 
 
 
 
Residential
219

 
224

 
(2.2
)%
Small commercial & industrial
35

 
34

 
2.9
 %
Large commercial & industrial
50

 
47

 
6.4
 %
Other(f)
4

 
27

 
(85.2
)%
Total rate-regulated natural gas revenues(g)
308

 
332

 
(7.2
)%
Other Rate-Regulated Revenue(d)
10

 
(13
)
 
(176.9
)%
Total Natural Gas Revenues
318

 
319

 
(0.3
)%
Total Electric and Natural Gas Revenues
$
976

 
$
977

 
(0.1
)%
Purchased Power and Fuel
$
360

 
$
380

 
(5.3
)%
Number of Electric Customers
 
2019
 
2018
 
Number of Natural Gas Customers
 
2019
 
2018
Residential
 
1,171,027

 
1,163,887

 
Residential
 
635,241

 
631,594

Small Commercial & Industrial
 
113,976

 
113,675

 
Small Commercial & Industrial
 
38,322

 
38,443

Large Commercial & Industrial
 
12,278

 
12,148

 
Large Commercial & Industrial
 
5,981

 
5,874

Public Authorities & Electric Railroads
 
266

 
270

 
Total
 
679,544

 
675,911

Total
 
1,297,547

 
1,289,980

 
 
 


 


(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 revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue.
(c)
Includes operating revenues from affiliates totaling $2 million for both the three months ended March 31, 2019 and 2018.
(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 $4 million for both the three months ended March 31, 2019 and 2018.

21


EXELON CORPORATION
PEPCO Statistics
Three Months Ended March 31, 2019 and 2018
 
 
 
 
 
 
 
 
 
Revenue (in millions)
 
 
2019
 
2018
 
% Change
Rate-Regulated Electric Revenues(a)
 
 
 
 
 
 
Residential
 
$
256

 
$
259

 
(1.2
)%
Small commercial & industrial
 
38

 
32

 
18.8
 %
Large commercial & industrial
 
204

 
190

 
7.4
 %
Public authorities & electric railroads
 
8

 
7

 
14.3
 %
Other(b)
 
53

 
49

 
8.2
 %
Total rate-regulated electric revenues(c)
 
559

 
537

 
4.1
 %
Other Rate-Regulated Revenue(d)
 
16

 
20

 
(20.0
)%
Total Electric Revenue
 
$
575

 
$
557

 
3.2
 %
Purchased Power
 
$
187

 
$
182

 
2.7
 %
Number of Electric Customers
 
2019
 
2018
Residential
 
809,845

 
797,105

Small Commercial & Industrial
 
54,295

 
53,602

Large Commercial & Industrial
 
22,030

 
21,718

Public Authorities & Electric Railroads
 
153

 
146

Total
 
886,323

 
872,571

(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 revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue.
(c)
Includes operating revenues from affiliates of $2 million in both the three months ended March 31, 2019 and 2018.
(d)
Includes alternative revenue programs and late payment charge revenues.

22


EXELON CORPORATION
DPL Statistics
Three Months Ended March 31, 2019 and 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric and Natural Gas Deliveries to Delaware Customers
 
Revenue (a) (in millions)
 
 
2019
 
2018
 
% Change
 
Weather -
Normal
% Change
 
2019
 
2018
 
% Change
Electric (in GWhs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate-Regulated Electric Deliveries and Revenues(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
851

 
869

 
(2.1
)%
 
(1.5
)%
 
$
185

 
$
191

 
(3.1
)%
Small Commercial & industrial
 
321

 
330

 
(2.7
)%
 
(2.6
)%
 
48

 
46

 
4.3
 %
Large Commercial & industrial
 
810

 
829

 
(2.3
)%
 
(2.2
)%
 
24

 
23

 
4.3
 %
Public authorities & electric railroads
 
8

 
9

 
(11.1
)%
 
(7.3
)%
 
3

 
4

 
(25.0
)%
Other(c)
 
—

 
—

 
n/a

 
n/a

 
47

 
41

 
14.6
 %
Total rate-regulated electric revenues(d)
 
1,990

 
2,037

 
(2.3
)%
 
(2.0
)%
 
307

 
305

 
0.7
 %
Other Rate-Regulated Revenue(e)
 
 
 
 
 
 
 
 
 
3

 
1

 
200.0
 %
Total Electric Revenue
 
 
 
 
 
 
 
 
 
310

 
306

 
1.3
 %
Natural Gas (in mmcfs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate-Regulated Gas Deliveries and Revenues(f)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
4,607

 
4,485

 
2.7
 %
 
1.8
 %
 
$
44

 
47

 
(6.4
)%
Small commercial & industrial
 
2,020

 
1,878

 
7.6
 %
 
6.6
 %
 
19

 
18

 
5.6
 %
Large commercial & industrial
 
523

 
516

 
1.4
 %
 
1.4
 %
 
1

 
4

 
(75.0
)%
Transportation
 
2,218

 
2,213

 
0.2
 %
 
(0.2
)%
 
4

 
5

 
(20.0
)%
Other(f)
 
—

 
—

 
n/a

 
n/a

 
3

 
4

 
(25.0
)%
Total rate-regulated natural gas revenues
 
9,368

 
9,092

 
3.0
 %
 
2.3
 %
 
71

 
78

 
(9.0
)%
Other Rate-Regulated Revenue(g)
 
 
 
 
 
 
 
 
 
(1
)
 
—

 
(100.0
)%
Total Natural Gas Revenues
 


 


 


 
 
 
70

 
78

 
(10.3
)%
Total Electric and Natural Gas Revenues
 
 
 
 
 
$
380

 
$
384

 
(1.0
)%
Purchased Power and Fuel
 
 
 
 
 
 
 
 
 
$
164

 
$
177

 
(7.3
)%
Delaware Electric Service Territory
 
 
 
 
 
 
 
% Change
Heating Degree-Days(h)
 
2019
 
2018
 
Normal
 
From 2018
 
From Normal
Heating Degree-Days
 
2,522

 
2,504

 
2,508

 
0.7
%
 
0.6
%
Delaware Natural Gas Service Territory
 
 
 
 
 
 
 
% Change
Heating Degree-Days
 
2019
 
2018
 
Normal
 
From 2018
 
From Normal
Heating Degree-Days
 
2,522

 
2,504

 
2,496

 
0.7
%
 
1.0
%
Number of Total Electric Customers (Maryland and Delaware)
 
2019
 
2018
 
Number of Delaware Gas Customers
 
2019
 
2018
Residential
 
464,638

 
460,863

 
Residential
 
124,575

 
123,062

Small Commercial & Industrial
 
61,391

 
60,962

 
Small Commercial & Industrial
 
10,023

 
9,873

Large Commercial & Industrial
 
1,400

 
1,383

 
Large Commercial & Industrial
 
18

 
17

Public Authorities & Electric Railroads
 
620

 
625

 
Transportation
 
157

 
155

Total
 
528,049

 
523,833

 
Total
 
134,773

 
133,107

(a)
Includes revenues from distribution customers in the Maryland and Delaware service territories.
(b)
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.
(c)
Includes revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue.
(d)
Includes operating revenues from affiliates totaling $2 million for both the three months ended March 31, 2019 and 2018.
(e)
Includes alternative revenue programs and late payment charges.
(f)
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.
(g)
Includes revenues primarily from off-system sales.
(h)
There were no cooling degree days in DPL's electric service territory for both the three months ended March 31, 2019 and 2018.

23


EXELON CORPORATION
ACE Statistics
Three Months Ended March 31, 2019 and 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric Deliveries (in GWhs)
 
Revenue (in millions)
 
 
2019
 
2018
 
% Change
 
Weather -
Normal
% Change
 
2019
 
2018
 
% Change
Rate-Regulated Electric Deliveries and Revenues(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
 
908

 
990

 
(8.3
)%
 
(8.8
)%
 
$
138

 
$
160

 
(13.8
)%
Small Commercial & industrial
 
310

 
314

 
(1.3
)%
 
(1.3
)%
 
34

 
37

 
(8.1
)%
Large Commercial & industrial
 
791

 
824

 
(4.0
)%
 
(4.1
)%
 
39

 
46

 
(15.2
)%
Public Authorities & Electric Railroads
 
13

 
15

 
(13.3
)%
 
(10.6
)%
 
3

 
3

 
—
 %
Other(b)
 
—

 
—

 
n/a

 
n/a

 
57

 
66

 
(13.6
)%
Total rate-regulated electric revenues(c)
 
2,022

 
2,143

 
(5.6
)%
 
(5.9
)%
 
271

 
312

 
(13.1
)%
Other Rate-Regulated Revenue(d)
 
 
 
 
 
 
 
 
 
2

 
(2
)
 
(200.0
)%
Total Electric Revenue
 
 
 
 
 
 
 
 
 
$
273

 
$
310

 
(11.9
)%
Purchased Power
 
 
 
 
 
 
 
 
 
$
139

 
$
161

 
(13.7
)%
 
 
 
 
 
 
 
 
% Change
Heating Degree-Days(e)
 
2019
 
2018
 
Normal
 
From 2018
 
From Normal
Heating Degree-Days
 
2,506

 
2,413

 
2,489

 
3.9
%
 
0.7
%
Number of Electric Customers
 
2019
 
2018
Residential
 
491,935

 
488,495

Small Commercial & Industrial
 
61,377

 
61,059

Large Commercial & Industrial
 
3,494

 
3,611

Public Authorities & Electric Railroads
 
661

 
643

Total
 
557,467

 
553,808

(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 revenues from transmission revenue from PJM, wholesale electric revenue and mutual assistance revenue.
(c)
Includes operating revenues from affiliates of $1 million in both the three months ended March 31, 2019 and 2018.
(d)
Includes alternative revenue programs and late payment charge revenues.
(e)
There were no cooling degree days in ACE's service territory for both the three months ended March 31, 2019 and 2018.

24
exc20190502992
Earnings Conference Call 1st Quarter 2019 May 2, 2019

 
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. 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) Exelon’s 2018 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 22, Commitments and Contingencies; (2) Exelon’s First Quarter 2019 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 16; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, 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 presentation. 2 Q1 2019 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, impairments of certain long-lived assets, certain amounts associated with plant retirements and divestitures, costs related to cost management programs 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. • Revenue net of purchased power and fuel expense is calculated as the GAAP measure of operating revenue less the GAAP measure of purchased power and fuel expense 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 3 Q1 2019 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’ presentation. 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 33 of this presentation. 4 Q1 2019 Earnings Release Slides

 
PHI Merger is Delivering on Its Promises Operational Performance •ACE: Frequency of outages reduced by 22%, restoration times improved by 17% •Delmarva: Frequency of outages reduced by 34%, restoration times improved by 2% •Pepco: Frequency of outages reduced by 30%, restoration times improved by 28% Economic and Workforce Development •More than $470M in total economic impact in our communities •Invested in workforce development including partnering with District of Columbia in opening the DC Infrastructure Academy •$313M in diverse spend in 2018 representing 22-29% of each company’s total procurement spend Community Impact •85,000 volunteer hours •More than $15M in charitable giving across our PHI communities supporting hundreds of local partners More Constructive Regulatory Environment •Constructive settlements in all PHI jurisdictions including the first settlements at Pepco DC and Pepco Maryland since the 1980s •Enacted legislation in Delaware to create capital trackers for reliability investments •New Jersey Board of Public Utilities approved regulations that allow for tracker recovery of certain capital investments Customer Satisfaction is at all time highs at ACE, Delmarva and Pepco 5 Q1 2019 Earnings Release Slides

 
1st Quarter Results Q1 2019 EPS Results(1) $0.93 $0.87 • GAAP earnings were $0.93/share in Q1 2019 vs. $0.60/share in Q1 ExGen $0.37 $0.30 2018 • Adjusted operating earnings* were BGE $0.17 $0.17 $0.87/share in Q1 2019 vs. $0.96/share in Q1 2018, which was PECO $0.17 $0.17 above the midpoint of our guidance range of $0.80-$0.90/share PHI $0.12 $0.12 ComEd $0.16 $0.16 HoldCo ($0.06) ($0.06) Q1 GAAP Earnings Q1 Adjusted Operating Earnings* (1) Amounts may not sum due to rounding 6 Q1 2019 Earnings Release Slides

 
Operating Highlights Exelon Utilities Operational Metrics Exelon Generation Operational Performance YTD 2019 (2) Operations Metric Exelon Nuclear Fleet BGE ComEd PECO PHI • Best in class performance across our Nuclear fleet: OSHA Recordable Rate o Q1 2019 Nuclear Capacity Factor: 97.1% Electric 2.5 Beta SAIFI (1) o Owned and operated Q1 2019 production of 39.2 Operations (Outage Frequency) TWh(2) 2.5 Beta CAIDI (Outage Duration) 44 100% Customer 98% Satisfaction 42 96% Customer Service Level % of 40 94% Capacity Factor Calls Answered in 92% Operations <30 sec 38 90% TWhrs 36 Abandon Rate 88% 34 86% Percent of Calls 84% Gas No Gas Responded to in <1 32 Operations Operations 82% Hour 30 80% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 • Strong reliability metrics with BGE and ComEd achieving top TWhrs Capacity Factor decile performance in CAIDI • Each utility delivered on key customer operations metrics Fossil and Renewable Fleet with all utilities performing in top decile for Abandon Rate and ComEd and PECO achieving top decile in Service Level • Q1 2019 Renewables energy capture: 96.5% and Customer Satisfaction • Q1 2019 Power dispatch match: 97.8% • PECO and PHI achieved top decile performance in Gas Odor Response Q1 Q2 Q3 Q4 (1) 2.5 Beta SAIFI is YE projection (2) Excludes Salem and EDF’s equity ownership share of the CENG Joint Venture 7 Q1 2019 Earnings Release Slides

 
Key Policy Updates Illinois Pennsylvania ZEC Litigation: ZEC Legislation (HB11/SB510): • On April 15, the U.S. Supreme Court denied certiorari • Bipartisan, bicameral legislation that amends the upholding the ZEC programs Pennsylvania Alternative Portfolio Standard (AEPS) to add a third tier for zero-emitting resources including nuclear Clean Energy Progress Act (HB2861/SB1789): • Pricing is tied to tier 1 resources and will range from $6.08 - • Protects Illinois’ right to enact clean energy policies by $7.90/MWh implementing full fixed resource requirement (FRR) under the PJM tariff by directing the Illinois Power Authority to • All nuclear in Pennsylvania would be eligible to participate procure clean bundled capacity for ComEd for ten years starting with June 1, 2023 delivery year • Will ensure 100% clean energy through 2032 • Guarantees customers save money in the first year Formula Rate Extension Legislation (HB3152/SB2080): • Would extend the formula rate beyond the 2022 expiration New Jersey Energy Price Formation Reforms ZEC Legislation: Fast Start: • On April 18, the New Jersey BPU voted 4 to 1 to award ZECs • On April 18, FERC approved energy pricing reform for fast to Hope Creek and Salem 1 and 2 start resources requiring a 1 hour minimum notification and • The award is for 3 years plus a stub year. Payment will occur run-time within 90 days of the end of each energy year. For the first • PJM must submit a compliance filing by July 31, 2019 which energy year (from April 18, 2019 to May 31, 2019), payment includes an implementation date is expected by late August 2019. Reserves Price Formation: • PJM filed 206 petition to amend its tariff to improve the pricing of reserves • Requested order by December 15, 2019 8 Q1 2019 Earnings Release Slides

 
Exelon is Ideally Situated to Help Meet Climate Goals Deliberately Built Clean Fleet Carbon Reduction Goals Exelon Generation is the largest zero-carbon generator Despite being the lowest carbon intensive – producing 1 out of every 9 zero-carbon MWhs in the generation, we have set a goal of an US – after executing on a strategy to divest or retire additional 15% reduction of GHG coal-fired generation and improve the output of zero- emissions from our internal operations carbon nuclear fleet 1,622 1,386 1,429 • Between 2010 – 2017, retired or sold more than 2,000 968 1,094 738 805 MWs of coal-fired generation 479 • Developed or bought 1,500 MWs of renewable generation 105 • Increased output of nuclear fleet by more than 550 MWs EXC NEE D CPN DUK SO XEL NRG AEP • Invested in clean, efficient natural gas generation lbs/MWh(1) Support Policies to Reduce GHG Emissions Enabling a Carbon Free Future Exelon is a founding member From generation to transmission to distribution, our of the Climate Leadership Council – sustainability strategy focuses on creating systems and to advocate for a carbon fee-and- policies that enable integrated clean energy solutions dividend program and connections for our customers Support legislation and regulation to expand electric vehicle infrastructure at the state and federal level Support 100% clean energy standards (1) Reflects 2016 regulated and non-regulated generation. Excludes EDF’s equity ownership share of the CENG Joint venture for Exelon. Source: Benchmarking Air Emissions, June 2018; https://www.mjbradley.com/sites/default/files/Presentation_of_Results_2018.pdf 9 Q1 2019 Earnings Release Slides

 
1st Quarter Adjusted Operating Earnings* Drivers Q1 2019 Adjusted Operating EPS* Results Q1 2019 vs. Guidance of $0.80 - $0.90 $0.87 • Adjusted (non-GAAP) operating earnings drivers versus guidance: ExGen $0.30 Exelon Utilities – Timing of O&M BGE $0.17 Exelon Generation PECO $0.17 – Timing of O&M (1) $0.56 – NDT realized gains PHI $0.12 ComEd $0.16 HoldCo ($0.06) Q1 2019 Expect Q2 2019 Adjusted Operating Earnings* of $0.55 - $0.65 per share Note: Amounts may not sum due to rounding (1) Gains related to unregulated sites 10 Q1 2019 Earnings Release Slides

 
Q1 2019 Adjusted Operating Earnings* Waterfall $0.04 Distribution and Transmission Rate Increases $0.04 Decreased Storm Costs(1) $0.01 Decreased Storm Costs $0.02 Distribution Rate Increases ($0.01) Other $0.05 ($0.01) Interest Expense $0.04 ($0.03) Other $0.96 $0.05 ($0.19) ($0.01) $0.02 Distribution Rate Increases ($0.04) $0.87 $0.02 Decreased Storm Costs(1) $0.01 Distribution Investment ($0.02) Other ($0.19) Market and Portfolio Conditions(2) ($0.10) Zero Emission Credit Revenue(3) $0.04 Capacity Pricing $0.06 Other(4) Q1 2018 ComEd PECO BGE PHI ExGen(5) Corp Q1 2019 Note: Amounts may not sum due to rounding (1) Primarily reflects the absence of the March 2018 winter storms (2) Primarily reflects lower realized energy prices (3) Primarily reflects the absence of revenue recognized in the first quarter 2018 related to zero emissions credits generated in Illinois from June through December 2017 (4) Primarily reflects the elimination of activity attributable to noncontrolling interests, primarily for CENG (5) Drivers reflect CENG ownership at 100% 11 Q1 2019 Earnings Release Slides

 
Exelon Utilities Trailing Twelve Month Earned ROEs* Q1 2019: Trailing Twelve Month Earned ROEs* 12.0% Legacy Exelon Utilities Consolidated Exelon Utilities PHI Utilities 10.0% $30.4/10.5% $41.2/10.2% 8.0% $10.8/9.3% ROE* (%)ROE* 6.0% Earned 4.0% 2.0% 0.0% $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 2019E Rate Base ($B) TTM ROEs* PHI Utilities Legacy Exelon Utilities Consolidated Exelon Utilities Q1 2019 9.3% 10.5% 10.2% Q4 2018 8.4% 10.1% 9.7% Note: Represents the twelve-month period ending March 31, 2019 and December 31, 2018. Earned ROEs* represent weighted average across all lines of business (Electric Distribution, Gas Distribution, and Electric Transmission). Size of bubble based on rate base. 12 Q1 2019 Earnings Release Slides

 
Exelon Utilities’ Distribution Rate Case Updates Rate Case Schedule and Key Terms Requested Revenue Expected Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ROE / Requirement Order Equity Ratio BGE (2) 9.80% / FO $64.9M (2) Jan 4, 2019 Gas 52.85% (1) 9.60% / ACE(3) $70.0M Mar 13, 2019 SA FO 49.94% Pepco MD (1) 10.30% / CF IT RT EH IB FO $27.2M Aug 13, 2019 Electric 50.46% (1) 8.91% / (4) ($6.4M) Dec 2019 ComEd CF IT RT EH IB RB FO 47.97% CF Rate case filed RT Rebuttal testimony IB Initial briefs FO Final commission order IT Intervenor direct testimony EH Evidentiary hearings RB Reply briefs SA Settlement agreement Note: Unless otherwise noted, based on schedules of Illinois Commerce Commission, Maryland Public Service Commission, Pennsylvania Public Utility Commission, Delaware Public Service Commission, Public Service Commission of the District of Columbia, and New Jersey Board of Public Utilities 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 $43.2M increase and $21.7M STRIDE reset. Test year updated for May-July 2018 actuals and reflects long-term debt issuance made in September 2018. (3) Per Settlement Agreement filed on March 4, 2019 and approved on March 13, 2019 (4) Anticipated schedule, actual dates will be determined by ALJ at status hearing 13 Q1 2019 Earnings Release Slides

 
Utility CapEx Update Pepco’s Harrison Substation Modernization • Forecasted project cost: − $190 million • In service date: − In service by end of Q4 2019; remediation and removal of temporary substation completed by Q4 2020 • Project scope: − Rebuild existing substation from a 56MVA (34/4kV & 34/13kV) dual voltage substation to a 140MVA (138/13kV) substation − New substation addresses aging infrastructure that will service loads of two Metro stations as well as key commercial facilities − Improvements also expand regional transmission capacity, allowing for future load growth; vintage substation was approaching 90% capacity Continuation of Gas Mains and Services Replacement Program in Baltimore • Forecasted project cost: − $732 million • In service date: − Multiple in service dates from 2019 to 2023 • Project scope: − Replace ~240 miles of gas mains and associated services by the end of 2023 − Improves safety and reliability of the distribution system and reduces environmental risks as leak-prone gas infrastructure is replaced − Recovered through Strategic Infrastructure Development and Enhancement (STRIDE) surcharge − Drives economic development as STRIDE has created 600 full-time jobs in the BGE territory since 2014 14 Q1 2019 Earnings Release Slides

 
Exelon Generation: Gross Margin Update March 31, 2019 Change from December 31, 2018 Gross Margin Category ($M)(1) 2019 2020 2021 2019 2020 2021 Open Gross Margin(2,5) $4,200 $4,100 $3,800 $(150) $50 $50 (including South, West, New England, Canada hedged gross margin) Capacity and ZEC Revenues(2,5) $2,050 $1,900 $1,850 - - - Mark-to-Market of Hedges(2,3) $550 $250 $100 $300 - - Power New Business / To Go $350 $650 $850 $(150) $(50) $(50) Non-Power Margins Executed $300 $150 $150 $100 - - Non-Power New Business / To Go $200 $350 $400 $(100) - - Total Gross Margin*(4,5) $7,650 $7,400 $7,150 - - - Recent Developments • Total Gross Margin is flat in all years due to changes in power prices offset by our hedges and execution of $150M, $50M and $50M of power new business in 2019, 2020 and 2021, respectively • Behind ratable hedging position reflects the fundamental upside we see in power prices ― ~8-11% behind ratable in 2020 when considering cross commodity hedges ― ~1-4% behind ratable in 2021 when considering cross commodity hedges (1) Gross margin categories rounded to nearest $50M (2) Excludes EDF’s equity ownership share of the CENG Joint Venture (3) Mark-to-Market of Hedges assumes mid-point of hedge percentages (4) Based on March 31, 2019 market conditions (5) Reflects TMI retirement by September 2019 15 Q1 2019 Earnings Release Slides

 
Maintaining Strong Investment Grade Credit Ratings is a Top Financial Priority Exelon S&P FFO/Debt %*(1,4) ExGen Debt/EBITDA Ratio*(5) 25% 4.0 20% 19%-21% 20% 3.0x S&P Threshold 3.0 15% 2.4x 2.0 1.9x 10% Book Excluding Non-Recourse 5% 1.0 0% 0.0 2019 Target 2019 Target Credit Ratings by Operating Company Current Ratings(2,3) ExCorp ExGen ComEd PECO BGE ACE DPL Pepco Moody’s Baa2 Baa2 A1 Aa3 A3 A3(3) A2 A2 S&P BBB BBB+ A A A A A A Fitch BBB+ BBB A A+ A A- A A- (1) Due to ring-fencing, S&P deconsolidates BGE from Exelon and analyzes solely as an equity investment (2) Table reflects senior unsecured ratings as of March 31, 2019 for Exelon, Exelon Generation and BGE and senior secured ratings for ComEd, PECO, ACE, DPL and Pepco. Exelon’s S&P Issuer credit rating (not shown in table) is BBB+ as of March 31, 2019. (3) ACE is on “Positive” outlook at Moody’s; all other ratings have a “Stable” outlook (4) Exelon Corp downgrade threshold (red dotted line) is based on the S&P Exelon Corp Summary Report; represents minimum level to maintain current Issuer Credit Rating at Exelon Corp (5) Reflects net book debt (YE debt less cash on hand) / adjusted operating EBITDA* 16 Q1 2019 Earnings Release Slides

 
The Exelon Value Proposition ▪ Regulated Utility Growth with utility EPS rising 6-8% annually from 2018- 2022 and rate base growth of 7.8%, representing an expanding majority of earnings ▪ ExGen’s strong free cash generation will provide ~$4.2B for utility growth and reduce debt by ~$2.5B over the next 4 years ▪ Optimizing ExGen value by: • Seeking fair compensation for the zero-carbon attributes of our fleet; • Closing uneconomic plants; • Monetizing assets; and, • Maximizing the value of the fleet through our generation to load matching strategy ▪ Strong balance sheet is a priority with all businesses comfortably meeting investment grade credit metrics through the 2022 planning horizon ▪ Capital allocation priorities targeting: • Organic utility growth; • Return of capital to shareholders with 5% annual dividend growth through 2020(1), • Debt reduction; and, • Modest contracted generation investments (1) Quarterly dividends are subject to declaration by the board of directors 17 Q1 2019 Earnings Release Slides

 
Additional Disclosures 18 Q1 2019 Earnings Release Slides

 
2019 Projected Sources and Uses of Cash Total Cash ($M)(1) BGE ComEd PECO PHI ExGen Corp(8) Exelon Utilities Balance (2) (1) All amounts rounded to the nearest Beginning Cash Balance 1,825 $25M. Figures may not add due to Adjusted Cash Flow from Operations(2) 650 1,400 725 1,025 3,825 4,000 (300) 7,550 rounding Base CapEx and Nuclear Fuel(3) - - - - - (1,775) (50) (1,850) (2) Gross of posted counterparty Free Cash Flow* 650 1,400 725 1,025 3,825 2,225 (350) 5,700 collateral Debt Issuances 300 700 300 375 1,675 - - 1,675 (3) Figures reflect cash CapEx and Debt Retirements - (300) - - (300) (625) - (925) CENG fleet at 100% Project Financing n/a n/a n/a n/a n/a (100) n/a (100) (4) Other Financing primarily includes Equity Issuance/Share Buyback - - - - - - - - expected changes in money pool, renewable JV distributions, tax Contribution from Parent 200 250 150 225 825 - (825) - equity cash flows, EDF Tax Other Financing(4) 200 200 50 - 425 (125) 100 400 distributions and capital leases Financing(5) 700 850 500 600 2,625 (850) (725) 1,050 (5) Financing cash flow excludes Total Free Cash Flow* and Financing 1,350 2,250 1,225 1,625 6,450 1,375 (1,075) 6,750 intercompany dividends Utility Investment (1,125) (1,875) (975) (1,375) (5,325) - - (5,325) (6) ExGen Growth CapEx primarily ExGen Growth(3,6) - - - - - (150) - (150) includes Retail Solar and W. Acquisitions and Divestitures - - - - - 25 - 25 Medway Equity Investments - - - - - (25) - (25) (7) Dividends are subject to declaration by the Board of Directors Dividend(7) - - - - - - - (1,400) Other CapEx and Dividend (1,125) (1,875) (975) (1,375) (5,325) (150) - (6,900) (8) Includes cash flow activity from Holding Company, eliminations and Total Cash Flow 250 375 250 250 1,125 1,225 (1,075) (125) other corporate entities Ending Cash Balance(2) 1,700 Consistent and reliable free cash flows* Supported by a strong balance sheet Enable growth & value creation Strong balance sheet enables flexibility to Creating value for customers, Operational excellence and financial raise and deploy capital for growth communities and shareholders discipline drives free cash flow* reliability ✓ $1.4B of long-term debt at the utilities, net ✓ Investing $5.5B of growth CapEx, with ✓ Generating $5.7B of free cash flow*, of refinancing, to support continued growth $5.3B at the Utilities and $0.2B at ExGen including $2.2B at ExGen and $3.8B at the and retirement of $0.7B of ExGen debt Utilities Note: Numbers may not add due to rounding 19 Q1 2019 Earnings Release Slides

 
Exelon Utilities 20 Q1 2019 Earnings Release Slides

 
BGE (Gas) Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. Case No. 9484 • Case filed on June 8, 2018 seeking an increase in gas distribution revenues only Test Year August 1, 2017 – July 31, 2018 • The increase is primarily driven by infrastructure investments since 2015/2016, and includes Test Period 12 months actual moving revenues currently being recovered via the Common Equity Ratio 52.85%(1) STRIDE surcharge into base rates • The Commission issued its order on this case on (1) Rate of Return ROE: 9.80%; ROR: 7.09% January 4, 2019 Rate Base (Adjusted) $1.6B Revenue Requirement Increase $64.9M(1) Residential Total Bill % Increase ~2.4%(2) Detailed Rate Case Schedule Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Filed rate case 6/8/2018 Intervenor testimony 9/14/2018 Rebuttal testimony 10/12/2018 Evidentiary hearings 11/2/2018 – 11/16/2018 Initial briefs due 11/2018 Reply briefs due 12/2018 Commission order 1/4/2019 (1) Reflects $43.2M increase and $21.7M STRIDE reset. Test year updated for May-July 2018 actuals and reflects long-term debt issuance made in September 2018. (2) Increase expressed as a percentage of a combined electric and gas residential customer total bill 21 Q1 2019 Earnings Release Slides

 
ACE Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. ER-18080925 • August 21, 2018, ACE filed a distribution base rate case with the New Jersey Board of Public Utilities Test Year January 1, 2018 – December 31, 2018 (BPU) to increase distribution base rates Test Period 12 months actual • March 4, 2019, ACE filed a Settlement Agreement and requested an increase in revenue requirement Common Equity Ratio 49.94% of $70.0M • March 13, 2019, BPU approved settlement which Rate of Return ROE: 9.60%; ROR: 7.08% placed rates in effect on April 1, 2019 Rate Base (Adjusted) $1.5B Revenue Requirement Increase $70.0M(1) Residential Total Bill % Increase 6.12% Detailed Rate Case Schedule Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Filed rate case 8/21/2018 Settlement Agreement 3/4/2019 Commission order 3/13/2019 (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings 22 Q1 2019 Earnings Release Slides

 
Pepco MD (Electric) Distribution Rate Case Filing Rate Case Filing Details Notes Case No. 9602 • Pepco MD filed an application with the Maryland Public Service Commission (MDPSC) Test Year February 1, 2018 – January 31, 2019 on January 15, 2019, seeking an increase in Test Period 12 months actual electric distribution base rates • Size of ask is driven by continued investments Requested Common Equity Ratio 50.46% in electric distribution system to maintain and Requested Rate of Return ROE: 10.30%; ROR: 7.81% increase reliability and customer service • Forward looking reliability plant additions Proposed Rate Base (Adjusted) $2.0B through July 2019 ($4.3M of Revenue Requirement based on 10.30% ROE) included Requested Revenue Requirement Increase $27.2M in revenue requirement request Residential Total Bill % Increase 2.66% Detailed Rate Case Schedule Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Filed rate case 1/15/2019 Intervenor testimony 4/12/2019 Rebuttal testimony 4/30/2019 Evidentiary hearings 5/21/2019 - 5/24/2019 Initial briefs 6/17/2019 Commission order expected 8/13/2019 23 Q1 2019 Earnings Release Slides

 
ComEd Distribution Rate Case Filing Rate Case Filing Details Notes Docket No. 19-0387 • April 8, 2019, ComEd filed its annual distribution formula rate update with the Illinois Test Year January 1, 2018 – December 31, 2018 Commerce Commission seeking a decrease to Test Period 2018 Actual Costs + 2019 Projected Plant distribution base rates Additions Requested Common Equity Ratio 47.97% Requested Rate of Return ROE: 8.91%; ROR: 6.53% Proposed Rate Base (Adjusted) $11,372M Requested Revenue Requirement Increase ($6.4M)(1) Residential Total Bill % Increase (0.4%) Detailed Rate Case Schedule(2) Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Filed rate case 4/8/2019 Intervenor testimony 6/2019 Rebuttal testimony 7/2019 Evidentiary hearings 8/2019 Initial briefs 9/2019 Reply briefs 9/2019 Commission order expected 12/2019 (1) Revenue requirement includes changes in depreciation and amortization expense and other costs where applicable, which have no impact on pre-tax earnings (2) Anticipated schedule, actual dates will be determined by ALJ at status hearing 24 Q1 2019 Earnings Release Slides

 
Exelon Generation Disclosures March 31, 2019 25 Q1 2019 Earnings Release Slides

 
Portfolio Management Strategy Align Hedging & Financials Portfolio Management Over Time Exercising Market Views Establishing Minimum Hedge Targets % Hedged High End of Profit Low End of Profit Purely ratable Capital Credit Rating Structure Actual hedge % % Hedged % Capital & Market views on timing, product Operating Dividend allocation and regional spreads Expenditure Open Generation Portfolio Management & reflected in actual hedge % with LT Contracts Optimization Protect Balance Sheet Ensure Earnings Stability Create Value 26 Q1 2019 Earnings Release Slides

 
Components of Gross Margin* Categories Gross margin from Gross margin linked to power production and sales other business activities Open Gross Capacity and ZEC MtM of “Power” New “Non Power” “Non Power” Margin Revenues Hedges(2) Business Executed New Business •Generation Gross •Expected capacity •Mark-to-Market •Retail, Wholesale •Retail, Wholesale •Retail, Wholesale Margin at current revenues for (MtM) of power, planned electric executed gas sales planned gas sales market prices, generation of capacity and sales •Energy •Energy including ancillary electricity ancillary hedges, •Portfolio Efficiency(4) Efficiency(4) revenues, nuclear •Expected including cross Management new •BGE Home(4) •BGE Home(4) fuel amortization commodity, retail revenues from business •Distributed Solar •Distributed Solar and fuels expense Zero Emissions and wholesale •Mid marketing •Portfolio •Power Purchase Credits (ZEC) load transactions new business Management / Agreement (PPA) •Provided directly origination fuels Costs and at a consolidated new business Revenues level for four major •Proprietary •Provided at a regions. Provided trading(3) consolidated level indirectly for each for all regions of the four major (includes hedged regions via gross margin for Effective Realized South, West, New Energy Price England and (EREP), reference Canada(1)) price, hedge %, expected generation. Margins move from new business to Margins move from “Non power new MtM of hedges over the course of the business” to “Non power executed” over year as sales are executed(5) the course of the year (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 27 Q1 2019 Earnings Release Slides

 
ExGen Disclosures Gross Margin Category ($M)(1) 2019 2020 2021 Open Gross Margin (including South, West, New England & Canada hedged GM)(2,5) $4,200 $4,100 $3,800 Capacity and ZEC Revenues(2,5) $2,050 $1,900 $1,850 Mark-to-Market of Hedges(2,3) $550 $250 $100 Power New Business / To Go $350 $650 $850 Non-Power Margins Executed $300 $150 $150 Non-Power New Business / To Go $200 $350 $400 Total Gross Margin*(4,5) $7,650 $7,400 $7,150 Reference Prices(1) 2019 2020 2021 Henry Hub Natural Gas ($/MMBtu) $2.88 $2.74 $2.65 Midwest: NiHub ATC prices ($/MWh) $26.00 $25.76 $24.59 Mid-Atlantic: PJM-W ATC prices ($/MWh) $30.11 $32.26 $31.04 ERCOT-N ATC Spark Spread ($/MWh) $12.18 $9.54 $6.58 HSC Gas, 7.2HR, $2.50 VOM New York: NY Zone A ($/MWh) $29.71 $31.77 $32.77 (1) Gross margin categories rounded to nearest $50M (2) Excludes EDF’s equity ownership share of the CENG Joint Venture (3) Mark-to-Market of Hedges assumes mid-point of hedge percentages (4) Based on March 31, 2019 market conditions (5) Reflects TMI retirement by September 2019 28 Q1 2019 Earnings Release Slides

 
ExGen Disclosures Generation and Hedges 2019 2020 2021 Exp. Gen (GWh)(1) 191,400 184,400 180,000 Midwest 97,000 96,400 95,300 Mid-Atlantic(2,6) 53,900 48,100 48,500 ERCOT 23,800 24,200 19,600 New York(2) 16,700 15,700 16,600 % of Expected Generation Hedged(3) 90%-93% 64%-67% 38%-41% Midwest 90%-93% 64%-67% 34%-37% Mid-Atlantic(2,6) 97%-100% 71%-74% 47%-50% ERCOT 79%-82% 54%-57% 27%-30% New York(2) 81%-84% 57%-60% 48%-51% Effective Realized Energy Price ($/MWh)(4) Midwest $28.50 $28.00 $28.00 Mid-Atlantic(2,6) $38.50 $37.00 $32.50 ERCOT(5) $2.00 $3.00 $3.50 New York(2) $34.50 $35.50 $31.50 (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 11 refueling outages in 2019, 14 in 2020, and 13 in 2021 at Exelon-operated nuclear plants and Salem. Expected generation assumes capacity factors of 94.9%, 93.9%, and 94.1% in 2019, 2020, and 2021, respectively at Exelon- operated nuclear plants, at ownership. These estimates of expected generation in 2020 and 2021 do not represent guidance or a forecast of future results as Exelon has not completed its planning or optimization processes for those years. (2) Excludes EDF’s equity ownership share of CENG Joint Venture (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. (5) Spark spreads shown for ERCOT (6) Reflects TMI retirement by September 2019 29 Q1 2019 Earnings Release Slides

 
ExGen Hedged Gross Margin* Sensitivities Gross Margin* Sensitivities (with existing hedges)(1) 2019 2020 2021 Henry Hub Natural Gas ($/MMBtu) + $1/MMBtu $90 $305 $485 - $1/MMBtu $(65) $(265) $(430) NiHub ATC Energy Price + $5/MWh $25 $155 $320 - $5/MWh $(20) $(155) $(320) PJM-W ATC Energy Price + $5/MWh $(5) $55 $135 - $5/MWh $10 $(55) $(130) NYPP Zone A ATC Energy Price + $5/MWh - $15 $35 - $5/MWh - $(15) $(35) Nuclear Capacity Factor +/- 1% +/- $30 +/- $35 +/- $30 (1) Based on March 31, 2019, 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; excludes EDF’s equity share of CENG Joint Venture 30 Q1 2019 Earnings Release Slides

 
ExGen Hedged Gross Margin* Upside/Risk 9,000 8,500 (1) $8,000 8,000 $7,800 $7,750 7,500 $7,450 7,000 $7,100 $6,650 Approximate Gross ($ Margin* million) Gross Approximate 6,500 6,000 2019 2020 2021 (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 ranges are based upon an internal simulation model and are subject to change based upon market inputs, future transactions and potential modeling changes; these ranges of approximate gross margin in 2020 and 2021 do not represent earnings guidance or a forecast of future results as Exelon has not completed its planning or optimization processes for those years; the price distributions that generate this range are calibrated to market quotes for power, fuel, load following products, and options as of March 31, 2019. Gross Margin Upside/Risk based on commodity exposure which includes open generation and all committed transactions. Reflects TMI retirement by September 2019. 31 Q1 2019 Earnings Release Slides

 
Illustrative Example of Modeling Exelon Generation 2020 Total Gross Margin* South, Mid- Row Item Midwest ERCOT New York West, NE & Atlantic Canada (A) Start with fleet-wide open gross margin $4.1 billion (B) Capacity and ZEC $1.9 billion (C) Expected Generation (TWh) 96.4 48.1 24.2 15.7 (D) Hedge % (assuming mid-point of range) 65.5% 72.5% 55.5% 58.5% (E=C*D) Hedged Volume (TWh) 63.1 34.9 13.4 9.2 (F) Effective Realized Energy Price ($/MWh) $28.00 $37.00 $3.00 $35.50 (G) Reference Price ($/MWh) $25.76 $32.26 $9.54 $31.77 (H=F-G) Difference ($/MWh) $2.24 $4.74 ($6.54) $3.73 (I=E*H) Mark-to-Market value of hedges ($ million)(1) $140 $165 ($90) $35 (J=A+B+I) Hedged Gross Margin ($ million) $6,250 (K) Power New Business / To Go ($ million) $650 (L) Non-Power Margins Executed ($ million) $150 (M) Non-Power New Business / To Go ($ million) $350 (N=J+K+L+M) Total Gross Margin* $7,400 million (1) Mark-to-market rounded to the nearest $5M 32 Q1 2019 Earnings Release Slides

 
Additional ExGen Modeling Data Total Gross Margin Reconciliation (in $M)(1) 2019 2020 2021 Revenue Net of Purchased Power and Fuel Expense*(2,3) $8,075 $7,825 $7,550 Other Revenues(4) $(175) $(175) $(150) Direct cost of sales incurred to generate revenues for certain $(250) $(250) $(250) Constellation and Power businesses Total Gross Margin* (Non-GAAP) $7,650 $7,400 $7,150 Key ExGen Modeling Inputs (in $M)(1,5) 2019 Other(6) $125 Adjusted O&M*(7) $(4,325) Taxes Other Than Income (TOTI)(8) $(400) Depreciation & Amortization*(9) $(1,125) Interest Expense $(400) Effective Tax Rate 21.0% (1) All amounts rounded to the nearest $25M (2) ExGen does not forecast the GAAP components of RNF separately, as to do so would be unduly burdensome. RNF also includes the RNF of our proportionate ownership share of CENG. (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, gross receipts tax revenues and JExel Nuclear JV (5) ExGen amounts for O&M, TOTI, Depreciation & Amortization; excludes EDF’s equity ownership share of the CENG Joint Venture (6) Other reflects Other Revenues excluding gross receipts tax revenues, includes nuclear decommissioning trust fund earnings from unregulated sites, and includes the minority interest in ExGen Renewables JV and Bloom (7) Adjusted O&M* includes $200M of non-cash expense related to the increase in the ARO liability due to the passage of time (8) TOTI excludes gross receipts tax of $150M (9) 2020 Depreciation & Amortization is favorable to 2019 by $50M, while 2021 Depreciation & Amortization is favorable to 2019 by $25M 33 Q1 2019 Earnings Release Slides

 
Appendix Reconciliation of Non-GAAP Measures 34 Q1 2019 Earnings Release Slides

 
Q1 QTD GAAP EPS Reconciliation Three Months Ended March 31, 2019 ComEd PECO BGE PHI ExGen Other Exelon 2019 GAAP Earnings (Loss) Per Share $0.16 $0.17 $0.17 $0.12 $0.37 $(0.06) $0.93 Mark-to-market impact of economic hedging activities - - - - 0.03 - 0.03 Unrealized gains related to NDT funds - - - - (0.20) - (0.20) Plant retirements and divestitures - - - - 0.02 - 0.02 Cost management program - - - - 0.01 - 0.01 Noncontrolling interests - - - - 0.07 - 0.07 2019 Adjusted (non-GAAP) Operating Earnings (Loss) Per $0.16 $0.17 $0.17 $0.12 $0.30 $(0.06) $0.87 Share Note: All amounts shown are per Exelon share and represent contributions to Exelon's EPS. Amounts may not add due to rounding. 35 Q1 2019 Earnings Release Slides

 
Q1 QTD GAAP EPS Reconciliation (continued) Three Months Ended March 31, 2018 ComEd PECO BGE PHI ExGen Other Exelon 2018 GAAP Earnings (Loss) Per Share $0.17 $0.12 $0.13 $0.07 $0.14 ($0.02) $0.60 Mark-to-market impact of economic hedging activities - - - - 0.20 - 0.20 Unrealized losses related to NDT funds - - - - 0.07 - 0.07 Plant retirements and divestitures - - - - - - 0.01 Cost management program - - - - 0.10 - 0.10 Noncontrolling interests - - - - (0.02) - (0.02) 2018 Adjusted (non-GAAP) Operating Earnings (Loss) Per $0.17 $0.12 $0.13 $0.07 $0.49 ($0.02) $0.96 Share Note: All amounts shown are per Exelon share and represent contributions to Exelon's EPS. Amounts may not add due to rounding. 36 Q1 2019 Earnings Release Slides

 
Projected GAAP to Operating Adjustments • Exelon’s projected 2019 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; − Certain costs incurred related to plant retirements; − Certain costs incurred to achieve cost management program savings; − Other unusual items; and − Generation's noncontrolling interest related to CENG exclusion items. 37 Q1 2019 Earnings Release Slides

 
GAAP to Non-GAAP Reconciliations(1) (2) Exelon FFO/Debt = FFO (a) Adjusted Debt (b) Exelon FFO Calculation(2) GAAP Operating Income + Depreciation & Amortization = EBITDA - GAAP Interest Expense +/- GAAP Current Income Tax (Expense)/Benefit + Nuclear Fuel Amortization +/- GAAP to Operating Adjustments +/- Other S&P Adjustments = FFO (a) Exelon Adjusted Debt Calculation(1) Long-Term Debt (including current maturities) + Short-Term Debt + Purchase Power Agreement and Operating Lease Imputed Debt + Pension/OPEB Imputed Debt (after-tax) - Off-Credit Treatment of Non-Recourse Debt - Cash on Balance Sheet * 75% +/- Other S&P Adjustments = Adjusted Debt (b) (1) 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; therefore, management is unable to reconcile these measures (2) Calculated using S&P Methodology. Due to ring-fencing, S&P deconsolidates BGE from Exelon and analyzes solely as an equity investment 38 Q1 2019 Earnings Release Slides

 
GAAP to Non-GAAP Reconciliations(1) ExGen Debt/EBITDA = Net Debt (a) ExGen Debt/EBITDA = Net Debt (c) Operating EBITDA (b) Excluding Non-Recourse Operating EBITDA (d) ExGen Net Debt Calculation ExGen Net Debt Calculation Excluding Non-Recourse Long-Term Debt (including current maturities) Long-Term Debt (including current maturities) + Short-Term Debt + Short-Term Debt - Cash on Balance Sheet - Cash on Balance Sheet = Net Debt (a) - Non-Recourse Debt = Net Debt Excluding Non-Recourse (c) ExGen Operating EBITDA Calculation ExGen Operating EBITDA Calculation Excluding Non- Recourse GAAP Operating Income + Depreciation & Amortization GAAP Operating Income = EBITDA + Depreciation & Amortization +/- GAAP to Operating Adjustments = EBITDA = Operating EBITDA (b) +/- GAAP to Operating Adjustments - EBITDA from Projects Financed by Non-Recourse Debt = Operating EBITDA Excluding Non-Recourse (d) (1) 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; therefore, management is unable to reconcile these measures 39 Q1 2019 Earnings Release Slides

 
GAAP to Non-GAAP Reconciliations Legacy EXC Consolidated Q1 2019 Operating ROE Reconciliation ($M) PHI Utilities Utilities EU Net Income (GAAP) $454 $1,516 $1,970 Operating Exclusions $26 $7 $33 Adjusted Operating Earnings $479 $1,523 $2,003 Average Equity $5,171 $14,477 $19,648 Operating ROE (Adjusted Operating Earnings/Average Equity) 9.3% 10.5% 10.2% Legacy EXC Consolidated Q4 2018 Operating ROE Reconciliation ($M) PHI Utilities Utilities EU Net Income (GAAP) $405 $1,437 $1,842 Operating Exclusions $25 $7 $32 Adjusted Operating Earnings $430 $1,444 $1,874 Average Equity $5,142 $14,245 $19,387 Operating ROE (Adjusted Operating Earnings/Average Equity) 8.4% 10.1% 9.7% ExGen Adjusted O&M Reconciliation ($M)(1) 2019 GAAP O&M $4,950 Decommissioning(2) 125 Direct cost of sales incurred to generate revenues for certain Constellation and Power businesses(3) (250) O&M for managed plants that are partially owned (400) Other (100) Adjusted O&M (Non-GAAP) $4,325 Note: Items may not sum due to rounding (1) All amounts rounded to the nearest $25M (2) Reflects asset retirement obligation update for TMI and earnings neutral O&M (3) Reflects the direct cost of sales of certain businesses, which are included in Total Gross Margin* 40 Q1 2019 Earnings Release Slides

 
GAAP to Non-GAAP Reconciliations 2019 Adjusted Cash from Ops Calculation ($M)(1) BGE ComEd PECO PHI ExGen Other Exelon Net cash flows provided by operating activities (GAAP) $650 $1,400 $725 $1,025 $4,200 ($300) $7,725 Other cash from investing activities - - - - ($275) - ($275) Counterparty collateral activity - - - - $100 - $100 Adjusted Cash Flow from Operations $650 $1,400 $725 $1,025 $4,000 ($300) $7,550 2019 Cash From Financing Calculation ($M)(1) BGE ComEd PECO PHI ExGen Other Exelon Net cash flow provided by financing activities (GAAP) $475 $350 $150 $250 ($1,750) $200 ($350) Dividends paid on common stock $225 $500 $350 $350 $900 ($925) $1,400 Financing Cash Flow $700 $850 $500 $600 ($850) ($725) $1,050 Exelon Total Cash Flow Reconciliation(1) 2019 GAAP Beginning Cash Balance $1,250 Adjustment for Cash Collateral Posted $575 Adjusted Beginning Cash Balance(3) $1,825 Net Change in Cash (GAAP)(2) ($125) Adjusted Ending Cash Balance(3) $1,700 Adjustment for Cash Collateral Posted ($550) GAAP Ending Cash Balance $1,150 (1) All amounts rounded to the nearest $25M. Items may not sum due to rounding. (2) Represents the GAAP measure of net change in cash, which is the sum of cash flow from operations, cash from investing activities, and cash from financing activities. Figures reflect cash capital expenditures and CENG fleet at 100%. (3) Adjusted Beginning and Ending cash balances reflect GAAP Beginning and End Cash Balances excluding counterparty collateral activity 41 Q1 2019 Earnings Release Slides

 
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Q1 2019 GAAP Earnings $0.93 per share We have met or beaten1 the mid-point of our earnings guidance Adjusted earnings range for 15 of the past 17 quarters of $0.87 per share* MILESTONES & RECOGNITION OPERATIONAL METRICS Workforce of the Future Utilities Exelon Utilities CEO Anne Pramaggiore testified in support of Blue Collar to Green Collar Jobs Act Strong reliability performance with BGE before the House Energy & Commerce Committee and ComEd achieving top decile performance in CAIDI Zero Emissions Excellent Customer Operation metrics Credit (ZEC) across the utilities U.S. Supreme Court armed that states have the right to enact clean energy programs like ZECs Top quartile Gas Odor Response across all utilities with PECO and PHI achieving top decile performance World's Most Admired Companies 2019 Exelon made Fortune’s coveted list for the 12th year Continued best-in-class performance Pepco Holdings Merger across our generation fleet: Atlantic City Electric, Delmarva Power and Pepco celebrate three years as Exelon Companies 97. 1% Q1 Nuclear Capacity Factor² Best quarterly capacity factor in more than More than $470 million 10 years In total economic impact in our communities 96.5% More than $15 million Q1 2019 Renewables energy capture In charitable giving across our communities supporting hundreds of local partners 97.8 % Q1 2019 Power dispatch match Approx. $4 billion Invested in modernizing and enhancing the 39.2 TWhs local energy grid Owned and operated Q1 nuclear production² * For reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables in our press release (1) Non-GAAP Earnings are used for setting guidance and comparing to actual results (2) Excludes Salem