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Commonwealth Edison

Filed: 3 Aug 21, 8:00pm
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2021
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File NumberName of Registrant; State or Other Jurisdiction of Incorporation; Address of Principal Executive Offices; and Telephone NumberIRS Employer Identification Number
001-16169EXELON CORPORATION23-2990190
(a Pennsylvania corporation)
10 South Dearborn Street
P.O. Box 805379
Chicago, Illinois 60680-5379
(800) 483-3220
333-85496EXELON GENERATION COMPANY, LLC23-3064219
(a Pennsylvania limited liability company)
300 Exelon Way
Kennett Square, Pennsylvania 19348-2473
(610) 765-5959
001-01839COMMONWEALTH EDISON COMPANY36-0938600
(an Illinois corporation)
440 South LaSalle Street
Chicago, Illinois 60605-1028
(312) 394-4321
000-16844PECO ENERGY COMPANY23-0970240
(a Pennsylvania corporation)
P.O. Box 8699
2301 Market Street
Philadelphia, Pennsylvania 19101-8699
(215) 841-4000
001-01910BALTIMORE GAS AND ELECTRIC COMPANY52-0280210
(a Maryland corporation)
2 Center Plaza
110 West Fayette Street
Baltimore, Maryland 21201-3708
(410) 234-5000
001-31403PEPCO HOLDINGS LLC52-2297449
(a Delaware limited liability company)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000
001-01072POTOMAC ELECTRIC POWER COMPANY53-0127880
(a District of Columbia and Virginia corporation)
701 Ninth Street, N.W.
Washington, District of Columbia 20068
(202) 872-2000
001-01405DELMARVA POWER & LIGHT COMPANY51-0084283
(a Delaware and Virginia corporation)
500 North Wakefield Drive
Newark, Delaware 19702
(202) 872-2000
001-03559ATLANTIC CITY ELECTRIC COMPANY21-0398280
(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 classTrading Symbol(s)Name of each exchange on which registered
EXELON CORPORATION:
Common stock, without par valueEXCThe Nasdaq Stock Market LLC
PECO ENERGY COMPANY:
Trust Receipts of PECO Energy Capital Trust III, each representing a 7.38% Cumulative Preferred Security, Series D, $25 stated value, issued by PECO Energy Capital, L.P. and unconditionally guaranteed by PECO Energy CompanyEXC/28New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x  No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Exelon CorporationLarge Accelerated FilerxAccelerated FilerNon-accelerated FilerSmaller Reporting CompanyEmerging Growth Company
Exelon Generation Company, LLCLarge Accelerated FilerAccelerated FilerNon-accelerated FilerxSmaller Reporting CompanyEmerging Growth Company
Commonwealth Edison CompanyLarge Accelerated FilerAccelerated FilerNon-accelerated FilerxSmaller Reporting CompanyEmerging Growth Company
PECO Energy CompanyLarge Accelerated FilerAccelerated FilerNon-accelerated FilerxSmaller Reporting CompanyEmerging Growth Company
Baltimore Gas and Electric CompanyLarge Accelerated FilerAccelerated FilerNon-accelerated FilerxSmaller Reporting CompanyEmerging Growth Company
Pepco Holdings LLCLarge Accelerated FilerAccelerated FilerNon-accelerated FilerxSmaller Reporting CompanyEmerging Growth Company
Potomac Electric Power CompanyLarge Accelerated FilerAccelerated FilerNon-accelerated FilerxSmaller Reporting CompanyEmerging Growth Company
Delmarva Power & Light CompanyLarge Accelerated FilerAccelerated FilerNon-accelerated FilerxSmaller Reporting CompanyEmerging Growth Company
Atlantic City Electric CompanyLarge Accelerated FilerAccelerated FilerNon-accelerated FilerxSmaller Reporting CompanyEmerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has 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. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes    No  x

The number of shares outstanding of each registrant’s common stock as of June 30, 2021 was:
Exelon Corporation Common Stock, without par value977,832,660
Exelon Generation Company, LLCnot applicable
Commonwealth Edison Company Common Stock, $12.50 par value127,021,380
PECO Energy Company Common Stock, without par value170,478,507
Baltimore Gas and Electric Company Common Stock, without par value1,000
Pepco Holdings LLCnot applicable
Potomac Electric Power Company Common Stock, $0.01 par value100
Delmarva Power & Light Company Common Stock, $2.25 par value1,000
Atlantic City Electric Company Common Stock, $3.00 par value8,546,017



TABLE OF CONTENTS
1





2





3




GLOSSARY OF TERMS AND ABBREVIATIONS
Exelon Corporation and Related Entities
ExelonExelon Corporation
GenerationExelon Generation Company, LLC
ComEdCommonwealth Edison Company
PECOPECO Energy Company
BGEBaltimore Gas and Electric Company
Pepco Holdings or PHIPepco Holdings LLC
PepcoPotomac Electric Power Company
DPLDelmarva Power & Light Company
ACEAtlantic City Electric Company
RegistrantsExelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE, collectively
Utility RegistrantsComEd, PECO, BGE, Pepco, DPL, and ACE, collectively
ACE Funding or ATFAtlantic City Electric Transition Funding LLC
Antelope ValleyAntelope Valley Solar Ranch One
BSCExelon Business Services Company, LLC
CENGConstellation Energy Nuclear Group, LLC
ConstellationConstellation Energy Group, Inc.
EGR IVExGen Renewables IV, LLC
EGRPExGen Renewables Partners, LLC
Exelon CorporateExelon in its corporate capacity as a holding company
FitzPatrickJames A. FitzPatrick nuclear generating station
NERNewEnergy Receivables LLC
PCIPotomac Capital Investment Corporation and its subsidiaries
PECO Trust IIIPECO Energy Capital Trust III
PECO Trust IVPECO Energy Capital Trust IV
Pepco Energy ServicesPepco Energy Services, Inc. and its subsidiaries
PHI CorporatePHI in its corporate capacity as a holding company
PHISCOPHI Service Company
RPGRenewable Power Generation
SolGenSolGen, LLC
TMIThree Mile Island nuclear facility
4




GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
Note - of the 2020 Form 10-KReference to specific Combined Note to Consolidated Financial Statements within Exelon's 2020 Annual Report on Form 10-K
AECAlternative Energy Credit that is issued for each megawatt hour of generation from a qualified alternative energy source
AESOAlberta Electric Systems Operator
AFUDCAllowance for Funds Used During Construction
AMIAdvanced Metering Infrastructure
AOCIAccumulated Other Comprehensive Income (Loss)
ARCAsset Retirement Cost
AROAsset Retirement Obligation
BGSBasic Generation Service
CBACollective Bargaining Agreement
CERCLAComprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended
CESClean Energy Standard
Clean Water ActFederal Water Pollution Control Amendments of 1972, as amended
CODMChief operating decision maker(s)
D.C. Circuit CourtUnited States Court of Appeals for the District of Columbia Circuit
DC PLUGDistrict of Columbia Power Line Undergrounding Initiative
DCPSCPublic Service Commission of the District of Columbia
DOEUnited States Department of Energy
DOEEDistrict of Columbia Department of Energy & Environment
DOJUnited States Department of Justice
DPPDeferred Purchase Price
DPSCDelaware Public Service Commission
EDFElectricite de France SA and its subsidiaries
EIMAEnergy Infrastructure Modernization Act (Illinois Senate Bill 1652 and Illinois House Bill 3036)
EPAUnited States Environmental Protection Agency
ERCOTElectric Reliability Council of Texas
FEJAIllinois Public Act 99-0906 or Future Energy Jobs Act
FERCFederal Energy Regulatory Commission
FRCCFlorida Reliability Coordinating Council
FRRFixed Resource Requirement
GAAPGenerally Accepted Accounting Principles in the United States
GCRGas Cost Rate
GHGGreenhouse Gas
GSAGeneration Supply Adjustment
IBEWInternational Brotherhood of Electrical Workers
ICCIllinois Commerce Commission
ICEIntercontinental Exchange
IPAIllinois Power Agency
IRCInternal Revenue Code
IRSInternal Revenue Service
ISOIndependent System Operator
ISO-NEIndependent System Operator New England Inc.
5




GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
LIBORLondon Interbank Offered Rate
MDEMaryland Department of the Environment
MDPSCMaryland Public Service Commission
MGPManufactured Gas Plant
MISOMidcontinent Independent System Operator, Inc.
mmcfMillion Cubic Feet
MOPRMinimum Offer Price Rule
MPSCMissouri Public Service Commission
MWMegawatt
MWhMegawatt hour
NAVNet Asset Value
N/ANot applicable
NDTNuclear Decommissioning Trust
NERCNorth American Electric Reliability Corporation
NGXNatural Gas Exchange
NJBPUNew Jersey Board of Public Utilities
Non-Regulatory Agreement UnitsNuclear generating units or portions thereof whose decommissioning-related activities are not subject to contractual elimination under regulatory accounting
NOSANuclear Operating Services Agreement
NPNSNormal Purchase Normal Sale scope exception
NPSNational Park Service
NRCNuclear Regulatory Commission
NYISONew York Independent System Operator Inc.
NYMEXNew York Mercantile Exchange
NYPSCNew York Public Service Commission
OCIOther Comprehensive Income
OIESOOntario Independent Electricity System Operator
OPEBOther Postretirement Employee Benefits
PAPUCPennsylvania Public Utility Commission
PGCPurchased Gas Cost Clause
PG&EPacific Gas and Electric Company
PJMPJM Interconnection, LLC
POLRProvider of Last Resort
PPAPower Purchase Agreement
Price-Anderson ActPrice-Anderson Nuclear Industries Indemnity Act of 1957
PRPPotentially Responsible Parties
PSDARPost-Shutdown Decommissioning Activities Report
PSEGPublic Service Enterprise Group Incorporated
PUCTPublic Utility Commission of Texas
RECRenewable Energy Credit which is issued for each megawatt hour of generation from a qualified renewable energy source
Regulatory Agreement UnitsNuclear generating units or portions thereof whose decommissioning-related activities are subject to contractual elimination under regulatory accounting
RFPRequest for Proposal
RiderReconcilable Surcharge Recovery Mechanism
RMCRisk Management Committee
6




GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations
RNFRevenues Net of Purchased Power and Fuel Expense
ROEReturn on equity
ROURight-of-use
RTORegional Transmission Organization
S&PStandard & Poor’s Ratings Services
SECUnited States Securities and Exchange Commission
SERCSERC Reliability Corporation (formerly Southeast Electric Reliability Council)
SNFSpent Nuclear Fuel
SOSStandard Offer Service
STRIDEMaryland Strategic Infrastructure Development and Enhancement Program
Transition BondsTransition Bonds issued by ACE Funding
UGSOAUnited Government Security Officers of America
VIEVariable Interest Entity
WECCWestern Electric Coordinating Council
ZECZero Emission Credit, or Zero Emission Certificate
ZESZero Emission Standard
7




FILING FORMAT
This combined Form 10-Q is being filed separately by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants). Information contained herein relating to any individual Registrant is filed by such Registrant on its own behalf. No Registrant makes any representation as to information relating to any other Registrant.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
This Report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties including, among others, those related to the timing, manner, tax-free nature, and expected benefits associated with the potential separation of Exelon’s competitive power generation and customer-facing energy business from its six regulated electric and gas utilities. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.
The factors that could cause actual results to differ materially from the forward-looking statements made by the Registrants include those factors discussed herein, as well as the items discussed in (1) the Registrants' combined 2020 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies; (2) this Quarterly Report on Form 10-Q in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 15, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.
Investors are cautioned not to place undue reliance on these forward-looking statements, 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.
WHERE TO FIND MORE INFORMATION
The SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements, and other information that the Registrants file electronically with the SEC. These documents are also available to the public from commercial document retrieval services and the Registrants' website at www.exeloncorp.com. Information contained on the Registrants' website shall not be deemed incorporated into, or to be a part of, this Report.
8




PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
9





EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions, except per share data)2021202020212020
Operating revenues
Competitive businesses revenues$3,900 $3,612 $9,165 $8,016 
Rate-regulated utility revenues3,968 3,832 8,464 8,108 
Revenues from alternative revenue programs47 (122)176 (55)
Total operating revenues7,915 7,322 17,805 16,069 
Operating expenses
Competitive businesses purchased power and fuel1,952 1,945 6,562 4,655 
Rate-regulated utility purchased power and fuel1,064 979 2,422 2,136 
Operating and maintenance2,447 2,433 4,426 4,637 
Depreciation and amortization1,666 1,001 3,363 2,023 
Taxes other than income taxes432 411 870 847 
Total operating expenses7,561 6,769 17,643 14,298 
Gain on sales of assets and businesses12 12 83 13 
Operating income366 565 245 1,784 
Other income and (deductions)
Interest expense, net(390)(421)(770)(824)
Interest expense to affiliates(6)(6)(13)(13)
Other, net581 656 806 (68)
Total other income and (deductions)185 229 23 (905)
Income before income taxes551 794 268 879 
Income taxes74 219 55 (75)
Equity in losses of unconsolidated affiliates(1)(1)(2)(4)
Net income476 574 211 950 
Net income (loss) attributable to noncontrolling interests75 53 99 (153)
Net income attributable to common shareholders$401 $521 $112 $1,103 
Comprehensive income, net of income taxes
Net income$476 $574 $211 $950 
Other comprehensive income (loss), net of income taxes
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic benefit cost(1)(10)(2)(20)
Actuarial loss reclassified to periodic benefit cost56 47 112 94 
Pension and non-pension postretirement benefit plan valuation adjustment(2)(5)
Unrealized loss on cash flow hedges(1)
Unrealized gain (loss) on foreign currency translation(6)
Other comprehensive income57 41 111 62 
Comprehensive income533 615 322 1,012 
Comprehensive income (loss) attributable to noncontrolling interests75 53 99 (153)
Comprehensive income attributable to common shareholders$458 $562 $223 $1,165 
Average shares of common stock outstanding:
Basic978 976 978 975 
Assumed exercise and/or distributions of stock-based awards
Diluted(a)
979 976 979 976 
Earnings per average common share
Basic$0.41 $0.53 $0.11 $1.13 
Diluted$0.41 $0.53 $0.11 $1.13 
__________
(a)The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was zero for the three and six months ended June 30, 2021 and 1 million and less than 1 million for the three and six months ended June 30, 2020, respectively.
See the Combined Notes to Consolidated Financial Statements
10




EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
(In millions)20212020
Cash flows from operating activities
Net income$211 $950 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization4,180 2,741 
Asset impairments500 33 
Gain on sales of assets and businesses(83)(13)
Deferred income taxes and amortization of investment tax credits(163)33 
Net fair value changes related to derivatives(490)(194)
Net realized and unrealized (gains) losses on NDT funds(376)196 
Net unrealized gains on equity investments(96)
Other non-cash operating activities(331)671 
Changes in assets and liabilities:
Accounts receivable(16)1,318 
Inventories(14)
Accounts payable and accrued expenses(87)(798)
Option premiums received (paid), net(102)
Collateral received, net957 340 
Income taxes190 (114)
Pension and non-pension postretirement benefit contributions(559)(558)
Other assets and liabilities(2,702)(1,809)
Net cash flows provided by operating activities1,138 2,680 
Cash flows from investing activities
Capital expenditures(4,040)(3,773)
Proceeds from NDT fund sales4,438 2,488 
Investment in NDT funds(4,538)(2,540)
Collection of DPP2,209 1,102 
Proceeds from sales of assets and businesses724 
Other investing activities17 
Net cash flows used in investing activities(1,190)(2,719)
Cash flows from financing activities
Changes in short-term borrowings(666)(751)
Proceeds from short-term borrowings with maturities greater than 90 days500 500 
Issuance of long-term debt2,455 6,526 
Retirement of long-term debt(630)(3,894)
Dividends paid on common stock(747)(746)
Proceeds from employee stock plans47 46 
Other financing activities(64)(84)
Net cash flows provided by financing activities895 1,597 
Increase in cash, restricted cash, and cash equivalents843 1,558 
Cash, restricted cash, and cash equivalents at beginning of period1,166 1,122 
Cash, restricted cash, and cash equivalents at end of period$2,009 $2,680 
Supplemental cash flow information
Decrease in capital expenditures not paid$(313)$(105)
Increase in DPP1,958 1,754 
See the Combined Notes to Consolidated Financial Statements
11




EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$1,578 $663 
Restricted cash and cash equivalents379 438 
Accounts receivable
Customer accounts receivable3,5333,597
Customer allowance for credit losses(395)(366)
Customer accounts receivable, net3,138 3,231 
Other accounts receivable1,4261,469
Other allowance for credit losses(72)(71)
Other accounts receivable, net1,354 1,398 
Mark-to-market derivative assets749 644 
Unamortized energy contract assets37 38 
Inventories, net
Fossil fuel and emission allowances259 297 
Materials and supplies1,443 1,425 
Regulatory assets1,252 1,228 
Renewable energy credits368 633 
Assets held for sale11 958 
Other1,780 1,609 
Total current assets12,348 12,562 
Property, plant, and equipment (net of accumulated depreciation and amortization of $28,783 and $26,727 as of June 30, 2021 and December 31, 2020, respectively)82,120 82,584 
Deferred debits and other assets
Regulatory assets8,745 8,759 
Nuclear decommissioning trust funds15,400 14,464 
Investments421 440 
Goodwill6,677 6,677 
Mark-to-market derivative assets443 555 
Unamortized energy contract assets278 294 
Other2,964 2,982 
Total deferred debits and other assets34,928 34,171 
Total assets(a)
$129,396 $129,317 
See the Combined Notes to Consolidated Financial Statements
12




EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings$1,865 $2,031 
Long-term debt due within one year3,633 1,819 
Accounts payable3,547 3,562 
Accrued expenses1,719 2,078 
Payables to affiliates
Regulatory liabilities686 581 
Mark-to-market derivative liabilities719 295 
Unamortized energy contract liabilities95 100 
Renewable energy credit obligation509 661 
Liabilities held for sale375 
Other1,139 1,264 
Total current liabilities13,919 12,771 
Long-term debt35,077 35,093 
Long-term debt to financing trusts390 390 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits13,194 13,035 
Asset retirement obligations12,502 12,300 
Pension obligations3,880 4,503 
Non-pension postretirement benefit obligations1,983 2,011 
Spent nuclear fuel obligation1,209 1,208 
Regulatory liabilities9,148 9,485 
Mark-to-market derivative liabilities554 473 
Unamortized energy contract liabilities192 238 
Other2,848 2,942 
Total deferred credits and other liabilities45,510 46,195 
Total liabilities(a)
94,896 94,449 
Commitments and contingencies00
Shareholders’ equity
Common stock (NaN par value, 2,000 shares authorized, 978 shares and 976 shares outstanding at June 30, 2021 and December 31, 2020, respectively)19,454 19,373 
Treasury stock, at cost (2 shares at June 30, 2021 and December 31, 2020)(123)(123)
Retained earnings16,098 16,735 
Accumulated other comprehensive loss, net(3,289)(3,400)
Total shareholders’ equity32,140 32,585 
Noncontrolling interests2,360 2,283 
Total equity34,500 34,868 
Total liabilities and shareholders’ equity$129,396 $129,317 
__________
(a)Exelon’s consolidated assets include $10,093 million and $10,200 million at June 30, 2021 and December 31, 2020, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Exelon’s consolidated liabilities include $3,578 million and $3,598 million at June 30, 2021 and December 31, 2020, respectively, of certain VIEs for which the VIE creditors do not have recourse to Exelon. See Note 17 — Variable Interest Entities for additional information.
See the Combined Notes to Consolidated Financial Statements
13




EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
Six Months Ended June 30, 2021
(In millions, shares
in thousands)
Issued
Shares
Common
Stock
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Loss, net
Noncontrolling
Interests
Total Shareholders'
Equity
Balance, December 31, 2020977,466 $19,373 $(123)$16,735 $(3,400)$2,283 $34,868 
Net (loss) income— — — (289)— 25 (264)
Long-term incentive plan activity640 — — — — 
Employee stock purchase plan issuances902 34 — — — — 34 
Changes in equity of noncontrolling interests— — — — — (10)(10)
Common stock dividends
($0.38/common share)
— — — (374)— — (374)
Other comprehensive income, net of income taxes— — — — 54 — 54 
Balance, March 31, 2021979,008 $19,412 $(123)$16,072 $(3,346)$2,298 $34,313 
Net income— — — 401 — 75 476 
Long-term incentive plan activity237 24 — — — — 24 
Employee stock purchase plan issuances420 18 — — — — 18 
Changes in equity of noncontrolling interests— — — — — (13)(13)
Common stock dividends
($0.38/common share)
— — — (375)— — (375)
Other comprehensive income, net of income taxes— — — — 57 — 57 
Balance, June 30, 2021979,665 $19,454 $(123)$16,098 $(3,289)$2,360 $34,500 























See the Combined Notes to Consolidated Financial Statements
14




EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)

Six Months Ended June 30, 2020
(In millions, shares
in thousands)
Issued
Shares
Common
Stock
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Loss, net
Noncontrolling
Interests
Total Shareholders'
Equity
Balance, December 31, 2019974,416 $19,274 $(123)$16,267 $(3,194)$2,349 $34,573 
Net income (loss)— — — 582 — (206)376 
Long-term incentive plan activity1,354 (4)— — — — (4)
Employee stock purchase plan issuances470 31 — — — — 31 
Changes in equity of noncontrolling interests— — — — — (9)(9)
Sale of noncontrolling interests— — — — — 
Common stock dividends
($0.38/common share)
— — — (374)— — (374)
Other comprehensive income, net of income taxes— — — — 21 — 21 
Balance, March 31, 2020976,240 $19,303 $(123)$16,475 $(3,173)$2,134 $34,616 
Net income— — — 521 — 53 574 
Long-term incentive plan activity148 17 — — — — 17 
Employee stock purchase plan issuances(51)15 — — — — 15 
Changes in equity of noncontrolling interests— — — — — (19)(19)
Sale of noncontrolling interests— — — — — 
Common stock dividends
($0.38/common share)
— — — (374)— — (374)
Other comprehensive income, net of income taxes— — — — 41 — 41 
Balance, June 30, 2020976,337 $19,336 $(123)$16,622 $(3,132)$2,168 $34,871 
See the Combined Notes to Consolidated Financial Statements
15





EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2021202020212020
Operating revenues
Operating revenues$3,899 $3,609 $9,163 $8,012 
Operating revenues from affiliates254 271 549 601 
Total operating revenues4,153 3,880 9,712 8,613 
Operating expenses
Purchased power and fuel1,952 1,945 6,562 4,655 
Purchased power and fuel from affiliates(5)(3)(5)(9)
Operating and maintenance1,337 1,053 2,194 2,174 
Operating and maintenance from affiliates137 136 282 277 
Depreciation and amortization930 300 1,869 604 
Taxes other than income taxes118 116 239 246 
Total operating expenses4,469 3,547 11,141 7,947 
Gain on sales of assets and businesses12 79 12 
Operating (loss) income(308)345 (1,350)678 
Other income and (deductions)
Interest expense, net(72)(78)(140)(179)
Interest expense to affiliates(4)(9)(8)(18)
Other, net508 602 675 (168)
Total other income and (deductions)432 515 527 (365)
Income (loss) before income taxes124 860 (823)313 
Income taxes110 329 (70)(59)
Equity in losses of unconsolidated affiliates(1)(2)(3)(4)
Net income (loss)13 529 (756)368 
Net income (loss) attributable to noncontrolling interests74 53 98 (153)
Net (loss) income attributable to membership interest$(61)$476 $(854)$521 
Comprehensive income, net of income taxes
Net income (loss)$13 $529 $(756)$368 
Other comprehensive income (loss), net of income taxes
Unrealized loss on cash flow hedges(1)
Unrealized gain (loss) on foreign currency translation(6)
Other comprehensive income (loss), net of income taxes(7)
Comprehensive income (loss)15 531 (753)361 
Comprehensive income (loss) attributable to noncontrolling interests74 53 98 (153)
Comprehensive (loss) income attributable to membership interest$(59)$478 $(851)$514 
See the Combined Notes to Consolidated Financial Statements
16




EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
(In millions)20212020
Cash flows from operating activities
Net (loss) income$(756)$368 
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities:
Depreciation, amortization, and accretion, including nuclear fuel and energy contract amortization2,686 1,320 
Asset impairments493 18 
Gain on sales of assets and businesses(79)(12)
Deferred income taxes and amortization of investment tax credits(142)(54)
Net fair value changes related to derivatives(490)(193)
Net realized and unrealized (gains) losses on NDT funds(376)196 
Net unrealized gains on equity investments(96)
Other non-cash operating activities(421)136 
Changes in assets and liabilities:
Accounts receivable(90)1,443 
Receivables from and payables to affiliates, net43 68 
Inventories(34)
Accounts payable and accrued expenses154 (666)
Option premiums received (paid), net(102)
Collateral received, net955 342 
Income taxes(1)26 
Pension and non-pension postretirement benefit contributions(212)(243)
Other assets and liabilities(2,031)(1,332)
Net cash flows (used in) provided by operating activities(357)1,281 
Cash flows from investing activities
Capital expenditures(719)(930)
Proceeds from NDT fund sales4,438 2,488 
Investment in NDT funds(4,538)(2,540)
Collection of DPP2,209 1,102 
Proceeds from sales of assets and businesses724 
Other investing activities(8)
Net cash flows provided by investing activities2,106 126 
Cash flows from financing activities
Changes in short-term borrowings(340)(220)
Proceeds from short-term borrowings with maturities greater than 90 days500 
Issuance of long-term debt151 2,403 
Retirement of long-term debt(56)(2,936)
Changes in Exelon intercompany money pool(285)
Distributions to member(916)(937)
Other financing activities(29)(30)
Net cash flows used in financing activities(1,475)(1,220)
Increase in cash, restricted cash, and cash equivalents274 187 
Cash, restricted cash, and cash equivalents at beginning of period327 449 
Cash, restricted cash, and cash equivalents at end of period$601 $636 
Supplemental cash flow information
Decrease in capital expenditures not paid$(66)$(108)
Increase in DPP1,958 1,754 
    
See the Combined Notes to Consolidated Financial Statements
17




EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$542 $226 
Restricted cash and cash equivalents59 89 
Accounts receivable
Customer accounts receivable1,4101,330
Customer allowance for credit losses(75)(32)
Customer accounts receivable, net1,335 1,298 
Other accounts receivable476352
Other allowance for credit losses(1)0
Other accounts receivable, net475 352 
Mark-to-market derivative assets749 644 
Receivables from affiliates117 153 
Unamortized energy contract assets37 38 
Inventories, net
Fossil fuel and emission allowances204 233 
Materials and supplies986 978 
Renewable energy credits341 621 
Assets held for sale11 958 
Other1,353 1,357 
Total current assets6,209 6,947 
Property, plant, and equipment (net of accumulated depreciation and amortization of $15,024 and $13,370 as of June 30, 2021 and December 31, 2020, respectively)19,837 22,214 
Deferred debits and other assets
Nuclear decommissioning trust funds15,400 14,464 
Investments157 184 
Goodwill47 47 
Mark-to-market derivative assets441 555 
Prepaid pension asset1,713 1,558 
Unamortized energy contract assets278 293 
Deferred income taxes14 
Other1,725 1,826 
Total deferred debits and other assets19,775 18,933 
Total assets(a)
$45,821 $48,094 
See the Combined Notes to Consolidated Financial Statements
18




EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings$500 $840 
Long-term debt due within one year1,229 197 
Accounts payable1,489 1,253 
Accrued expenses654 788 
Payables to affiliates119 107 
Borrowings from Exelon intercompany money pool285 
Mark-to-market derivative liabilities695 262 
Unamortized energy contract liabilities
Renewable energy credit obligation508 661 
Liabilities held for sale375 
Other313 444 
Total current liabilities5,513 5,219 
Long-term debt4,627 5,566 
Long-term debt to affiliates322 324 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits3,460 3,656 
Asset retirement obligations12,257 12,054 
Non-pension postretirement benefit obligations857 858 
Spent nuclear fuel obligation1,209 1,208 
Payables to affiliates3,011 3,017 
Mark-to-market derivative liabilities311 205 
Unamortized energy contract liabilities
Other1,266 1,308 
Total deferred credits and other liabilities22,374 22,309 
Total liabilities(a)
32,836 33,418 
Commitments and contingencies00
Equity
Member’s equity
Membership interest9,624 9,624 
Undistributed earnings1,035 2,805 
Accumulated other comprehensive loss, net(27)(30)
Total member’s equity10,632 12,399 
Noncontrolling interests2,353 2,277 
Total equity12,985 14,676 
Total liabilities and equity$45,821 $48,094 
__________
(a)Generation’s consolidated assets include $10,077 million and $10,182 million at June 30, 2021 and December 31, 2020, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Generation’s consolidated liabilities include $3,563 million and $3,572 million at June 30, 2021 and December 31, 2020, respectively, of certain VIEs for which the VIE creditors do not have recourse to Generation. See Note 17 — Variable Interest Entities for additional information.
See the Combined Notes to Consolidated Financial Statements
19




EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
Six Months Ended June 30, 2021
Member’s Equity
(In millions)Membership
Interest
Undistributed
Earnings
Accumulated
Other
Comprehensive
Loss, net
Noncontrolling
Interests
Total Equity
Balance, December 31, 2020$9,624 $2,805 $(30)$2,277 $14,676 
Net (loss) income— (793)— 24 (769)
Changes in equity of noncontrolling interests— — — (10)(10)
Distributions to member— (458)— — (458)
Other comprehensive income, net of income taxes— 
Balance, March 31, 2021$9,624 $1,554 $(29)$2,291 $13,440 
Net (loss) income— (61)— 74 13 
Changes in equity of noncontrolling interests— — — (12)(12)
Distributions to member— (458)— — (458)
Other comprehensive income, net of income taxes— 
Balance, June 30, 2021$9,624 $1,035 $(27)$2,353 $12,985 

Six Months Ended June 30, 2020
Member’s Equity
(In millions)Membership
Interest
Undistributed
Earnings
Accumulated
Other
Comprehensive
Loss, net
Noncontrolling
Interests
Total Equity
Balance, December 31, 2019$9,566 $3,950 $(32)$2,346 $15,830 
Net income (loss)— 45 — (206)(161)
Changes in equity of noncontrolling interests— — — (11)(11)
Sale of noncontrolling interests— — — 
Distributions to member— (468)— — (468)
Other comprehensive loss, net of income taxes— (9)(9)
Balance, March 31, 2020$9,568 $3,527 $(41)$2,129 $15,183 
Net income— 476 — 53 529 
Changes in equity of noncontrolling interests— — — (19)(19)
Sale of noncontrolling interests— — — 
Distributions to member— (469)— — (469)
Other comprehensive income, net of income taxes— 
Balance, June 30, 2020$9,569 $3,534 $(39)$2,163 $15,227 

See the Combined Notes to Consolidated Financial Statements
20




COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2021202020212020
Operating revenues
Electric operating revenues$1,503 $1,431 $2,977 $2,853 
Revenues from alternative revenue programs(25)64 (13)
Operating revenues from affiliates11 11 16 
Total operating revenues1,517 1,417 3,052 2,856 
Operating expenses
Purchased power421 380 862 770 
Purchased power from affiliate79 84 163 181 
Operating and maintenance250 469 495 713 
Operating and maintenance from affiliates73 67 144 140 
Depreciation and amortization296 274 589 547 
Taxes other than income taxes77 71 153 146 
Total operating expenses1,196 1,345 2,406 2,497 
Operating income321 72 646 359 
Other income and (deductions)
Interest expense, net(95)(95)(187)(186)
Interest expense to affiliates(3)(3)(6)(6)
Other, net15 11 22 22 
Total other income and (deductions)(83)(87)(171)(170)
Income (loss) before income taxes238 (15)475 189 
Income taxes46 46 85 82 
Net income (loss)$192 $(61)$390 $107 
Comprehensive income (loss)$192 $(61)$390 $107 

21




COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
(In millions)20212020
Cash flows from operating activities
Net income$390 $107 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization589 547 
Asset impairments15 
Deferred income taxes and amortization of investment tax credits143 129 
Other non-cash operating activities23 283 
Changes in assets and liabilities:
Accounts receivable(48)(92)
Receivables from and payables to affiliates, net(6)
Inventories(2)(7)
Accounts payable and accrued expenses(45)
Collateral received (posted), net(3)
Income taxes(34)(90)
Pension and non-pension postretirement benefit contributions(173)(144)
Other assets and liabilities(292)(245)
Net cash flows provided by operating activities558 498 
Cash flows from investing activities
Capital expenditures(1,162)(1,029)
Other investing activities12 (4)
Net cash flows used in investing activities(1,150)(1,033)
Cash flows from financing activities
Changes in short-term borrowings(290)(130)
Issuance of long-term debt700 1,000 
Dividends paid on common stock(253)(249)
Contributions from parent395 249 
Other financing activities(11)(14)
Net cash flows provided by financing activities541 856 
(Decrease) increase in cash, restricted cash, and cash equivalents(51)321 
Cash, restricted cash, and cash equivalents at beginning of period405 403 
Cash, restricted cash, and cash equivalents at end of period$354 $724 
Supplemental cash flow information
(Decrease) increase in capital expenditures not paid$(93)$18 
See the Combined Notes to Consolidated Financial Statements
22




COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
ASSETS
Current assets
   Cash and cash equivalents$71 $83 
   Restricted cash and cash equivalents240 279 
   Accounts receivable
   Customer accounts receivable687656
   Customer allowance for credit losses(89)(97)
       Customer accounts receivable, net598 559 
   Other accounts receivable257239
   Other allowance for credit losses(18)(21)
       Other accounts receivable, net239 218 
   Receivables from affiliates22 22 
   Inventories, net170 170 
   Regulatory assets298 279 
   Other77 49 
   Total current assets1,715 1,659 
Property, plant, and equipment (net of accumulated depreciation and amortization of $5,885 and $5,672 as of June 30, 2021 and December 31, 2020, respectively)25,170 24,557 
Deferred debits and other assets
   Regulatory assets1,846 1,749 
   Investments
   Goodwill2,625 2,625 
   Receivables from affiliates2,439 2,541 
   Prepaid pension asset1,138 1,022 
   Other385 307 
   Total deferred debits and other assets8,439 8,250 
Total assets$35,324 $34,466 
See the Combined Notes to Consolidated Financial Statements
23




COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
   Short-term borrowings$33 $323 
   Long-term debt due within one year350 350 
   Accounts payable575 683 
   Accrued expenses346 390 
   Payables to affiliates102 96 
   Customer deposits90 86 
   Regulatory liabilities419 289 
   Mark-to-market derivative liabilities23 33 
   Other147 143 
   Total current liabilities2,085 2,393 
Long-term debt9,325 8,633 
Long-term debt to financing trust205 205 
Deferred credits and other liabilities
   Deferred income taxes and unamortized investment tax credits4,531 4,341 
   Asset retirement obligations128 126 
   Non-pension postretirement benefits obligations180 173 
   Regulatory liabilities6,181 6,403 
   Mark-to-market derivative liabilities242 268 
   Other587 595 
   Total deferred credits and other liabilities11,849 11,906 
   Total liabilities23,464 23,137 
Commitments and contingencies00
Shareholders’ equity
   Common stock1,588 1,588 
   Other paid-in capital8,680 8,285 
   Retained deficit unappropriated(1,639)(1,639)
   Retained earnings appropriated3,231 3,095 
   Total shareholders’ equity11,860 11,329 
Total liabilities and shareholders’ equity$35,324 $34,466 
See the Combined Notes to Consolidated Financial Statements
24




COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
Six Months Ended June 30, 2021
(In millions)Common
Stock
Other
Paid-In
Capital
Retained Deficit
Unappropriated
Retained
Earnings
Appropriated
Total
Shareholders’
Equity
Balance, December 31, 2020$1,588 $8,285 $(1,639)$3,095 $11,329 
Net income— — 197 — 197 
Appropriation of retained earnings for future dividends— — (197)197 
Common stock dividends— — — (127)(127)
Contributions from parent— 198 — — 198 
Balance, March 31, 2021$1,588 $8,483 $(1,639)$3,165 $11,597 
Net income— — 192 — 192 
Appropriation of retained earnings for future dividends— — (192)192 
Common stock dividends— — — (126)(126)
Contributions from parent— 197 — — 197 
Balance, June 30, 2021$1,588 $8,680 $(1,639)$3,231 $11,860 
Six Months Ended June 30, 2020
(In millions)Common
Stock
Other
Paid-In
Capital
Retained Deficit
Unappropriated
Retained
Earnings
Appropriated
Total
Shareholders’
Equity
Balance, December 31, 2019$1,588 $7,572 $(1,639)$3,156 $10,677 
Net income— — 168 — 168 
Appropriation of retained earnings for future dividends— — (168)168 
Common stock dividends— — — (125)(125)
Contributions from parent— 125 — — 125 
Balance, March 31, 2020$1,588 $7,697 $(1,639)$3,199 $10,845 
Net loss— — (61)— (61)
Common stock dividends— — — (124)(124)
Contributions from parent— 124 — — 124 
Balance, June 30, 2020$1,588 $7,821 $(1,700)$3,075 $10,784 
See the Combined Notes to Consolidated Financial Statements
25





PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
 Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2021202020212020
Operating revenues
Electric operating revenues$602 $580 $1,251 $1,180 
Natural gas operating revenues82 95 310 304 
Revenues from alternative revenue programs17 
Operating revenues from affiliates
Total operating revenues693 681 1,582 1,493 
Operating expenses
Purchased power145 142 334 306 
Purchased fuel22 34 108 117 
Purchased power from affiliate40 40 81 76 
Operating and maintenance166 235 360 414 
Operating and maintenance from affiliates43 40 83 78 
Depreciation and amortization87 88 173 173 
Taxes other than income taxes49 39 92 78 
Total operating expenses552 618 1,231 1,242 
Operating income141 63 351 251 
Other income and (deductions)
Interest expense, net(39)(33)(74)(65)
Interest expense to affiliates(3)(3)(6)(6)
Other, net12 
Total other income and (deductions)(35)(31)(68)(64)
Income before income taxes106 32 283 187 
Income taxes(7)12 
Net income$104 $39 $271 $178 
Comprehensive income$104 $39 $271 $178 
See the Combined Notes to Consolidated Financial Statements
26




PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
(In millions)20212020
Cash flows from operating activities
Net income$271 $178 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization173 173 
Deferred income taxes and amortization of investment tax credits21 
Other non-cash operating activities(5)25 
Changes in assets and liabilities:
Accounts receivable86 22 
Receivables from and payables to affiliates, net
Inventories10 
Accounts payable and accrued expenses(46)27 
Income taxes24 15 
Pension and non-pension postretirement benefit contributions(15)(18)
Other assets and liabilities(140)(48)
Net cash flows provided by operating activities374 393 
Cash flows from investing activities
Capital expenditures(577)(512)
Changes in Exelon intercompany money pool68 
Other investing activities
Net cash flows used in investing activities(573)(441)
Cash flows from financing activities
Issuance of long-term debt375 350 
Changes in Exelon intercompany money pool(40)
Dividends paid on common stock(169)(170)
Contributions from parent395 231 
Other financing activities(4)(3)
Net cash flows provided by financing activities557 408 
Increase in cash, restricted cash, and cash equivalents358 360 
Cash, restricted cash, and cash equivalents at beginning of period26 27 
Cash, restricted cash, and cash equivalents at end of period$384 $387 
Supplemental cash flow information
(Decrease) increase in capital expenditures not paid$(16)$42 
See the Combined Notes to Consolidated Financial Statements
27




PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$376 $19 
Restricted cash and cash equivalents
Accounts receivable
Customer accounts receivable419511
Customer allowance for credit losses(111)(116)
Customer accounts receivable, net308 395 
Other accounts receivable106130
Other allowance for credit losses(7)(8)
Other accounts receivable, net99 122 
Receivables from affiliates
Inventories, net
Fossil fuel25 33 
Materials and supplies42 38 
Prepaid utility taxes76 
Regulatory assets30 25 
Other37 21 
Total current assets1,001 662 
Property, plant, and equipment (net of accumulated depreciation and amortization of $3,906 and $3,843 as of June 30, 2021 and December 31, 2020, respectively)10,581 10,181 
Deferred debits and other assets
Regulatory assets866 776 
Investments32 30 
Receivables from affiliates571 475 
Prepaid pension asset387 375 
Other53 32 
Total deferred debits and other assets1,909 1,688 
Total assets$13,491 $12,531 
See the Combined Notes to Consolidated Financial Statements
28




PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Long-term debt due within one year$300 $300 
Accounts payable436 479 
Accrued expenses125 129 
Payables to affiliates50 50 
Borrowings from Exelon intercompany money pool40 
Customer deposits50 59 
Regulatory liabilities109 121 
Other29 30 
Total current liabilities1,099 1,208 
Long-term debt3,825 3,453 
Long-term debt to financing trusts184 184 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits2,345 2,242 
Asset retirement obligations29 29 
Non-pension postretirement benefits obligations287 286 
Regulatory liabilities600 503 
Other92 93 
Total deferred credits and other liabilities3,353 3,153 
Total liabilities8,461 7,998 
Commitments and contingencies00
Shareholder’s equity
Common stock3,409 3,014 
Retained earnings1,621 1,519 
Total shareholder’s equity5,030 4,533 
Total liabilities and shareholder's equity$13,491 $12,531 
See the Combined Notes to Consolidated Financial Statements
29




PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY
(Unaudited)
Six Months Ended June 30, 2021
(In millions)Common
Stock
Retained
Earnings
Total
Shareholder's
Equity
Balance, December 31, 2020$3,014 $1,519 $4,533 
Net income— 167 167 
Common stock dividends— (85)(85)
Balance, March 31, 2021$3,014 $1,601 $4,615 
Net income— 104 104 
Common stock dividends— (84)(84)
Contributions from parent395 — 395 
Balance, June 30, 2021$3,409 $1,621 $5,030 
Six Months Ended June 30, 2020
(In millions)Common
Stock
Retained
Earnings
Total
Shareholder's
Equity
Balance, December 31, 2019$2,766 $1,412 $4,178 
Net income— 140 140 
Common stock dividends— (85)(85)
Contributions from parent231 — 231 
Balance, March 31, 2020$2,997 $1,467 $4,464 
Net income— 39 39 
Common stock dividends— (85)(85)
Balance, June 30, 2020$2,997 $1,421 $4,418 
See the Combined Notes to Consolidated Financial Statements
30





BALTIMORE GAS AND ELECTRIC COMPANY
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2021202020212020
Operating revenues
Electric operating revenues$560 $530 $1,180 $1,125 
Natural gas operating revenues125 119 455 419 
Revenues from alternative revenue programs(10)(37)
Operating revenues from affiliates13 10 
Total operating revenues682 616 1,656 1,554 
Operating expenses
Purchased power133 107 295 221 
Purchased fuel27 18 126 95 
Purchased power and fuel from affiliate59 69 129 167 
Operating and maintenance147 146 299 293 
Operating and maintenance from affiliates46 41 91 83 
Depreciation and amortization141 129 293 272 
Taxes other than income taxes67 63 139 132 
Total operating expenses620 573 1,372 1,263 
Operating income62 43 284 291 
Other income and (deductions)
Interest expense, net(34)(32)(67)(64)
Other, net16 10 
Total other income and (deductions)(25)(26)(51)(54)
Income before income taxes37 17 233 237 
Income taxes(8)(22)(21)18 
Net income$45 $39 $254 $219 
Comprehensive income$45 $39 $254 $219 
See the Combined Notes to Consolidated Financial Statements
31




BALTIMORE GAS AND ELECTRIC COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
(In millions)20212020
Cash flows from operating activities
Net income$254 $219 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization293 272 
Deferred income taxes and amortization of investment tax credits11 22 
Other non-cash operating activities28 50 
Changes in assets and liabilities:
Accounts receivable73 19 
Receivables from and payables to affiliates, net(19)(26)
Inventories(9)10 
Accounts payable and accrued expenses(51)(15)
Collateral posted, net
Income taxes(27)26 
Pension and non-pension postretirement benefit contributions(71)(68)
Other assets and liabilities(96)(5)
Net cash flows provided by operating activities388 504 
Cash flows from investing activities
Capital expenditures(620)(548)
Other investing activities10 (4)
Net cash flows used in investing activities(610)(552)
Cash flows from financing activities
Changes in short-term borrowings(76)
Issuance of long-term debt600 400 
Dividends paid on common stock(146)(123)
Contributions from parent26 
Other financing activities(6)(8)
Net cash flows provided by financing activities448 219 
Increase in cash, restricted cash, and cash equivalents226 171 
Cash, restricted cash, and cash equivalents at beginning of period145 25 
Cash, restricted cash, and cash equivalents at end of period$371 $196 
Supplemental cash flow information
Decrease in capital expenditures not paid$(71)$(14)
See the Combined Notes to Consolidated Financial Statements
32




BALTIMORE GAS AND ELECTRIC COMPANY
BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$368 $144 
Restricted cash and cash equivalents
Accounts receivable
Customer accounts receivable398487
Customer allowance for credit losses(27)(35)
    Customer accounts receivable, net371 452 
Other accounts receivable146117
Other allowance for credit losses(8)(9)
     Other accounts receivable, net138 108 
Receivables from affiliates
Inventories, net
Fossil fuel27 25 
Materials and supplies48 41 
Regulatory assets177 168 
Other
Total current assets1,141 948 
Property, plant, and equipment (net of accumulated depreciation and amortization of $4,151 and $4,034 as of June 30, 2021 and December 31, 2020, respectively)10,200 9,872 
Deferred debits and other assets
Regulatory assets473 481 
Investments13 10 
Prepaid pension asset302 270 
Other57 69 
Total deferred debits and other assets845 830 
Total assets$12,186 $11,650 
See the Combined Notes to Consolidated Financial Statements
33




BALTIMORE GAS AND ELECTRIC COMPANY
BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Long-term debt due within one year$300 $300 
Accounts payable287 346 
Accrued expenses138 205 
Payables to affiliates41 61 
Customer deposits101 110 
Regulatory liabilities32 30 
Other87 91 
Total current liabilities986 1,143 
Long-term debt3,959 3,364 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits1,643 1,521 
Asset retirement obligations24 23 
Non-pension postretirement benefits obligations179 189 
Regulatory liabilities998 1,109 
Other92 104 
Total deferred credits and other liabilities2,936 2,946 
Total liabilities7,881 7,453 
Commitments and contingencies00
Shareholder's equity
Common stock2,318 2,318 
Retained earnings1,987 1,879 
Total shareholder's equity4,305 4,197 
Total liabilities and shareholder's equity$12,186 $11,650 

See the Combined Notes to Consolidated Financial Statements
34




BALTIMORE GAS AND ELECTRIC COMPANY
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(Unaudited)
Six Months Ended June 30, 2021
(In millions)Common
Stock
Retained
Earnings
Total
Shareholder's
Equity
Balance, December 31, 2020$2,318 $1,879 $4,197 
Net income— 209 209 
Common stock dividends— (74)(74)
Balance, March 31, 2021$2,318 $2,014 $4,332 
Net income— 45 45 
Common stock dividends— (72)(72)
Balance, June 30, 2021$2,318 $1,987 $4,305 
Six Months Ended June 30, 2020
(In millions)Common
Stock
Retained
Earnings
Total
Shareholder's
Equity
Balance, December 31, 2019$1,907 $1,776 $3,683 
Net income— 181 181 
Common stock dividends— (62)(62)
Balance, March 31, 2020$1,907 $1,895 $3,802 
Net income— 39 39 
Common stock dividends— (62)(62)
Contributions from parent26 — 26 
Balance, June 30, 2020$1,933 $1,872 $3,805 
See the Combined Notes to Consolidated Financial Statements
35






PEPCO HOLDINGS LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2021202020212020
Operating revenues
Electric operating revenues$1,071 $1,047 $2,195 $2,133 
Natural gas operating revenues24 30 94 94 
Revenues from alternative revenue programs41 (64)88 (47)
Operating revenues from affiliates
Total operating revenues1,140 1,016 2,384 2,187 
Operating expenses
Purchased power308 286 656 586 
Purchased fuel11 41 42 
Purchased power from affiliates79 78 177 182 
Operating and maintenance217 245 434 464 
Operating and maintenance from affiliates39 36 79 74 
Depreciation and amortization194 191 404 385 
Taxes other than income taxes109 109 222 222 
Total operating expenses955 956 2,013 1,955 
Gain on sales of assets
Operating income185 60 371 234 
Other income and (deductions)
Interest expense, net(67)(67)(134)(134)
Other, net20 14 36 26 
Total other income and (deductions)(47)(53)(98)(108)
Income before income taxes138 273 126 
Income taxes(3)(87)(76)
Equity in earnings of unconsolidated affiliate
Net income$141 $94 $269 $202 
Comprehensive income$141 $94 $269 $202 
See the Combined Notes to Consolidated Financial Statements
36




PEPCO HOLDINGS LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
(In millions)20212020
Cash flows from operating activities
Net income$269 $202 
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization404 385 
Deferred income taxes and amortization of investment tax credits10 (74)
Other non-cash operating activities(50)107 
Changes in assets and liabilities:
Accounts receivable(30)(64)
Receivables from and payables to affiliates, net(22)(22)
Inventories
Accounts payable and accrued expenses(35)14 
Income taxes(1)(30)
Pension and non-pension postretirement benefit contributions(40)(31)
Other assets and liabilities(131)(146)
Net cash flows provided by operating activities377 347 
Cash flows from investing activities
Capital expenditures(889)(686)
Other investing activities(2)
Net cash flows used in investing activities(891)(684)
Cash flows from financing activities
Changes in short-term borrowings(36)(189)
Issuance of long-term debt625 373 
Retirement of long-term debt(249)(35)
Changes in Exelon intercompany money pool(12)10 
Distributions to member(414)(268)
Contributions from member560 359 
Other financing activities(8)(8)
Net cash flows provided by financing activities466 242 
Decrease in cash, restricted cash, and cash equivalents(48)(95)
Cash, restricted cash, and cash equivalents at beginning of period160 181 
Cash, restricted cash, and cash equivalents at end of period$112 $86 
Supplemental cash flow information
Decrease in capital expenditures not paid$(41)$(24)
See the Combined Notes to Consolidated Financial Statements
37




PEPCO HOLDINGS LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$61 $111 
Restricted cash and cash equivalents42 39 
Accounts receivable
Customer accounts receivable617611
Customer allowance for credit losses(93)(86)
Customer accounts receivable, net524 525 
Other accounts receivable286260
Other allowance for credit losses(38)(33)
Other accounts receivable, net248 227 
Receivables from affiliates
Inventories, net
Fossil fuel
Materials and supplies196 198 
Regulatory assets431 440 
Other77 45 
Total current assets1,585 1,599 
Property, plant, and equipment (net of accumulated depreciation and amortization of $1,827 and $1,811 as of June 30, 2021 and December 31, 2020, respectively)15,927 15,377 
Deferred debits and other assets
Regulatory assets1,898 1,933 
Investments145 140 
Goodwill4,005 4,005 
Prepaid pension asset370 365 
Deferred income taxes10 10 
Other295 307 
Total deferred debits and other assets6,723 6,760 
Total assets(a)
$24,235 $23,736 
See the Combined Notes to Consolidated Financial Statements
38




PEPCO HOLDINGS LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
Short-term borrowings$332 $368 
Long-term debt due within one year300 347 
Accounts payable517 539 
Accrued expenses246 299 
Payables to affiliates75 104 
Borrowings from Exelon intercompany money pool21 
Customer deposits89 106 
Regulatory liabilities123 137 
Unamortized energy contract liabilities92 92 
Other131 141 
Total current liabilities1,914 2,154 
Long-term debt7,069 6,659 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits2,541 2,439 
Asset retirement obligations59 59 
Non-pension postretirement benefit obligations75 86 
Regulatory liabilities1,338 1,438 
Unamortized energy contract liabilities190 235 
Other590 622 
Total deferred credits and other liabilities4,793 4,879 
Total liabilities(a)
13,776 13,692 
Commitments and contingencies00
Member's equity
Membership interest10,672 10,112 
Undistributed losses(213)(68)
Total member's equity10,459 10,044 
Total liabilities and member's equity$24,235 $23,736 
__________
(a)PHI’s consolidated total assets include $16 million and $18 million at June 30, 2021 and December 31, 2020, respectively, of PHI's consolidated VIE that can only be used to settle the liabilities of the VIE. PHI’s consolidated total liabilities include $15 million and $26 million at June 30, 2021 and December 31, 2020, respectively, of PHI's consolidated VIE for which the VIE creditors do not have recourse to PHI. See Note 17 — Variable Interest Entities for additional information.
See the Combined Notes to Consolidated Financial Statements
39




PEPCO HOLDINGS LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY
(Unaudited)
Six Months Ended June 30, 2021
(In millions)Membership InterestUndistributed (Losses)/EarningsTotal Member's Equity
Balance, December 31, 2020$10,112 $(68)$10,044 
Net income— 128 128 
Distributions to member— (81)(81)
Contributions from member560 — 560 
Balance, March 31, 2021$10,672 $(21)$10,651 
Net income— 141 141 
Distributions to member— (333)(333)
Balance, June 30, 2021$10,672 $(213)$10,459 

Six Months Ended June 30, 2020
(In millions)Membership InterestUndistributed (Losses)/EarningsTotal Member's Equity
Balance, December 31, 2019$9,618 $(10)$9,608 
Net income— 108 108 
Distributions to member— (134)(134)
Contributions from member144 — 144 
Balance, March 31, 2020$9,762 $(36)$9,726 
Net income— 94 94 
Distributions to member— (134)(134)
Contributions from member215 — 215 
Balance, June 30, 2020$9,977 $(76)$9,901 
See the Combined Notes to Consolidated Financial Statements
40





POTOMAC ELECTRIC POWER COMPANY
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2021202020212020
Operating revenues
Electric operating revenues$503 $506 $1,027 $1,034 
Revenues from alternative revenue programs19 (13)46 
Operating revenues from affiliates
Total operating revenues523 494 1,076 1,039 
Operating expenses
Purchased power76 78 168 164 
Purchased power from affiliate57 60 130 139 
Operating and maintenance62 67 118 128 
Operating and maintenance from affiliates51 52 103 103 
Depreciation and amortization96 92 199 186 
Taxes other than income taxes87 87 177 179 
Total operating expenses429 436 895 899 
Operating income94 58 181 140 
Other income and (deductions)
Interest expense, net(35)(34)(69)(68)
Other, net13 25 18 
Total other income and (deductions)(22)(25)(44)(50)
Income before income taxes72 33 137 90 
Income taxes(3)(24)(19)
Net income$75 $57 $134 $109 
Comprehensive income$75 $57 $134 $109 
See the Combined Notes to Consolidated Financial Statements
41




POTOMAC ELECTRIC POWER COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
(In millions)20212020
Cash flows from operating activities
Net income$134 $109 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization199 186 
Deferred income taxes and amortization of investment tax credits10 (22)
Other non-cash operating activities(43)11 
Changes in assets and liabilities:
Accounts receivable(23)(45)
Receivables from and payables to affiliates, net(11)(22)
Inventories
Accounts payable and accrued expenses(26)11 
Income taxes(20)(18)
Pension and non-pension postretirement benefit contributions(7)(6)
Other assets and liabilities(79)(52)
Net cash flows provided by operating activities135 155 
Cash flows from investing activities
Capital expenditures(439)(324)
Other investing activities(2)(3)
Net cash flows used in investing activities(441)(327)
Cash flows from financing activities
Changes in short-term borrowings119 (68)
Issuance of long-term debt150 150 
Retirement of long-term debt(1)
Changes in PHI intercompany money pool50 
Dividends paid on common stock(123)(101)
Contributions from parent138 137 
Other financing activities(2)(6)
Net cash flows provided by financing activities291 161 
Decrease in cash, restricted cash, and cash equivalents(15)(11)
Cash, restricted cash, and cash equivalents at beginning of period65 63 
Cash, restricted cash, and cash equivalents at end of period$50 $52 
Supplemental cash flow information
Decrease in capital expenditures not paid$(15)$(28)
See the Combined Notes to Consolidated Financial Statements
42




POTOMAC ELECTRIC POWER COMPANY
BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$17 $30 
Restricted cash and cash equivalents33 35 
Accounts receivable
Customer accounts receivable290279
Customer allowance for credit losses(38)(32)
Customer accounts receivable, net252 247 
Other accounts receivable155131
Other allowance for credit losses(16)(13)
Other accounts receivable, net139 118 
Receivables from affiliates
Inventories, net110 111 
Regulatory assets215 214 
Other13 13 
Total current assets779 770 
Property, plant, and equipment (net of accumulated depreciation and amortization of $3,782 and $3,697 as of June 30, 2021 and December 31, 2020, respectively)7,771 7,456 
Deferred debits and other assets
Regulatory assets571 570 
Investments118 115 
Prepaid pension asset282 284 
Other67 69 
Total deferred debits and other assets1,038 1,038 
Total assets$9,588 $9,264 
See the Combined Notes to Consolidated Financial Statements
43




POTOMAC ELECTRIC POWER COMPANY
BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings$154 $35 
Long-term debt due within one year204 
Accounts payable215 226 
Accrued expenses123 164 
Payables to affiliates42 55 
Borrowings from PHI intercompany money pool
Customer deposits41 51 
Regulatory liabilities38 46 
Merger related obligation29 33 
Current portion of DC PLUG obligation30 30 
Other29 31 
Total current liabilities914 674 
Long-term debt3,114 3,162 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits1,244 1,189 
Asset retirement obligations39 39 
Non-pension postretirement benefit obligations13 
Regulatory liabilities599 644 
Other319 340 
Total deferred credits and other liabilities2,208 2,225 
Total liabilities6,236 6,061 
Commitments and contingencies00
Shareholder's equity
Common stock2,196 2,058 
Retained earnings1,156 1,145 
Total shareholder's equity3,352 3,203 
Total liabilities and shareholder's equity$9,588 $9,264 
See the Combined Notes to Consolidated Financial Statements
44




POTOMAC ELECTRIC POWER COMPANY
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(Unaudited)
Six Months Ended June 30, 2021
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance, December 31, 2020$2,058 $1,145 $3,203 
Net income— 59 59 
Common stock dividends— (28)(28)
Contributions from parent138 — 138 
Balance, March 31, 2021$2,196 $1,176 $3,372 
Net income— 75 75 
Common stock dividends— (95)(95)
Balance, June 30, 2021$2,196 $1,156 $3,352 

Six Months Ended June 30, 2020
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance, December 31, 2019$1,796 $1,111 $2,907 
Net income— 52 52 
Common stock dividends— (28)(28)
Contributions from parent137 — 137 
Balance, March 31, 2020$1,933 $1,135 $3,068 
Net income— 57 57 
Common stock dividends— (73)(73)
Balance, June 30, 2020$1,933 $1,119 $3,052 

See the Combined Notes to Consolidated Financial Statements
45





DELMARVA POWER & LIGHT COMPANY
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2021202020212020
Operating revenues
Electric operating revenues$262 $260 $562 $543 
Natural gas operating revenues24 30 95 94 
Revenues from alternative revenue programs10 (25)19 (24)
Operating revenues from affiliates
Total operating revenues298 267 680 617 
Operating expenses
Purchased power82 80 185 169 
Purchased fuel11 41 42 
Purchased power from affiliates17 16 37 38 
Operating and maintenance41 54 85 97 
Operating and maintenance from affiliates39 38 79 75 
Depreciation and amortization51 47 104 94 
Taxes other than income taxes16 17 33 32 
Total operating expenses255 263 564 547 
Operating income43 116 70 
Other income and (deductions)
Interest expense, net(16)(15)(30)(31)
Other, net
Total other income and (deductions)(12)(13)(24)(26)
Income (loss) before income taxes31 (9)92 44 
Income taxes(28)(20)
Net income$30 $19 $86 $64 
Comprehensive income$30 $19 $86 $64 
See the Combined Notes to Consolidated Financial Statements
46




DELMARVA POWER & LIGHT COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
(In millions)20212020
Cash flows from operating activities
Net income$86 $64 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization104 94 
Deferred income taxes and amortization of investment tax credits(19)
Other non-cash operating activities(12)40 
Changes in assets and liabilities:
Accounts receivable24 
Receivables from and payables to affiliates, net(12)(2)
Accounts payable and accrued expenses
Income taxes14 (12)
Other assets and liabilities(22)(21)
Net cash flows provided by operating activities193 153 
Cash flows from investing activities
Capital expenditures(211)(184)
Changes in PHI intercompany money pool(9)(55)
Other investing activities(3)
Net cash flows used in investing activities(219)(242)
Cash flows from financing activities
Changes in short-term borrowings(146)(56)
Issuance of long-term debt125 100 
Retirement of long-term debt(1)
Dividends paid on common stock(63)(66)
Contributions from parent120 106 
Other financing activities(3)(1)
Net cash flows provided by financing activities33 82 
Increase (decrease) in cash, restricted cash, and cash equivalents(7)
Cash, restricted cash, and cash equivalents at beginning of period15 13 
Cash, restricted cash, and cash equivalents at end of period$22 $
Supplemental cash flow information
Decrease in capital expenditures not paid$(14)$(4)
See the Combined Notes to Consolidated Financial Statements
47




DELMARVA POWER & LIGHT COMPANY
BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$17 $15 
Restricted cash and cash equivalents
Accounts receivable
Customer accounts receivable139176
Customer allowance for credit losses(19)(22)
Customer accounts receivable, net120 154 
Other accounts receivable6268
Other allowance for credit losses(9)(9)
Other accounts receivable, net53 59 
Receivables from affiliates
Receivable from PHI intercompany pool
Inventories, net
Fossil fuel
Materials and supplies52 51 
Prepaid utility taxes11 
Regulatory assets70 58 
Renewable energy credits18 10 
Other
Total current assets352 368 
Property, plant, and equipment (net of accumulated depreciation and amortization of $1,571 and $1,533 as of June 30, 2021 and December 31, 2020, respectively)4,425 4,314 
Deferred debits and other assets
Regulatory assets223 222 
Goodwill
Prepaid pension asset159 162 
Other62 66 
Total deferred debits and other assets452 458 
Total assets$5,229 $5,140 
See the Combined Notes to Consolidated Financial Statements
48




DELMARVA POWER & LIGHT COMPANY
BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings$$146 
Long-term debt due within one year82 82 
Accounts payable125 126 
Accrued expenses40 46 
Payables to affiliates23 36 
Customer deposits28 32 
Regulatory liabilities46 47 
Other14 20 
Total current liabilities358 535 
Long-term debt1,722 1,595 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits745 715 
Asset retirement obligations14 14 
Non-pension postretirement benefits obligations13 15 
Regulatory liabilities462 493 
Other96 97 
Total deferred credits and other liabilities1,330 1,334 
Total liabilities3,410 3,464 
Commitments and contingencies00
Shareholder's equity
Common stock1,209 1,089 
Retained earnings610 587 
Total shareholder's equity1,819 1,676 
Total liabilities and shareholder's equity$5,229 $5,140 
See the Combined Notes to Consolidated Financial Statements
49




DELMARVA POWER & LIGHT COMPANY
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(Unaudited)
Six Months Ended June 30, 2021
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance, December 31, 2020$1,089 $587 $1,676 
Net income— 56 56 
Common stock dividends— (40)(40)
Contributions from parent120 — 120 
Balance, March 31, 2021$1,209 $603 $1,812 
Net income— 30 30 
Common stock dividends— (23)(23)
Balance, June 30, 2021$1,209 $610 $1,819 

Six Months Ended June 30, 2020
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance, December 31, 2019$977 $603 $1,580 
Net income— 45 45 
Common stock dividends— (52)(52)
Contributions from parent— 
Balance, March 31, 2020$983 $596 $1,579 
Net income— 19 19 
Common stock dividends— (14)(14)
Contributions from parent100 — 100 
Balance, June 30, 2020$1,083 $601 $1,684 

See the Combined Notes to Consolidated Financial Statements
50





ATLANTIC CITY ELECTRIC COMPANY AND SUBSIDIARY COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)2021202020212020
Operating revenues
Electric operating revenues$306 $281 $605 $556 
Revenues from alternative revenue programs12 (26)23 (25)
Operating revenues from affiliates
Total operating revenues319 256 629 532 
Operating expenses
Purchased power149 128 302 254 
Purchased power from affiliate
Operating and maintenance39 48 82 94 
Operating and maintenance from affiliates34 34 68 66 
Depreciation and amortization40 44 87 86 
Taxes other than income taxes
Total operating expenses269 258 552 509 
Gain on sale of assets
Operating income (loss)50 (2)77 25 
Other income and (deductions)
Interest expense, net(14)(15)(29)(29)
Other, net
Total other income and (deductions)(14)(13)(27)(26)
Income (loss) before income taxes36 (15)50 (1)
Income taxes(1)(33)(1)(32)
Net income$37 $18 $51 $31 
Comprehensive income$37 $18 $51 $31 
See the Combined Notes to Consolidated Financial Statements
51




ATLANTIC CITY ELECTRIC COMPANY AND SUBSIDIARY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
(In millions)20212020
Cash flows from operating activities
Net income$51 $31 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization87 86 
Deferred income taxes and amortization of investment tax credits(2)(30)
Other non-cash operating activities(14)34 
Changes in assets and liabilities:
Accounts receivable(30)(23)
Receivables from and payables to affiliates, net
Inventories
Accounts payable and accrued expenses(2)17 
Income taxes
Pension and non-pension postretirement benefit contributions(3)(2)
Other assets and liabilities(25)(68)
Net cash flows provided by operating activities70 58 
Cash flows from investing activities
Capital expenditures(239)(178)
Other investing activities
Net cash flows used in investing activities(239)(173)
Cash flows from financing activities
Changes in short-term borrowings(9)(65)
Issuance of long-term debt350 123 
Retirement of long-term debt(249)(34)
Changes in PHI intercompany money pool
Dividends paid on common stock(229)(35)
Contributions from parent303 116 
Other financing activities(4)(1)
Net cash flows provided by financing activities162 109 
Decrease in cash, restricted cash, and cash equivalents(7)(6)
Cash, restricted cash, and cash equivalents at beginning of period30 28 
Cash, restricted cash, and cash equivalents at end of period$23 $22 
Supplemental cash flow information
(Decrease) increase in capital expenditures not paid$(13)$
See the Combined Notes to Consolidated Financial Statements
52




ATLANTIC CITY ELECTRIC COMPANY AND SUBSIDIARY COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
ASSETS
Current assets
Cash and cash equivalents$11 $17 
Restricted cash and cash equivalents
Accounts receivable
Customer accounts receivable188156
Customer allowance for credit losses(36)(32)
Customer accounts receivable, net152 124 
Other accounts receivable6972
Other allowance for credit losses(13)(11)
Other accounts receivable, net56 61 
Receivables from affiliates
Inventories, net35 37 
Prepaid utility taxes37 
Regulatory assets53 75 
Other
Total current assets353 326 
Property, plant, and equipment (net of accumulated depreciation and amortization of $1,358 and $1,303 as of June 30, 2021 and December 31, 2020, respectively)3,614 3,475 
Deferred debits and other assets
Regulatory assets422 395 
Prepaid pension asset35 40 
Other49 50 
Total deferred debits and other assets506 485 
Total assets(a)
$4,473 $4,286 
See the Combined Notes to Consolidated Financial Statements
53




ATLANTIC CITY ELECTRIC COMPANY AND SUBSIDIARY COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)June 30, 2021December 31, 2020
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Short-term borrowings$178 $187 
Long-term debt due within one year13 261 
Accounts payable170 177 
Accrued expenses38 46 
Payables to affiliates30 31 
Customer deposits20 23 
Regulatory liabilities39 44 
Other11 11 
Total current liabilities499 780 
Long-term debt1,502 1,152 
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits643 624 
Non-pension postretirement benefit obligations14 17 
Regulatory liabilities252 274 
Other47 48 
Total deferred credits and other liabilities956 963 
Total liabilities(a)
2,957 2,895 
Commitments and contingencies00
Shareholder's equity
Common stock1,574 1,271 
Retained (deficit) earnings(58)120 
Total shareholder's equity1,516 1,391 
Total liabilities and shareholder's equity$4,473 $4,286 
__________
(a)ACE’s consolidated total assets include $12 million and $13 million at June 30, 2021 and December 31, 2020, respectively, of ACE's consolidated VIE that can only be used to settle the liabilities of the VIE. ACE’s consolidated total liabilities include $11 million and $21 million at June 30, 2021 and December 31, 2020, respectively, of ACE's consolidated VIE for which the VIE creditors do not have recourse to ACE. See Note 17 — Variable Interest Entities for additional information.
See the Combined Notes to Consolidated Financial Statements
54




ATLANTIC CITY ELECTRIC COMPANY AND SUBSIDIARY COMPANY
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(Unaudited)
Six Months Ended June 30, 2021
(In millions)Common StockRetained Earnings (Deficit)Total Shareholder's Equity
Balance, December 31, 2020$1,271 $120 $1,391 
Net income— 14 14 
Common stock dividends— (14)(14)
Contributions from parent303 — 303 
Balance, March 31, 2021$1,574 $120 $1,694 
Net income— 37 37 
Common stock dividends— (215)(215)
Balance, June 30, 2021$1,574 $(58)$1,516 

Six Months Ended June 30, 2020
(In millions)Common StockRetained EarningsTotal Shareholder's Equity
Balance, December 31, 2019$1,154 $122 $1,276 
Net income— 13 13 
Common stock dividends— (23)(23)
Contributions from parent— 
Balance, March 31, 2020$1,155 $112 $1,267 
Net income— 18 18 
Common stock dividends— (12)(12)
Contributions from parent115— 115 
Balance, June 30, 2020$1,270 $118 $1,388 

See the Combined Notes to Consolidated Financial Statements
55




COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share data, unless otherwise noted)

Note 1 — Significant Accounting Policies

1. Significant Accounting Policies (All Registrants)
Description of Business (All Registrants)
Exelon is a utility services holding company engaged in the generation, delivery and marketing of energy through Generation and the energy distribution and transmission businesses through ComEd, PECO, BGE, Pepco, DPL, and ACE.
Name of Registrant  Business  Service Territories
Exelon Generation
Company, LLC
Generation, physical delivery and marketing of power across multiple geographical regions through its customer-facing business, Constellation, which sells electricity to both wholesale and retail customers. Generation also sells natural gas, renewable energy, and other energy-related products and services.Five reportable segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions
Commonwealth Edison CompanyPurchase and regulated retail sale of electricityNorthern Illinois, including the City of Chicago
Transmission and distribution of electricity to retail customers
PECO Energy CompanyPurchase and regulated retail sale of electricity and natural gasSoutheastern Pennsylvania, including the City of Philadelphia (electricity)
Transmission and distribution of electricity and distribution of natural gas to retail customersPennsylvania counties surrounding the City of Philadelphia (natural gas)
Baltimore Gas and Electric CompanyPurchase and regulated retail sale of electricity and natural gasCentral Maryland, including the City of Baltimore (electricity and natural gas)
Transmission and distribution of electricity and distribution of natural gas to retail customers
Pepco Holdings LLCUtility services holding company engaged, through its reportable segments Pepco, DPL, and ACEService Territories of Pepco, DPL, and ACE
Potomac Electric 
Power Company
  Purchase and regulated retail sale of electricity  District of Columbia, and major portions of Montgomery and Prince George’s Counties, Maryland
Transmission and distribution of electricity to retail customers
Delmarva Power &
Light Company
Purchase and regulated retail sale of electricity and natural gasPortions of Delaware and Maryland (electricity)
Transmission and distribution of electricity and distribution of natural gas to retail customersPortions of New Castle County, Delaware (natural gas)
Atlantic City Electric CompanyPurchase and regulated retail sale of electricityPortions of Southern New Jersey
Transmission and distribution of electricity to retail customers
Basis of Presentation (All Registrants)
This is a combined quarterly report of all Registrants. The Notes to the Consolidated Financial Statements apply to the Registrants as indicated parenthetically next to each corresponding disclosure. When appropriate, the Registrants are named specifically for their related activities and disclosures. Each of the Registrant’s Consolidated Financial Statements includes the accounts of its subsidiaries. All intercompany transactions have been eliminated.
Through its business services subsidiary, BSC, Exelon provides its subsidiaries with a variety of support services at cost, including legal, human resources, financial, information technology, and supply management services. PHI also has a business services subsidiary, PHISCO, which provides a variety of support services at cost, including legal, accounting, engineering, customer operations, distribution and transmission planning, asset management, system operations, and power procurement, to PHI operating companies. The costs of BSC and PHISCO are directly charged or allocated to the applicable subsidiaries. The results of Exelon’s corporate operations are presented as “Other” within the consolidated financial statements and include intercompany eliminations unless otherwise disclosed.
The accompanying consolidated financial statements as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 are unaudited but, in the opinion of the management of each Registrant include all adjustments that are considered necessary for a fair statement of the Registrants’ respective financial statements in accordance with GAAP. All adjustments are of a normal, recurring nature, except as otherwise
56




COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share data, unless otherwise noted)

Note 1 — Significant Accounting Policies
disclosed. The December 31, 2020 Consolidated Balance Sheets were derived from audited financial statements. Financial results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the fiscal year ending December 31, 2021. These Combined Notes to Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC for Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
2. Mergers, Acquisitions, and Dispositions (Exelon and Generation)
CENG Put Option (Exelon and Generation)
Generation owns a 50.01% membership interest in CENG, a joint venture with EDF, which wholly owns the Calvert Cliffs and Ginna nuclear stations and Nine Mile Point Unit 1, in addition to an 82% undivided ownership interest in Nine Mile Point Unit 2. CENG is 100% consolidated in Exelon's and Generation's financial statements. See Note 17 — Variable Interest Entities for additional information.
On April 1, 2014, Generation and EDF entered into various agreements including a NOSA, an amended LLC Operating Agreement, an Employee Matters Agreement, and a Put Option Agreement, among others. Under the amended LLC Operating Agreement, CENG made a $400 million special distribution to EDF and committed to make preferred distributions to Generation until Generation has received aggregate distributions of $400 million plus a return of 8.50% per annum.
Under the terms of the Put Option Agreement, EDF has the option to sell its 49.99% equity interest in CENG to Generation exercisable beginning on January 1, 2016 and thereafter until June 30, 2022. The Put Option Agreement’s terms also provide that in the event the put closing has not been completed prior to the 18-month anniversary of the exercise date, EDF may withdraw its exercise notice. In the event of a withdrawal, EDF retains the right to exercise the put option until the later of June 30, 2022 and 18 months following the date of withdrawal, but in no event later than January 1, 2024. EDF is not entitled to this withdrawal right in the event it breaches any provision of the Put Option Agreement that results in the failure of the put to close on or before the 18-month anniversary of the exercise date.
The Put Option Agreement provides that the purchase price is to be determined by agreement of the parties, or absent such agreement, by a third-party arbitration process. The third parties determining fair market value of EDF’s 49.99% interest are to take into consideration all rights and obligations under the LLC Operating Agreement and Employee Matters Agreement including but not limited to Generation’s rights with respect to any unpaid aggregate preferred distributions and the related return. As of June 30, 2021, the total unpaid aggregate preferred distributions and related return owed to Generation is $645 million. 
On November 20, 2019, Generation received notice of EDF’s intention to exercise the put option to sell its interest in CENG to Generation, and the put automatically exercised on January 19, 2020 at the end of the sixty-day advance notice period. At this time, Generation cannot reasonably predict the ultimate purchase price that will be paid to EDF for its interest in CENG. The transaction required approval by the FERC and the NYPSC, which approvals were received on July 30, 2020 and April 15, 2021, respectively. The sale process is currently expected to close in the second half of 2021. EDF has not exercised its right to withdraw the exercise of the put, which right became effective on July 19, 2021.
Agreement for Sale of Generation’s Solar Business (Exelon and Generation)
On December 8, 2020, Generation entered into an agreement with an affiliate of Brookfield Renewable, for the sale of a significant portion of Generation’s solar business, including 360 MW of generation in operation or under construction across more than 600 sites across the United States. Generation will retain certain solar assets not included in this agreement, primarily Antelope Valley.
Completion of the transaction contemplated by the sale agreement was subject to the satisfaction of several closing conditions which were satisfied in the first quarter of 2021. The sale was completed on March 31, 2021 for a purchase price of $810 million. Generation received cash proceeds of $675 million, net of $125 million long-term debt assumed by the buyer and certain working capital and other post-closing adjustments. Exelon and
57




COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in millions, except per share data, unless otherwise noted)

Note 2 — Mergers, Acquisitions, and Dispositions
Generation recognized a pre-tax gain of $68 million which is included in Gain on sales of assets and businesses in Exelon’s and Generation’s Consolidated Statements of Operations and Comprehensive Income.
See Note 17 — Debt and Credit Agreements of the Exelon 2020 Form 10-K for additional information on the SolGen nonrecourse debt included as part of the transaction.
Agreement for the Sale of a Generation Biomass Facility (Exelon and Generation)
On April 28, 2021, Generation and ReGenerate Energy Holdings, LLC (“ReGenerate”) entered into a purchase agreement, under which ReGenerate agreed to purchase Generation’s interest in the Albany Green Energy biomass facility. As a result, in the second quarter of 2021, Exelon and Generation recorded a pre-tax impairment charge of $140 million within Operating and maintenance expense in Exelon’s and Generation’s Consolidated Statements of Operations and Comprehensive Income. Completion of the transaction was subject to the satisfaction of various customary closing conditions which were satisfied in the second quarter of 2021. The sale was completed on June 30, 2021 for a net purchase price of $36 million.
3. Regulatory Matters (All Registrants)
As discussed in Note 3 — Regulatory Matters of the Exelon 2020 Form 10-K, the Registrants are involved in rate and regulatory proceedings at the FERC and their state commissions. The following discusses developments in 2021 and updates to the 2020 Form 10-K.
Utility Regulatory Matters (Exelon, PHI, and the Utility Registrants)
Distribution Base Rate Case Proceedings
The following tables show the completed and pending distribution base rate case proceedings in 2021.
58




COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Regulatory Matters
Completed Distribution Base Rate Case Proceedings
Registrant/JurisdictionFiling DateServiceRequested Revenue Requirement (Decrease) IncreaseApproved Revenue Requirement (Decrease) IncreaseApproved ROEApproval DateRate Effective Date
ComEd - Illinois(a)
April 16, 2020Electric$(11)$(14)8.38 %December 9, 2020January 1, 2021
PECO - PennsylvaniaSeptember 30, 2020Natural Gas69 29 10.24 %June 22, 2021July 1, 2021
BGE - Maryland(b)
May 15, 2020 (amended September 11, 2020)Electric203 140 9.50 %December 16, 2020January 1, 2021
Natural Gas108 74 9.65 %
Pepco - District of Columbia(c)
May 30, 2019 (amended June 1, 2020)Electric136 109 9.275 %June 8, 2021July 1, 2021
Pepco - Maryland(d)
October 26, 2020 (amended March 31, 2021)Electric104 52 9.55 %June 28, 2021June 28, 2021
ACE - New Jersey(e)
December 9, 2020 (amended February 26, 2021)Electric67 41 9.60 %July 14, 2021January 1, 2022
__________
(a)ComEd's 2021 approved revenue requirement reflects an increase of $50 million for the initial year revenue requirement for 2021 and a decrease of $64 million related to the annual reconciliation for 2019. The revenue requirement for 2021 and the revenue requirement for 2019 provide for a weighted average debt and equity return on distribution rate base of 6.28%, inclusive of an allowed ROE of 8.38%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points.
(b)Reflects a three-year cumulative multi-year plan for 2021 through 2023. The MDPSC awarded BGE electric revenue requirement increases of $59 million, $39 million, and $42 million, before offsets, in 2021, 2022, and 2023, respectively, and natural gas revenue requirement increases of $53 million, $11 million, and $10 million, before offsets, in 2021, 2022, and 2023, respectively. BGE proposed to use certain tax benefits to fully offset the increases in 2021 and 2022 and partially offset the increase in 2023. However, the MDPSC only utilized the tax benefits to fully offset the increases in 2021 such that customer rates will remain unchanged from 2020 to 2021. The MDPSC has deferred a decision on whether to use certain tax benefits to offset the customer rate increases in 2022 and 2023 and BGE cannot predict the outcome.
(c)Reflects a cumulative multi-year plan with 18-months remaining in 2021 through 2022. The DCPSC awarded Pepco electric incremental revenue requirement increases of $42 million and $67 million, before offsets, for the remainder of 2021 and 2022, respectively. However, the DCPSC utilized the acceleration of refunds for certain tax benefits along with other rate relief to partially offset the customer rate increases by $22 million and $40 million for the remainder of 2021 and 2022, respectively.
(d)Reflects a three-year cumulative multi-year plan for April 1, 2021 through March 31, 2024. The MDPSC awarded Pepco electric incremental revenue requirement increases of $21 million, $16 million, and $15 million, before offsets, for the 12-month periods ending March 31, 2022, 2023, and 2024, respectively. Pepco proposed to utilize certain tax benefits to fully offset the increase through 2023 and partially offset customer rate increases in 2024. However, the MDPSC only utilized the acceleration of refunds for certain tax benefits to fully offset the increases such that customer rates remain unchanged through March 31, 2022. The MDPSC has deferred decision on whether to use additional tax benefits to offset customer rate increases for periods after March 31, 2022 and Pepco cannot predict the outcome.
(e)Requested and approved increases are before New Jersey sales and use tax. The order allows ACE to retain approximately $11 million of certain tax benefits which will result in a decrease to income tax expense within Exelon's, PHI's, and ACE's Consolidated Statements of Operations and Comprehensive Income in the third quarter of 2021.
59




COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Regulatory Matters
Pending Distribution Base Rate Case Proceedings
Registrant/JurisdictionFiling DateServiceRequested Revenue Requirement IncreaseRequested ROEExpected Approval Timing
ComEd - Illinois(a)
April 16, 2021Electric$51 7.36 %Fourth quarter of 2021
PECO - PennsylvaniaMarch 30, 2021Electric246 10.95 %Fourth quarter of 2021
DPL - Delaware(b)
March 6, 2020 (amended February 2, 2021)Electric23 10.3 %Third quarter of 2021
__________
(a)ComEd's 2022 requested revenue requirement reflects an increase of $40 million for the initial year revenue requirement for 2022 and an increase of $11 million related to the annual reconciliation for 2020. The revenue requirement for 2022 provides for a weighted average debt and equity return on distribution rate base of 5.72%, inclusive of an allowed ROE of 7.36%, reflecting the average monthly yields for 30-year treasury bonds plus 580 basis points. The reconciliation revenue requirement for 2020 provides for a weighted average debt and equity return on distribution rate base of 5.69%, inclusive of an allowed ROE of 7.29%, reflecting the average monthly yields for 30-year treasury bonds plus 580 basis points less a performance metrics penalty of 7 basis points.
(b)The rates went into effect on October 6, 2020, subject to refund.
Transmission Formula Rates
The Utility Registrants' transmission rates are each established based on a FERC-approved formula. ComEd, BGE, Pepco, DPL, and ACE are required to file an annual update to the FERC-approved formula on or before May 15, and PECO is required to file on or before May 31, with the resulting rates effective on June 1 of the same year. The annual update for ComEd is based on prior year actual costs and current year projected capital additions (initial year revenue requirement). The annual update for PECO is based on prior year actual costs and current year projected capital additions, accumulated depreciation, and accumulated deferred income taxes. The annual update for BGE, Pepco, DPL, and ACE is based on prior year actual costs and current year projected capital additions, accumulated depreciation, depreciation and amortization expense, and accumulated deferred income taxes. The update for ComEd also reconciles any differences between the revenue requirement in effect beginning June 1 of the prior year and actual costs incurred for that year (annual reconciliation). The update for PECO, BGE, Pepco, DPL, and ACE also reconciles any differences between the actual costs and actual revenues for the calendar year (annual reconciliation).
For 2021, the following total increases/(decreases) were included in the Utility Registrants’ electric transmission formula rate updates:
Registrant(a)
Initial Revenue Requirement Increase (Decrease)Annual Reconciliation Increase
Total Revenue Requirement Increase(b)
Allowed Return on Rate Base(c)
Allowed ROE(d)
ComEd$33 $12 $45 8.20 %11.50 %
PECO(2)26 24 7.37 %10.35 %
BGE38 27 65 7.35 %10.50 %
Pepco(9)21 12 7.68 %10.50 %
DPL19 33 52 7.20 %10.50 %
ACE27 24 51 7.45 %10.50 %
__________
(a)All rates are effective June 1, 2021 - May 31, 2022, subject to review by interested parties pursuant to review protocols of each Utility Registrants' tariff.
(b)In 2020, ComEd, BGE, Pepco, DPL, and ACE's transmission revenue requirement included a one-time decrease in accordance with the April 24, 2020 settlement agreement related to excess deferred income taxes which now completed has resulted in an increase to the 2021 transmission revenue requirement. In 2020, PECO's transmission revenue requirement included a one-time decrease in accordance with the December 5, 2019 settlement agreement related to refunds which now completed has resulted in an increase to the 2021 transmission revenue requirement.
(c)Represents the weighted average debt and equity return on transmission rate bases.
(d)As part of the FERC-approved settlements of ComEd’s 2007 and PECO's 2017 rate cases, the rate of return on common equity is 11.50% and 10.35%, respectively, inclusive of a 50-basis-point incentive adder for being a member of a RTO, and
60




COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Regulatory Matters
the common equity component of the ratio used to calculate the weighted average debt and equity return for the transmission formula rate is currently capped at 55% and 55.75%, respectively. As part of the FERC-approved settlement of the ROE complaint against BGE, Pepco, DPL, and ACE, the rate of return on common equity is 10.50%, inclusive of a 50-basis-point incentive adder for being a member of a RTO.
Other State Regulatory Matters
Illinois Regulatory Matters
Energy Efficiency Formula Rate (Exelon and ComEd). ComEd filed its annual energy efficiency formula rate update with the ICC on June 1, 2021. The filing establishes the revenue requirement used to set the rates that will take effect in January 2022 after the ICC’s review and approval. The requested revenue requirement update is based on a reconciliation of the 2020 actual costs plus projected 2022 expenditures.
Initial Revenue Requirement IncreaseAnnual Reconciliation DecreaseTotal Revenue Requirement Increase
Requested Return on Rate Base(a)
Requested ROE
$55 $(1)$54 5.72 %7.36 %
__________
(a)The requested revenue requirement increase provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 5.72% inclusive of an allowed ROE of 7.36%, reflecting the monthly average yields for 30-year treasury bonds plus 580 basis points. For the 2020 reconciliation year, the requested revenue requirement provides for a weighted average debt and equity return on the energy efficiency regulatory asset and rate base of 6.26% inclusive of an allowed ROE of 8.46%, which includes an upward performance adjustment that increased the ROE. The performance adjustment can either increase or decrease the ROE based upon the achievement of energy efficiency savings goals.
Maryland Regulatory Matters
Maryland Order Directing the Distribution of Energy Assistance Funds (Exelon, BGE, PHI, Pepco, and DPL). On June 15, 2021, the MDPSC issued an order authorizing the disbursal of funds to utilities in accordance with Maryland COVID-19 relief legislation. Upon receipt, the funds are to be used to reduce or eliminate certain qualifying past-due residential customer receivables. Under this order, BGE, Pepco, and DPL received funds of $50 million, $12 million, and $8 million, respectively, in July 2021.
New Jersey Regulatory Matters
Advanced Metering Infrastructure Filing (Exelon, PHI, and ACE). On August 26, 2020, ACE filed an application with the NJBPU as was required seeking approval to deploy a smart energy network in alignment with New Jersey’s Energy Master Plan and Clean Energy Act. The proposal consisted of estimated costs totaling $220 million with deployment taking place over a 3-year implementation period from approximately 2021 to 2024 that involves the installation of an integrated system of smart meters for all customers accompanied by the requisite communications facilities and data management systems.
On July 14, 2021, the NJBPU approved the settlement filed by ACE and the third parties to the proceeding. The approved settlement addresses all material aspects of ACE's smart energy network deployment plan, including cost recovery of the investment costs, incremental O&M expenses, and the unrecovered balance of existing infrastructure through future distribution rates.
Regulatory Assets and Liabilities
The Utility Registrants' regulatory assets and liabilities have not changed materially since December 31, 2020, unless noted below. See Note 3 — Regulatory Matters of the Exelon 2020 Form 10-K for additional information on the specific regulatory assets and liabilities.
ComEd. Regulatory assets increased $116 million primarily due to an increase of $67 million in the Electric Distribution Formula Rate Annual Reconciliations regulatory asset and $85 million in the Energy Efficiency Costs regulatory asset, partially offset by a decrease of $36 million in the renewable energy regulatory asset.
PECO. Regulatory assets increased $95 million primarily due to an increase of $81 million in the Deferred Income Taxes regulatory asset and $12 million in the Vacation Accrual regulatory asset. Regulatory liabilities
61




COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Regulatory Matters
increased by $85 million primarily due to an increase of $96 million in the Nuclear Decommissioning regulatory liability partially offset by a $13 million decrease in the Electric Energy and Natural Gas Costs regulatory liability.
BGE. Regulatory liabilities decreased $109 million primarily due to a decrease of $111 million in the Deferred Income Taxes regulatory liability.
Pepco. Regulatory liabilities decreased $53 million primarily due to a decrease of $46 million in the Deferred Income Taxes regulatory liability and $14 million in the Transmission Formula Rate regulatory liability partially offset by an increase of $10 million in various regulatory liabilities as a result of the Pepco DC multi-year plan.
DPL. Regulatory liabilities decreased $32 million primarily due to a decrease of $26 million in the Deferred Income Taxes regulatory liability and $9 million in the Transmission Formula Rate regulatory liability.
ACE. Regulatory liabilities decreased $27 million primarily due to a decrease of $20 million in the Deferred Income Taxes regulatory liability and $6 million in the Transmission Formula Rate regulatory liability.
Capitalized Ratemaking Amounts Not Recognized
The following table presents authorized amounts capitalized for ratemaking purposes related to earnings on shareholders’ investment that are not recognized for financial reporting purposes in Exelon's and the Utility Registrant's Consolidated Balance Sheets. These amounts will be recognized as revenues in the related Consolidated Statements of Operations and Comprehensive Income in the periods they are billable to the Utility Registrants' customers.
Exelon
ComEd(a)
PECO
BGE(b)
PHI
Pepco(c)
DPL(c)
ACE
June 30, 2021$48 $$$41 $$$$
December 31, 202051 (1)45 
__________
(a)Reflects ComEd's unrecognized equity returns/(losses) earned/(incurred) for ratemaking purposes on its electric distribution formula rate regulatory assets.
(b)BGE's authorized amounts capitalized for ratemaking purposes primarily relate to earnings on shareholders' investment on its AMI programs.
(c)Pepco's and DPL's authorized amounts capitalized for ratemaking purposes relate to earnings on shareholders' investment on their respective AMI Programs and Energy Efficiency and Demand Response Programs. The earnings on energy efficiency are on Pepco DC and DPL DE programs only.
Generation Regulatory Matters (Exelon and Generation)
Impacts of the February 2021 Extreme Cold Weather Event and Texas-based Generating Assets Outages
Beginning on February 15, 2021, Generation’s Texas-based generating assets within the ERCOT market, specifically Colorado Bend II, Wolf Hollow II, and Handley, experienced outages as a result of extreme cold weather conditions. In addition, those weather conditions drove increased demand for service, dramatically increased wholesale power prices, and also increased gas prices in certain regions. In response to the high demand and significantly reduced total generation on the system, the PUCT directed ERCOT to use an administrative price cap of $9,000 per MWh during firm load shedding events.
The estimated impact to Exelon’s and Generation’s Net income for the six months ended June 30, 2021 arising from these market and weather conditions was a reduction of approximately $880 million. The estimated impact to Exelon's and Generation's Net income for the three months ended June 30, 2021 was not material. The ultimate impact to Exelon’s and Generation’s consolidated financial statements for the full year 2021 may be affected by a number of factors, including final settlement data, the impacts of customer and counterparty credit losses, any state or federal solutions to address the financial challenges caused by the event, and related litigation and contract disputes.
During February and March 2021, various parties with differing interests, including generators and retail providers, filed requests with the PUCT to void the PUCT’s orders setting prices at $9,000 per MWh during firm load shedding events. Other requests were made for the PUCT to enforce its order and reduce prices for 33 hours between February 18 and February 19 after firm load shedding ceased, and to cap ancillary services at $9,000 per MWh. On March 2, 2021, a third party filed a notice of appeal in the Court of Appeals for the Third
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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Regulatory Matters
District of Texas challenging the validity of the PUCT’s actions. Generation intervened in that appeal and filed its initial brief on June 2, 2021. On April 19, 2021, Generation filed a declaratory action and request for judicial review of the PUCT’s orders setting prices at $9,000 per MWh in District Court of Travis County, Texas. Generation subsequently requested that the District Court of Travis County, Texas stay its proceeding pending action by the Court of Appeals in the third party proceeding. On May 17, 2021, Generation amended its petition for declaratory action and request for judicial review pending in the District Court of Travis County, Texas. Exelon and Generation cannot predict the outcome of these proceedings or the financial statement impact.
Due to these events, a number of ERCOT market participants experienced bankruptcies or defaulted on payments to ERCOT, resulting in approximately a $3.0 billion payment shortfall in collections, which is allocated to the remaining ERCOT market participants. As of June 30, 2021, Generation has recorded its portion of this obligation of approximately $17 million on a discounted basis, which is to be paid over a term of 83 years. ERCOT rules historically have limited recovery of default from market participants to $2.5 million per month market-wide. In February 2021, the PUCT gave ERCOT discretion to disregard those rules, but ERCOT has declined to exercise that discretion thus far. On March 8, 2021, a third party filed a notice of appeal in the Court of Appeals for the Third District of Texas challenging the validity of the PUCT's order to ERCOT in February 2021. Generation intervened in that appeal and filed its initial brief on July 7, 2021. On May 7, 2021, Generation filed a declaratory action and request for judicial review of the PUCT's order in the District Court of Travis County, Texas. Generation subsequently requested that the District Court of Travis County, Texas stay its proceeding pending action by the Court of Appeals in the third party proceeding. Exelon and Generation cannot predict the outcome of these proceedings or the financial statement impact. Additionally, several legislative proposals were introduced in the Texas legislature during February and March 2021 concerning the amount, timing and allocation of recovery of the $3.0 billion shortfall, as well as recovery of other costs associated with the PUCT's directive to set prices at $9,000 per MWh. Two of these proposals were enacted into law in June 2021 and establish financing mechanisms that ERCOT and certain market participants can utilize to fund amounts owed to ERCOT. Exelon and Generation are monitoring the implementation of the legislation, which could result in further adjustment to Generation's portion of the obligation.
In addition, other legislative proposals were introduced in the Texas legislature during February and March 2021 addressing cold-weather preparation for power plants and natural gas production and transportation infrastructure and the market structure for reliability services. The Texas legislature addressed these proposals by enacting a bill with a broad set of market reforms that, among other things, directed the PUCT to establish weatherization standards for electric generators within six months of enactment and gave the PUCT authority to impose administrative penalties if the new proposed standards, once adopted, are not met. On June 9, 2021, PUCT staff issued a request for comments regarding the conditions under which the PUCT should require the operation of electric generation facilities and Generation and other third parties responded on June 23, 2021. Exelon and Generation are monitoring and cannot predict the outcome of this proceeding, which could have a material adverse impact in Exelon’s and Generation’s consolidated financial statements. The legislation also directs the PUCT to evaluate whether additional ancillary services are needed for reliability in the ERCOT power region to provide adequate incentives for dispatchable generation. This evaluation is expected to be taken up by the PUCT later in 2021.
In February 2021, more than 70 local distribution companies (LDCs) and natural gas pipelines in multiple states throughout the mid-continent region, where Generation serves natural gas customers, issued operational flow orders (OFOs), curtailments or other limitations on natural gas transportation or use to manage the operational integrity of the applicable LDC or pipeline system. When in effect, gas transportation or use above these limitations is subject to significant penalties according to the applicable LDCs’ and natural gas pipelines’ tariffs. Gas transportation and supply in many states became restricted due to wells freezing and pipeline compression disruption, while demand was increasing due to the extreme cold temperatures, resulting in extremely high natural gas prices. Due to the extraordinary circumstances, many LDCs and natural gas pipelines have either voluntarily waived or have sought applicable regulatory approvals to waive the tariff penalties associated with the extreme weather event. During March 2021, three natural gas pipelines filed individual petitions with the FERC requesting approval to waive OFO penalties. Generation also filed motions in March 2021 to intervene and filed comments in support of these FERC waiver requests. On March 25, 2021, the FERC issued an order on one of the petitions approving a pipeline’s request for a limited waiver of penalties for February 15, 2021. On April 23, 2021, Generation and several other entities filed a request for rehearing and a complaint requesting that FERC expand the order to include additional days of the weather event in February, from February 16 through February 19, 2021. During April 2021, the FERC issued orders on the remaining petitions approving the requests to waive the penalties. During May 2021, an LDC filed a motion with the Kansas Corporation Commission (KCC)
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Note 3 — Regulatory Matters
requesting the KCC to grant a waiver from the tariff and allow the LDC to reduce the amounts assessed by permitting the removal of a multiplier from the penalty calculation. Exelon and Generation cannot predict the outcome of the pending FERC complaint proceeding, the KCC proceeding, or the determinations made by the LDCs and natural gas pipelines.
New Jersey Regulatory Matters
New Jersey Clean Energy Legislation. On May 23, 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. Under the legislation, the NJBPU will issue ZECs to qualifying nuclear power plants and the electric distribution utilities in New Jersey, including ACE, will be required to purchase those ZECs. On April 18, 2019, the NJBPU approved the award of ZECs to Salem 1 and Salem 2. Upon approval, Generation began recognizing revenue for the sale of New Jersey ZECs in the month they are generated. On March 19, 2021, a three-judge panel of the Superior Court of New Jersey Appellate Division unanimously affirmed the NJBPU’s April 2019 order awarding ZECs for the first eligibility period. On April 8, 2021, New Jersey Rate Counsel filed a notice asking the New Jersey Supreme Court to hear the appeal of the Superior Court’s order. On July 9, 2021, the New Jersey Supreme Court declined to hear the appeal. On October 1, 2020, PSEG and Generation filed applications seeking ZECs for the second eligibility period (June 2022 through May 2025). On April 27, 2021, the NJBPU approved the award of ZECs to Salem 1 and Salem 2 for the second eligibility period. On May 11, 2021, the New Jersey Rate Counsel appealed the April 27, 2021 decision to the Superior Court of New Jersey Appellate Division. Exelon and Generation cannot predict the outcome of this proceeding. See Note 7 — Early Plant Retirements for additional information related to Salem.
New England Regulatory Matters
Mystic Units 8 & 9 and Everett Marine Terminal Cost of Service Agreement. On March 29, 2018, Generation notified grid operator ISO-NE of its plans to early retire Mystic Units 8 and 9 absent regulatory reforms on June 1, 2022. On May 16, 2018, Generation made a filing with FERC to establish cost-of-service compensation and terms and conditions of service for Mystic Units 8 & 9 for the period between June 1, 2022 - May 31, 2024. On December 20, 2018, FERC issued an order accepting the cost of service compensation, reflecting a number of adjustments to the annual fixed revenue requirement and allowing for recovery of a substantial portion of the costs associated with the adjacent Everett Marine Terminal acquired by Generation in October 2018. Those adjustments were reflected in a compliance filing made on March 1, 2019. In the December 20, 2018 order, FERC also directed a paper hearing on ROE using a new methodology. On January 22, 2019, Exelon and several other parties filed requests for rehearing of certain findings in the order. On July 15, 2021, FERC issued an order establishing the ROE to be used in the cost of service agreement for Mystic 8 and 9 at 9.33%.
On July 17, 2020, FERC issued three orders, which together affirmed the recovery of key elements of Mystic's cost of service compensation, including recovery of costs associated with the operation of the Everett Marine Terminal. FERC directed a downward adjustment to the rate base for Mystic Units 8 and 9, the effect of which will be partially offset by elimination of a crediting mechanism for third party gas sales during the term of the cost of service agreement. In addition, several parties filed protests to a compliance filing by Generation on September 15, 2020, taking issue with how gross plant in-service was calculated, and Generation filed an answer to the protests on October 21, 2020. On December 21, 2020, FERC issued an order on rehearing of the three July 17, 2020 orders, clarifying several cost of service provisions. Several parties appealed the December 21, 2020 order to the U.S. Court of Appeals for the D.C. Circuit and that appeal was consolidated with appeals of orders issued December 20, 2018 and July 17, 2020 in the Mystic proceeding. The briefing schedule for the consolidated appeal has not yet been set.
On February 25, 2021, Mystic made its filing to comply with the December 21, 2020 order. On April 26, 2021, FERC rejected Mystic’s language and directed another compliance filing relating to the claw back provision language, which only applies if Mystic 8 and 9 were to continue operation after the conclusion of the cost-of-service period. FERC’s April 26, 2021 order also accepted in part and rejected in part Mystic’s September 15, 2020 compliance filing. It directed a further compliance filing in 60 days consistent with the information provided in Mystic’s October 21, 2020 answer to protests, which Mystic filed on June 2, 2021.
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Note 3 — Regulatory Matters
On August 25, 2020, a group of New England generators filed a complaint against Generation seeking to extend the scope of the claw back provision in the cost-of-service agreement, whereby Generation would refund certain amounts recovered during the term of the cost of service if it returns to market afterwards. On April 15, 2021 FERC dismissed the complaint.
On February 16, 2021, Generation filed an unopposed motion to voluntarily dismiss an appeal filed with the U.S. Court of Appeals for the D.C. Circuit stemming from a June 2020 complaint filed with the FERC against ISO-NE over failures to follow its tariff in evaluating Mystic for transmission security for the 2024 to 2025 Capacity Commitment Period, which was granted on February 18, 2021.
See Note 7 — Early Plant Retirements for additional information on the impacts of Generation’s August 2020 decision to retire Mystic Units 8 & 9 upon expiration of the cost of service agreement.
Federal Regulatory Matters
PJM and NYISO MOPR Proceedings. PJM and NYISO capacity markets include a MOPR. If a resource is subjected to a MOPR, its offer is adjusted to effectively remove the revenues it receives through a state government-provided financial support program - resulting in a higher offer that may not clear the capacity market. Prior to December 19, 2019, the MOPR in PJM applied only to certain new gas-fired resources. Currently, the MOPR in NYISO applies only to certain resources in downstate New York.
For Generation’s facilities in PJM and NYISO that are currently receiving ZEC compensation, an expanded MOPR would require exclusion of ZEC compensation when bidding into future capacity auctions, resulting in an increased risk of these facilities not receiving capacity revenues in future auctions.

On December 19, 2019, FERC required PJM to broadly apply the MOPR to all new and existing resources including nuclear, renewables, demand response, energy efficiency, storage, and all resources owned by vertically-integrated utilities. This greatly expands the breadth and scope of PJM’s MOPR, which is effective as of PJM’s next capacity auction. While FERC included some limited exemptions, no exemptions were available to state-supported nuclear resources.

FERC provided no new mechanism for accommodating state-supported resources other than the existing FRR mechanism (under which an entire utility zone would be removed from PJM’s capacity auction along with sufficient resources to support the load in such zone). In response to FERC’s order, PJM submitted a compliance filing on March 18, 2020 wherein PJM proposed tariff language interpreting and implementing FERC's directives, and proposed a schedule for resuming capacity auctions that is contingent on the timing of FERC's action on the compliance filing.

On April 16, 2020, FERC issued an order largely denying most requests for rehearing of FERC's December 2019 order but granting a few clarifications that required an additional PJM compliance filing which PJM submitted on June 1, 2020.
On October 15, 2020, FERC issued an order denying requests for rehearing of its April 16, 2020 order and accepting PJM’s two compliance filings, subject to a further compliance filing to revise minor aspects of the proposed MOPR methodology. As part of that order, FERC also accepted PJM’s proposal to condense the schedule of activities leading up to the next capacity auction. A number of parties, including Exelon, have filed petitions for review of FERC's orders in this proceeding, which remain pending before the Court of Appeals for the District of Columbia Circuit.
In November 2020, PJM announced that it will conduct its next capacity auction beginning on May 19, 2021 and ending on May 25, 2021 and will post the results on June 2, 2021. PJM conducted the auction as scheduled and, because neither Illinois nor New Jersey implemented an FRR program in their PJM zones, the MOPR applied in the capacity auction to Generation's owned or jointly owned nuclear plants in those states receiving a benefit under the Illinois ZES, or the New Jersey ZEC program. The MOPR prevented Quad Cities from clearing in the capacity auction.
At the direction of the PJM Board of Managers, PJM and its stakeholders are considering MOPR reforms to ensure that the capacity market rules respect and accommodate state resource preferences such as the ZEC
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(Dollars in millions, except per share data, unless otherwise noted)

Note 3 — Regulatory Matters
programs which PJM filed at FERC on July 30, 2021. Exelon cannot predict whether or when such changes can be implemented.
On February 20, 2020, FERC issued an order rejecting requests to expand NYISO’s version of the MOPR (referred to as buyer-side mitigation rules) beyond its current limited applicability to certain resources in downstate. However, on October 14, 2020, two natural gas-fired generators in New York filed a complaint at FERC seeking to expand the MOPR in NYISO to apply to all resources, new and existing, across the entire NYISO market. Exelon is strenuously opposing expansion of FERC’s MOPR policies in the NYISO market. While it is too early in the proceeding to predict its outcome and there are significant differences between the NYISO and PJM markets that would justify a different result, if FERC follows its MOPR precedent in PJM and applies the MOPR in NYISO broadly as requested in the complaint, Generation’s facilities in NYISO that are receiving ZEC compensation may be at increased risk of not clearing the capacity auction.
If Generation’s state-supported nuclear plants in PJM or NYISO are subjected to the MOPR or equivalent without compensation under an FRR or similar program, it could have a material adverse impact on Exelon's and Generation's financial statements, which Exelon and Generation cannot reasonably estimate at this time.
Operating License Renewals
Conowingo Hydroelectric Project. On August 29, 2012, Generation submitted a hydroelectric license application to FERC for a new license for the Conowingo Hydroelectric Project (Conowingo). In connection with Generation’s efforts to obtain a water quality certification pursuant to Section 401 of the Clean Water Act (401 Certification) from MDE for Conowingo, Generation had been working with MDE and other stakeholders to resolve water quality licensing issues, including: (1) water quality, (2) fish habitat, and (3) sediment.
On April 27, 2018, MDE issued its 401 Certification for Conowingo. On October 29, 2019, Generation and MDE filed with FERC a Joint Offer of Settlement (Offer of Settlement) that would resolve all outstanding issues relating to the 401 Certification. Pursuant to the Offer of Settlement, the parties submitted Proposed License Articles to FERC to be incorporated by FERC into the new license in accordance with FERC’s discretionary authority under the Federal Power Act.
On March 19, 2021, FERC issued a new 50-year license for Conowingo, effective March 1, 2021. FERC adopted the Proposed License Articles into the new license only making modifications it deemed necessary to allow FERC to enforce the Proposed License Articles. Consistent with the Offer of Settlement, FERC found that MDE waived its 401 Certification. On April 19, 2021, a few environmental groups filed with FERC a petition for rehearing requesting that FERC reconsider the issuance of the new Conowingo license, which was denied by operation of law on May 20, 2021. On June 17, 2021, the petitioners appealed FERC’s ruling to the United States Court of Appeals. On July 15, 2021, FERC issued an order addressing the arguments raised on rehearing, affirming the determinations of its March 19, 2021 order. Generation cannot predict the outcome of this proceeding.

4. Revenue from Contracts with Customers (All Registrants)
The Registrants recognize revenue from contracts with customers to depict the transfer of goods or services to customers at an amount that the entities expect to be entitled to in exchange for those goods or services. Generation’s primary sources of revenue include competitive sales of power, natural gas, and other energy-related products and services. The Utility Registrants’ primary sources of revenue include regulated electric and gas tariff sales, distribution, and transmission services.
See Note 4 — Revenue from Contracts with Customers of the Exelon 2020 Form 10-K for additional information regarding the primary sources of revenue for the Registrants.
Contract Balances (All Registrants)
Contract Assets
Generation records contract assets for the revenue recognized on the construction and installation of energy efficiency assets and new power generating facilities before Generation has an unconditional right to bill for and
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Note 4 — Revenue from Contracts with Customers
receive the consideration from the customer. These contract assets are subsequently reclassified to receivables when the right to payment becomes unconditional. Generation records contract assets and contract receivables within Other current assets and Customer accounts receivable, net, respectively, within Exelon’s and Generation’s Consolidated Balance Sheets.
The following table provides a rollforward of the contract assets reflected in Exelon's and Generation's Consolidated Balance Sheets for the three and six months ended June 30, 2021 and 2020. The Utility Registrants do not have any contract assets.
ExelonGeneration
Balance as of December 31, 2020$144 $144 
Amounts reclassified to receivables(16)(16)
Revenues recognized13 13 
Amounts previously held-for-sale12 12 
Balance as of March 31, 2021153 153 
Amounts reclassified to receivables(12)(12)
Revenues recognized
Balance as of June 30, 2021$150 $150 
ExelonGeneration
Balance as of December 31, 2019$174 $174 
Amounts reclassified to receivables(19)(19)
Revenues recognized17 17 
Balance as of March 31, 2020172 172 
Amounts reclassified to receivables(26)(26)
Revenues recognized13 13 
Balance as of June 30, 2020$159 $159 
Contract Liabilities
The Registrants record contract liabilities when consideration is received or due prior to the satisfaction of the performance obligations. The Registrants record contract liabilities within Other current liabilities and Other noncurrent liabilities within the Registrants' Consolidated Balance Sheets.
For Generation, these contract liabilities primarily relate to upfront consideration received or due for equipment service plans, and the Illinois ZEC program that introduces a cap on the total consideration to be received by Generation.
For PHI, Pepco, DPL, and ACE these contract liabilities primarily relate to upfront consideration received in the third quarter of 2020 for a collaborative arrangement with an unrelated owner and manager of communication infrastructure. The revenue attributable to this arrangement will be recognized as operating revenue over the 35 years under the collaborative arrangement.
The following table provides a rollforward of the contract liabilities reflected in Exelon's, Generation's, PHI's, Pepco's, DPL's, and ACE's Consolidated Balance Sheets for the three and six months ended June 30, 2021 and 2020. As of June 30, 2021 and December 31, 2020, ComEd's, PECO's, and BGE's contract liabilities were immaterial.
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(Dollars in millions, except per share data, unless otherwise noted)

Note 4 — Revenue from Contracts with Customers
ExelonGenerationPHIPepcoDPLACE
Balance as of December 31, 2020$151 $84 $118 $94 $12 $12 
Consideration received or due20 31 
Revenues recognized(27)(64)(2)(2)
Amounts previously held-for-sale
Balance as of March 31, 2021147 54 116 92 12 12 
Consideration received or due17 39 
Revenues recognized(32)(68)(3)(1)(1)(1)
Balance as of June 30, 2021$132 $25 $113 $91 $11 $11 
ExelonGenerationPHIPepcoDPLACE
Balance as of December 31, 2019$33 $71 $$$$
Consideration received or due20 55 
Revenues recognized(24)(70)
Balance as of March 31, 202029 56 
Consideration received or due13 34 
Revenues recognized(22)(63)
Balance as of June 30, 2020$20 $27 $$$$
The following table reflects revenues recognized in the three and six months ended June 30, 2021 and 2020, which were included in contract liabilities at December 31, 2020 and 2019, respectively:
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Exelon$17 $14 $34 $23 
Generation41 42 7961
PHI5
Pepco3
DPL1
ACE1
Transaction Price Allocated to Remaining Performance Obligations (All Registrants)
The following table shows the amounts of future revenues expected to be recorded in each year for performance obligations that are unsatisfied or partially unsatisfied as of June 30, 2021. This disclosure only includes contracts for which the total consideration is fixed and determinable at contract inception. The average contract term varies by customer type and commodity but ranges from one month to several years.
This disclosure excludes Generation's power and gas sales contracts as they contain variable volumes and/or variable pricing. This disclosure also excludes the Utility Registrants' gas and electric tariff sales contracts and transmission revenue contracts as they generally have an original expected duration of one year or less and, therefore, do not contain any future, unsatisfied performance obligations to be included in this disclosure.
20212022202320242025 and thereafterTotal
Exelon$149 $100 $46 $31 $180 $506 
Generation223 146 54 29 94 546 
PHI86 113 
Pepco71 91 
DPL11 
ACE11 
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Note 4 — Revenue from Contracts with Customers
Revenue Disaggregation (All Registrants)
The Registrants disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. See Note 5 — Segment Information for the presentation of the Registrant's revenue disaggregation.

5. Segment Information (All Registrants)
Operating segments for each of the Registrants are determined based on information used by the CODM in deciding how to evaluate performance and allocate resources at each of the Registrants.
Exelon has 11 reportable segments, which include Generation's 5 reportable segments consisting of the Mid-Atlantic, Midwest, New York, ERCOT, and all other power regions referred to collectively as “Other Power Regions” and ComEd, PECO, BGE, and PHI's 3 reportable segments consisting of Pepco, DPL, and ACE. ComEd, PECO, BGE, Pepco, DPL, and ACE each represent a single reportable segment, and as such, no separate segment information is provided for these Registrants. Exelon, ComEd, PECO, BGE, Pepco, DPL, and ACE's CODMs evaluate the performance of and allocate resources to ComEd, PECO, BGE, Pepco, DPL, and ACE based on net income.
The basis for Generation's reportable segments is the integrated management of its electricity business that is located in different geographic regions, and largely representative of the footprints of ISO/RTO and/or NERC regions, which utilize multiple supply sources to provide electricity through various distribution channels (wholesale and retail). Generation's hedging strategies and risk metrics are also aligned to these same geographic regions. Descriptions of each of Generation’s 5 reportable segments are as follows:
Mid-Atlantic represents operations in the eastern half of PJM, which includes New Jersey, Maryland, Virginia, West Virginia, Delaware, the District of Columbia, and parts of Pennsylvania and North Carolina.
Midwest represents operations in the western half of PJM and the United States footprint of MISO, excluding MISO’s Southern Region.
New York represents operations within NYISO.
ERCOT represents operations within Electric Reliability Council of Texas.
Other Power Regions:
New England represents the operations within ISO-NE.
South represents operations in the FRCC, MISO’s Southern Region, and the remaining portions of the SERC not included within MISO or PJM.
West represents operations in the WECC, which includes California ISO.
Canada represents operations across the entire country of Canada and includes AESO, OIESO, and the Canadian portion of MISO.
The CODMs for Exelon and Generation evaluate the performance of Generation’s electric business activities and allocate resources based on RNF. Generation believes that RNF is a useful measurement of operational performance. RNF is not a presentation defined under GAAP and may not be comparable to other companies’ presentations or deemed more useful than the GAAP information provided elsewhere in this report. Generation’s operating revenues include all sales to third parties and affiliated sales to the Utility Registrants. Purchased power costs include all costs associated with the procurement and supply of electricity including capacity, energy, and ancillary services. Fuel expense includes the fuel costs for Generation’s owned generation and fuel costs associated with tolling agreements. The results of Generation's other business activities are not regularly reviewed by the CODM and are therefore not classified as operating segments or included in the regional reportable segment amounts. These activities include natural gas, as well as other miscellaneous business activities that are not significant to Generation's overall operating revenues or results of operations. Further,
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Note 5 — Segment Information
Generation’s unrealized mark-to-market gains and losses on economic hedging activities and its amortization of certain intangible assets and liabilities relating to commodity contracts recorded at fair value from mergers and acquisitions are also excluded from the regional reportable segment amounts. Exelon and Generation do not use a measure of total assets in making decisions regarding allocating resources to or assessing the performance of these reportable segments.
An analysis and reconciliation of the Registrants’ reportable segment information to the respective information in the consolidated financial statements for the three and six months ended June 30, 2021 and 2020 is as follows:

Three Months Ended June 30, 2021 and 2020
GenerationComEdPECOBGEPHI
Other(a)
Intersegment
Eliminations
Exelon
Operating revenues(b)